Universitas Islam IndonesiaFaculty of Economics

INTERNATIONAL PROGRAM

SyllabusIslamic Business Ethics

Lecturer: Drs. Abdul Ghoffar, MBA

Email: aghoffar@hotmail.com

Phone: 0813 2877 0510

Credit (SKS): 2

Pre-requisites: Introduction to Business

Consultation Times: By appointment

Class Duration Two and a half hours per week for 12 weeks

One to one and a half hours of the time is used for lecture or seminar and the remainder for tutorial or small group work activities.

Subject OverviewThis subject examines the world of business from the point of view of ethics. Major issues in business realities are explored utilizing three main schools of thought, namely utilitarianism, deontology and Islam. Several topics are discussed including corporate social responsibility, corporate interests, corporate ethics, as well as human resources and ethics in marketing.

Subject ObjectivesThe Course is designed to achieve the following learning outcomes:

1. Analyze the complex and dynamic environmental influences, which impact on business organization in society.

2. Explain the abovementioned conceptual frameworks as they relate to contemporary business practice and how they can be applied in order to diagnose critical issues.

3. Conduct creative problem solving activities that demonstrate how to overcome ethical dilemmas in the business environment.

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Materials and References

Text Books

1) Beauchamp, T.L., and Bowie, N.E., 1988, Ethical Theory and Business, 3rd Ed., Prentice Hall, New Jersey

2) Beekun, Rafik Issa, 1996, Islamic Business Ethics, International Institute of Islamic Thought

3) Hartman, L.P., 2002, Perspectives in Business Ethics, 2nd Edition, McGraw Hill, New York

4) Patrick, J.A., and Quinn, J.F., 1997, Management Ethics: Integrity at Work, SAGE Publication, London

Journals

1) Personnel Review2) Journal of Managerial Psychology3) International Journal of Social Economics4) Academic of Management Review

Assessment

AssignmentsOne formal individual assignment will be given during the semester (the length is between 1000-1500 words). This assignment includes an individual presentation during class time. The students are free to choose any topic that is relevant to the major topics in the semester program outline.

ExaminationsThere will be one mid semester and one end of semester exam. Both exams will be open book. Both exams will require you to answer four short answer questions (4-6 paragraphs each) from a range of questions. The exams are 80 minutes in duration.

Class ParticipationSmall group discussions will be conducted at each meeting. Discussions will include real cases where ethical dilemmas are presented. Students must analyze each case using three different ethical perspectives. Students must choose their ethical position and explain their reasons for choosing one ethical perspective as opposed to another.

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End of Semester Result:

The final grade will be based on the mid-test, final test and assignments. The percentage distribution will be allocated as follows:

Final Test 40%Mid Test 30%Assignment 30%

Policy on Assessment

Essays and assignment will not be accepted after the due date unless arrangements for an extension of time have been made prior to the due date. If you do not agree with the result that you are awarded for any piece of assessed material for this subject, please contact the lecturer immediately. You have a right to know the reason why your work has received a certain grade and to request a reassessment if you believe your work has been unfairly assessed.

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Subject Organization for Islamic Business Ethics

Lecture Program/Topics

Meetings TopicsLearning Experience and Learning

MaterialsMeeting 1 Introduction:

Identification of moral climate in society

- Lecture- Discussion to identify moral

climate in society

Handouts:- Introduction to Islamic Business

EthicsMeeting 2 Ethical Concepts and

Theories - Utilitarianism- Deontology

- Lecture- Case Discussion : Shutdown at

Eastland

Text Books:- Beauchamp, T.L and Bowie, N.E.

(1988) Ethical Theory and Business, pp. 1-49. New Jersey: Prentice Hall

Journal :Esteban, EG, 2000, Consequentionalism and deontologism for business ethics, Sao Paolo, Brazil.

Meeting 3 Islamic Ethic and Issues (1)- Islamic Paradigm- Principles of Islamic Thought

- Lecture- Case discussion: Bidding a

Project

Meeting 4 Islamic Ethic and Issues (2)- Dilemma about interest

- Lecture - Discussion

Journal:Sauer, J.B. (2002) Metaphysics and economy – the problem of interest: A comparison of the practice and ethics of interest in Islamic and Christian cultures, International Journal of Social Economics, Vol. 29, No. ½, pp. 97-118

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Meeting 5 Islamic Ethics : Comparative Study

- Lecture- Discussion

Journal :Ali Abbas J, 1998, Foundation of Business ethics in contemporary religious thought ; Ten Commandment perspective, International Journal of Social Economics, Vol. 25, No. 10

Meeting 6 Ethical Decision Making-Models of Decision Making-Steps of Ethical Decision Making

- Lecture- Discussion

Journal:Bradley, L.J. and Hendricks, C.B. (2004) Implementing Ethical Decision Model, Texas Tech University.

Meeting 7 Mid-semester TestMeeting 8 Ethics and Human

Resource Management (1)Equal opportunity and Islamic work ethics

- Lecture- Case Discussion:

Sing’s Bali Hai

Textbook:Beauchamp, T.L and Bowie, N.E. (1988) Ethical Theory and Business, pp. 257-291. New Jersey: Prentice Hall

Journal:- Yousef, Darwish, 2001, Islamic Work

ethics:a moderator between organizational commitment and job satisfaction in a cross cultural context, Personal Review, Vol. 30, No.2

- Barett, Edward, 1999, Justice in the work place?, Personel Review, Vol. 28, No. 4

Meeting 9 Ethics and Human Resource Management (2)- Employee loyalty - whistle blowing

- Lecture- Case Discussion:

Alpha Corporation

Textbook:Beauchamp, T.L and Bowie, N.E. (1988) Ethical Theory and Business, pp. 292-317. New Jersey: Prentice Hall

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Meeting 10 Corporate Social Responsibility- concept and theories of corporate social responsibility

- Lecture- Case Discussion:

Hajj and Marble Tile Company

Textbook:Beauchamp, T.L and Bowie, N.E. (1988) Ethical Theory and Business, pp. New Jersey: Prentice Hall

JournalFulop, G;Hisrich, RD and Szegedi, K, 2000, Business Ethics and social Responsibility in Transition Economies, Journal of Management development

Meeting 11 Ethics and Marketing- Misleading Advertising- Product Labeling and Information

- Lecture- Course Work for Presentation

Textbook:Beauchamp, T.L and Bowie, N.E. (1988) Ethical Theory and Business, pp. 398-456. New Jersey: Prentice Hall

Journal:Nantel, J., 1996, Marketing Ethics: is there more to it than the utilitarian approach?, European Journal of Marketing, Vol. 30, No. 5

Meeting 12 Ethics and Finance- Ethical Investment- Insider Trading

- Lecture- Discussion

Textbook:Beauchamp, T.L and Bowie, N.E. (1988) Ethical Theory and Business, pp. 501-532. New Jersey: Prentice Hall

Meeting 13 Course works presentation

- Course Work Presentation

Meeting 14 Final Exam

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