Look at business through someone else’s eyes

Christianity, Judaism, and Islam religions were born in the Middle East (Moran, Abramson, & Moran, 2014, p. 295). The middle east has also been known as the fertile crescent because of where it is located and the commerce that flows through the land(Moran, Abramson, & Moran, 2014, p. 295). They follow a simple way of doing business which is the Islamic Finance System. There can be a lot to learn about conducting a business that is not focused on one individual’s success but on the success of all parties involved. This is different from the traditional way of doing business in western areas. For example, most corporations tend to fatten the pockets of their top CEO’s. They may have other investors that share in the company’s success but normally people are more concerned about what is in it for them. People tend to make sure that they have a security blanket if a business does fail. A key factor would be to look at what holds the middle east together.

They have been very successful by following a certain way of living. Most of the people that live in this area following the Islamic faith. Islam is more than a religion though, it’s a way life, everything is done in accordance to the faith. Following this way helps with doing business because there are certain things that you must follow. One thing that stands out is that self-interest is eliminated and there is a main purpose that is focused on. They strive to practice peaceful living and tend to eliminate things that will separate brotherhood. Also, charging of interest rates are prohibited but there are other methods of ways to turn a profit and share losses (Moran, Abramson, & Moran, 2014, p. 301). The two profit-loss sharing arrangements are Musharakah and Mudarabah. These two arrangements are simple and provide a unique way of working together to ensure fairness.

Musharakah is an arrangement where the investor and enterpriser both contribute to the business venture and share in revenue and losses. All parties have a say in the decision-making process. In a lot of companies today they want their employees to feel valued so they will perform at their best for the benefit of the company. Mudarabah takes a different approach, but still provides an equal opportunity for all parties to be included. The investor provides the funds to the partner towards the business that the investor chooses. They also agree upon a set amount for everyone’s earnings up front. Islamic finance is being looked at around the world because it has been successful and has the potential to reduce poverty (Elkhatib, 2013). There are certain business transactions that are prohibited though (e.g., alcohol, illegal drugs) (Moran, Abramson, & Moran, 2014, p. 303)

While everything does not have to be followed to the letter, there is always room for improvement. This way of doing business continues to grow. There could be a lot of opportunities for growth in other countries if we could figure out a way to work around the high interest rates that make it almost impossible to get out of doubt. This could create opportunities to help small business owners excel and be able eventually do business globally. The economy can also be improved if the focus is to put back into the less fortunate. We have to be open minded and try sharing ideas by looking through another culture’s eyes.

References
Elkhatib, D. H. (2013). Islamic Finance. International Lawyer, 275-278.

Moran, R. T., Abramson, N. R., & Moran, S. V. (2014). Managing Cultural Differences . New York: Routledge Taylor & Francis Group.