Sustainability of Ponzi Scheme Scam from an Islamic Ethics Perspective

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.