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B2B business - serving different types of businesses




May 19, 2023, 4:32 AM

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B2B business - serving different types of businesses Can't Post

We formed a business-to-business (B2B) Software-as-a-Service (SaaS) company, that serves a perfectly halal purpose (protect companies and the wider society from fraud), this business naturally can serve a relatively wide range of services, especially financial institutions.
Question is, what is Islam opinion in serving the following types of businesses:
  • Companies that have mixed activities (e.g. conventional banks, they offer useful services such as keeping people’s money safe, but still their business model is mainly based on earning interests) or insurance businesses who have conventional and Islamic/cooperative or non-haram options.
  • Businesses with mostly haram activities (purely conventional insurance, or companies who offer loans to help with financial inclusion).
  • Purely haram businesses, like gambling, adult content and loan sharks.

Do we have an obligation to check or decide to serve / not serve these businesses based on their activities, and to what extent? and how do we handle this? do we document it and make it clear to any potential investors? and in what form? and would the answer differ based on the type of business from the above categories?
And would things be different if a reseller sells our product (we are not directly involved in the sale decision? but we still need to support if the sale happens).
Would it be different if our product was self-serve (someone can input their credit card and buy it online without our involvement)?


May 20, 2023, 4:46 AM

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Re: [Dorbruns] B2B business - serving different types of businesses [In reply to] Can't Post

A decent organization director will see the preparation program as a fundamental piece of the activity of the IT division. The presentation of new frameworks or AI video generator significant changes ought to set off preparing cycles that ought to be finished preceding execution.


May 22, 2023, 12:55 AM

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Re: [Dorbruns] B2B business - serving different types of businesses [In reply to] Can't Post

In Islam, the permissibility of engaging in business activities can vary depending on the nature of the activities involved. Let's address your questions regarding different types of businesses and their permissibility according to Islamic principles:

  1. Companies with mixed activities (e.g., conventional banks with interest-based transactions or insurance companies offering both conventional and Islamic/cooperative options): According to Islamic finance principles, engaging in interest-based transactions (usury/riba) is strictly prohibited. Conventional banks that operate based on earning interest would fall into this category. Similarly, insurance companies offering purely conventional options may involve interest-based transactions or other haram (forbidden) elements. However, if these companies also offer Islamic/cooperative options that comply with Shariah principles, serving them may be permissible as long as your services are solely dedicated to the permissible aspects of their business.

  2. Businesses with mostly haram activities (e.g., purely conventional insurance companies or companies providing loans for non-Islamic purposes): Engaging in businesses that predominantly involve haram activities, such as purely conventional insurance or providing loans for non-Islamic purposes, would generally be discouraged in Islam. As a business operating with a halal purpose, it would be advisable to avoid serving such businesses to maintain alignment with Islamic principles.

  3. Purely haram businesses (e.g., gambling, adult content, and loan sharks): Islam strictly prohibits involvement in activities that are inherently haram, such as gambling, adult content, and operating as loan sharks. Serving or associating with such businesses would not be permissible according to Islamic principles.

Regarding the obligation to check and decide which businesses to serve, Islamic ethics encourage individuals and businesses to assess the permissibility and alignment of their actions with Islamic principles. As a business with a halal purpose, you have the responsibility to ensure that the services you provide do not facilitate or enable haram activities.
As a B2B SaaS company focused on serving a halal purpose, such as protecting companies and society from fraud, your business naturally encompasses a wide range of services, including those targeted at financial institutions. When considering the permissibility of serving different types of businesses, including those involving mixed activities, haram activities, or purely haram businesses, it is important to understand the Islamic perspective.
Regarding the enrichment of customer relationship management (CRM) data, it is permissible to offer CRM enrichment services to businesses as long as the nature of the data being enriched and the activities associated with it are halal. However, it is essential to ensure that the enrichment services provided do not facilitate or enable haram activities, regardless of the type of business being served.

Documenting your stance on serving specific types of businesses can help clarify your position to potential investors and stakeholders. This documentation can outline your commitment to serving businesses that comply with Islamic principles and avoiding those engaged in haram activities. The form of documentation can vary, but it is recommended to consult with knowledgeable Islamic scholars or advisors to ensure it accurately reflects your company's position and is in line with established principles.
If a reseller sells your product, and you are not directly involved in the sale decision, you would still need to assess the nature of the reseller's business and determine whether their activities align with Islamic principles. If the reseller primarily deals with haram businesses or activities, it may be advisable to reconsider your partnership or support.
If your product is self-serve, and individuals can purchase it online without your direct involvement, it is still important to ensure that the product is not primarily marketed or tailored to haram businesses or activities. Implementing measures to screen potential customers or incorporating clear terms of service that discourage the usage of your product for haram purposes would be recommended.
In all cases, seeking guidance from knowledgeable Islamic scholars or advisors well-versed in Islamic finance and business ethics can provide further clarity and help ensure your business operations align with Islamic principles.


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