Ishak Bin Ismail Universiti Sains Malaysia



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Organizing for Leadership - Do Good Values & Ethics Count? for The First Penang-Kyoto Workshop “Ethics and Experimental Studies” Kyoto Sanyo University

  • Ishak Bin Ismail
  • Universiti Sains Malaysia
  • 1 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

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?

  • Corporate images and branding values are enhanced.
  • Customers value companies with strong ethical values and deprecate those who have behave corruptly.
  • Companies who have good corporate practices set positive examples.
  • Investors are more likely to invest in countries and companies with strong ethical standards.
  • High ethical standards improve the quality of life.
  • “DEFINITION OF ETHICS”

Definition of Ethics:

  • 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”

Akhlaq = Khayr (Goodness)

  • Righteousness
  • Equity
  • Equilibrium & Justice
  • Truth & Right
  • Known & Approve
  • Piety
  • “Ethics Is Not A Number Game”

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)

Koontz, 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”

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)

Is Islamic Leadership 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 Leadership
  • Concepts

Amanah

  • “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.”

“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”

“Implication of the 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”

KNOWLEDGE & EDUCATION KEY TO 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”

Primary Asset of an Ideal Worker

  • Ilmu (Knowledge) : Al’Quran, al-hadith, Islamic Literature.
  • Iman (Faith): Taqwa (conciousness of Allah)
  • A’mal (Deeds) : humility, night prayers, remembrance of Allah, infaaq (spending in the way of allh).

Knowledge of the creator.

  • 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)

Assets to improve qualities of an Ideal Worker

  • Sabr (Patience)
  • Hikmah (Wisdom)
  • Tawakkul (Reliance on Allah)
  • Bai’yah (Allegiance)
  • 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”

“By the soul, and the proportion and the

  • “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
  • Arab poet Ahmad Shauqi Bey
  • puts it:
  • “Nations survives as long as
  • their morality is
  • alive. When their morality is gone,
  • they too perish.”

  • Basis For Good Governance : -
  • Ethics & Integrity

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.

  • 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.

Integrity 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.

Integrity 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.

Integrity 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.
  • THE MALAYSIAN SCENARIO

Prime Minister of Malaysia 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.”

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.

  • 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.

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.

  • 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.

Instruments of Good Delivery System Concepts (Since 1980’s)

  • Clean, Efficient & Trustworthy
  • Integration of Islamic Values
  • Excellent Work Culture
  • Code of Work Ethics
  • Client’s Charter
  • ISO 9000

Government Best Practices Core Values

  • Honesty
  • Trustworthiness
  • Wisdom
  • Fairness
  • Transparency
  • Gratitude
  • How to Inculcate Good Governance?

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

  • Give directions and guidance to various sectors so that they will work closely together to build a united, harmonious, moral and ethical society,
  • Raising awareness, commitment, and cooperation among all sectors in their efforts at enhancing integrity so that integrity becomes a way of life.
  • continue ……

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.

  • 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.
  • Contributing towards strengthening the moral foundations of the community and the country, and improving the well-being of the community.
  • Raising the competitiveness and resilience of meeting the challenges of globalization.

Implementation of Strategy

  • Consensus building & commitment.
  • Communication.
  • Promotion & Training.
  • Consultancy.
  • Follow up & follow through.
  • Recognition & awards.

  • National Integrity Plan (2004 – 2008) Malaysia’s Approach

Immediate Tasks of NIP

  • Effectively reduce corruption, malpractices and abuse of power.
  • Increase efficiency of the public service delivery system and overcome inefficiency.
  • Enhance corporate governance and business ethics.
  • Strengthen the family institutions
  • Improve the quality of life and the societal well-being.

Objectives of NIP

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

Objectives of NIP2

  • Contributing towards strengthening the moral foundations of the community and country, and improving the well-being of the community.
  • Raising the competitiveness and resilience of Malaysian in meeting the challenges of the 21st. Century, especially the challenge of globalization.

IIM INDICES

  • Malaysian Corruption Index
  • Malaysian Index of Public Service Delivery
  • Malaysian Index of Corporate Governance
  • Malaysian Index of family and community cohesiveness.
  • Malaysian Index of Courtesy
  • Malaysian Index of Quality of Life and Societal Well-Being.
  • Malaysian Index of Integrity.

Strategies for Implementing NIP

  • Integrity Agenda for family.
  • Integrity Agenda for the community.
  • Integrity Agenda for a Civil Society
  • Integrity Agenda for Socio-Cultural Institution
  • Integrity Agenda for the Religious Institution.
  • Integrity Agenda for the Economic Institution
  • Integrity Agenda for the Political Institution
  • Integrity Agenda for the Administrative Institution.

Key Success Factors

  • Leadership by Examples
  • Sound Policies & Clear targets
  • Continuous Education.
  • Effective Communication
  • Conducive Cultural Environment
  • Cooperation between politics and administrative machinery
  • Effective Legal framework & Independent Judiciary.
  • Adequacy & Efficacy of Resources.
  • Readiness of Individual to change.
  • Islamic Hadhari Approach

“It is an approach that emphasizes the

  • “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.”

“It is an approach that emphasizes the

  • “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.”

“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

Concept of Distributive Justice

  • To each an equal right.
  • To each according to the individual needs.
  • To each according to individual effort,
  • To each according to social contribution.
  • To each according to merit.

Local Javanese Principles Good Ethics is A Sum of:

    • Beras (Rice – food as basic needs)
    • Keras (Effort – rules & regulations)
  • Waras (Mind – religion, values &
  • discipline)
  • CONCLUSION
  • 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”

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

  • “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

Conclusion

  • 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.”

TERIMA KASIH & THANK YOU



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