ISSN 2394-9716 International Journal of Novel Research in Interdisciplinary Studies Vol. 6, Issue 5, pp: (16-25), Month: September - October 2019, Available at: www.noveltyjournals.com BUSINESS ETHICS IN ISLAMIC LEADERSHIP AND MANAGEMENT Adhy Firdaus Lecturer at Post Graduate Programs STIE (Economic School of Higher Education) Ganesha , Jakarta, Indonesia [email protected] Abstract: Ethics and Business ethics has been globally known as a field of applied phylosofy science. Nowadays business ethics, as a field of science, has widely accepted and implemented by many organizations and communities. Islamic teaching is one of the most influencing basic for ethical consideration in decision making process in management. The idea of this paper is to contribute an array of perpective on what Islamic business ethics might possibly influence to the management and leadership in decision making process within business economics. By Islamic business ethics is mean the islamic teaching that guide the behaviour of people or organization on business. The paper has three parts. The first part review the business ethics including theoretical scholarly writings and descriptions of Islamic teaching of leadership and management. This part talks about the Super Leader Prophet Muhammad SAW and the second Khalifah after his death Umar ibn al-Khattab r.a. The second part discuss business ethics and Islamic teaching in business leaderships and business managements. The part include result of deep interviews with 5 (Five) business owners and managers in 5 (Five) Business fields to get evidences of business ethics in Islamic business leaders. In the third part, the conclutions. The research produce evidence that Islamic teaching do exist in the business ethics decision making process in islamic leaders and management of islamic business. The future research should be of practical issues to this original field of business ethics management. Keywords: Ethics, Business ethics, Islamic teaching, decision making process. 1. INTRODUCTIONS The basic Islamic teaching about man is that the mission of humankind in this world is only to worship Allah and be HIS vicegerents to this Earth by submitting to His will (Jabnoun, 2005). As stated in Al-Qur‟an: 56. and I did not create jinn and mankind except only to worship Me > dan aku tidak menciptakan jin dan manusia melainkan supaya mereka mengabdi kepada-Ku (Q.S Adz-Dzariyaat [51]: 56). Allah SWT has created man to be leader (kholifah) on the Earth. As a leader man has duties to preserve, care, develop and nurture the Earth and its potentials for the shake of human and other creature‟s welfare and happyness (As-Suwaidan dan Basyarahil, 2009, hal.215-216 ). In the Holly Al-Qur‟an Allah SWT stated that: Page | 16 Novelty Journals ISSN 2394-9716 International Journal of Novel Research in Interdisciplinary Studies Vol. 6, Issue 5, pp: (16-25), Month: September - October 2019, Available at: www.noveltyjournals.com 30. Behold, when your Lord said to the angels: “I will create a leader on the Earth” - ingatlah ketika Tuhanmu berfirman kepada Para Malaikat: "Sesungguhnya aku hendak menjadikan seorang khalifah di muka bumi." (Al-Qur‟an: S. Al-Baqoroh [2]:30) and : 61. “…. HE had created you from earth (Clay) and making you as it prosperous - Dia telah menciptakan kamu dari bumi (tanah) dan menjadikan kamu pemakmurnya[726], " (Al-Qur‟an: S. Huud [12]:61) [726] Meaning: Man is inhabiting the world to and to prosper the world - Maksudnya: manusia dijadikan penghuni dunia untuk menguasai dan memakmurkan dunia. According to Islam, man had an agreement to lead on Earth before he was sent to it (Chodim, 2003. P.95). Men‟s duties on Earth is to lead, to manage, to develop, and to care, not to overexplored or to destroy the Earth and its content (As- Suwaidan and Basyarahil, 2009, hal.215-216 ), Manager is dinamic element and life of every business (Drucker, 1954/1979. in Sheldrake, 2003). but Maslow (1943) in Sheldrake (2003) stated that human is animal who continously wanting which mean wanting more monopolize conciusness. So, when there is human who does not pay attentions and guard the goodness on Earth, then that men can be said as unethical managers according to religious view or according to social and Law. Ethical behavior in business has not yet being stadardized (Bertens, 2000; hal. 384; Kim, Fisher, and McCalman, 2009), but for the time being to judge ethics in business is that bind to the law and follow the good norms in society and good according to the religion (Beekun, 1996; Bertens, 2000; Fauroni, 2003; Kim, Fisher, and McCalman., 2009). then Imaniati, (2009; hal.248-255) propose 5 (five) principal in business ethics that are: otonomy, honesty, good conduct / not being evil, justice, and self respect. This five principal based on philosophical view of „respect to the man as a person‟ which is in this view human in business are good person, as a being who valuable to himself. In the Islamic contecs, business which is in ethics will have Khayr / khoir (goodness), birr (truth/honesty), qist (equal), adl / adil (justice/balance), haqq (right), ma’ruf (known /agreed), dan taqwa (iman/obey/bind) (Beekun, 1996). Looking to the above consepts, unethical behavior in business can be devine as: theft, forgery, lying, poisoning, corruption (Norman, Roux, and B`elanger, 2008), KKN (corrupt, collusion, and Nepotism) (Arifin, 2008), lying (Umphress, Ren, Bingham, and Gogus, 2009), piracy (Wang, Chen, Yang, and Farn, 2009), theft (Mitchell, Ballabanis, Schlegelmilch, and Cornwell, 2009), not honest (Kidwell and Valentine, 2008), and Cheating (Jia, Ding, Li, and Wu, 2009), far more Fauroni (2003) stated that according islamic teaching unethical business is having element of evil, mean, destructive, in small or at large, hiding or obvious. Islamic teaching forbid cheating, and it clearly stated in the holy book of Al-Qur‟an Surat Al-Muthaffifin[830]: ayat 1-6, as follow: Page | 17 Novelty Journals ISSN 2394-9716 International Journal of Novel Research in Interdisciplinary Studies Vol. 6, Issue 5, pp: (16-25), Month: September - October 2019, Available at: www.noveltyjournals.com 1. kecelakaan besarlah bagi orang-orang yang curang[1561], 2. (yaitu) orang-orang yang apabila menerima takaran dari orang lain mereka minta dipenuhi, 3. dan apabila mereka menakar atau menimbang untuk orang lain, mereka mengurangi. 4. tidaklah orang-orang itu menyangka, bahwa Sesungguhnya mereka akan dibangkitkan, 5. pada suatu hari yang besar, 6. (yaitu) hari (ketika) manu-sia berdiri menghadap Tuhan semesta alam? [1561] Yang dimaksud dengan orang-orang yang curang di sini ialah orang-orang yang curang dalam menakar dan menimbang. Good and ethical businessmen will always uphold the rule and norms. Good Business has meaning of morality and business has to be ethical for its own purposes (Bertens, 2000, p.377 & 387). Althought business ethics have widely known, the islamic teaching of ethics in business sometime misunderstood and not known by managers. Most management, and management scientist, thinks that Islam does not have anything in building business ethics in management. They tend to think that good business ethics came from the western society (US, Europe), and ignoring the teaching of ethical value of Islam and the East. The idea of this paper is to contribute an array of perpective on what Islamic business ethics might possibly influence to the management and leadership in decision making process within business economics. By Islamic business ethics is mean the islamic teaching that guide the behaviour of people or organization on business management. The study was designed to answer a question of how does the implementation of Islamic business ethics in management. The method used in this paper is qualitatif descriptive with philosophycal inquiry approach and critical theory paradigm (Salladien. 2007). Firs we review the devinision of business ethics and theoretical scolarly writing on business ethics. Second we dug the islamic teaching on ethics and business. Third we discuss relationship between business ethics and islamic teaching on business management, then we concluded the paper. 2. BUSINESS ETHICS The word “Etics” according to Oxford Advanced Learner‟s Dictionary (2005) mean moral principles that control or influence a person‟s behaviour. Taylor (1975) in Tseng, Duan, Tung, and Kung, (2009) devine ethics as “inquiry into the nature and grounds of morality” where the terms morality is taken to mean moral judgement, standards, and rules of conduct. Combine the devinition of “ethics” Tseng et al. (2009) view the word “ethics” as the study and philosophy of human conduct with an emphasis on the determination of right or wrong. Beekun (1996) devine ethics as the set of moral principles that distinguish what is right from what is wrong. For Muslim society (people who embrace Islam religion) they believes that the holy book Al-Qur‟an, Sunnah – behavior, and Hadist – speech- of the prophet Muhammad S.A.W., and Syari’ah (Islamic law) give every answer for ethical questions and guidance to ethical behavior (Rise, 2006; and Abbasi et al., 1989, in Tsalikis, and Lassar, 2009).. Ethical feeling is devined as a set of moral principal or value that bound societies together ( Donaldson, 2003; Rodgers, 2009; Rodgers &Gago, 2001; in Rodgers, 2009). Utilitarian theory in ethics stated that a behavior is good if its useful to society as a whole, ethics in deontologi theory stated that a behavior is good if it is serve a duty. (Bertens, 2000, hal.66-80). The word “business” in english, according to Oxford Advanced Learner‟s Dictionary (2005) mean the activity of making, buying, selling, or supplying goods or services for money. Rise (1999) in Tsalikis and Lassar (2009) stated that Islam views business as social functions which is very usefull and prophet Muhammad (Peace upon him) himself involve in trading world, but the individual profit is not main motivation in islamic law.