Islamic law, or Sharia, addresses financial responsibility in trade and commerce through principles derived from the Quran, Sunnah (teachings and practices of the Prophet Muhammad), and Islamic jurisprudence (fiqh). The key elements that govern financial responsibility in trade and commerce under Islamic law include:Honesty and Fair Dealing: Traders must conduct business honestly, avoiding fraud, deception, and misrepresentation. This aligns with the Quranic injunction to give full measure and weight in transactions and to avoid cheating.Prohibition of Riba (Interest): Charging or paying interest is strictly forbidden in Islamic finance. Instead, profit is earned through risk-sharing arrangements, such as partnerships (Mudarabah and Musharakah) where both profit and loss are shared between parties.Gharar (Uncertainty) and Speculation: Transactions involving excessive uncertainty or speculation are prohibited. This principle ensures that all parties fully understand the terms of a contract, reducing the likelihood of disputes.Zakat (Almsgiving): A mandatory charitable contribution, Zakat, ensures wealth redistribution, promoting social responsibility. Businesses are required to pay Zakat on their assets, which fosters ethical business conduct and societal balance.Contracts and Documentation: Islamic law emphasizes the importance of clear, written contracts that specify the rights and obligations of all parties. This helps prevent misunderstandings and provides legal recourse in case of disputes.Accountability and Transparency: Financial transactions should be transparent, and businesses are encouraged to keep accurate records. This promotes accountability and trust among trading partners.Justice and Equity: Transactions must be fair and just, with mutual consent between parties. Exploitative practices, such as monopoly pricing or hoarding goods, are discouraged.Ethical Investment: Investments must be in halal (permissible) activities. Activities involving alcohol, gambling, or other prohibited industries are not allowed.