INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA

COURSE OUTLINE
Kulliyyah / Institute Department / Centre Programme Name of Course / Mode Course Code Name (s) of Academic staff / Instructor(s) Kulliyyah of Economics and Management Sciences Department of Business Administration Bachelor of Business Administration Business Ethics MGT 3020 Suhaimi bin Mhd. Sarif BE1, BE2 Yusof bin Ismail BE3

Rationale for the inclusion The course trains students with conventional and Islamic ethical of the course / module in principles in making decisions in various business contexts. the programme Semester and Year Offered Status Level Proposed Start Date Batch of Student to be Affected Every semester University required course 3 (Undergraduate) Ongoing, offered every semester Intake of 2005/2006 onwards Face to Face Consultation Practical Lecture Others 88 Total Guided and Independent Learning

Total Student Learning Time (SLT)

42

130

Credit Value (hours)

3 1

Pre-requisites (if any) Co-requisites (if any)

UNGS 2030 Islamic Worldview MGT 2010 Principles and Practices of Management None This course expects to provide students with the:

Course Objectives

1- understanding of the influence of Islamic values in individual characters and business decisions; 2- ability to identify sources and ethical values from Islamic and non Muslim sources; 3- skills to apply ethical values in various business contexts. At the end of the course, students should be able to: 1- explain the importance of Islamic values and ethics in business; 2- identify principal ethical values in Islam and their sources; 3- identify principal ethical values/theories from non-Muslim sources; 4- make a comparison between Islamic and non-Muslim ethics; 5- demonstrate an understanding and appreciation of how ethical reasoning develops and helps develop a person; 6- deduce the principles from moral and ethical values and theories to analyze ethical behavior in a business setting and various stakeholders.
Skills and how they are developed and assessed, project and practical experience and internship

Learning Outcomes

Transferable Skills:

1. Analytical skills; they are developed through research and inquiry i.e. analysing ethical issues and problems, thinking critically for solution alternatives and disseminating the findings. 2. Communication and interpersonal skills; they are developed through oral, written and non-verbal; teamwork, leadership and networking via group case analysis and presentation, field visits, and case reports. 3. Identify problems and provide solutions; they are developed through project assignments. Type of Assessment Lectures Peer assessment Group work Description Co-operative learning Students' oral reports on colleagues work. Three to four students to complete 2

Teaching-Learning / assessment strategy

Class Presentations Projects

three group assignments about ethical issues and problems. Oral reports on business ethics cases. Complete 1 major assignment

Course Synopsis

The course will discuss the significance of ethics in business setting, and highlight the obligation to pursue profits ethically and with responsibility. It will introduce principal values in Islamic ethics, and core ideas in established conventional ethical theories. It will also present the development of moral awareness and behavior in individuals. A section of the course details out business obligations towards its stakeholders. Next it will discuss approaches to solve ethical issues. Towards the end of the course it will expose how to make ethical decisions in various business contexts using ethical principles. Lecture LO 1, 4, 5, 6 1, 4, 5, 6 Method Learning/Book Review Group Assignments Mid-semester Examination Group Case Analysis and Oral presentation Group Project Paper End-of-semester Examination TOTAL % 5 15 15 10 15 40 100

Mode of Delivery

Assessment Methods and Type/Course Assessment State weightage of each type of assessment.

1,2,3 1,2,4 2, 6 2, 3, 4, 6

Mapping of course / module to the Programme Learning Outcomes

Learning Outcome of the course

1. 2.

Programme Outcomes
01 02 03 04 05 06 07 08 09

3.

4. 5.

To explain the importance of Islamic values and ethics in business To identify principal ethical values in Islam and their sources To identify principal ethical values/t eor ies fro m no nM usl im so urc es To make a comparison between Islamic and non-Muslim ethics To demonstrate an understanding and appreciation of how ethical reasoning develops and helps develop a person. To deduce the principles from moral and ethical values and theories to analyze ethical behavior in a business setting and various stakeholders.

6.

Content outline of the course / module and the SLT per topic Weeks Topics Learning Task/Reading (author/page) Hours

1
8-10/2/2012

Ethics and Business Explain why ethics is important in the business environment; Explain the nature of business ethics as an academic discipline; Distinguish the ethics of personal integrity from the ethics of social responsibility; Distinguish ethical norms and values from other business-related norms and values; Distinguish legal responsibilities from ethical responsibilities; Explain why ethical responsibilities go beyond legal compliance; Distinguish ethical decision-making from other practical decision situations. Ethical Decision Making: Personal and Professional Contexts Describe a process for ethically responsible decision-making; Apply this model to ethical decision points; Explain the reasons why good people might engage in unethical behavior; Explore the impact of managerial roles on the nature of our decision-making.

Hartman & DesJardins (2011) Chapter 1, pp.1-44

2
13-17/2/2012

Hartman & DesJardins (2011) Chapter 2, pp.45-94

3
20-24/2/2012

Universal Guidelines on Ethical Decision Making Describe Islamic Law (Shariah) criteria for measuring actions; Explain Objectives of Islamic Law (Maqasid alShariah); Explain Principles of Jurisprudence (Qawaid alFiqhiah).

Ashur (2006), pp.XXIV, 1-5, 190-199, Nyazee (2006), pp. 195-203, pp.231-267

Islamic Values and Perspectives Explain the meaning of Tawhid (Unity of God) and Al-akhirah (the Hereafter) and their implications; Describe the core values - Justice (adl) and trust (amanah); Discuss the concept of promoting goodness (maruf) and preventing evil (munkar); Explain the concept of goodness (khair, birr) and sharr; Explain the concept of ajr and ithm; Explain the concept of lawful (halal) and prohibited (haram); Describe the relationship between conscience, intention (niyyah), rationality, and action (aml). 4
27/2/20122/3/2012

Beekun (1997), pp.167

Philosophical Ethics and Business Explain the ethical tradition of utilitarianism; Describe how utilitarian thinking underlies much economic and business decision-making; Explain how free markets might serve the utilitarian goal of maximizing the overall good; Explain strengths and weaknesses of utilitarian decision-making; Explain principle-based, or deontological, ethical traditions; Explain the concept of moral rights; Distinguish moral rights from legal rights; Explain the Rawlsian theory of justice as fairness; Describe and explain virtue-based theories of ethical character.

Hartman & DesJardins (2011) Chapter 3, pp.95-142

5
5-9/3/2012

The Corporate CultureImpact and Implications Define corporate culture; Explain how corporate culture impacts ethical decision-making; Discuss the differences between a compliance culture and a values-based culture; Discuss the role of corporate leadership in establishing the culture; Explain the difference between effective leaders and ethical leaders; Discuss the role of mission statements and codes in creating an ethical corporate culture; Explain how various reporting mechanisms such as ethics hotlines and ombudsman can help integrate ethics within a firm; Discuss the role of assessment, monitoring, and auditing of the culture and ethics program; Explain how culture can be enforced via governmental regulation. Corporate Social Responsibility Define corporate social responsibility (CSR); Discuss the three models of CSR; Discuss the challenge in identifying the object of a corporations responsibility; Distinguish key components or elements of the term responsibility; Explain the role of reputation as one possible motivation behind CSR; and Evaluate the claims that CSR is good for business.

Hartman & DesJardins (2011) Chapter 4, pp.143-201

6
12-16/3/2012

10

Hartman & DesJardins (2011) Chapter 5, pp.203-247

7
19-26/3/2012 Mid Sem Exam 23/3/2012 (Friday) Ch.1-5 + Islamic Perspectives Mid Sem Break 27/3/2012 1/4/2012

Ethical Decision Making: Employer Responsibilities and Employee Rights Discuss the two distinct perspectives on the ethics of workplace relationships; Explain the concept of due process in the workplace; Define employment at will and its ethical rationale; Describe the costs of an EAW environment; Explain how due process relates to performance appraisals; Discuss whether it is possible to downsize in an ethical manner; Explain the difference between intrinsic and instrumental value in terms of health and safety; Describe the acceptable risk approach to health and safety in the workplace; Explain the basic arguments for and against regulation of the global labour environment; Describe the argument for a market-based resolution to workplace discrimination; Define diversity as it applies to the workplace; Explain the benefits and challenges of diversity for the workplace; Define affirmative action and explain the three ways in which affirmative action may be legally permissible; Articulate the basic guidelines for affirmative actions programs.

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Hartman & DesJardins (2011) Chapter 6, pp.249-332

8&9
2-6/4/2012 9-13/4/2012

Ethical Decision Making: Technology and Privacy in the Workplace Explain and distinguish the two definitions of privacy; Describe the ethical sources of privacy as a fundamental value; Identify the three legal sources of privacy protection; Discuss the concept of a reasonable expectation of privacy; Discuss recent developments in connection with employee monitoring; Explain the risks involved in a failure to understand the implications of technology and its use; Identify additional ethical challenges posed by technology use; Articulate the manner in which employee monitoring works; Enumerate the reasons why employers choose to monitor employees work; Explain why monitoring might also pose some costs for the employer and for the employee; Discuss the elements of a monitoring program that might balance the interests of the employee and the employer; Discuss the ethics of monitoring as it applies to drug testing; Discuss the ethics of monitoring as it applies to polygraphs, genetic testing and other forms of surveillance; Explain the interests of an employer in regulating an employees activities outside of work.

20

Hartman & DesJardins (2011) Chapter 7, pp.333-402

10 & 11
16-20/4/2012 23-27/4/2012

Ethics and Marketing Understand the application of the ethical decisionmaking framework to ethical issues in marketing; Describe the three key concerns of ethical analysis of marketing issues; Describe three interpretations of responsibility and apply them to the topic of product safety; Explain contractual standards for establishing business responsibilities for safe products; Articulate the tort standards for establishing business responsibilities for safe products; Analyze the ethical arguments for and against strict product liability; Discuss how to evaluate both ethical and unethical means by which to influence people through advertising; Explain the ethical justification for advertising; Trace debates about advertisings influence on consumer autonomy; Distinguish ethical from unethical target marketing, using marketing to vulnerable populations as an example; Discuss business responsibilities for the activities of its supply chain. Business, The Environment, and Sustainability Describe a range of values that play a role in environmental decision-making; Explain the difference between market and regulatory-based environmental policies; Describe business environmental responsibilities that would flow from each approach; Identify the inadequacies of sole reliance on a market-based approach; Identify the inadequacies of regulatory-based environmental policies; Define and describe sustainable development and sustainable business; Highlight the business opportunities associated with a move towards sustainability; Describe the sustainable principles of ecoefficiency, biomimicry, and service.

18

Hartman & DesJardins (2011) Chapter 8, pp.403-477

12
30/4/20124/5/2012 Submission of Project Paper 4/5/2012 5pm

10

Hartman & DesJardins (2011) Chapter 9, pp.479-525

10

13 & 14
7-11/5/2012 14-18/5/2012 Revision 21-23/5/2012 Final Exam 24/59/6/2012

Ethical Decision Making: Corporate Governance, Accounting, and Finance Describe the environment for corporate governance prior; Explain the role of accountants and other professionals as gatekeepers; Describe how conflicts of interests can arise for business professionals; Define the Control Environment and the means by which it can be impacted through ethics and culture; Discuss the legal obligations of a member of a board of directors; Explore the obligations of an ethical member of a board of directors; Highlight conflicts of interests in financial markets and discuss the ways in which they may be alleviated; Describe conflicts of interest in governance created by excessive executive compensation; Define insider trading and evaluate its potential for unethical behavior. Required references supporting the course

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Hartman & DesJardins (2011) Chapter 10, pp.527-589

The reference lists shall be presented in accordance with APA bibliographic practices and in alphabetical order.

Hartman, L.P. & DesJardins, J. (2011) (2nd edition). Business ethics: Decision-making for personal integrity & social responsibility. New York: McGraw-Hill/Irwin. Recommended references supporting the course Ashur, I (2006). Treatise on Maqasid al-Shariah. The International Institute of Islamic Thought. Translated by Mohamed el-Tahir el-Mesawi. Selangor: Islamic Book Trust. Beekun R.I. (1997). Islamic Business Ethics. Herndon, Virginia: IIIT. Ghillyer, A.W. (2010). Business ethics: A real world approach (2nd ed.). New York: McGraw-Hill. Hasan, S. (2007). Philanthropy and social justice in Islamic principles, prospects, and practices: K.Lumpur: A.S.Noordeen. Hartman, L.P. & DesJardins, J. (2011) (2nd edition). Business ethics: Decision-making for personal integrity & social responsibility. New York: McGraw-Hill/Irwin. Ismail, Y. (2004). Mengurus secara Islam: model dan prinsip-prinsip pengurusan Islam bagi 11

individu dan Organisasi (2nd edition). Kuala Lumpur: A. S. Noordeen Ismail, Y. & Sarif, S.M. (2011). A monograph on business ethics from a Tawheedic perspective: promoting goodness and preventing evil. Unpublished monograph. Sarif, S.M. & Ismail, Y. (2011). Spirituality in Business Ethics from an Islamic Perspective Suhaimi Mhd Sarif and Yusof Ismail. In AAhad M. Osman-Gani & Suhaimi Mhd Sarif, Spirituality in Management from Islamic Perspective, IIUM Press, Malaysia. Maududi, S.A.A. (U.d.). Ethical viewpoints in Islam. Lahore: Islamic Publications Pvt. Ltd. Mejelle, The. (1967). (An English translation of Majjallahel-Ahkam-i-Adliya), Law Publishing Company, Katchery Road, Lahore, Pakistan. Nyazee, I.A. (2006). Theories of Islamic law: The methodology of Ijtihad. New Delhi: Adam Publishers and Distributors. Qaradawi, Y. (2003). Wealth and economy in Islam. Translated by Samir Al Taqy. Cairo, Egypt: Islamic Inc. Qaradawi, Y. (1980). The lawful and the prohibited in Islam (al-Halal wa-al-haram fial-Islam), translated by Kamal el-Helbawy, M. Moinuddin Siddiqui, Syed Shukry; translation reviewed by Ahmad Zaki Hammad, Indianapolis: American Trust. Sikandar, S.H. (2005). Ethics and fiqh for daily life: An Islamic outline. Kuala Lumpur: IIUM Press. Umaruddin, M. (2003). The Ethical philosophy of Al-Ghazali. Kuala Lumpur: AS Noordeen. Prepared by: _______________________ Suhaimi Mhd. Sarif
Assistant Professor Department of Business Administration Kulliyyah of Economics and Management Sciences

Checked by: _______________________ Emeritus Prof. Dr. Mohamed Sulaiman

Head Department of Business Administration Kulliyyah of Economics and Management Sciences

Approved by: _______________________ Prof. Dr. Khaliq Ahmad

Dean Kulliyyah of Economics and Management Sciences

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At the end of the programme, students are able to: 1. 2. 3. 4. 5. 6. 7.

Demonstrate familiarity with established knowledge in the field of business management and awareness of current development therein. Use relevant skills learnt in this business management area for professional and personal development. Cooperate with others and apply knowledge in a socially responsible manner for the progress of the nation and the ummah. Demonstrate commitment to ethics, autonomy and professionalism in the workplace and everyday life. Communicate with people from a diverse range of backgrounds with empathy, showing leadership qualities. Analyse issues and demonstrate skilfulness in planning, executing and evaluating strategies and action plans. Use the necessary learning skills in information management and apply effective strategies for lifelong selfimprovement. Apply basic managerial and entrepreneurial skills in relevant fields. Understand the different type of leadership styles and the demonstration of interpersonal skills when leading in a group situation

Knowledge Practical Skills Social skills and Responsibilities Value, Attitudes and Professionalism Communication, Problem Solving and Scientific Skills Information Management and Lifelong Learning Skills Managerial and Entrepreneurial Skills Leadership and Team Skills

8. 9.

13

Notes Learning Review (5%) Students are required to record and review their learning from the textbook and lectures in a log book. The top most of the sheet should contain: Matric. No., Full Name, BE-Section, and Date of class. This log book must be written and updated at the end of each lecture. Each class will attempt to reserve the last five minutes to enable you to update our logbook. The instructor may ask students to submit the log book on a periodical basis. If you use one A4 for each class then you will have 28 sheets of A4 for 14 weeks of classes. A days record should not exceed one A4 sheet; write in only ONE SIDE of the A4. Towards the end of the semester, you will be reminded to compile your entries. You need to focus on only ONE idea or item: The log book should include the following items: Learning objective: What is one of the learning objectives? Textbook learning: What have you learned from the textbook? Lecture learning: What have you learned from the lecture? Spiritual learning: What have you learned about spirituality, values, or Islamic perspectives? Gap in textbook and lecture: What did you expect to learn but not available in both textbook and lecture? Discovery learning: What did you learn that is not available in the textbook and lecture? The assessment of this assignment is based on the completion of learning review i.e. at least 80% of the total lectures and all the chapters from the textbook. Group Assignments (15%) Students will be given business ethics assignments on continual basis. The number of the assignments is not fixed, but they have to be done in group. The scope of the assignments is within the learning objectives and learning outcomes of business ethics. Mid Semester Examination (15%) There are two parts: (a) multiple choice and (b) short essay. The coverage of the examination is based on the textbook and lectures from Week 1 until Week 6 (or from Chapter 1 until Chapter 5 of the textbook and Islamic perspectives of Business Ethics). The duration of the examination is between one and two hours. Group Case Analysis and Oral Presentation (10%) This assignment is to be executed in group (comprising four members). Each group will be assigned two cases. Each group must submit case analysis report for the two cases assigned to them, but they are required to present only one of the cases in the class. The instructor will determine which case to be presented in the class. The assessment is divided into two parts: case analysis report (6%) and oral presentation (4%). For the case report, all group members will share the marks equally. However, for the oral presentation, each member will be evaluated individually. Therefore, during the oral presentation, it is very important for each member to introduce his/her name so that the lecturer can give oral presentation mark. If the student fails to introduce his/her name, no mark will be given. The duration of the oral presentation is approximately 10-15 minutes per group to be confirmed in class. However, the lecturer has the discretion to shorten the duration of the presentation. Group Project Paper (15%) This assignment requires student to write an edited book with the big title called Quranic Guided Business Ethics and a small title based on the Surah assigned (e.g. Quranic Guided Business Ethics: Lessons from Surah Al Baqarah). Each group must produce minimum 10 chapters that are co-authored by the group members with students from other Kulliyyah within IIUM or other universities. Students can use the existing topics of Business Ethics as stated in the required textbook or other textbooks as a guide or

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perhaps based on the themes in the assigned Surah. The length of each chapter should be 15-20 pages, with single line spacing on A4 size and Times New Roman 12 point. Each chapter should have the following headings: CHAPTER FORMAT Title (14 point, Bold, Centre, Capital/Upper Case All Words) Authors and Affiliation (11 point, Centre, Capital Each Word) Abstract (10 point, italic, sentence, justified, maximum 300 words) Format: Objective, methodology, up to three major findings, conclusion. Keywords (3-5) Introduction Contents Discussion Recommendation Conclusion The book must have the following contents: Book cover page with creative design Table of contents See Chapter Format above. If a book has ten chapters then the titles of the ten chapters will be listed here. Preface (objectives of the book and critical review of all chapters) Contents (Chapter 1-Chapter 10) Each of the ten completed chapters will be compiled here. Chapter 1 Chapter 2 ... Biography of contributors (100 words for each contributor) Index (5 keywords from each chapter) Synopsis (summary) of the book (at the back of book) Campaign Not exceeding 100 words, write to attract people to read your proposed book. It should be honest and related to the actual content of your proposed book.

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Sample Chapter

CHAPTER 3 BELIEF IN UNSEEN (Al Ghaib) AND BUSINESS ETHICAL DECISION MAKING
Suhaimi Mhd Sarif Kulliyyah of Economics and Management Sciences, IIUM Yusof Ismail Kulliyyah of Economics and Management Sciences, IIUM. Hishamuddin Dahalan College of Business, Universiti Utara Malaysia Mohd Anuar Arshad School of Management, Universiti Sains Malaysia
ABSTRACT This chapter explores the Quranic theme from Surah al Baqarah from verse 1-5 belief in unseen (al ghaib) and business ethical decision making. The study used the commentaries made in Tafsir Ibn Kathir and a few lectures on Surah al Baqarah verses 1-5 based on the commentaries of Tafsir Ibn Kathir. There are five lessons from the belief in unseen, namely (a) subscribe fully to the Quranic guidance without reservation, (b) always seek guidance (al huda) from God, (c) nurture the God-fearing attitude (al taqwa), (d) steadfast (al istiqamah) in prayers, and (e) always perform audit (al Muhasabah). The study matches the five lessons from the Quran with the rational approach of ethical decision making process used by Hartman and Desjardin (2011). We found that the rational approach has serious implications of belief in unseen or spirituality aspects in terms of guidance (al huda), God-fearing (al taqwa), steadfast (al istiqamah) and audit (al Muhasabah). We discussed the findings with a scholar specialised in Quranic studies and another scholar specialised in Hadith from IIUM on how to operationalize the four terms: guidance (al huda), God-fearing (al taqwa), steadfast (al istiqamah) and audit (al Muhasabah) into business ethical decision making. The result of the discussion is presented in this chapter. We find the study is not conclusive due to lack of rigorous analysis. For future studies, we suggest for more robust and rigorous analysis to include more scholars both from Islamic and conventional studies. (242 words). Keywords: Belief in unseen, Ethical decision making, Islam, Quranic guidance, Tafsir.

INTRODUCTION This chapter discusses about..... (It is composed after you have written you Conclusions) Sub Introduction This sub explain... CONTENT 1 This chapter discusses..... 16

Sub Content 1 This sub-chapter explains..... CONTENT 2 This chapter discusses..... Sub Content 2 This sub-chapter explains..... CONTENT 3 This chapter discusses..... Sub Content 3 This sub-chapter explains..... DISCUSSION This section argues that..... RECOMMENDATION This section offers recommendation..... CONCLUSION The study concludes that...

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