When Sharia business meet Conventional business

literally a human will be sued for always working, not a hobby or just fill your leisure, but rather to meet the needs of his or her life. one trick is to do business. starting from the low, medium and among top indirectly certainly never done process business. However, the difference is how the process a business that they doin? business process such as whether they are doing? in outline, the process of business can be done with two chances are, that is Islamic or conventionally. in the opportunity this time I will discuss about the two kinds of process It's business. i.e. Sharia business processes and business processes conventional.

First I'll discuss beforehand about what that process Islamic business? According to febianto, irawan lecturer in islamic management and finance faculty of economis, university of padjadjaran indonesia, Islamic business can be defined as all kinds of business activities that cannot limited (in terms of quantity) the ownership of goods or services including the profits, but can be limited in terms of the way it get and the way it use (according to Sharia law). from the above statement can be said that a business process It can be said as if the process of Islamic business based on or made in accordance with Sharia law.

According to Shariah law, wealth is defined as everything that can be  used, legally, to Shariah law, such as business, debt, consumption,  and gift. Shariah law in Islam is a core value that becomes guidance,  strategically as well as tactically, for business organization. With  the guidance of Shariah, business is to get four main things (Yusanto  and Widjajakusuma, 2002):

-target result: profit-material and benefit-nonmaterial,

-growth,

-continuity,

-Allah blessing.

target result: profit-material and nonmaterial benefit-

Perhaps in a business process we often think only advantage.  any way to get it done with a variety of ways. one of them is with the riba. In Arabic term Riba is a synonym for the term interest used in conventional banking operations. In the words of Imam Abubakr Al-Jassas "The usury of Jahiliyya is a loan given for stipulated period with a stipulated increase on the principal payable by the loanee. " In the wholly Qura'n four verses are about Riba (interest) revealed on different occasions. The first verse is in Surah Al-Rum 30: 39iv whereby displeasure of God is disclosed for interest based practices. The second verse is in Sura An-Nisaa 4: 161 where interest charging was disclosed as sinful act of Jews. The third verse is part of Sura Al-i-Imran 3: 130 whereby prohibition of Riba (interest) was declared "O those who believe do not eat up riba doubled and redoubled. " The last verse revealed is reported in Al-Baqarah 2: 275 whereby severe punishment is declared for those dealing in interest. therefore do not think only in business profits sheer but also provides benefits to organizations nonmaterial the company's internal as well as external (environmental).

growth

While the material and nonmaterial profit benefit has been achieved according to company targets, company will try to achieve growth or constant development from those profits as well as the benefit.

continuity

able to maintain its business continuity process within the long. a company will continue to conduct the process by which the company will keep growing and sustainable destination points and surely it must also fit continuity with the corridor Shariah-compliant.

God's blessing

The factor or orientation to gain God's blessing is the highest contentment for every Muslim. If they achieved this, it remarks the accomplishment of two condition for every download action, which are the element of sincerity and the way or the process that in line with the corridor of Sharia. That is why all business managers should consistently put this orientation of blessingness, so that the achievement of all orientations will always be in line with Sharia that guarantee the blessingness from Allaah.

Then what the difference between the conventional business processes? Here's the difference:

FOUNDATION

Islamic: Transcendental valeu

conventional: secularism (material value)

MOTIVATION

islamic: here and hereafter

conventional: here in this world only

ORIENTATION

islamic: Profit and benefit (non-material), growth, continuity, God's blessing

conventional: profit, growth, continuity

WORK ETHOS

islamic: high, business is part of worship to God

conventional: High business is only daily needs

MENTAL ATTITUDE

Islamic: productive, manifestation as a muslim

conventional: productive and cosumptive at the same time, part of self actualization

SKILL

islamic: Skillful, consequences from obligations as Muslims

conventional: Skillful, consequences from reward and punishment motivation

TRUST

islamic: Trusty and responsible, ends does not justify the means

conventional: Depend on the willingness of individual (capital owner), ends justify the means

CAPITAL

islamic: Halal (according to Sharia law)

konvension: care about Sharia

HUMAN RESOURCE

islamic: Based on working agreement

conventional: Based on working agreement or based on capital owner decision

RESOURCES

islamic: Halal (according to Sharia law)

conventional: Does not care about Sharia

Source: adaptation of Ismail Yusanto, m. and Widjajakusuma, M. Karebet. (2002). initiated the Islamic Business. Jakarta: Gema Insani Press.

The Islamic system of management and finance focuses on effective disclosure requirement and documentation, values inspired personnel, caring employers, socially responsible investments, enhanced supply of risk-related capital, restricted risk taking, balanced return rate structure based on the real assets backed economic activities. It has the potential to provide a sound basis for sustainable development for socio-economic benefit of all business stake holders and the mankind as a whole. Therefore, the global business and management practices need to be geared with Islamic business concepts and practices strictly observing its original contours of management, justice and transparency. Above all, it would need human resources committed to serve the mankind with socio-economic considerations and accountability to the society and the Creator (SWT)- International Conference on Islamic Business ICIB- 2012 (27 - 29 Feb 2012)

in spite of all the above theory, we can assess which systems better. not just good for us but also for the good another. then wait let alone doing activities according to the corridor Shariah-compliant. can be started by using the sharia-based bank. starting from small things, we can make the changes that impact large. According to my notes. hopefully useful ...

REFERENCES

SHARIAH COMPLIANT MODEL OF BUSINESS ENTITIES-Irawan Febianto Lecturer in Islamic Management and Finance Faculty of Economics, University of Padjadjaran, Indonesia

Differences and Similarities in Islamic and Conventional Banking-Muhammad Hanif Assistant Professor, National University of Computer & Emerging Sciences, Islamabad PhD-Finance Scholar at International Islamic University, Islamabad, Pakistan-February 2011 

International Conference on Islamic Business ICIB- 2012 (27 - 29 Feb 2012)-"Managing Shariah Conforming Businesses: Prospects, Practices and Personnel"