Transcript Slide 1

Ethics Teaching in Business School
The emerging corporate governance reforms have had a positive
impact on academic programs.
The goal of corporate governance and business ethics education
is to teach students their responsibilities and accountability to
their profession and society. Almost all states require Certified
Public Accountant CPA candidates to pass an ethics exam
before licensing and report the ethics component in their
continuing education requirements. Almost all states require a
minimum amount of ethics education for their practicing CPAs.
Ethics in Institutions of Higher Education
Academic integrity and ethical conduct by students and faculty are important
to the sustainable well-being and reputation of institutions of higher
education. This academic integrity can be achieved when:
(1) there is an effective and fairly enforceable academic honor code,
(2) faculty are willing to take proper action against suspected cheaters,
(3) adequate research is conducted to identify factors that affect academic
integrity, including fundamental ethical values,
(4) ethics are integrated into the business curriculum, and
pedagogies are developed to teach and encourage adherence to
ethical values and conducts.
Ethics, like other Islamic sciences, takes its
origin form the Quran. The Quran lays down
the foundation of a religious system on purely
ethical principles, hence there is not much to
distinguish between Islam as such and Islamic
ethics.
The Muslims started the study of Ethics along
with the study of the Quran.
INCEIF
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Ethics in Islam is nothing but the body of
injunction laid down in the Quran for the practical
conduct of life and fully exemplified in the
practice of the Holy Prophet throughout his life.
Within an Islamic Context, the term most closely
related to ethics is khuluq in the Quran which has
been guided by principles from the Quran and the
Sunnah.
You are the best nation that has been raised up
for mankind; You enjoin right conduct, forbid
evil and believe in Allah. (3:110)
ُ ‫ُك ْن ُت ْم َخي َْر أ ُ َّم ٍة أ‬
ْ
َّ
ْ
‫ُوف َو َت ْن َه ْو َن َع ِن‬
‫ن‬
‫ل‬
‫ل‬
‫ت‬
‫ج‬
‫ر‬
‫خ‬
ِ ‫ُون ِب ْال َمعْ ر‬
ِ
َ ‫اس َتأْ ُمر‬
َ
ِ
ِ
َّ ‫ون ِب‬
ِ‫اّلل‬
َ ‫ْال ُم ْن َك ِر َو ُت ْؤ ِم ُن‬
INCEIF
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The Quran addresses the Prophet. “Thou has been
created with an excellent character”
‫وانه لعلى خلق عظيم‬
The Prophet highlighted one of his main objective is to
perfecting good morals
“I have been sent for the purpose of perfecting good
morals”.
‫بعثت التمم مكارم االخالق‬
INCEIF
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Islam consider the Prophet as an ideally
perfect man, par excellence, in all aspects of
life.
The Quran exhorts the believers to follow the
rightly guided particularly the Prophet.
It is the desire of every pious Muslim to
model his life in every possible particular
upon that of the Prophet.
The Prophet (pbuh) always prayed in all humility to Allah
to bestow on him the highest moral qualities and a generous
character.
He was of exceeding humility and the greatest, the bravest,
the justice and the most pious of men.
He mentioned that he was sent by Allah to set up the best
standards of moral conduct as he himself demonstrated in
by his own practice.
He exhorts his followers to be just and compassionate, to
fear Allah, to be truthful, to fulfill their covenants, to avoid
breach of trust, in return a trust duly, to be merciful to
orphans, to be afraid of the Day of Judgment when
everyone shall have to render full account of his actions.
To do good acts and avoid bad ones, to treat one’s
neighbors well, to lead the power, to be kindly and
generous in the daily intercourse of life and in carrying the
mission of peace to mankind, to follow the just and the
truthful.
He led an absolutely frugal and temperate life, subsisting
on the simplest fare, consisting mainly of dates and barely.
He patched his won sandals and repaired his own clothes.
He meted out equal treatment to all, free or
slave.
 He gracefully bore with anything that
annoyed him.
He had unbounded faith in Allah and never
compromised with anything which he
considered to be untrue, cunning or mean.
He visited and confronted the sick and the
afflicted.
He was dignified in manner and in speech,
and always the first of offer greeting.
He readily forgave people and endeavored to
bring about peace between men.
He accepted invitation from the poor and the rich
alike and had always a smiling look.
Pride and vanity did not touch him.
He was meek and tolerant while he was at the
zenith of his power and treated his enemies and
persecutors with compassion when they were laid
low at his feet.
The Psychological Nature of Man
Knowledge and Morality
The Freedom of the Will
According to al-Ghazzali all psychological
phenomena of Man originated in the Self, such as:
- What is the nature of the Self?
- What is the ultimate purpose of it?
- Wherein lie its misery and Happiness?
The self is the essence of man, al-Ghazzali
divided the self into four:
- Qalb (heart)
- Ruh (Soul)
- Nafs (desire-nature)
- ‘Aql (intellect, reason)
According to al-Ghazzali there are six powers included in
the Self of man:
Appetite,
Anger,
Impulse,
Apprehension,
Intellect and
Will
Appetite, anger and apprehension are common to man and
animals. The self of man possesses two additional
qualities which distinguish him from animals, and
enable him to attain spiritual perfection which are the
‘Aql (intellect) and Irada (will).
An -Nafs al -Mutma’inna (tranquil soul) when the ‘Aql has
checked the evil tendency and subdued and harmonized the
animal forces, its struggle in it ceases and harmony prevails.
An-Nafs an-Ammara (the instigating soul) when the evil
tendency becomes stronger and stronger, continually inciting
them to gratify themselves even at the expense of the good of
the self. In this case it is the evil tendency at its strongest,
instigating the animal forces to revolt.
An-Nafs al-Lawwama (the admonishing soul) when the divine
element is continually struggling with the human evil tendency.
According to al-Ghazzali morality and good conduct are not
possible without knowledge.
Knowledge results from the functioning of intellect of reason
(‘aql) which is the innate rational faculty of man, the faculty
which distinguishes him from animals.
Man occupies a position midway between animals and angles;
and his distinguishing quality is knowledge. He can either rise
to the level of the angels with the help of knowledge, or fall to
the level of animals by letting his anger and lust dominate him.
It is, therefore knowledge which helps the growth of the divine
element in him and makes possible the realization of the ideal.
Al-Ghazzali holds the fact that human
character can be changed and improved
certainty implies that man possesses
some degree of free will.
Some people deny that human character
is capable of improvement.
(is it true?)
 The progress that man changes from the state
of an-Nafs al-Ammarah to the state of an-Nafs
al-Mutma’inna through ordeals and pains
clearly indicate that he is free in his will.
 This freedom is not absolute, yet it is of
paramount importance, for it is sufficient to
effect the necessary change in human
character.
There are some individuals whose character is yet
unformed, who are lacking in the ability to distinguish
between good and evil, between right and wrong. They
are ignorant, lacking in reflection and selfconsciousness, possessing no moral character, no will,
and no belief. They have yet not wholly become slaves
to the pleasures of the senses.
The character of such men can be improved easily.
They need only a guide, a determination and a motive to
help them follow the right path.
Some individuals in spite of being addicted to the
indulgence of the lower appetites are, nevertheless, alive
to their evil effects. They can discriminate between good
and evil. Their consciousness if fully developed and they
realize that the rational self is the only true self. Yet, they
submit to the demands of their lower selves because they
are not practiced in subjecting their actions to the power
of their will. They have knowledge. They can be
reformed, firstly by abandoning their habits, and
secondly, by cultivating virtuous habits.
 Such men are amenable to good influence, if they have
the will to improve their character.
Some individuals are not only addicted to evil ways but
also believe that those ways are good and to follow them
is necessary. With regard to such people it can be said
that the real nature of things has become obscured in their
minds; consequently, the gratification of the lower self
appears to them as the sole end of human life. They have
been brought up in ignorance. Their animal self has
grown at the expense of their rational self. It has
completely suppressed it and rendered it ineffective.
To reform them is almost impossible.
There are some who, in having been brought up in the way
mentioned above, are proud of doing evil and of leading
others astray. They take pride in doing so.
The improvement of such men is the hardest of all. Only a
conversion through Diving power can bring about a radical
change in their case.
It is about the third and the fourth types of men that the Holy
Quran says (2:7) “God has set a seal upon their hearts and
upon their hearing, and over their eyes is a covering, and
there is a great chastisement for them”
‫َخ َت َم ه‬
َ ‫صاره ْم غ‬
‫اب‬
ٌ ‫ش َاوةٌ َو َل ُه ْم َع َذ‬
َ ‫س ْمعه ْم َو َع َلى أَ ْب‬
َ ‫َّللاُ َع َلى قُلُوبه ْم َو َع َلى‬
‫َعظي ٌم‬
1. Unity – related to the concept of tawhid or
oneness of God, men are united under this
concept
2. Equilibrium – related to the concept of ‘adl
or justice.
3. Responsibility – accountability for one’s
actions,
4. Free will – to a certain degree, man has
been granted the free will to steer his won
life as Allah’s Vicegerent/Khalifah on earth.
5. Benevolence/kindness/generosity.
In explaining the moral code of Islam, it is
important to categorize the action according
to the degree of lawfulness and
unlawfulness as classified in fiqh to five
categories; fard, mustahabb, mubah,
makruh and haram.
It represents the class of actions that is
mandatory on every Muslim, such as praying
the five times a day, fasting the month of
Ramadan, paying zakah and performing hajj.
Describes the class of actions that are not
obligatory but highly recommended to do. e.g.
fasting beyond the month of Remadan, put
perfume during Friday prayer, or praying
nawafil etc.
Actions are permissible in the sense they are
specified neither as mandatory nor as
forbidden. e.g. trading during hajj.
Actions are not absolutely forbidden, but
are detested.
Actions are unlawful and prohibited.
Committing them is a major sin. e.g. murder,
commit adultery, dealing with riba, drinking
alcohol etc.
Islam asks its believers to observe certain norms
and moral codes in;
dealings with relatives
with neighbours and friends;
in their business transactions;
in the market;
in their social affairs,
in all spheres of private and public life.
An Islamic market is characterized by
certain norms that take care of the
interests of both the buyer and the seller.
In the market place, Islam demands a
certain type of behaviour from the
economic agents, the consumers and the
producers. For examples:-
Code of Islamic Business Transaction
Keenness to Earn Legitimate (Halal)
Earnings
Trade through Mutual Consent
Truthfulness in Business Transactions
Trustworthiness in Business Transactions
Generosity and Leniency in Business
Transactions
Honouring and fulfilling Business
Obligations
Fair Treatment of Workers
Dealing in Prohibited (Haram) Items
Sale of Al-Gharar (Uncertainty, Risks,
Speculation).
Arbitrarily Fixing the Prices.
Hoarding of Foodstuff.
Exploitation of one’s Ignorance of Market
Conditions.
Cheating and Fraud in Business Transactions.
Swearing, Giving Short Measures and Dealing
in Stolen Goods are not allowed in business.
• 'Urwa related from 'A'isha that Quraysh were concerned
with the case of a Makhzumi woman who had stolen
something and they said, "Who will speak to the
Messenger of Allah, may Allah bless him and grant him
peace, about her?" They said, "Who is bold enough to
do it except Usama ibn Zayd, the beloved of the
Messenger of Allah, may Allah bless him and grant him
peace?" Usama spoke to him and the Messenger of
Allah, may Allah bless him and grant him peace, said,
"How can you intercede when it is a case of one of the
legal punishments of Allah Almighty?" Then he stood up
and spoke and said, "Those before you were destroyed
because when a noble among them stole, they let him
be, but when the weak among them stole, they carried
out the legal punishment on them. By Allah, if Fatima
the daughter of Muhammad were to steal, Muhammad
would cut off her hand."
One of the servants of the Prophet (pbuh) who
was killed in one of the battles, the
companions said about him: Congratulations
to him the certificate, O Messenger of Allah!
The Messenger of Allah peace be upon him,
said: (if you can see what I see you have seen
his grave has been fueled by the fire, they said:
Why, O Messenger?! Said: because he took
Shamlah from the booty without the
permission of the commander or distributor,
Caliph Omar bin al-Khattab came out one
day to the market in an inspection tour. He
saw fat camels which were distinguished
from the rest of the camels, he asked: whose
camels are these? They said: Ebel Abdullah
bin Omar. He said: Abdullah ibn Umar .. ‫بخ‬
.‫ بخ‬Squirt. O son of the faithful ..!! And
sent for him, and when he stood between his
hands he said to his son: What is this
camels, O slave of God ..? He replied: It is
my Ebel I bought them and sent them to the
pasture to eat: then Caliph Omar reply(the
people when they see it .. They said let Ebel
the son of the Caliph to eat first and so
become fat. So sell it and get its capital only.