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

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 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)

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 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”
 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
(Goodness)
1. Righteousness (kebenaran)
2. Equity (keadilan)
3. Equilibrium & Justice
4. Truth & Right (kebenaran & benar)
5. Known & Approve (dikenal & disetujui)
6. Piety (kesalehan)

“Ethics Is Not A Number Game”

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 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 & 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?

“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
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.

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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.”

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 “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
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.

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“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”

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 Primary 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
an Ideal Worker

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

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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
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 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 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 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
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
Delivery System Concepts
(Since 1980’s)

1. Clean, Efficient & Trustworthy

2. Integration of Islamic Values
3. Excellent Work Culture
4. Code of Work Ethics
5. Client’s Charter
6. ISO 9000

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 Government Best Practices
Core Values

1. Honesty
2. Trustworthiness
3. Wisdom
4. Fairness
5. Transparency
6. 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 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 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 institutions
5. Improve the quality of life and the societal well-
being.

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 Objectives 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 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 INDICES

1. Malaysian Corruption Index

2. Malaysian Index of Public Service Delivery
3. Malaysian Index of Corporate Governance
4. Malaysian Index of family and community
cohesiveness.
5. Malaysian Index of Courtesy
6. Malaysian Index of Quality of Life and Societal
Well-Being.
7. Malaysian Index of Integrity.

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 Strategies for Implementing NIP

1. Integrity Agenda for family.

2. Integrity Agenda for the community.
3. Integrity Agenda for a Civil Society
4. Integrity Agenda for Socio-Cultural Institution
5. Integrity Agenda for the Religious Institution.
6. Integrity Agenda for the Economic Institution
7. Integrity Agenda for the Political Institution
8. Integrity Agenda for the Administrative Institution.

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 Key Success Factors

1. Leadership by Examples
2. Sound Policies & Clear targets
3. Continuous Education.
4. Effective Communication
5. Conducive Cultural Environment
6. Cooperation between politics and administrative
machinery
7. 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”
• 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 Principles
Good Ethics is A Sum of:

Beras (Rice – food as basic needs)

Keras (Effort – rules & regulations)

Waras (Mind – religion, values &

discipline)

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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”

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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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 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.”

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TERIMA KASIH
&
THANK YOU

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