CONTRIBUTION OF ISLAMIC MANAGEMENT IN BUILDING ETHICS IN ORGANIZATIONS

Abstract

Business scandals and ethical misconduct caused millions of dollars in losses, left behind
damaged organizations, forced them to close their business and left thousands employees jobless
without any future guarantee or security. This incident has left scholars and managers asking
what role they might have played to curb these ethical scandals and what role they can play in the
solutions. Scholar and managers collectively have responded to the ethical challenges that we
face in organizational life. Some scholarship assesses the current state of ethics in management
education, helping us to diagnose and tackle the realities of unethical behavior. Part of the
solution to this problem is to design and develop courses and programs in a better way, integrate
business and management learning with ethical conduct. Scholars should focus on which
standards should be advanced. Indeed, what connects this diverse discussion is a clear
recognition that educational components designed to solve the ethical quandaries we face will
require a multifaceted and comprehensive approach. Religions and philosophical schools of
thought have always played a significant role in the development of human values and behavior
which has a great impact to business and corporate management. Research also suggests that the
encouragement religious principles in business can lead to benefits in the areas of creativity,
honesty and trust, personal fulfillment, and commitment, which will ultimately lead to increased
corporate and business performance. It is where Islamic Management come into place where the
foundations, priciples, and practices will give impact in developing ethical standard to
organizations. Islamic Management will bring students and managers back to basic where they
cannot put aside the role of religion in safeguarding management practices in organization.