Profit

In conventional economic theory, profit is the positive difference between revenue and cost that motivates entrepreneurs to undertake production amid risk and uncertainty. Profit is a fundamental objective and raison d’être for firms. Nonetheless, heightened competition and growth aspirations entail social and environmental costs. Environmental problems, such as air and water pollution and agricultural land damage, are critical issues for ensuring profit sustainability. The Qur’an utilizes the concept of ribh concerning profit from an Islamic standpoint. However, the concept not only encapsulates a worldly/matter-based meaning but also reminds individuals of their responsibility toward the hereafter. Islam’s conception of profit encompasses goods, labor, and money as well as commercial relationships and emphasizes equitable competition. Islam proscribes charging excessive prices, fraudulent transactions, and deceitful practices in trade. Interest is excluded from profit in Islam, as it is considered both a direct return on capital and a guaranteed source of future income. The Islamic perspective on profit differs from modern conceptions by accounting for uncertainty and distribution. Islam emphasizes that property, labor, and money are subject to distinct laws and that sharing the risk should bear some of the uncertainty of profit. This entry describes the modern definition of profit in conventional theory, frequently interlinked with the issues characteristic of industrial capitalism, alongside the Islamic ideology of profit, which presents an alternative perspective on fair competition, risk management, and distribution.