...applied Islamic business ethics: responsible halal business Muatasim Ismaeel UniKL Business School, University of Kuala Lumpur (UniKL), Kuala Lumpur, Malaysia, and 1090 Katharina Blaim Faculty of Business and Economics, University of Eichstaett/Ingolstadt, Ingolstadt, Germany Abstract Purpose – The purpose of this paper is to explore the opportunities of using halal regulation and certification as a mechanism for applying Islamic business ethics in contemporary world. Design/methodology/approach – The current practices of halal regulation and certification and literature on Islamic ethics were reviewed, to identify a practical approach for Islamic business ethics. Findings – Islam allows and accepts different levels of ethical commitment. A multi-level Islamic ethics framework and a multi-level halal certification approach are proposed to facilitate the implementation of Islamic business ethics in a relative context. Two major developments can enrich halal business practices: harmonization of global standards and governance structure, and integrating responsibility and ethical issues in halal standards. Practical implications – The proposed framework and developments can enrich halal regulation and certification practice. Originality/value – The paper emphasizes the importance of flexibility and adaptability in Islamic business ethics implementation, and proposes a new framework and approach to apply Islamic business ethics. Keywords Islam, Business ethics, Social responsibility...
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...International Islamic University Malaysia ETHICS IN ACCOUNTING EDUCATION: CONTRIBUTION OF THE ISLAMIC PRINCIPLE OF MAêLAîAH Abdul Rahim Abdul Rahman Assistant Professor, Department of Accounting, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Jalan Gombak, 53100 Kuala Lumpur, Malaysia. (e-mail: abdulrahim@iiu.edu.my) ABSTRACT There is a growing concern over the apparently low moral standards of some accountants and an increasing number of academics who suggest that the education system should bear some of the blame. Ethical components in accounting education have been found to be insufficient and there is a lack of emphasis on humanizing accountants. The objective of this paper is firstly to address the importance of ethics in accounting education and evaluate the development of literature in this area. Secondly, the paper argues for the direction of accounting education to focus on religious ethical development and values in developing accounting ethics. The paper argues that the Islamic worldview and ethics perspective can provide some insights into the process of developing a more humanized and ethical accountant. This paper proposes the Islamic legal principle of ma§laúah as an ethical filtering mechanism to be taught as part of the ethical accounting education process. This is aimed at providing awareness to accounting students and accountants on the process to resolve ethical conflicts. The study of Islamic worldview...
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...Version 1.0 Year 2013 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc. (USA) Online ISSN: 0975-4172 & Print ISSN: 0975-4350 Ethical Issues in Computer use: A Study from Islamic Perspective By Abdul Kadar Muhammad Masum International Islamic University, Bangladesh Abstract - Computer users are continuously facing ethical challenges as society adopts new and increasingly complex tools and technologies. These ethical challenges can be managed by Islamic code of life. In this paper, we have studied and tried to identify, how computer affects the ethical issues of the society. In this regards, we have traced some highly related issues to the ethics of computer usage, namely – misuse of time, honesty and integrity, privacy, security, intellectual property right, and computer crime. We have also tried to explain these issues in the light of Qur’an and Hadith. At the end of this paper, we have also suggested some measures that can help in promoting proper use of computer facilities by the Muslim masses without compromising the Islamic principles. Keywords : islamic ethics, computer ethics, privacy, security, computer crime. GJCST-G Classification: K.8.m Ethical Issues in Computer use A Study from Islamic Perspective Strictly as per the compliance and regulations of: © 2013. Abdul Kadar Muhammad Masum. This is a research/review paper, distributed under the terms of the Creative Commons Attribution-Noncommercial 3...
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...Most of us who have religious beliefs, often these beliefs are closely tied to our values and to the ethical principles we believe. But it would be a mistake to assume that ethical values are simply religious values. At least, the relationship is more complex than people sometimes realize. Religion and ethics are obviously intertwined as it exist countless studies of Christian ethics, Islamic ethics, Hindu ethics and so on. Both religion and ethics serve a common need in our society. Societies are built on the plank of co-existence and mutuality. Ethics is the study of what "ought" to be. It is a theoretical study and is otherwise referred to as the study of morality. Moral is an important part in ethics. Ethics as a branch of “philosophy”, has three components (Feiser 2003): "meta-ethics" studies the sources and meaning of ethical terms; "normative ethics" does the more practical task of examining the moral standards that regulate right and wrong conduct; and "applied ethics" examines controversies such as abortion, infanticide, animal abuse, environmental concerns, homosexuality and capital punishment. To behave ethically is to behave in a manner consistent with what is right or moral. Ethics is simply the principles used by people that control their conduct. Religion is a system of thoughts, feelings, and approach that is shared by a group of members and that gives the members an object of devotion; a code of behavior by which individuals may judge the personal and social...
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...What is Sharia Banking? London is the leading Islamic banking center in the West, and the Netherlands is seeking to overtake London in this regard. Wall Street is becoming enamored with Islamic banking (also known as Sharia banking) and this banking model is rapidly gaining acceptance in the Western world. Unlike the traditional banking model most Westerners are familiar with, Islamic banks are managed according to Sharia law. The main difference between Western banking and Islamic banking is the Quran prohibits the collection of interest in all monetary transactions, charging fees (and donations) for services provided in lieu of charging interest on loaned capital. Islamic banks are also governed by a Sharia Advisory Board, which is comprised of Islamic scholars and clerics who are responsible to ensure all of the bank's activities are in strict compliance with Sharia (Islamic) law. Those in favor of Islamic banking believe the Islamic banking system is superior to the capitalistic model of the West, because it is structured around a "strict code of ethics" (based on the Quran) and is prohibited from "exploitative practices" (including the charging of interest). According to Islamic banking proponents, this allows banking to be an integral part of a moral society (governed by the Quran). In contrast, they believe capitalism is solely focused on money (profit) and this incites greed and the exploitation of others, which leads to the social problems in the West, including the division...
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...Business Ethics Across Cultures Article Review XMGT/216 Business Ethics Across Cultures Article Review The first article I reviewed was titled Islamic finance: Notion of stewardship imbues business ethics. The author discussed the global economic crisis of 2008 in Islam. He reviewed how the lack of training of Islamic employees in ethics contributed to the economic crisis. Several of the ethical lapses that occurred during the ethical crisis were caused by risk also known as gharar and gambling. Both gharar and gambling are banned by Islamic law (Smith, 2012). The author argues that religious beliefs not limited to Islam can influence more responsibility within a business’s leadership. Omneya Abdelsalam, the director of the El Shaarani Research Centre for Islamic Business believes the belief of god and his power brings an acute level of accountability and responsibility (Smith, 2012). The suggestion of Dr Abdelsalam is that the belief of religion has a direct power of the way individuals conduct business. Islamic businesses primary ethical perspectives are to fulfill social responsibility of the business to the best of its capabilities, have fair treatment for employees, care for the environment and customers, and fulfilling the obligation toward shareholders and other stakeholders (Smith, 2012). Challenges faced by Islamic businesses are the views of tangible assets and some principles. Cedomir Nestorovic, a professor of Islamic business and management states that...
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...“Do you think that business practices in an Islamic country are likely to differ from business practices in the United States? If so, how?” I think that business practices in an Islamic country are different from business practices in the United States, some factors influence the business practices in different cultures. As the culture, values and norms, social structure and diversity of individual all might affect the business practices. Culture is a complex factor that includes beliefs, knowledge, arts, morals, law, customs, and other capabilities obtained by people as members of society (Hill, 2011). Values and norms are the cores of the components for culture, values are general ideals about a society’s good, correct and desirable fact. Norms are the social rules and guidelines that suggest appropriate behavior in specific circumstances (Hill, 2011). I don’t know much about Islamic country, but the American culture is different from Islamic culture. Due to the religion, social structure and much diversity in the two different worlds, the business practices would affect by these differences. International business is different from national business due to the culture and society. The ethics in Islamic world, governs almost all aspects of people’s life. Ethical norms and moral codes discernable from some verses of the Quran, and the teachings of the Prophet are far reaching and comprehensive (Azim, n.d.). Islamic teachings extremely influence the observance...
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...Professional Ethics Professional ethics concerns the moral issues that arise because of the specialist knowledge that professionals attain, and how the use of this knowledge should be governed when providing a service to the public. The professional carries additional moral responsibilities to those held by the population in general. This is because professionals are capable of making and acting on an informed decision in situations that the general public cannot, because they have not received the relevant training. You cannot be held accountable for failing to do something that you do not have the ability to do. Ethics are rules and values used in a professional setting. In the workplace managers and supervisors should set the standard for using ethics by showing respect, being honest, and promoting trust. If the management team uses unethical forms of communication, the team and business can fail. Ethics are used world-wide in large companies and small businesses. Questions arise as to the ethical limits of the professional’s responsibility and how power and authority should be used in service to the client and society. Most professions have internally enforced codes of practice that members of the profession must follow, to prevent exploitation of the client and preserve the integrity of the profession. This is not only to the benefit of the client but to the benefit of those belonging to the particular profession. It is a fact that European nations are following the...
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...Course name | Ethics in Administration | Course code | ADS452 | Credit hours | 4 | Resource person / contact no. / email | Nadrawina Isnin (082-678200 (O)nadrawin@sarawak.uitm.edu.my | Course outcomes | CO1 - Explain the concept of ethics, role, importance and various theories and thought of ethics in administration; | | CO2 - Identify the implications arising out of the ethical issues; and | | CO3 - Apply the concept, skills and methods used for evaluating ethical issues in case analysis and recommend strategies for improvement. | WEEK | HOUR | TOPICS | Teaching & Learning Activities | References | 1 | 2 | Overview of the course * Scheme of work * Assessment * Mid semester examination * Final examination | * Ice breaking * Entrance Survey * Blended Learning Requirement * Coursework requirement * Lecture & discussion (F2F) | Main text - Thiroux, Jacques P (2008) Ethics: Theory and Practice. 9thed. New Jersey: Prentice Hall. | 1 | 4 | Topic 1: Introduction to Ethics * The Concept of Ethics * Ethics & Morality * Sources of Morality * Ethics & Reason * The Importance of Study Ethics | * Lecture & tutorial(F2F) | Thiroux, Jacques P (2008) Ethics: Theory and Practice. 9thed. New Jersey: Prentice Hall. | 2 | 4 | Topic 2: Ethical Theories * Consequentialism & Non-Consequentialism * Ethical Egoism * Utilitarianism | * Lecture & tutorial(F2F) | Thiroux, Jacques P (2008) Ethics: Theory and Practice...
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...Sciences Vol. 1. No. 3. July 2011. Pp. 71-81 Marketing: An Islamic Perspective Md. Mahabub Alom* and Md. Shariful Haque** The purpose of this paper is to formulate and develop a marketing definition and its framework from Islamic perspective. In present business world, market and globalization are becoming the first truly world creed which binds all corners of the globe into a world-view and set of values. Here marketing practices are playing a vital role in raising the standards of business conducts worldwide. But the roots of it are secularism, valueneutral materialism, Social-Darwinism, Utilitarianism, and ‘rational economic man’ oriented. The spirits of these isms is selfishness, persuasion of profit, and want maximization. But in contrast, Islamic world-view comprises religious values, cultural values, and universal values which can be accepted and respected universally and can visualize a consumer oriented marketing culture which can ensure a balanced synthesis of both the material and the spiritual dimensions of life which emphasize to maximize the welfare of the world and the world hereafter and can establish fraternity and socio economic justice. This descriptive study will attempt to provide a brief review of conventional marketing literature at the same time it will formulate and develop a definition of Islamic Marketing and its framework based on The Holy Quran, ×adÊth and Islamic Literature. Field of Research: Marketing Keywords: Islam, Falah...
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...Project submitted by: Syed Saquran Ali Kazmi Karar Abbas Riffat Batool Aisha Nadeem Quaid-i-Azam School of Management Science Table of Contents 1 Ethics…………………………………………………………………………. 3 2 Business Ethics………………………………………………………………. 3 3 History……………………………………………………………………….. 4 4 Business ethic policy………………………………………………………… 5 5 Corporation in Business ethics……………………………………………... 5 6 Corporation a Moral agent………………………………………………… 6 7 Corporation to be governed………………………………………………… 6 8 The Employment relation in Business Ethics……………………………… 7 9 International Business Ethics………………………………………………. 9 10 Problems in Business Ethics………………………………………………… 10 11 Challenges in business Ethics……………………………………………….. 11 12 CASE: Business Ethics in Islam…………………………………………….. 12 13 Ethics in Islam……………………………………………………….. 13 14 Freedom in Enterprises……………………………………………… 13 15 Islam Tenets Concerning Business Transactions………………….. 14 16 Keenness to Earn Legitimate (Halal) Earnings…………………….. 14 17 Trade through Mutual Consent…………………………………….. 15 18 Truthfulness in Business Transactions……………………………... 16 19 Trustworthiness in Business Transactions…………………………. 16 20 Generosity and Leniency in Business Transactions………………... 17 21 Honoring and fulfilling Business Obligations………………………. 17 22 Fair Treatment of Workers…………………………………………. 18 23 Prohibited matters in Business Transactions……………………….. 18 24 Dealing in Prohibited (Haram) Items……………………………….. 18 25 Sale of Al-Gharar...
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...ETHICS IN ACCOUNTING PROFESSION RESEARCH METHOD Despite of significant learning on ethics especially for future accounting profession, 50 respondents were randomly selected from Bachelor of Accounting students, International Islamic University Malaysia (IIUM). The student sample was equal to 50 (N= 50) consists of accounting students from the first to fourth year of study between the ages of 20-25 years old. Students from IIUM had been exposed to some general ethic values in class. This exposure fit with university’s missions which are integration, islamization, internationalization and comprehensive excellence toward achieving vision of International Islamic University Malaysia. Besides, some ethical courses had been tough in this university such as organizational behaviour, Islamic worldview, and other courses that subsequently related to this study. The participation of accounting students from this university will gave significantly different picture on the effects and solutions when dealing with ethics in accounting profession. The study was administered throughout this semester specifically on ethics in accounting profession. Therefore, the survey was conducted in Kuliyyah of Economics and Management Sciences (KENMS) to collect the data. The survey was one of the good ways to gather and process data because the questionnaires were evaluated easily based on quantitative research method. The set of survey forms was distributed randomly to respondents who...
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...to our 5th International Islamic Capital Market Forum. I wish to express my appreciation to all of you for taking time off from your busy schedules to join us today. To all our distinguished speakers, thank you for graciously accepting our invitation to share your thoughts and views at this Forum. 2. Much has been said and continues to be said about the foothold which Islamic finance has gained in the international financial landscape. A range of proof points support this contention and justify further projections of the growth trajectory of Islamic finance in the coming decades. Page 1 of 9 We have achieved double-digit growth rates for various components of Islamic finance including sukuk, fund management and Islamic banking, whether at the national, regional or international levels. Additionally there has been increasing acceptance of Islamic finance not only in the Muslim-majority countries but also in certain predominantly non-Muslim jurisdictions. We have also witnessed the growing size of funds seeking Shariah-compliant investments and the increasing participation of multi-national corporations, multi-lateral institutions and conventional institutions in sukuk issuances. 3. It is not my intention today to revisit the benefits of Islamic finance or restate the pre-conditions for its further growth. As I have alluded to, these are welldocumented and well-known to all. Instead I would like to share my thoughts on just two aspects of Islamic finance which make up the...
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...What is Ethics? Ethics may be defined as the set of moral principles that distinguish what is right from what is wrong. Ethics has a twofold objective: it evaluates human practices by calling upon moral standards; also it may give prescriptive advice on how to act morally in a given situation. Ethics, therefore, aims to study both moral and immoral behaviour in order to make well-founded judgments and to arrive at adequate recommendations. Sometimes ethics is used synonymously with morality. An action, which is morally right, is also called an ethical one. Codes of morality are called ethical codes. Business ethics can also be defined as business morality. Business Ethics When business people speak about “business ethics” they usually mean one of three things: (1) avoid breaking the criminal law in one’s work-related activity; (2) avoid action that may result in civil law suits against the company; and (3) avoid actions that are bad for the company image. Businesses are especially concerned with these three things since they involve loss of money and company reputation. In theory, a business could address these three concerns by assigning corporate attorneys and public relations experts to escort employees on their daily activities. Anytime an employee might stray from the straight and narrow path of acceptable conduct, the experts would guide him back. Obviously this solution would be a financial disaster if carried out in practice since it would cost a business more...
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...A R TI CLE Organization Ethics Reputation and Customer Loyalty: Perception of Muslim Customer Sharia Banking Asia-Pacific Management and Business Application 1(1) 69 – 80 ©UB 2012 University of Brawijaya Malang, Indonesia http://apmba.ub.ac.id Sunaryoa* Zakaria Baharib a Management Department, Faculty of Economics and Business, University of Brawijaya, Malang, Indonesia; b Center for Islamic Development Management Studies, School of Social Science, Universiti Sains Malaysia, Malaysia Abstract The majority of the Indonesian population is Muslim, in which the share of Sharia Banking is only three (3) percent of the total banking market share in the country. This indicates a low participation, possibly leading to a negative perception on ethic reputation and low awareness among the Muslim communities in using sharia banking products and services. The objectives of this paper are to analyze the influence of sharia banking organization ethics reputation on Muslims customer loyalty and to analyze the role of satisfaction as a mediating effect on sharia banking organization ethics reputation on Muslims customer loyalty for the sharia banking products and services. Survey with 315 respondents in the city of Malang, Indonesia was conducted to gather information to further understand the situation, to answer the questions raised and to meet the study objectives. Purposive sampling was used to select the relevant respondents. The Structural Equation Model (SEM) is used to analyze the...
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