Islamic business ethics in small and medium enterprises (SMEs) : an analysis

Islamic business ethics is essential for SME industry. The challenge of Islamic business ethics is to make
that inevitable ethical decision making explicit to make it better and in line with the Shariah principles.
Far from being anti-business, ethics actually provides essential support for maximizing long-term
business value. In an Islamic system, ethics and business are not only compatible but also inseparable
because Islam is not just a religion. It projects a perfect way of life. A human manner and behavior in
small and medium enterprises cannot be effectively clarified without references to the Islamic ethics
which can manage it. Thus, this paper will discuss the issues pertaining to the concept of business ethics
in Islamic perspective toward Small and Medium Enterprises (SMEs). This is because of their significant
contribution in the Malaysian economics at large. Furthermore, this study also explains how SME could
adapt the Islamic business ethics system in their day-to-day business activities.