BUSINESS ETHIC

Dr. Hendrati Dwi Mulyaningsih ., SE., MM

Magister Manajemen UNISBA

Semester Genap 2020/2021
 CONTENTS
Prinsip Etika Bisnis

Hukum Bisnis

Agency Theory & Management Theory

Social Entrepreneurship

Corporate Social Responsibility

PART
04
Introduction

• Muhammad Yunus (1983)

• Founder Grameen Bank-
Bangladesh  Social En-
trepreneurship and Social
Innovation

• Bill Drayton (1984)

• Founder of Ashoka Foun-
dation

• Gregory Dees ( 1994)

• First scholar in SEship 
Harvard Business School
(1994) and Stanford Uni-
versity (1997)
Characteristics of Social Entrepreneurship

• Social Entrepreneurship = Social + Entrepreneurship ( Martin & Osberg, 2007)

• 3 components of SE :
1. An ability to identify ‘a stable but inherently unjust equilibrium that causes the
exclusion, marginalization, or suffering of a segment of humanity
2. An ability to identify an opportunity in this unjust equilibrium and develop a
social value proposition
3. Willingness to take action in order to forge ‘ a new, stable equilibrium that
releases rapped potential or alleviate the suffering of the targeted group..and
even the society at large
Evolution Thinking of Social Entrepreneurship
(David Bornstein, p.xx)
Social Entrepreneurship :
Involved a concerted effort to :
1. Systematically identify people
with innovative ideas and prac-
tical models for achieving major
societal impact
2. Describe their function in so-
ciety and shine as a spotlight on
their work
3. Develop support systems to
help them achieve significant
social impact
Social entrepreneurship:
1. Shifted into the terrain of
organizational excellence
2. Drew heavily on insights
from business strategy, fi-
nance and management
3. Primarily concerned with
helping social entrepreneurs
building sustainable, high im-
pact organization and enter-
prises
Social Entrepreneurship Today
:
1. Looks beyond Individual
founders and institution to
change making potential of
all people.
2. Concerned with building
platforms that enable more
people at every age to think
and behave like change-
maker and to help them work
together powerfully in team
The difference between Social Entrepreneur
and Business Entrepreneur

Social Entrepreneur do the same for

Entrepreneurs improve the productive
social change, creating new combina-
capacity of society and provide “ cre-
tions of people and resources that sig-
ative destruction” that propels eco-
nificantly improve society’s capacity to
nomic change
address problems.
The distinction of SE between BE and Gov’t Pro-
gram
Social entrepreneur
Purpose Maximize some form of social impact ,
usually by addressing an urgent need that
is being mishandled, overlooked or ignored
by other institutions
Social Entrepreneurship
SE describe a process, a way to organize the problem-solving efforts
from the bottom ( the Bottom-up Planning)
SE don’t control major resources and they can’t command compliance
SE is inductive and outward-looking : it moves from observation and
experiments to institutionalization and independent adoption.
SE demonstrate their ideas that inspire others to go out and create
their own social change
Business Entrepreneur
Maximize the profits or shareholder wealth,
or to build an ongoing, respected entity that
provides value to customers and meaningful
work for employee
Government
Top-down Planning
Government have control for major resources and can command
compliance
Government in major initiatives is beginning with policy battles and
ending with programs planned and implemented through agencies or
contracted to service provider
Dual Motive of Social Entrepreneurship
(The Profit , Sustainability & Risk Factor )

Social Profit
Orientation
Social
Orientation
oriented
ComDev

Growth Fostering & Vol-

untary

Profit Sustain
Empowerement

oriented

• Social entrepreneur is a risk taker and well-prepared for the risk management so the
risk could be reduced or better managed if they were better prepared to become
manager or leaders of the ventures they created
Social Entrepreneurship versus Sustainability En-
trepreneurship

Social En- Sustainability En-

trepreneurship trepreneurship

Pursuing their business

and profitability objective
Primarily pursuing a social
in a socially and environ-
mission
mentally responsible
manner

Emphasize the impor- Emphasize the goal of

tance of conducting their promoting sustainable liv-
activities in a manner es- ing and protecting the en-
pecially in preventing vironment from further
harm to the environment damage
Who are Social Entrepreneurs ? ( Ashoka,2010)

Innovative so-
lution to so-
Ambitious cial problem
and persis-
tent

Persuading
entire soci-
eties to take
new leaps

Taking major issues and offering

new ideas for wide-scale change
Conclusion
Social Entrepreneurship is about Innovation and Impact,
Not Income
“we’ve seen the function of entrepreneurs is to reform or revolutionize the pattern of production..”
( JA Schumpeter-Capitalism, Socialism and Democracy)

Social Enterprise are organizations whose mission is to bridge social opportunity into sustainable
reality innovatively, effectively and efficiently
They focused on the sustainability of their solutions by generating strategic value to their
stakeholders
Their teams are balancing passion, excitement, discipline, private and social benefit through
organizing creative destruction of undesirable status quo as well as creating constructive changes
in the world
Social Entrepreneurship Success Stories  Aravind Eye Care Hospital
Social Entrepreneurship Success Stories Grameen Bank
Social Entrepreneurship
in Islamic Context
Dr. Hendrati Dwi Mulyaningsih
Post Graduate Program – Magister Management
Universitas Islam Bandung
 Introduction
• As indicated in existing literature, social entrepreneur-
ship is mostly perceived from the Western perspective.
• It is arguably not based on religious points of view as a
consequence of no religious relation in Western
perspective (Almari, 2014).
• It has made literature on social entrepreneurship from a
religious perspective as being rarely found
• Furthermore, the phenomenon of Islamic social
entrepreneurship associated with poverty alleviation
offers one form of justification of the existence of social
enterprise as well as social entrepreneurs in tackling
social problems, including poverty, from a religious
viewpoint.
• Hence, it should be compelled for being discussed
especially when the society faces poverty as an
uncompromised problem, especially in several Moslem
countries
Sources : http://www.pewforum.org/files/2009/10/Muslimpopulation.pdf
Figure 1. Countries with largest number of Muslims
Treasure in Islamic perspective ( Al-Hadid : 7 )

Allah is the • Human must be realized that their treasures are “ amanah”
( just given) and should be prudently and faithfully managed
ABSOLUTE OWNER • The value of a given treasure is determined by its
contribution.

• A person who is given a mandate by Allah ( Khalifah )

Humanbeing • Treasure is the most prominent issue in Islamic economics ;
clear position in Al-Qur’an and Hadits :
As an agent of • 1.The way how treasure is generated
• 2. The way how treasureis managed
TRUST • 3. And the way how to spend
Entrepreneurship in Islamic perspective
• Entrepreneurship is a prominent part in Islamic economics – integration between
entrepreneurial livelines and religion/ an integral part of its religion
• Basic concept of entrepreneurship in Islam stand on a mutual relationship
( partnership & participation), alturism and goodwill
• Entrepreneurship closely considers some principles of thought :
1. Islam encourages an entrepreneurial development
2. Resources ownership perspective – agent of trust
3. Social motive perspective – being useful for society toward most valuable
person
Social Entrepreneurship in Islamic context

Islamic beliefs :
• Khalifah-duty create prosperity and usefulness of the earth ( Al-An’am :
165)  Their role in economics is To achieving economics prosperity
together
• Their work NOT JUST for personal gains/self interests but also for the
COMMON GOOD  to rise mutual independence in society
 Every activities relate with creating prosperity ( profit motive) has to
be balanced with the usefulness and value to others ( social motive )
3 Basic thought of Islamic Social
Entrepreneurship
3 basic thoughts of Islamic social entrepreneurship in social justice and
social welfare :
1. Fard-al Kifayah commitment
2. Almsgiving model on ZisWAF
3. Market failure and government failure
Islamic social entrepreneurship conceptual
framework

Islamic Social Enterpreneurship

People Development Spiritual Development

“Habbluminannas “ “Habbluminallah “

Profit Motive Social Motive

Social Value Creation Model of
Islamic Social Enterprise
Unit Business / Entreprises
( share profit & Zakat, Infaq and
shadaqah )

In t e rn a l F u n d in g
Social Innovation Process Add value

Charity fund
distribution Beneficiaries/
Islamic Social Enterprise as Social Value
Top of Bottom
Intermediary Institution Creation
Empowerement People
E x t e r n a l F u n d in g

fund distribution

Creating Social Empower people

Entrepreneurship Program Eradicate Poverty

Donors
( Zakaah, Infaq, Shadaqa, Waqaf )
Conclusion
• At last, the soul of Islamic social entrepreneurship is on this hadits “ Khairunnas
anfa’uhum linnas”, it has convinced that the most valuable person is the person that
has more benefit to others and society.
• As the person on duty of Allah, every Muslim entrepreneurs should manage their
activities into two role-plays.
First, people development (habbluminannas) suggests that Muslim entrepreneurs have
to accentuate a dual-construct motive in every activities related to human being.
Second, spiritual development (habbluminallah) suggests that human was created by
Allah to serve and ordered to worship only to Allah. Every good deed to human-beings
is supposed to carry out Allah‟s commands and for having a good relation to Allah.
• In other words, habluminannas is taken in order to habluminallah. Both are in line and
not to be disputed.