BUSINESS ETHICS ( MGT 5613 )

Islamic Business Ethics

LECTURER : Pn Mirena Khadir

Group members :
Nixi, Tobey, Amir, Nazi, Bob, Ajis

ISLAMIC BUSINESS ETHIC

Terjemahannya: Tidak Aku (Allah) jadikan jin dan manusia, melainkan untuk beribadah (mengabdikan) diri kepada Ku (Surah Adz Dzariyaat ayat 56)

** the presenter say the ayatul quran **

You are the best of people , evolved for mankind , enjoining what is right , forbidding what is wrong and believing in ALLAH surah Al-Imran : 110 .

2000 major US corporations revealed the following problem

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Drug and alcohol use Employee theft Conflict of interest Quality control issue Discrimination in hiring promotion Misuse of propriety information Abuse of company expense account Plant closing and lay-offs Misuse of company asset Environmental pollution

Other international ethic problem

1. 2. 3. 4. Employee conflict interest Inappropriate gift Sexual harassment Unauthorized payment

Ethic in ISLAM
Ethic govern all aspect of life . FALAH : in Islam are the same for all muslims (conducting business affair or carrying out their daily activities) Khayr : inviting to all that is good Maruf : enjoining what is right Munkar : forbidding what is wrong

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sesungguhnya aku diutuskan untuk menyempurnakan akhlak surah Al-qalam : 4 Defining Ethic : as the set of moral principle that distinguish what is the right from what is wrong In Islamic context : That term most closely related to ethics in the Quran is khuluq

Arrays term of concept in Quran Concept of goodness ( khayr) Concept of birr ( righteousness) Concept of qist ( equity ) Concept of adl ( equilibrium and justice) Concept of haqq ( truth and right ) Concept of maruf ( known and approved ) Concept of taqwa ( piety)

Pious action are described as salihat and impious actions are described sayyiat .

Factors influencing Ethical behavior in ISLAM

LEGAL INTERPRETATIONS :
In secular societies , legal interpretations are based upon contemporary and often transient values and standard. In an Islamic society , these values and standard are guided by the shariah and the collection of previous fiqh judgment .

Islam has given women permanent and unalienable right , and has never discriminated against minorities on any basis

Example : Abu dharr reported the prophet SAW said to him you are not better with red or black skins unless you excel them in piety

. Firman Allah : Barangsiapa yang tidak memutuskan menurut apa yang diturunkan Allah, maka mereka itu adalah orang-orang yang kafir. (Al-Maaidah : 44) Yang Baik Ialah Apa Yang Dipandang Baik Oleh Syara dan Yang Buruk Ialah Apa Yang Dipandang Buruk Oleh Syara

Terjemahannya: Kemudian Kami jadikan kamu berada di atas suatu syariat (peraturan) dari urusan (agama) itu, maka ikutilah syariat itu dan janganlah kamu ikuti hawa nafsu orangorang yang tidak mengetahui (Surah Al Jaatsiyah: 18)
Terjemahannya: Ikutilah apa yang diturunkan kepadamu dari Tuhanmu dan janganlah kamu mengikuti pemimpin-pemimpin selainNya. Amat sedikitlah kamu mengambil pengajaran (daripadanya) (Surah Al Araaf : 3)

DAN JANGANLAH KAMU MENGHAMPIRI ZINA , SESUNGGUHNYA ZINA ITU ADALAH SATU PERBUATAN YANG KEJI

DAN SATU JALAN YANG MEMBAWA KEROSAKAN (Al Isra :32)

Organizational Factors :
The organization too can affect influence participants behavior . One of the key sources of organizational influence is ( the degree of commitment of the organizations leader to ethical conduct .

Commitment can be : -code of ethic -Policy statement -speeches -publications -etc

Example : ethical code in KPMB ( no couple dating at cafe)

Individual Factors :
Individual come to work with different values . Factors affecting ones ethical behavior include :

Stage of moral development Personal values and morals Family influence Peer influences Life experience

Stage of moral development : -The prophet SAW suggested that individual undergo two stages of moral
development : the minor or prepubescent and the adulthood stage. Hadith narrated by Aishah (rah), she narrated that : the apostle of ALLAH (peace be upon on him) said : there are three (persons) whose actions are not recorded : a sleeper till he awakes , an idiot till he is restored to reason, and a boy till he reaches puberty THREE stage of the development of the human souls of nafs: 1. Ammarah, which is prone to evil and if not checked and controlled , will lead to perdition 2. lawwamah , which feels consciousness of evil, and resist it, ask ALLAH grace and pardon after repentance and tries to amend , hope to reach salvation . 3. mutmainnah , the highest stages of all , when the soul achieves full rest and satisfaction after aql (intellect) has checked tendencies of man Muslim unethically is succumbing to the ammarah, if he is behaving Islamically , he is fighting the evil impulse of the ammarah.

THREE stage of the development of the human souls of nafs:

1. Ammarah, which is prone to evil and if not checked and controlled , will lead to perdition 2. lawwamah , which feels consciousness of evil, and resist it, ask ALLAH grace and pardon after repentance and tries to amend , hope to reach salvation . 3. mutmainnah , the highest stages of all , when the soul achieves full rest and satisfaction after aql (intellect) has checked tendencies of man

Muslim unethically is succumbing to the ammarah, if he is behaving Islamically , he is fighting the evil impulse of the ammarah.

 Andaikata kebenaran itu menurut hawa nafsu mereka, pasti binasalah langit dan bumi ini, dan semua yang ada di dalamnya. Sebenarnya Kami telah mendatangkan kepada mereka kebanggaan (Al Quran) mereka tetapi mereka berpaling dari kebanggaan itu (Surah Al Muminuun )

Personal values and personality :

It is also influence his or her ethical standard . A person stresses honesty will have very different from another who does not respect other people s property. Interestingly in Islam , the decay and eventual disappearance of honesty is a sign of the imminence of the day judgment . A key personality variable which may affect the ethical behavior of an individual is his/her locus of control . The locus control is an individual affect the degree to which he perceives his behavior as influencing his life . internal locus : believes she/he can control the event of his/her life , also take responsibility for the outcomes of their behavior . external locus: believe that fate or luck or other people affect his life , believe external forces cause him to behave ethically or unethically .

Family influence :

Family influence :
Individual start to form ethical as children . The prophet SAW say: command your children to pray when they become seven years old , and discipline them for it (prayer) when they become ten years old ; and arrange their beds ( to sleep) separately Message from parents is help to their children become ethical person Peer influences: As children grow and are admitted to school, they are influenced by the peers with whom they interact daily.

Life experiences: Whether positive or negative, key events affect the lives of individuals and determine their ethical beliefs and behavior. Malcolm Xs Hajj experience had a major impact on his later years as a Muslim.
Situational factors : people may behave unethically in certain situation because they may see the no way out . Example .. Lies to lecturer when late or not finished assessment

PEER INFLUENCES

"Sesungguhnya pada (diri) Rasulullah itu terdapat contoh yang paling baik untuk (menjadi ikutan) kamu." (Al-Ahzab:21) Terjemahan Ayat Al-Quran: " Dan barangsiapa yang melakukan kejahatan dan menganiaya dirinya, kemudian ia memohon ampun daripada Allah, nescaya mendapati Allah Maha Pengampun lagi Maha Penyayang. " (Surah an-Nisa: ayat 110.)
Sabda Rasulullah SAW: "Sesungguhnya ada sebahagian daripada umatku yang akan meminum arak dan mereka menamakannya dengan nama yang lain(bukan arak). (Mereka meminumnya) sambil dialunkan dengan bunyi muzik dan suara artis-artis. Allah SWT akan menenggelamkan mereka ke dalam bumi (dengan gempa bumi) dan akan menjadikan mereka seperti kera dan babi (setelah mati)". (Hadis Riwayat Ibnu Majjah)

Firman Allah dalam surah an-Nahli ayat 125 :

Yang Bermaksud : Serulah manusia kepada jalan tuhan mu dengan hikmah dan pelajaran yang baik dan bantahlah mereka dengan cara yang baik. Sesungguhnya tuhanmu Dialah yang lebih mengetahui tentang siapa yang tersesat dari jalan-Nya dan Dialah yang mengetahui orang-orang yang mendapat petunjuk.

Bermaksud : Barang siapa yang mengerjakan kebaikan seberat zarrah nescaya dia akan melihat balasannya dan barang siapa yang mengerjakan kejahatan seberat zarah nescaya dia akan melihat balasannya pula.
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