Enhancing Ethics in the Private Sector Through Hisbah

I. Preamble

The choice between profit seeking and morality is rather an impossible mission. The gap between secularism  and spiritualism is widening, indeed. Are we experiencing an era of hedonism? Perhaps! Yet, the universally turning point is the resurgence of ethics.

Certainly, throughout history every culture has its own understanding of ethics - in theory and in practice as  well. Probably such cultural approach is embedded in a set of values. The conceptual morality may vary from society to another, but each has framed its own code of ethics. Most prominent of these is that which emerges from religion.

If there is one single attribute of Islam it must be morality. If there were two attributes, then both morality and reasoning take the lead: not in words only, but certainly in deeds. Prophet Mohammad said: "I have been ordained to complement the utmost dignified characters of all peoples". Allah praise His Prophet: "And you, O Mohammad (PBUH) have sublime morals" (68/4).

II. Quran (The Book) and Sunnah (Al Hadith)
 
One of the acceptable sayings of Prophet Mohammad is "Nine tenth of life subsistence lies in trading". Here  we should mention the distinct characteristics of Islamic economy:
(1) it is an integral part of an Islamic society  and its faiths; it is more of a holistic nature,
(2) the material and the moral aspects are two sides of the same  coin; hence, the moral criteria have to play a decisive role in making the final choice,
(3) Islamic economy includes moral commitment that comprises all aspects of human life. Private ownership is permissible, but within  the principle of trusteeship and social framework, and finally (4) the objective of an Islamic economy is to maintain a just social order in a just society for all - including non-Muslems!

In this respect Ibn Taymiyya has had a commendable universal statement: "God upholds the just state even if  it is unbelieving, but He does not uphold the unjust state even if it is Muslim."

According to Qur'an and Sunnah there are two interchangeable words: transgressor (disbeliever) and  mischievous (wrong doer). To quote: ".... I shall show you the home of evildoers (transgressors) ... I shall turn away from my Revelations those who behave arrogantly on the earth without right, even if they see every sign (ayah) they wil1 not believe in; and if they see the way of right conduct they will not adopt it, but, if they see the  way of error they choose it. That is because they disbelieve in our revelations and they give no heed to them."(7-145 & 146). learly this verse reveals that those who reject the faith (straight path) of Allah (God) and be disbelievers are irrational and immature as well. Hence, probably they become immoral: "Those who cheat,     swindle and double-cross others are NOT one of us (Muslim-Believers,)" warns Prophet Mohammad  vehemently.

The other term of fasadah is being mischievous, wrong-doer or evil-doer is also causing harm to other   people. A non-true believer tends to become unethical, and habitually practices incorrect and unjust actions  against everybody - even in counter with his fellow brothers of the same faith! As Qur'an states: "Corruption  has appeared on land and sea because of the evil deeds which men's hands have done .... (30:41).

The interference of Prophet Mohammad into the malpractices of the (Suk) market goes back to the year 622 AD (lst day of Hijrah) when He (PBUH) evoked the moisturized food, which may carry slightly a different weight, and ordered the merchant to put that food on top of the stack so the buyers can see for themselves.  Fraudulence likewise concealment of any specifications is strictly forbidden in Islamic business. It is sinful, because it overshadows fair value of any merchandise and/or services.
 

III WHY CORRUPTION?
 
Perhaps throughout history and among different peoples there has been some kind of corruption. The tendency to swindle has been experienced. Hence, infringement on others' rights and interests arises as a phenomenon, especially in a number of economic activities.

Nowadays, corruption is almost a common place. It covers a wide range of illegal practices, be that in simple old fashioned markets and/or in currently e-commerce. In other words, to forge or to steel could override manual cheating and hi-tech computerized items. For the latter a novel concept of illegality has been introduced under cyber ethics and its future implications. That is why it is worthwhile to ponder into the causes of corruption. Why people practice corrupt behavior worldwide?

The roots of such phenomenal corruption lie in a twin edge structure: politically we promulgate     that end justifies the means, plus an economic system that invariably maximizes profit taking. The former reflects an unwholesome attitude, while the latter turns business into one mono channel of profit seeking that in turn ensures money for the sake of money per se. Needless to remind ourselves of the Western proverb: money is  the root of all evils. Such a system is bound to beget immoral practices that lead to corruption. Much worse  when wrongdoing becomes habitual that may comprise all walks of life. Modernity and globalism also carry  with them the seeds of corruption. It permeates through day-to-day economic activities where numerous cases  of fraudulence erupt on the front pages of daily newspapers.

Both the public and private sectors are stricken by corruption engagement. Right from the top echelon of  public administration malpractices have been manipulated. The private sector is also active in wrongdoing  immorality. Being money seeker the private sector is probably the initiator of such mischievous conduct. Offering bribes normally induces concealment that in one way or another influences favorable decisions against public interest. Money talks; money is a highly influential power.

IV. ISLAMIC PERSPECTIVE

Islam is a total way of life. There are five dire necessities: religion (faith), reasoning-mind, soul (self), progeny  and money. Through the four main sources of knowledge: Qur'an (Sunnah), (ijma') (consensus of scholars) and qiyas (analogy) the necessities of life, basic needs of human beings, and/or any activities are all controlled by code(s) of ethics.

Mua'amalat (Transactions) in general and economic activities and its transactions in particular receive special attention in Islamic doctrine - in theory as well as in practice. Most sources refer to Islamic economy as METHODOLOGY rather than a system. This is because the accent is always on implementation and not on  theorization. Preaching in words may be commendable, but to translate verbatim into actions and deeds is by far more imperative. Quality imperative is authentically observed.

Al-Hisbah vs Anti-Corruption

In Islam economic activities, including business trading and its services, are controlled by Shari'a (within the foregoing four sources) in an Islamic society. Likewise, the system of Hisbah is an integral part of a just  economy in a just society. Luckily, that also provides the same for non-Muslims (Ahl Aldhimah) as residents in an Islamic society. Off-hand, a Muslim should not cheat a non-Muslim in business whatsoever. Prophet Mohammad: "Who ever (a Muslim) causes harm to dhimyee (non-Muslim) is also causing harm to me  (Mohammad); and I shall be his opponent on the Day of Judgement"! All are equal in the eyes of Allah (God).

On the question of Hisbah there is a voluminous literature that extends throughout a period from 622 to the year 1805 AD. Most of the sources on this subject are considered classic, especially during the fourteenth century AD. In this context, we can mention a few selected references: al-Qadi Abu ya'ali (d. 440 AH llth century, Imam Abu Hamid Al-Ghazali (d. 505 AH= 12th century, al-Shaizari (d. 589 AH 13th century), Imam Ibn Taymiyyah (d. 728=14th century) Imam Ibn Murad A1 Sanani A1 Hanafi (India) (d. lst quarter of 8th century AH = 14th century), and al-Qadhi Taj-uddin al-Sobki (d. 771 = end of 14th century).

Anti-corruption was the center of major responsibilities of any Islamic authority being government and/or public at large. In my opinion, the absence of Al-Hisbah nowadays is the primary cause of going astray. Here I outline a summary of the following:
           A. The principle of Hisbah;
           B. The procedure and its dimensions;
           C. The built-in corrective measures.

A. Principle

Corruption is perceived as evil and mischief that prevents human beings from doing good to others. Qur'an cites: "Those who follow the messenger, the unlettered Prophet, whom they find described with them in the Torah and the Gospel. He orders them to do what is right and avoid what is evil." [7:157]. There are other Qur'an verses that stress the importance of enjoining what is virtuous and forbidding what is vicious. It is basically a question of sheer morality. Certainly, the aim of such ethical principle is to establish justice and maintain it as well. "Allah commands justice and kindness (i.e. doing good deeds for Allah and for mankind)  and giving charity to one's kindred; and He forbids indecency, wickedness and oppression" [16:90]. It is exceptionally civilized behavior to observe willingly just economic dealings and fair-trading. It is worthwhile here  to note that a true Islamic state is a sovereignty of law and order; a state of Shari'a. That is why the bureau of    grievances (diwan Al-Mathalim) played an important role in observing faithfully the Shari'a law. Being then viceroy of the Caliph (Ameer al-Mo'mineen) he used to supervise the action of regional governors, including the  tasks of Al-Muhtasib with a view to check, control and correct. Judiciary authority in a true Islamic state is  completely independent.

B. Procedure of Al-Hisba

According to al-Imam Abu Hamid Al-Ghazali (in his book Ihya' Ulum Eddin (Vol. II) there are four major  elements:
     1. Qualification of Al-Muhtasib.
     2. Conditions of the process of Al-Hisbah.
     3. Who is subjected (accountable) to al-Muhtasib.
     4. Degrees of Al-Hisbah's measures.

1. Al-Muhtasib is literally a judge (Qadi) who takes decisions on the spot, in any place at any time, as long a he protects the interests of the public. His responsibilities are almost open-ended in order to implement the foregoing principle: commanding the good and forbidding the evil of wrongdoing. Al-Muhtasib and/or his deputies as full judge (s) must enjoy high qualifications of being wise, mature, pious, well-poised, sane, free, just, empathic, and learned scholar (faqih). He has the ability to ascertain right from wrong, and the capability to distinguish the permissible (halal) from the non- permissible (haram).

Hence, Al-Muhtasib is entrusted to secure the common welfare and to eliminate injuries to society as a whole even if such honorable task requires him to take a stance against the ruling governance. In short, he must be appointee (fully authorized), pious and just.

2. Conditions of the process of Al-Hisbah are imperative to define exactly what is and what is not strictly  forbidden. Sometimes, sinful is less damaging to society than the forbidden as such. That is why al-Muhtasib is  to ensure observing four conditions of the forbidden
(1) it is already defined by shari'a law,
(2) it has actual presence, not a mere hearsay,
(3) it is declared to the public without resorting to spying in order to identify the said forbidden act,
(4) it is known, not necessarily subjected to ijtihad of strenuous interpretation.
Al-Muhtasib being meticulous means also die-hard fair in conducting his duties.

3. Who is subjected to al-Muhtasib?
 
The nature of Al-Muhtasib's tasks is comprehensive. It comprises practically all aspects of society as well as everything in day-to-day life. This is not restricted to fellow human beings, but also extended to interpose in damages caused by animals! Cases of environmental pollution are not excluded too. Administration of judiciary premises is another area of concern to the Muhtasib, say, whenever a judge gets unnecessarily angry that may lead to an irrational judgement. Viceroys who act on behalf of the Caliph are also accountable to Al-Muhtasib.

Al-Subki in his book: Upholding Opulence (blessings) and Getting Rid of Indignation(s) elaborates 113  topics that Al-Muhtasib dealt with. Abu Ya'la': Al-Ahkam al-Sultaniyya stresses on the interrelationship  between the duties of al-Muhtasib and those of Al-Qadi (Judge). Mohammad Al-Qurashi (d. 1329 AD) enumerates in his book on Al-Hisbah seventy chapters that include other sections describing a host of crafts that were then supervised. Like-wise Al-Shaizari discusses in details fourteen chapters plus another four appendices. Dr. Mukhtar Holland, who translated Imam Ibn Taymiyya's book: Public Duties in Islam (The Institution of the Hisba) divides his publication (1983) into two parts:
     1. Managing an Islamic Economy, and
     2. Towards a Just Society.

This is in addition to an appendix by Dr. M. Akram Khan on Al-Hisbah.
The duties of Al-Muhtasib permeate throughout every aspect of human, animal and environmental life. The rights of each one of these categories should be protected according to shari'a law, order, norms (urf) and socially accepted practices. Management and control of economic activities at large, especially those related directly to suk (Market), is well known since the seventh century AD when Prophet Mohammad (PBUH)  assumed the role of first Muhtasib. Omar Ibn A1-Khattab laid the foundation of Al-Hisbah. During Abbasid  period (mid 8th century) Al-Hisbah had become a full-time institution.

4. Degrees of Al-Hisbah Actions
 
Al-Imam Abu Hamid Al-Ghazali had outlined TEN degrees of al-muhtasib's actions. These should be applied gradually with great care and consideration.
(1) Seeking knowledge of the forbidden (Al-Monkar) without spying    nor forcing others to solicit secret  information. Here al-Muhtasib is not a trespasser.
(2) To inform the violator of the forbidden lest he/she is then ignorant about the wrongdoing. The right to know is imperative before applying any punishment.
(3) To forbid verbally, say, advising not to do.
(4) To obstruct the forbidden through preaching, advice and fearing the punishment of Allah (God).
(5) To chide or to scold with strong wording, not vulgar, this may be practiced after Al-Muhtasib being a kind and discreet reminder.
(6) To affect change manually, like forcing a man not to wear silly clothing, or breaking a jar of wine, or pulling the aggressor out of a house which is not his ... etc. The purpose here is to get rid of the forbidden physically.
(7) Threatening with things may become worse in the near future, if the aggressor is not reprimanded.
(8) Applying physical punishment without using any weapon so as to avoid any damage or any bleeding.
(9) To use suitable weapons indicating that serious actions that might take place.
(10) To enforce regulations by resorting to a cadre of police.

Although the above measures are carried out by Al-Muhtasib, he is required not to choose a stronger punishment unless a milder one is either ineffective or seems to carry no weight to the person already admonished. This is because al-Muhtasib operates in a system of checks and balances. His actions should not involve a greater mischief than the one he wants to forestall.

CORRECTIVE APPROACH

The universality of corruption - past, present, and much worse in the foreseable future - demands a number of corrective measures to be acted upon collectively.

A very interesting article written by Robert Klitgaard (Islamic Foundations Papers, UK, November 1997) summarizes the present system of corruption as follow: "C=M+D-A you will tend to find corruption (c) when someone  has monopoly power (M) over a good or service, has the discretion (D) to decide whether you receive it and how much you get, and is not  accountable (A).
"Klitgaard rightfully insists "… to fix the systems that breed corruption." He suggests four components of anti-corruption:
(1) Some major offenders are to be convicted and punished too.
(2) Involve people in diagnosing corrupt systems ... here perhaps none-government organizations can participate.
(3) Focus on prevention by repairing corrupt systems....The formula in question: C = M+D-A could serve well as a guideline for prophylactic actions.
(4) Reform incentives at large, starting with fair wages; also fighting the worldwide poverty. But, the formidable question remains whether any reform has the chance of taking hold.

I am aware that the system of Al-Hisbah that I have been speaking about is really a part of history. The quality traits of al-Muhtasib for being knowledgeable, pious with a well-disciplined character is rather rare to  find in today's society, which is by and large overruled by an almost global strategy of bribery. Also, this  stumbling block is gaining momentum as more and more politicians at the top are subjected to international and regional business cliques who monopolize world trade. Therefore, the crux of the problem in anti-corruption reform lies in restructuring the existing world system of business. This attempt may sound an impossible mission. Perhaps!

On the other hand, a faith-based reform is always optimistic. Basically, corruption cannot continue to grow in a society of believers sharing a common faith. Granted there are exceptions amongst few believers, the fast rule throughout history is that faith-based societies tend to observe probity. Certainly, preaching alone is not enough to bring about effective reform. Faith maintains a positive attitude towards uprightness. Furthermore, enlightened concepts, values and norms could lead to a realistic reform whenever they are supported by honest and fair actions.

Institutionalization of reform is a must. Individual efforts of believers, philosophers and thinkers could  encourage the public to participate actively. However, in order to enhance a positive reform an organizational set-up is most desirable.

In this vein a long-term strategic plan becomes a prerequisite. And in order to cater for globally collective efforts, a network organization should be established for excellence in ethics. Planning for centers of ethics should provide for an adequate coordination, with a view to maintain unified actions against corruption, be that at domestic and/or international levels. Due to an overwhelming spread of corruption the traditional stages of  reform must be avoided. Instead, parallel programs are suggested to meet the requirements of substantial reform.

If the purpose is to enforce sustainable effective practices against corruption, there are a number of vital areas to be tackled simultaneously. It is more important to stress here the internalization of universally accepted value systems, quality education of human understanding, free flow of information technology that reflects transparency, strenuous training on market control and supervision, and last but not least revised legislation of an international code of ethics as a basic parameter of anti-corruption.

The experiences of mankind's civilization, I trust, would substantiate the above promising outlines, so as to make our concerted efforts practically achievable in the near future.

Concluding Remarks

To reiterate the foregoing, may I bring to your kind attention this verse from Qur'an "But seek with what Allah has given you the Home of Hereafter; and not neglect your share of this world, and do good as Allah has done good to you, and do not seek corruption on Earth. Allah does not love those who do mischief" [28:77]. This was addressed to (King) Qarun (Cresus, d. 546 BC) who, because of his abundant wealth became  arrogant, extravagant, too happy and mischievous. Indeed, a fortune of money corrupts. Qarun was also an example of an economic society that treasures accumulation of wealth to the extent of becoming corrupt. Rich Qarun forgot both his Lord (Allah) and his fellow men as well. Sharing wealth by being good to others is  imperative. Indeed, true believers in faith should not be mischievous at all.

Islam is a two-dimensional creed: vertical (towards Allah) and horizontal (commensurating with all peoples). These two aspects are always complementary, be here in this life, or in the Hereafter on the Day of Judgement. Although Islam advocates a free economy system, its code of ethics is a built-in concomitant to safeguard disciplining human behavior lest it goes astray. This was exemplified by Al-Hisbah system, which is the management and control of Suk, the market economy purporting to establish a just society in order to maintain a just economy for all, including non-Muslims. In short, Al-Muhtasib, assuming also the role of Qadhi (Judge) and his duties towards Allah (Shari'a) and fellow-peoples was simply: fair and firm.