Sustainability of Ponzi Scheme Scam from an Islamic Ethics Perspective

Authors

Keywords:

Ethics, Investment, Islam, Ponzi / Pyramid Scheme, Society Welfare

Abstract

Ponzi scheme culture is a form of islamic business ethical violation. This study explains how business using Pyramid Schemes management and fraudulent practices that are not inline with the Al-Quran and As-Sunnah guidance, which in turn lacks sustainability and have pro-longed, destructive impact for the society at a severe scale. The aim of this study is to offer analytical study of a Ponzi Investment Scheme from an Islamic Ethical Perspective. The paper also attempts to offer Islamic principles which occur in implementing ethical business, namely At-Tauhid, Al-Amanah, As-Sidq, Al-Adalah, At-Ta'awun, Al-Maslahah, At-Taradi, and Al-Akhlaq Al-Karimah. It proves that business practice that aim and orientation solely for worldly aspects historically collapse in time. The pursuits of solely by self-interest or the interests of worldly welfare is the doom of society as a result in massive loss from unnecessary human-made crisis. On the opposite, doing business for the welfare of the ukhrawi in the pleasure of Allah SWT, relying on the benchmarks of al-Qur'an and al-Hadith  paradigm of ethical values brings great social welfare and is a moral step forward for humanity. This is done by the implementation of the basic Islamic principles that comprehensively govern ethics.

Author Biography

Novita Alfinuri, UIN Antasari Banjarmasin

Fakultas Ekonomi dan Bisnis Islam

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Published

2022-10-01

How to Cite

Alfinuri, N., & Sauri, S. (2022). Sustainability of Ponzi Scheme Scam from an Islamic Ethics Perspective. Asian Journal of Islamic Economics and Business, 1(1), 12–27. Retrieved from https://jurnal.uin-antasari.ac.id/index.php/ajieb/article/view/9336

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