INSTITUTIONALIZING IHSAN: A CORPORATE STRATEGY FOR ETHICAL EXCELLENCE IN BUSINESS OPERATIONS

Abstract

This paper critically re-evaluates the popular business maxim “the customer is always right” through the ethical framework of ihsan, an Islamic principle that emphasizes excellence, compassion, and moral integrity in human conduct. While customer satisfaction is a central business objective, this slogan often leads to ethical distortions—encouraging consumer entitlement, diminishing employee dignity, and undermining organizational harmony. The study aims to challenge this consumer-centric narrative by introducing ihsan as a more balanced and morally grounded alternative in business ethics. The problem addressed is the uncritical adoption of customer supremacy, which prioritizes profit over justice and respect for all stakeholders. Using a philosophical and conceptual methodology, the paper draws on textual analysis of the Qur’an, Hadith, classical Islamic scholarship, and contemporary literature in ethics and business studies. The findings highlight the dangers of ethical egoism and reveal how ihsan offers a holistic model for ethical engagement that transcends transactional thinking. It encourages fairness, accountability, and mutual respect in business operations. This study contributes to the field of business ethics by proposing a value-based paradigm that promotes ethical reorientation in business practices. By replacing consumer dominance with ihsan, the paper envisions a more just, compassionate, and spiritually conscious business environment.