Issues Auxiliary to Islamic Trading Framework

Abstract

This chapter explores issues auxiliary to Islamic trading framework. These issues include, government interventions, market structure, and business ethics. We argue that despite the failures markets have projected, their significance cannot be disregarded. The Islamic economic system entails markets based on strong ethical foundations where every individual’s rights are sufficiently protected. Government’s intervention is needed in dire issues, though not acceptable in form of artificially pampering the markets through tariffs, quota, etc. and creating dead weight loss, but surely in the events of income disproportionality, alarming poverty hikes, unfulfilled public needs, environmental degradation and the like. Although Islamic markets guidelines serves a platform of equity, honesty, justice and ethical system for common welfare, there is a need for a more focused approach for corporate social responsibility (CSR), an emergent notion in conventional economics.