“Liability and Profit Go Together” is a principle that asserts that profit cannot be obtained without bearing the associated risks and responsibilities.
Key Aspects of Al-Kharaj Bi al-Daman:
- Responsibility in Transactions: Anyone who seeks profit must also assume responsibility for the risks involved, such as in business or investments.
- Equity in Commerce: The maxim emphasizes that unfair profit or gain, without taking on the associated liabilities, is unjust.
- Balanced Approach to Earning: It encourages a balanced approach to wealth accumulation, where both benefits and risks are shared.
Importance of Al-Kharaj Bi al-Daman:
- Promotes Fair Business Practices: It encourages fairness in business and trade by ensuring that profits are earned through just means, with a fair share of risk.
- Encourages Accountability: The principle teaches that individuals should be responsible for their actions and decisions, particularly in financial matters.
- Fosters Ethical Economic Practices: It prevents exploitation and unethical practices by making sure profits are accompanied by the appropriate level of responsibility.
Written by AI. A more correct, God given, explanation can be found here.