Shura (Arabic: شورى shūrā) is an Arabic word for "consultation". The Quran and the Prophet Muhammad encourage Muslims to decide their affairs in consultation with those who will be affected by that decision.
Shura is mentioned as a praiseworthy activity often used in organizing the affairs of a mosque, Islamic organizations, and is a common term involved in naming parliaments.
Sunni Muslims believe that Islam requires all decisions made by and for the Muslim societies to be made by shura of the Muslim community and believe this to be the basis for implementing representative democracy. Traditionally however, the Amir/Sultan/Khalifa would consult with his Wazirs (Advisors) and make a decision, after taking into consideration their opinions.
Shia Muslims say that Islam requires submission to existing rulers if they are correctly appointed, so long as they govern according to Sharia or Islamic law. This is a more traditional approach, characteristic of many centuries of Islamic history (see History of Islam).
The difference between the two appears more semantic than actual—the latter accept that the rulers must be accounted in all aspects of ruling, to ensure affairs are managed in the best possible way whether decisions were taken through consultation or not.
"Those who hearken to their Lord, and establish regular Prayer; who (conduct) their affairs by mutual consultation among themselves; who spend out of what We bestow on them for Sustenance" [are praised]
Thus it is due to mercy from God that you deal with them gently, and had you been rough, hard hearted, they would certainly have dispersed from around you; pardon them therefore and ask pardon for them, and take counsel with them in the affair; so when you have decided, then place your trust in God; surely God loves those who trust.
The first verse only deals with family matters. The second proposed a lifestyle of people who will enter heavens and is considered the most comprehensive verse on shura. The third verse advices on how mercy, forgiveness and mutual consultation can win over people.