Chapter9-Ethics, Professionalism and Social Responsibility

1
Ethics, Professionalism and

Social Responsibility 9
Synopsis
This chapter discusses the importance of ethics, professionalism

and social responsibility in entrepreneurial and business
activities. Ethics involve personal beliefs, values and good
practices, such as being disciplined, honest, responsible and
trustworthy. Professionalism means a person is competent and
qualified to do a specific task, and he undertakes the task in the
manner that is to be expected from a professionally competent
person, such as acting with due care, skill, diligence and
complying with the rule of law, regulations and code of practice.
Being socially responsible means a person will ensure that his
action will contribute to and benefit the society, environment and
country, and it will not harm or negatively impact the society,
environment and country.
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Objectives
The objectives of this chapter are:

To understand and appreciate the importance of
good morals, ethics and professional values at
work.
To understand the meaning of being professional
at work.
To appreciate the importance of social
responsibility to a business organization.

Learning Outcomes
At the end of this chapter, students should be able

to:
 Appreciate the importance of good character for
long-term success.
 Appreciate and relate to corporate social
responsibility.

List of Topics
 Introduction to Ethics and Standards of

Professional Conduct
 The Importance of Ethics and Code of Good
Professional Conduct
 Islamic Ethical Values
 Social Responsibility and Sustainable
Development

Introduction
 An entrepreneur who conducts business

ethically, professionally and in a socially
responsible manner is an asset to the society
and nation. Through the business activities, the
entrepreneur creates ‘win-win’ deals, providing
benefits to society by offering products and
services that are needed, and make profit for
themselves.

Introduction to Ethics and
Standards of Professional
Conduct
 Ethics involve personal beliefs, values and good
practices, such as being disciplined, honest,
responsible and trustworthy.
 Human ethical values were derived from many
sources, such as religion, culture and law (legal acts,
enactment, by-laws, rules and regulations).

Conduct (cont.)
 It is universally accepted that a person has to

be honest, responsible, fair and reasonable in
all his dealings. There are laws, code of
professional practices and good conduct,
religious and cultural values that can guide a
person on what is ethically, morally and legally
acceptable. For instance, criminal cases such
as cheating, stealing, robbing, rape, etc. are
universally accepted as evil and wrong.

Conduct (cont.)
 An adult would have developed his personal ethics
through his upbringing, religious lessons, exposure to
the world, education, social norms, observations,
experiences, understanding of local laws, etc. This is
the moral compass that guides a person’s
conscience.

Conduct (cont.)
 Professionalism means a person is competent and
qualified to do a specific task, and he undertakes to
do the task in the manner that is to be expected from
a competent person, such as acting with due care,
skill, diligence, and complying with laws, regulations
and codes of practice.

Conduct (cont.)
 All professionals—accountants, engineers,

lawyers, doctors, etc.—have their own codes of
practice, ethics and professional conduct.
Under law, these professional bodies have a
board to oversee, manage and take disciplinary
action on members who fail to comply or
conform to the legal, technical or ethical
requirements stipulated.

Conduct (cont.)
 The nature of business is that entrepreneurs offer
products and services to customers, and in the
process, make profit.
 The business process should be ethically and legally
right, contribute to and benefit the society and does
not pose any harmful impact to the country, society or
environment.
 An entrepreneur can only be happy and proud of his
or her success if the achievement is done in a
professional and ethical way.
Conduct (cont.)
 Worldly achievement void of ethical principle and
good conduct is a superficial achievement. In reality,
it causes worry, anxiety, sleepless nights, depression
and self-doubt that may trigger self-destruction.
 Personal character and integrity are the foundation of
success and they are the final test of a person’s true
quality.
 Success that is based on good ethical and moral
conduct is holistic, meaningful, satisfying and very
often an exemplary long-term success that others
may want to emulate.
Islamic Ethical Values
 For a Muslim entrepreneur, all business dealings will be

considered as good deeds (ibadah) if one is sincere
(ikhlas) and does it in the best manner (itqan) following
Islamic principles. The following are key Islamic principles
in doing business:
(a) The entrepreneur shows and displays good behaviour
and etiquette (akhlak and adab) towards other fellow
Muslims, non-Muslims, animals and environment.
(b) The entrepreneur should be mindful not to commit
prohibited acts as outlined in Islamic laws (syariat).

Islamic Ethical Values (cont.)
(c) The entrepreneur’s earnings should be permissible by

Islam, i.e. halal.
(d) The entrepreneur must pay obligatory alms (zakat) and
offer donations (sadaqah).
(e) The concept of blessing (barakah) means that smaller
earnings can be superior than bigger earnings if it is
earned through ethical and legal means.
(f) Possession of wealth is permissible but Allah s.w.t is the
absolute owner of wealth, and wealth is only entrusted
to mankind temporarily.

Islamic Ethical Values (cont.)
 A Muslim believes that wealth must be obtained in

halal ways and it must be used in a halal manner as
prescribed by Islamic law. A Muslim must use,
manage and invest resources endowed to him to
generate wealth, benefit, goodness to himself, the
society and nation as a whole.
 All of these good deeds will form part of his act of
worship (ibadah) as a Muslim.

Social ResponsibiIity and
Sustainable Development
 Social responsibility often means organizations or
individuals practising good ethical principles and act as
exemplar citizens.
 In the long term, these acts enhance the corporate image
of an organization and as such enhance its market
positioning and competitiveness.
 Corporate social responsibility (CSR) is an act of
assuming a certain responsible act by corporate
organizations towards the environment, consumers,
employees, communities and other possible external
stakeholders.
Sustainable Development
 Sustainable development is defined as meeting “the

needs of the present without compromising the ability of
future generations to meet their own needs” (United
Nations, 1987). This means inculcating the process of
maintaining human needs while preserving the
environment for future generations. Entrepreneurs must
strive to contribute to a sustainable environment through
less pollution, energy-efficient production, energy- and
water-efficient machinery, reduce wastage, eliminate
output of harmful material to environment (i.e. carbon
dioxide emissions and toxic waste), etc.
Summary
 Ethics, professionalism and social responsibility are

integral parts of a business.
 Entrepreneurs have to embrace ethics, professionalism
and social responsibility in order to achieve profit
objectives, as well as social obligations.
 A holistic approach will make good business sense in the
long run. The challenge is how to work out a practical
concept, strategy and approach, so that the business
model creates a ‘win-win’ situation to all stakeholders.


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1

Ethics, Professionalism and

This chapter discusses the importance of ethics, professionalism

The objectives of this chapter are:

Introduction to Entrepreneurship All Rights Reserved

At the end of this chapter, students should be able

Introduction to Entrepreneurship All Rights Reserved

 Introduction to Ethics and Standards of

Introduction to Entrepreneurship All Rights Reserved

 An entrepreneur who conducts business

Introduction to Entrepreneurship All Rights Reserved

Introduction to Entrepreneurship All Rights Reserved

 It is universally accepted that a person has to

Introduction to Entrepreneurship All Rights Reserved

Introduction to Entrepreneurship All Rights Reserved

Introduction to Entrepreneurship All Rights Reserved

 All professionals—accountants, engineers,

Introduction to Entrepreneurship All Rights Reserved

 For a Muslim entrepreneur, all business dealings will be

Introduction to Entrepreneurship All Rights Reserved

(c) The entrepreneur’s earnings should be permissible by

Introduction to Entrepreneurship All Rights Reserved

 A Muslim believes that wealth must be obtained in

Introduction to Entrepreneurship All Rights Reserved

 Sustainable development is defined as meeting “the

 Ethics, professionalism and social responsibility are

Introduction to Entrepreneurship All Rights Reserved

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