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Organizing for LeadershipOrganizing for Leadership- Do Good Values & Ethics Count?- Do Good Values & Ethics Count?

forforThe First Penang-Kyoto WorkshopThe First Penang-Kyoto Workshop“Ethics and Experimental Studies”“Ethics and Experimental Studies”

Kyoto Sanyo UniversityKyoto Sanyo University

Ishak Bin IsmailIshak Bin IsmailUniversiti Sains MalaysiaUniversiti Sains Malaysia

1 October, 20111 October, 2011

Martin Luther King, Jr.

“The Ultimate measure of a man is not where he stands in moments of

comfort and convenience, but where he stands at times of challenge and

controversy.”

Introduction

Good corporate governance, proper accountability, transparency and business

ethics are the hall marks of respected business. There is a significant body of evidence to show that those businesses with high ethical codes of practice and a

commitment to enhancing integrity are not only profitable but more likely to succeed in

our commercially competitive world

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What is Ethics?What is Ethics?

Simply stated, ethics refers to standards of behavior that tell how human beings ought to act in many

situations; An Act Between the Right & The Wrong&

From the Islamic Perspective;You are the best of peoples, evolved for mankind,

enjoining what is right, forbidding what is wrong, and believing in Allah (Qur’an 3:110)

Why is this so?

1. Corporate images and branding values are enhanced.

2. Customers value companies with strong ethical values and deprecate those who have behave corruptly.

3. Companies who have good corporate practices set positive examples.

4. Investors are more likely to invest in countries and companies with strong ethical standards.

5. High ethical standards improve the quality of life.

“DEFINITION OF ETHICS”

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Definition of Ethics:“Ethics is a system of moral principles by which human

actions and proposals may be judged as good or bad or right or wrong”

“Muslim Ethics is based on “akhlaq”, i.e one’s

personality reflected in an individual’s behavior towards God and other human beings”

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Akhlaq = Khayr Akhlaq = Khayr (Goodness)(Goodness)

1. Righteousness2. Equity3. Equilibrium & Justice4. Truth & Right5. Known & Approve6. Piety

“Ethics Is Not A Number Game”

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Definition of Leadership?Definition of Leadership?

Leadership is an influence relationship among leaders and followers who intend

real changes and outcomes that reflect their shared purposes.

(Richard L. Daft)

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Koontz, O’Donnel & WeihrichKoontz, O’Donnel & Weihrich

“Leadership is generally defined simply as influence, the art or process of influencing people

so that they will strive willingly toward the achievement of group goal … to lead is to guide, conduct, direct and precede. Leaders act to help a group objective with the maximum application

of its capabilities. They do not stand behind a group. They do not stand behind a group to push and to produce; they place themselves before the group as they facilitate progress and inspire the

group to accomplish organizational goals”

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Definition of Leadership?Definition of Leadership?

“You are the best of peoples, evolved

for mankind, enjoining what is right, forbidding what is wrong, and believing in Allah.”

(Qur’an 3:110)

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Is Islamic Leadership Is Islamic Leadership Any Different?Any Different?

• Secular leadership’s target is self-establishment. Islamic leadership’s target is Jannatul Fidaus (Highest position in paradise).

• Secular leaderships work for respect of people. Islamic leadership works for the pleasure of Allah.

Islamic LeadershipConcepts

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AmanahAmanah

“Leadership in Islam is a trust (amanah). It represents a psychological contract between a

leader and his followers that he will try his best to guide them, to protect them and to treat them

fairly with justice. Hence, the focus of leadership in Islam is doing good.”

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““Concept of Tawhid”Concept of Tawhid”

“The political, economic, social, and religious aspects of man’s life form a

homogeneous whole, which is consistent from within, as well as integrated with the vast universe

without. This is the vertical dimensions of Islam”

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““Implication of the Implication of the Tauhid Concept”Tauhid Concept”

• Sincerity in business dealings.• Conscious of responsibility towards customers,

community and environment.• Geniality towards fellow humans.• Moderations in business dealings.• Fair treatment of customers.• Zeal in business-building.

“WHAT IT REQUIRES TO BE A GOOD LEADER”

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KNOWLEDGE & EDUCATION KEY KNOWLEDGE & EDUCATION KEY TO LEADERSHIPTO LEADERSHIP

PROPHET MUHAMAD SAW:

“Whoever wants to inherit the here-now world, let him go and get knowledge for it. Whoever wants to inherit the hereafter (Akhirah), let him go and

get knowledge. And whoever want both the world and hereafter and get knowledge for it”

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Primary Asset of an Ideal WorkerPrimary Asset of an Ideal Worker

1. Ilmu (Knowledge) : Al’Quran, al-hadith, Islamic

Literature.2. Iman (Faith): Taqwa (conciousness of Allah)3. A’mal (Deeds) : humility, night prayers,

remembrance of Allah, infaaq (spending in the way of allh).

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• Knowledge of the creator.• Knowledge of humankind and its functioning that

will bring it to the creator (Ibadah).• Knowledge of nature (Physical science,

agriculture, medical science etc).• Knowledge of history and geography• Knowledge of the role of prophets• Knowledge what is right and wrong (Akhlaq and

moral values)

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Assets to improve qualities of Assets to improve qualities of an Ideal Workeran Ideal Worker

1. Sabr (Patience)2. Hikmah (Wisdom)3. Tawakkul (Reliance on Allah)4. Bai’yah (Allegiance)5. Ihtisab (Accountability)

MORALITY AND LEADERSHIP

Almarhum Pak’ Hamka(Indonesia)

“In the 1960’s, while we are now able to create cities and modern concrete jungle; yet at the same time the soul of its inhabitants appear to be empty

and benefit of meaning”

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“By the soul, and the proportion and the order given to it. And its enlightenment as its wickedness and its piety. Successful is

the one who keeps it pure and ruined is the one who corrupts it”.

Qur’an, 91 : 7 - 10

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Arab poet Ahmad Shauqi Bey puts it:

“Nations survives as long as their morality is

alive. When their morality is gone, they too perish.”

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Basis For Good Governance : -

Ethics & Integrity

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Integrity is a quality of excellence that manifested in a holistic and integral

manner in individuals and organizations. Integrity is based on ethics and noble

values and their concrete manifestation in their daily lives.

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Integrity of IndividualIntegrity of Individual

The harmony between what an individual says and does. His or her actions are in

accordance with moral and ethical principles as well regulations and do not

go against public interest. They also reflect promptness, correctness and

quality.

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Integrity of OrganizationsIntegrity of Organizations

The integrity of an organization is reflected in the formulation and implementation of its code of ethics, clients charter, and system or work procedures, as well as compliance

with best practices. The organization’s code of ethics is constantly reiterated, internalized and upheld by members of the organization until it

becomes second nature, and ultimately transform into the culture for the organization as a whole.

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Integrity of Public OfficialsIntegrity of Public Officials

For holders of public office, integrity means carrying out the trust and responsibilities bestowed upon them in line with public interest. They are not allowed to misuse their power for their self-interest, or for the interest of their family or relatives.

Should a conflict of interest occurs, public interest overrides personal interest.

Holders of public office must be transparent, sincere and accountable.

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THE MALAYSIAN SCENARIO

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Prime Minister of Malaysia Prime Minister of Malaysia Dato’ Seri Abdullah Ahmad Badawi (2006)Dato’ Seri Abdullah Ahmad Badawi (2006)

“My decision to pursue good governance and anti-corruption is thus strongly linked to the need to

maintain Malaysia’s economic competitiveness in the face of increasing global pressure. Countries

that offer stable, efficient and cost-effective business environment are naturally favored as investment destinations. Along the same line, a country that has a high risk level of corruption,

whether perceived or real, runs the risk of losing current and future investments.”

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As a developing country, Malaysia has achieved successes in many fields. It now aims to become

a fully developed nation in its own mould by 2020. In order to become a successful nation and to further strengthen its achievements towards excellence, glory and distinction. Malaysia must

effectively manage its successes.

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At the same time, the people’s awareness and concern for ethics and integrity and their demand for the elimination of corruption, abuse of power and incompetence has increased. They demand that integrity must not be compromised while

concerted efforts must be undertaken to enhance the integrity of the government, private sector,

political parties, media, trade unions, NGOs, youth, students and the general public.

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Instruments of Good Instruments of Good Delivery System ConceptsDelivery System Concepts

(Since 1980’s)(Since 1980’s)

1. Clean, Efficient & Trustworthy2. Integration of Islamic Values3. Excellent Work Culture4. Code of Work Ethics5. Client’s Charter6. ISO 9000

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Government Best PracticesGovernment Best PracticesCore ValuesCore Values

1. Honesty2. Trustworthiness3. Wisdom4. Fairness5. Transparency6. Gratitude

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How to Inculcate Good Governance?

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1. Give directions and guidance to various sectors so that they will work closely together to build a united, harmonious, moral and ethical society,

2. Raising awareness, commitment, and cooperation among all sectors in their efforts at enhancing integrity so that integrity becomes a way of life.

continue ……

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3. Encouraging a sense of accountability among members of the community and to promote the development of civil society that respects and upholds the principles of integrity.

4. Contributing towards strengthening the moral foundations of the community and the country, and improving the well-being of the community.

5. Raising the competitiveness and resilience of meeting the challenges of globalization.

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Implementation of StrategyImplementation of Strategy

1. Consensus building & commitment.2. Communication.3. Promotion & Training.4. Consultancy.5. Follow up & follow through.6. Recognition & awards.

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National Integrity Plan(2004 – 2008)

Malaysia’s Approach

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Immediate Tasks of NIPImmediate Tasks of NIP

1. Effectively reduce corruption, malpractices and abuse of power.

2. Increase efficiency of the public service delivery system and overcome inefficiency.

3. Enhance corporate governance and business ethics.

4. Strengthen the family institutions5. Improve the quality of life and the societal well-

being.

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Objectives of NIPObjectives of NIP

1. Giving direction and guidance to various sectors so that they will work together to build a united, harmonious, moral and ethics society,

2. Raising awareness, commitment and cooperation among all sectors in their efforts at enhancing integrity so that integrity becomes a way of life and practiced in all fields,

3. Encouraging a sense of accountability among members of the community and to promote the development of civil society that respects and upholds the principles of integrity.

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Objectives of NIP2Objectives of NIP2

1. Contributing towards strengthening the moral foundations of the community and country, and improving the well-being of the community.

2. Raising the competitiveness and resilience of Malaysian in meeting the challenges of the 21st. Century, especially the challenge of globalization.

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IIM INDICESIIM INDICES

1. Malaysian Corruption Index2. Malaysian Index of Public Service Delivery3. Malaysian Index of Corporate Governance4. Malaysian Index of family and community

cohesiveness.5. Malaysian Index of Courtesy6. Malaysian Index of Quality of Life and Societal

Well-Being.7. Malaysian Index of Integrity.

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Strategies for Implementing NIPStrategies for Implementing NIP

1. Integrity Agenda for family.2. Integrity Agenda for the community.3. Integrity Agenda for a Civil Society4. Integrity Agenda for Socio-Cultural Institution5. Integrity Agenda for the Religious Institution.6. Integrity Agenda for the Economic Institution7. Integrity Agenda for the Political Institution8. Integrity Agenda for the Administrative Institution.

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Key Success FactorsKey Success Factors

1. Leadership by Examples2. Sound Policies & Clear targets3. Continuous Education.4. Effective Communication5. Conducive Cultural Environment6. Cooperation between politics and administrative

machinery7. Effective Legal framework & Independent Judiciary.8. Adequacy & Efficacy of Resources.9. Readiness of Individual to change.

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Islamic Hadhari Approach

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“It is an approach that emphasizes the development, consistent with the tenets of Islam

and focuses on enhancing the quality of life. It aims this via the mastery of knowledge and the development of the individual and the nation; the

implementation of a dynamic economic, trading and financial systems; an integrated and balanced

development that creates a knowledgeable and pious people who hold to noble values and are

honest, trustworthy and prepared to take global challenges.”

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“It is an approach that emphasizes the development, consistent with the tenets of Islam

and focuses on enhancing the quality of life. It aims this via the mastery of knowledge and the development of the individual and the nation; the

implementation of a dynamic economic, trading and financial systems; an integrated and balanced

development that creates a knowledgeable and pious people who hold to noble values and are

honest, trustworthy and prepared to take global challenges.”

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““Six Major Ethical Systems”Six Major Ethical Systems”

• Relativism – Ethical decisions are made on the basis of self-interest and needs.

• Utilitarianism – Ethical decisions are made on the basis of the outcome resulting from these decisions. An action is ethical if it results in the greatest benefit for the largest number of people.

• Universalism – Ethical decisions stress the intention of the decision. Everyone under similar circumstances should reach similar decisions.

• Rights – Ethical decisions stress a single value; liberty, and are based on individual rights.

• Distributive Justice (Fairness & Equity)• External law

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Concept of Distributive Justice

1. To each an equal right.2. To each according to the individual

needs.3. To each according to individual effort,4. To each according to social contribution.

5. To each according to merit.

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Local Javanese PrinciplesLocal Javanese PrinciplesGood Ethics is A Sum of:Good Ethics is A Sum of:

Beras (Rice – food as basic needs)

Keras (Effort – rules & regulations)

Waras (Mind – religion, values & discipline)

CONCLUSION

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Datuk Dr. Abdul Samad Alias, Immediate-Past President of

The Malaysia Institute of Accountants(Accountancy, 2006)

“Integrity is really a matter of who you are when no one is around”

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“Towards a better world where there is both accountability and justice and where

there is peace and humanity”

• Start with yourself• Start today• Care & dare

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ConclusionConclusion

“INTEGRITY is like a mighty tree that stands out in the forest. Its roots are deep, supporting a tall and hardy trunk, and its

top is a crown of branches and green leaves. It blooms with large clusters of fruits of fruit in brilliant colors, ripe and

ready to scatter its seeds. Birds and other animals find comfort perching on its

secure branches.”

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TERIMA KASIHTERIMA KASIH& &

THANK YOUTHANK YOU