CHAPTER
ONE
ba
lo
G
O
pp
or
tu
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liz
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Business Fundamentals
& Today’s Dynamic
Business Environment
LEARNING OUTCOMES
In this chapter, you will learn to:
1.Define and explain the basic concepts of business, profit,
entrepreneurship and risk taking.
2.Explain how businesses add to society’s standard of living and quality
of life.
3. Discuss how businesses should respond to stakeholders.
4.Explain how business principles may be used in non-profit
organizations.
5. Identify and explain the business environment.
6.Define ethics as a social responsibility and rationalize its importance
in the conduct of business.
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Business Management a Malaysian Perspective
1.1 Introduction
This chapter will give an overview of business and its organization. Readers will
initially be introduced to the basic concepts of business, profit, entrepreneurship
and risk taking. The objectives of businesses—to maximize profits and balance
the needs of stakeholders—will be examined. How business principles can be
applied in non-profit organizations to improve efficiency will also be discussed.
Next, business environments—economic and legal, technological progress, the
socio-cultural environment, competition and globalization—which influence
the development of today’s businesses will also be discussed. Finally, this chapter
will examine the importance of conducting businesses ethically as a social
responsibility, in addition to business survival and sustainability.
Business
organization –
an organization
under one
management,
set up for the
purpose of
earning profits
by providing
goods and
services for sale
in markets.
Profit – the
reward earned
by someone for
taking risks to
venture into a
business.
1.2 Basic Business Concepts and
Definitions
1. Business organization
A business organization is an organization under one management, set up
for the purpose of earning profits by providing goods and services for sale in
markets. The terms ‘firm’, ‘business’, ‘business organization’ and ‘enterprise’
mean the same thing. Thus, any business entity aims to make profit. A group
of organizations that sell a similar product in a market is an industry.
2. Profit
Profit is the reward earned by someone for taking risks to venture into a
business. It is the amount of money a business earns over and above what it
spends for its operation. In economics, profit is the difference between total
revenue and total cost.
Total revenue is computed as product price multiplied by the quantity sold.
For example, if Lina, a mini market operator, sells 50 bottles of mineral water
per day at a price of RM2 per unit, her total revenue is RM100 per day (50
units × RM2). Total cost takes into account the electricity and water bills, the
rental of her mini market, the salary she has to pay to her cashier, etc. Table
1.1 shows the calculation of Lina’s daily profit from the sale of mineral water.
Table 1.1 Calculation of daily profit
Total revenue
– the income
generated from
sales of goods
and services.
It is computed
as the product
price times the
quantity sold.
Item
Formula
Calculation
Total revenue
Price 3 Quantity sold
RM2 3 50 5 RM100
Total cost
Fixed cost 1 Variable cost
RM40 1 RM20 5 RM60
Profit
Total revenue 2 Total cost
RM100 2 RM60 5 RM40
Note:
Quantity of bottles sold per day 5 50 units
Price per unit 5 RM2
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Business Fundamentals & Today’s Dynamic Business Environment
In a free market system, the main objective of a business organization—
be it a big or small organization—is to maxi­mize profit. In Lina’s case, she
may increase her sales by attractively displaying a variety of products sold at
her mini market and offering speedy customer services. While she increases
her sales, she has to consistently monitor her costs. The lower the costs, the
higher the total revenue; hence, the higher the profit.
The legitimate right to earn profits distinguishes a business from
organizations such as public hospitals, universities and government agencies
which generally are non-profit seeking.
3. Entrepreneurs and the need for risk taking
An entrepreneur, in its simple definition, is a person who takes risks and
spends time and money to start and manage a business.
Rita works as a sales executive at ABY Enterprise. She currently earns
RM3,000 plus fringe benefits. However, if she resigns from her sales job
to start an advertising company of her own, she will be taking the risk of
sacrificing her current salary plus fringe benefits. In addition, she would need
to withdraw her savings in Amanah Saham Berhad (ASB) to buy photocopying
machines, computers and furniture for her office. She would, therefore, have
to forego the chance of earning dividends at the end of the year after using her
savings to start her business.
Naturally, Rita is expecting a return from her venture—to make profits.
The issue is to find the right balance in matching the risk with the profit that
she is hoping to earn. Rita knows that the higher the risk she takes, the greater
the potential returns or profits. However, being an entrepreneur, she will
take calculated risks after seriously considering the costs and benefits of her
undertakings. She will also use her creativity to solve any problem to succeed
in her business.
Chapter 5 will cover the topics of entrepreneurship and starting a small
business in depth. There you will also learn to differentiate between a
businessman and an entrepreneur.
3
Fixed cost –
cost that does
not vary with
the amount
of output
produced.
Variable cost
– cost that
varies with
the amount
of output
produced.
Entrepreneur
– a person who
takes risks and
spends time
and money
to start and
manage a
business.
1.3 Business Development and Its
Contribution to Society
As we proceed, you may wonder why a nation should focus on business
development. Therefore, we need to examine its impact and contribution to
society at large.
An economy will grow faster with the expansion of business activities. When
organizations increase their investment, additional job opportunities are created,
reducing the rate of unemployment. This also increases aggregate income and
aggregate demand of the nation.
A nation’s businesses are part of an economic system that contributes to the
standard of living and quality of life for everyone in the country.
Standard of Living
Standard of living refers to the amount of goods and services people can buy with
the money they have. Businesses create and produce innovative products that
Standard of
living – the
amount of
goods and
services people
can buy with
the money they
have.
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Business Management a Malaysian Perspective
consumers want and need. Consumers, with their purchasing power, are able
to choose from a wide range of goods and services provided by businesses. The
ability to buy a greater amount of goods and services will lead to a higher standard
of living.
Businesses have also contributed to society’s quality of life.
Quality of Life
Quality of life
– the general
well-being of
society in terms
of political
freedom, a
clean natural
environment,
education,
health care,
safety, free time
and everything
else that
leads to one’s
happiness and
satisfaction.
Quality of life refers to the general well-being of society in terms of political
freedom, a clean natural environment, education, health care, safety, free time
and everything else that leads to one’s happiness and satisfaction. Just look around
us! New forms of technology, service businesses and international opportunities
promise to keep production, consumption and employment growing.
Business profits enhance the personal incomes of owners as well as the
shareholders. They also generate the nation’s revenue to support the government’s
activities through the business taxes paid. Many businesses have also supported
charities and other corporate social responsibility initiatives to enhance society’s
quality of life. The more money businesses create, the higher the potential for
society to improve its quality of life.
1.4 Balancing the Interests of
Stakeholders
Shareholders –
individuals or
parties that
invest their
funds in a
business.
We noted earlier that profits are the rewards for owners who risk their money
and time to be in business. In pursuing profits, businesses must take into account
what consumers want and need. While today’s society has high respect for
entrepreneurs and their contributions, businesses nowadays have also realized
the critical need to balance the interests of all stakeholders to be successful. In the
past, the emphasis had been to fulfil the interests of shareholders or stockholders
since they have invested in the business.
Who Are Stakeholders?
Stakeholders –
all the people
or parties that
stand to gain or
lose by the
policies and
activities of a
business.
Stakeholders are all the people or parties that stand to gain or lose by the policies
and activities of a business. Businesses have many stakeholders. They include
shareholders, customers, suppliers, bankers, employees, government agencies,
non-governmental organizations (NGOs) as well as competitors.
A poor relationship with a major supplier may disrupt production of the final
goods. Similarly, by fulfilling customers’ needs, they will maintain their loyalty to
the products, and sales will be stable. Businesses have to also consider employees’
needs. Employees have to be fairly rewarded to commensurate with the expected
output from them. A highly motivated workforce will certainly improve work
productivity and generate higher profits for the organization.
While providing customers’ needs, businesses must try to cause minimal
damage to the natural environment. Such actions will comply with the
government’s policy to conserve the environment for better quality of life.
Businesses are part and parcel of the community. Therefore, while addressing the
stakeholders’ interests, they are also fulfilling their social responsibility.
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Business Fundamentals & Today’s Dynamic Business Environment
5
While businesses nowadays maintain their main objective of making profits and
maximizing shareholders’ value, they must also cater, as much as possible, for the
needs of all stakeholders. Figure 1.1 depicts a summary of the various stakeholders
that an organization has to consider for survival.
Government
agencies
Bankers
Customers
Competitors
Shareholders
ORGANIZATION
Non-governmental
organizations
(NGOs)
Suppliers
Employees
Figure 1.1 Stakeholders of an organization
1.5 Business Principles in Non-profit
Organizations
Are business principles applicable to non-profit organizations such as
government bodies and NGOs? The answer is “Yes”. A non-profit organization
is an organization with goals that do not include making a personal profit for its
owners or organizers. Although its objective is not to make profits, the same set of
knowledge and skills are required to manage it.
Let us relate to the operation of a government hospital. A government hospital
needs to run efficiently to fulfil the needs of patients. In addition to its social
objective, sound financial management is required to monitor actual expenses
while managing the hospital. An accountant from the Finance Department will
need to keep track of the expenses and report periodically to the Ministry of
Health and Ministry of Finance, the fund providers. The hospital also needs
effective management of information and good leadership, similar to any business
entity.
We can also see the application of business principles through the
implementation of several campaigns initiated by the government, such as
Bersih, Cekap dan Amanah (Clean, Efficient and Honest campaign) and
Value Your Customers. These campaigns aim to create awareness among civil
servants on the importance of providing quality services to their community
(their ‘customers’).
Government departments and agencies are to apply the concepts of ‘efficiency’
and meeting the needs of customers. We, therefore, conclude that business
principles may also be applied in managing non-profit organizations.
Non-profit
organization –
an organization
which goals are
not to make
profit for its
owners or
organizers.
Campaigns
such as Bersih,
Cekap dan
Amanah and
Value Your
Customers
aim to create
awareness
among civil
servants on the
importance
of providing
quality services
to their
community.
1.6 Business Environment
Business environment consists of the surrounding factors that either promote or
restrict the development of today’s businesses. They are economic conditions,
legislation, technological progress, the socio-cultural environment, competition
and globalization (see Figure 1.2).
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6
LO
BA
LIZAT
Economic
conditions
Competition
Socio-cultural
environment
IO
N
G
Business Management a Malaysian Perspective
Legislation
Technological
progress
Figure 1.2 The business environment
Promoting or Restricting Factors of Today’s
Business Development
Business
environment
– the
surrounding
factors that
either promote
or restrict the
development of
businesses.
Those keen to
start a small
business must
apply for a
licence with
the local city
municipality
such as Majlis
Bandaraya
Ipoh or register
with the
Registrar of
Companies.
1. Economic conditions
Economic conditions directly affect businesses. For example, if the economy
is in recession, business activities will be slow due to low demand from
consumers. Unemployment will rise and household consumption will drop
as people will increase their savings as a precautionary measure to face the
uncertainty of the future.
In response to the declining demand from consumers, businesses need
to take remedial actions to reposition themselves for business survival. For
example, some organizations may diversify their markets overseas to reach
more customers, whereas some may embark on cost-cutting measures such as
reducing shift work from round-the-clock to 8-hours-per-day operations.
During a recession, if the government reduces the amount of profit taxes,
businesses will have more funds for reinvestment and expansion programmes.
This reduction will improve the business climate as a whole, hence the
economic situation ultimately. Economic conditions, therefore, do have an
influence on the business environment.
2. Legislation
Businesses have to comply with the rules and regulations enforced by the
government or local authority. For example, those who want to start a small
business must apply for a licence with the local city municipality such as
Majlis Bandaraya Ipoh or register with the Registrar of Companies. They
also have to comply with environmental rules and regulations to preserve
the environment while they produce their goods and services for society.
Organizations interested to do business overseas need to be aware of the rules
and regulations of other countries to avoid complications while implementing
business decisions.
3. Technological progress
Technology deals with industrial arts, applied science, engineering processes,
inventions or methods. It is a body of knowledge applied to produce goods.
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Technological change takes two forms—pure invention or creation and
innovation.
Businesses today are influenced by technological development such as
information and communication technology (ICT). The ways businesses are
conducted have shifted somewhat from the days when ICT was non-existent.
With the Internet, organizations are connected in real time wherever they are
in the world.
Businesses today can secure orders from customers immediately through
e-commerce. Similarly, they can also search for suppliers etc. and this has sped
up decision making. The challenge faced by today’s business is to be equipped
with such technology to expedite communication and decision making in
order to stay competitive.
The pace of change is rapid. Technological development has also resulted
in products becoming obsolete within short periods of time. Look at the
innovation in mobile phones over the last few years; from merely a telephone,
the mobile phone has evolved into a multipurpose communication medium. It
can now function as a digital camera, radio as well as computer with Internet
connection. Examine also the life cycle of computer diskettes and compact
discs. Within a span of less than 10 years, these have now been replaced by
the USB drive or pen drive. It is amazing to see the pace of technological
advancement in today’s business world.
Although customers are able to enjoy a wider range of goods and services
in the market, businesses today are left with no choice but to manage
technological change. Failure to cope with the pace of change may result in the
loss of customers and product marketability. On the other hand, technological
development has opened up new business opportunities for prospective
entrepreneurs, especially in the field of ICT.
4. Socio-cultural environment
The socio-cultural environment consists of highly related aspects, such as
demographics, religion and cultural trends. There are business opportunities
that exist in a society’s popular culture; business opportunities for consumer
and durable goods, retailing and services, leisure and entertainment, and
housing and construction, to name a few. For example, the Chinese New Year
celebration provides opportunities for retailers to sell mandarin oranges and
wax duck. Likewise, the high composition of ‘Muslim’ population in a society
calls for the production and supply of halal food to retail outlets. Businesses
have to consider socio-cultural factors in developing business strategies to stay
competitive.
5. Competition
Competition in business is inevitable. Entrepreneurs in new business ventures
have to analyze their competitors in the industry. These competitors are the
businesses that fulfil the same customer needs or have the potential to serve
those customers. In the retail petroleum business, PETRONAS and SHELL are
competitors, and each will try to maintain its market share by implementing
non-price competition initiatives. These include advertising and promotion
on the services provided at their stations as well as improving the quality of
services to their customers.
The more the number of competitors, the smaller the profit margin for a
business, unless the market is huge. Aggressive competition drives businesses
to look for a niche market to maintain profitability.
7
Technology
– the body of
knowledge
applied to
produce goods.
Technological
change takes
two forms —
pure invention
or creation and
innovation.
The Chinese
New Year
celebration
provides
opportunities
for retailers to
sell mandarin
oranges and
wax duck.
The high
composition
of ‘Muslim’
population in a
society calls for
the production
and supply of
halal food to
retail outlets.
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Business Management a Malaysian Perspective
Organizations
that are able
to penetrate
global markets
will be able
to serve a
bigger market
than before;
Munchy’s is an
example of such
a successful
venture.
Globalization –
the global
economic
integration of
many formal
national
economies
into one global
economy.
6. Globalization
Today’s businesses are greatly affected by globalization, which influences
all the other business environments discussed, be it economic conditions,
legislations, technological progress, socio-cultural or competition.
Globalization calls for loosening of trade barriers among nations of the
world and bilateral and multilateral relationships. With the openness of
the global economy, there will be more trading activities among nations.
This will also mean greater competition to be expected among businesses.
Organizations that are able to penetrate the global market will be able to
serve a bigger market than before. Munchy’s, a Malaysian biscuit brand
with its manufacturing base in Johor Darul Tak’zim, is among the successful
ventures that have been able to export quality products to the global market.
Apart from serving the local community, Munchy’s exports its biscuits to
other ASEAN countries as well as Europe. Another good example is House of
Healin’s product, Gamogen, which has successfully penetrated the European
market. The ever open global opportunities have certainly enhanced the gross
profits of these two businesses.
1.7 Ethics and Social Responsibility in
the Conduct of Business
We noted earlier in this chapter that the primary aim of any business is to maximize
profits and today’s global environment promotes competition in business for survival.
Truly, these encourage businesses to exercise creativity and innovation, while
leveraging on available opportunities in the quest for profit maximization.
However, it is equally important for business people to realize that businesses
must be conducted ethically. What is ethics? Why do we need to conduct a
business ethically? How do we conduct ourselves ethically in a business? This
section will address these pertinent issues.
Ethics is a set
of principles
that contains
behavioural
codes to
determine
what is right or
wrong.
Morality is the
norms, values
and beliefs
embedded in
social processes
which define
right or wrong
for an individual
or a community.
Conceptualization of Ethics and Its Application to
Business
Ethics refers to the standards of moral behaviour that are accepted by society as
right versus wrong (Nickels et al., 2008). It is concerned with moral obligation,
responsibility and social justice. In general, ethics provides the basic rules that are
required in conducting any activity in an acceptable manner. Specifically, it can be
described as a set of principles that contains behavioural codes to determine what
is right or wrong. In addition, it outlines the moral duty and obligations that any
human being should practise.
More often than not, the term ‘ethics’ is used interchangeably with ‘morality’.
However, many scholars propose clear differences between the two terms.
According to these scholars, morality is concerned with the norms, values and
beliefs embedded in social processes which define right or wrong for an individual
or a community. Ethics, on the other hand, is concerned with the study of
morality and the application of reason to explain specific rules and principles that
determine right or wrong for a given situation. These rules and principles are
called ethical theories.
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9
Ethics begins with each individual; it starts from one’s inner feeling and
subsequently translates into his/her moral behaviour. Rationally, one learns to
adapt to the ethics and moral principles through his/her upbringing, culture,
socialization, experience and critical reflections on those experiences. Ethics is
also acquired from religious teachings.
All religions provide their believers with strong composition of conduct, part
of which involves moral instructions, values and commitments. For example,
the fundamental principles of iman and taqwa in Islam require every Muslim to
display uprightness, honesty and integrity, irrespective of the state he/she is in, be
it as an individual, a business person or a figure of authority and power. These two
principles remind Muslims not to act solely for the fulfilment of self-interests, but
to display actions that subsequently benefit others as he/she assumes the role of a
leader or khalifah.
Muslims are also taught to act fairly and uphold justice in their dealings, since
any action will leave an impact on others, be it humans or non-humans. Much
as a business person strives to make profits by taking risks in the conduct of
business, he/she will ultimately balance the needs of all stakeholders by respecting
their rights. He/she will uphold the principles of iman and taqwa and show
commitment as a khalifah. Besides that, he/she will consistently strive to promote
the well-being of the ummah and society at large. Figure 1.3 shows the values and
ethics components in Islamic Management.
Values and Ethics Components in Islamic Management
￭ Religious values
Taqwa (God-consciousness), syukur (gratitude, being grateful), tawakkal (relying on Allah
after making own efforts), muhasabah (self-evaluation), justice and amar makruf nahi munkar
(promoting good and forbidding evil).
￭ Professional values
Education, skill, honesty, punctuality, trustworthy and syura (consultation).
￭ Personal values
Accountability, moderation, excellence, patience, tolerance, humble and salam (peace,
greetings to show respect and compassion).
￭ Quality values
Quality, productivity, itqan (the level of quality work), istiqamah (commitment,
being straight and steadfast), efficiency, creativity, innovation, collectivity and ihsan
(benevolence, i.e. being kind and helpful).
Source: Adapted from The Role of Islamic Ethics in Organizations: An Experience in Malaysia, USM.
Figure 1.3 Islamic management: Values and ethics components
The Golden Rule, Christianity and Emmanuel Kant’s first categorical imperative
command each individual to place himself/herself in the shoes of others. If he/
she is going to be adversely affected or harmed by an action taken and the action
is still done onto others, then he/she is being unjust, and therefore, unethical.
Utilitarian or practical principles require each individual to assess the good and
bad consequences of actions in order to make ethical decisions.
Without doubt, humans are taught to uphold morality in their actions, despite
differences in terms of religions and ethical principles. Aptly, we should all be
convinced that ethical values must be internalized in our lives, much as we seek
happiness and satisfaction to fulfil our self-interests. Business people are no
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Business Management a Malaysian Perspective
exception—despite the economic character of the business world, they must
emulate ethical values while they strive to maximize profits. Businesses, therefore,
have no choice but to practise ethics for sustainability and long-term success.
Universally Accepted Moral Values
The following Figure 1.4 shows several universally accepted basic moral values,
among many others, that must be internalized by all of us in order to lead
rewarding lives on earth.
GOOD VALUES
BAD VALUES
Compassion
Courage
Honesty
Integrity
Respect for human life
Self-control
Cheating
Cowardice
Cruelty
Deceit
Greed
Lying
Selfishness
Figure 1.4 Universally accepted basic moral values
Integrity has been widely discussed in today’s business world. In fact, many
organizations have listed it as their code of ethics or conduct to remind employees
of the importance of upholding this noble value in the course of doing their jobs.
PETRONAS Group of Companies’ Shared Values (see Figure 1.5) also incorporates
integrity as a core value to be internalized by every employee wherever they are.
PETRONAS has also developed its brand essence as shown in Figure 1.6.
Petronas Shared Values
￭ loyalty
Loyalty to Nation and Corporation
￭ Professionalism
Committed, Innovative and Proactive, and Always Striving for Excellence
￭ Integrity
Honest and Upright
￭ Cohesiveness
United in Purpose and Fellowship
Figure 1.5 PETRONAS shared values
Petronas Brand Essence
“Energy Receive, Energy Return,
Aspiring People Everywhere”
Trusted
enriching
passionate
Progressive
Figure 1.6 PETRONAS brand essence
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11
What is integrity? The following are several definitions found in the literature
search:
“Integrity is being upright and honest.”
“Integrity relates to honesty and goodness, wholeness and unity.”
– Oxford Advanced Learner’s Dictionary
“A firm adherence to a code of especially moral or artistic values.”
– The Merriam-Webster Dictionary
According to Dr Danial Zainal Abidin in his public lecture to UTP students
in July 2008, integrity in Islam is taqwa. Linguistically, taqwa means ‘protection
or shield from what is harmful’. An individual with taqwa will obey the rules of
Allah sincerely and be grateful to Him. A person of integrity will uphold ethical
principles and consistently consider his dignity, image and reputation before
taking any action, besides always striving to do good deeds.
Figure 1.7 shows the thirteen (13) specific behaviours of a person of high
integrity as noted by Donald Zauderer (Stanwick and Stanwick, 2009). Let us refer
to Figure 1.7 to understand these behaviours and assess ourselves in striving to be
people of high integrity.
Behaviours of People
1. They are concerned about the greater good.
with High Integrity
2. They must possess humility.
3. They must be forgiving.
4. They must be truthful.
5. They strive for fairness.
6. They fulfil commitments.
7. They take responsibilities.
8. They extend themselves to others.
9. They celebrate the good fortune of others.
10. They develop others.
11. They respect individuals.
12. They reproach unjust acts.
13. They develop a sense of ethics wherever they are, in any situation.
Source: Adapted from Understanding Business Ethics, 2009.
Figure 1.7 Behaviours of people with high integrity
Contrast Between Legality and Ethics
We noted earlier in this chapter that despite the economic character or desire to
make profits, business people must apply ethics in the conduct of business. The
problem lies in the fact that ethics is often taken for granted in today’s competitive
global business environment. The beginning of the millennium, i.e. 21st century,
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Business Management a Malaysian Perspective
The
Whistleblower
Protection Act
2010 has just
been introduced
in Malaysia
to prevent
corruptive
practices in
organizations
and ensure
that business
people and
others are more
accountable for
their actions.
marked the collapse of several giant American organizations such as Enron,
WorldCom and Tyco International due to unethical behaviour of the upper
management.
One may suggest that authorities should enforce laws and regulations by
punishing the bad ones. For example, the Whistleblower Protection Act 2010 has
just been introduced in Malaysia to prevent corruptive practices in organizations
and ensure that business people and others are more accountable for their actions.
But laws alone do not make people honest, reliable or truthful. Although obeying
the law is an important first step to being ethical, ethical behaviour requires more
than having to comply with laws and regulations.
Ethics reflects people’s relations with one another: How should people treat
others? What responsibility should they feel for others? Legality carries a narrower
scope. It refers to laws that we have written to protect ourselves from fraud, theft
and violence. However, many immoral and unethical acts fall well within our laws
(Nickels et al., 2008). Ethical behaviour therefore rests upon one’s conscience and
commitment to do good deeds as a social responsibility under all circumstances.
Factors of Unethical Behaviours in the Global
Business World
One may wonder why there has been an increase in unethical business practices
nowadays. Two factors, among many others, contribute to this unfavourable
scenario:
Business enterprises have to fulfil many interests: This relates to pleasing
stakeholders’ needs. They may stem from within and outside an organization.
The stakeholders include, among others, stockholders (i.e. shareholders),
customers, employees, managers, the community, the government, unions
and peers. You may recall that we have covered this in section 1.4 earlier.
While it is important for organizations to please all stakeholders in principle,
the fact remains that today’s businesses are also faced with a greater challenge
of fulfilling the interests of an increased number of stakeholders. Global
businesses definitely have more stakeholders to please.
More often than not, these interests are in conflict with one another. For
example, in order to fulfil employees’ needs for an attractive compensation
package, a business will have to increase profits by charging customers higher
prices on goods produced. Unethical practices such as giving false claims in
advertisements or manipulating price discounts during a mega sale may occur
under such circumstances, perhaps seen to be a business strategy to increase
profits. In this sense, the consumers’ well-being are not protected, much as
employees’ interests may be fulfilled.
 Society is undergoing dramatic change: Values and societal norms have
undergone a lot of changes in the past few decades. For example, at the
workplace, Generation Y employees who grew up in the information and
communication technology era are more likely than others to see unethical
behaviour as justifiable in pursuit of their goals. They are more liberal.
They typically want instant rewards and gratification. They may believe
it is sometimes necessary to cheat, plagiarize or lie in order to succeed.
(SnapComms, 2010)

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Ethical Dilemmas in the Conduct of Business
We noted that the business world is unique because of its economic character.
Every entrepreneur strives to maximize profits after taking the risks of conducting
the business. However, they will certainly experience ethical dilemmas while
conducting their business. The Board of Directors of organizations, managers and
employees will also face ethical dilemmas while executing their responsibilities at
the workplace. Let us outline, among others, four main themes of ethical dilemmas
faced by those involved in business:
Conflict of interest: This involves morality and economic trade-offs, whereby
there is constant tension in trying to separate the ‘person’ from the business
decision. For example, when signing a business contract with a supplier, a
personal agenda arises when an employee demands for token money from
the supplier before the deal is made. In actual fact, such action is uncalled for
since he/she is already paid a salary by the employer to perform the job. Being
an employee, he/she should be responsible for ensuring that the organization
benefits from the contract, instead of gaining personal interests.
For another instance, as a Board of Director of an organization, Mr Raymond
has to serve the interests of the organization such as developing effective
strategies to make profits. However, he misuses his position and power by
appointing his own company, operated by his family member, to secure a
contract, although the company does not fulfil the criteria. This is also referred
to as insider trading, i.e. an unethical activity in which insiders (in this case, Mr
Raymond) use private company information to further their own fortunes or
self-interests.
 Personality traits: This relates especially to relationships and personal issues.
In many situations, the personal issues or individual personalities cause the
dilemma. Let us consider the following scenario; a job vacancy is present in
an organization. The Human Resource Manager who is in power to select
a suitable candidate for the job appoints his relative who does not have the
academic qualification or skills. This “caring” attitude does not display justice
and fairness to other qualified candidates, what more to the organization. The
organization seriously requires qualified and skilful employees to stay efficient
and competitive.
 Responsibility to stakeholders: This incorporates the pressure of managerial
rationalization and emphasizes the importance of having a code of conduct or
ethics. Businesses must be socially responsible and employees must play their
roles and responsibilities to please all stakeholders. For example, there should
not be any gender or racial discrimination when recruiting potential employees
as it is unfair to treat people differently when there is no good reason for
doing so. Recruiting should be done on the basis of competency to ensure
organizational effectiveness.
 Level of openness: Business people may ask themselves to what extent should
they reveal information about their business. However, they need to be more
‘transparent’ or public about their values and expectations. They must be
honest and uphold the value of integrity in their business dealings. For example,
they should not withhold or manipulate any information which may influence
consumers’ rational buying decisions. There must be proper labelling so that
consumers will be well-informed on the ingredients or composition of products
purchased. Consumers are perhaps the most important stakeholders in any

A conflict of
interest occurs
when an
individual or
organization
is involved
in multiple
interests, one
of which could
possibly corrupt
the motivation
for an act in the
other.
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Business Management a Malaysian Perspective
business because without their support, profits will not be generated. Hence,
their well-being and other rights must be protected for business sustainability.
Managing Ethical Dilemmas
While business people are bound to experience ethical dilemmas in the conduct of
business, they should ask themselves three check questions before acting to ensure
that their actions and decisions are ethical:
1. Is it legal?
Am I violating any laws (inclusive of religious principles) or
company policy?
2. Is it balanced?
A m I acting fairly in my decisions? Am I taking into
consideration the needs of others apart from my own
personal needs?
3. How will the action make me feel about myself?
Will I be happy after taking such actions?
Figure 1.8 Check questions for ethical dilemmas
Building an Ethical Business Organization
The top and senior management play a very important role in ensuring that
ethics is given high priority in an organization. Good governance and leadership
by example shown by managers may positively contribute towards shaping
organizational corporate values and culture. Employees have the tendency to
follow the character traits of their bosses, just like a family unit where the parents
are role models. Certainly, managers have no choice but to internalize good moral
values. In addition, there should be trust and cooperation between employees and
managers on the basis of:





Openness: How freely managers make information available to their
subordinates.
Competence: The technical knowledge and management skills needed by
managers to influence the employees they are responsible for.
Integrity: Being upright, honest and consistently ethical in manner.
Benevolence: Being kind and helpful. Actively doing what is good for others.
Reputation: The perceptions that others accumulate of him/her over time. A
person of good reputation will have all the four values of openness, competence,
integrity and benevolence.
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Importance of Managing Businesses Ethically
We noted earlier in this section that at the beginning of the 21st century, several
giant American organizations collapsed due to unethical business practices.
San Lu Corporation also collapsed in 2008 when it was found responsible for
producing milk tainted with excessive melamine, killing several babies and causing
kidney failure among children in China. Its image in the international arena was
tarnished. We must be convinced by now that only ethical businesses will sustain
in this competitive business world.
Business organizations should be managed ethically for the following reasons:





Keeping existing customers: Reputable organizations will maintain customer
loyalty and business sustainability.
Attracting new customers: Good business or corporate image will attract new
customers and increase profitability.
Avoiding lawsuits: Reputable organizations will not hesitate to comply with
laws and regulations to maintain their good image and dignity.
Reducing employee turnover: Reputable organizations will be able to maintain
employee loyalty, thus reducing employee turnover. This will subsequently
increase organizational effectiveness.
Pleasing customers, employees and society: Good organizations will strive
to fulfil the needs of main stakeholders, i.e. customers, employees and the
community they serve.
Setting Ethical Standards and Improving Ethics in
Business
Realizing the importance of ethics, many business organizations have formally
developed code of ethics or conduct for employees to comply with. In Figures 1.5
and 1.6 earlier, we saw the Shared Values of PETRONAS Group of Companies
(i.e. Loyalty, Professionalism, Integrity and Cohesiveness) as well as its Brand
Essence (i.e. Energy Receive, Energy Return, Aspiring People Everywhere:
Trusted, Enriching, Passionate and Progressive) as standards or code of ethics for
PETRONAS employees.
Although code of ethics may vary among organizations, they can be classified
into two major categories—compliance-based and integrity-based. Compliancebased code of ethics emphasizes the prevention of unlawful behaviour by
increasing control through the formulation of rules and regulations and imposing
penalty on wrong doers. Integrity-based code of ethics, on the other hand, defines
the organization’s guiding values, creates an environment that supports ethical
behaviour and focuses on shared accountability among employees. As we can see,
PETRONAS chooses to have an integrity-based code of ethics for their employees
to internalize.
How Can Ethics Be Improved in Business
Organizations?
Nickels et al. (2008) listed down six steps that can help improve business ethics in
an organization.
Compliancebased code of
ethics stresses
the prevention
of unlawful
behaviour by
increasing
control via the
formulation
of rules and
regulations
and imposing
penalty on
wrong doers.
Integrity-based
code of ethics
defines an
organization’s
guiding values,
creates an
environment
supportive
of ethical
behaviour
and focuses
on shared
accountability
among
employees.
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Business Management a Malaysian Perspective
1. Leaders in an organization (i.e. top management, senior managers,
supervisors, etc) must adopt and unconditionally support an explicit code
of conduct.
2. Employees must understand that expectations for ethical behaviour begin
from the top and senior management, and all employees are expected to
act accordingly.
3. It is crucial for managers and employees to be trained to consider ethical
implications of all business decisions.
4. An ethics office needs to be established, whereby there should be phone
lines set in order for employees who do not want to be seen with an ethics
officer to enquire on ethical issues anonymously.
5. Outsiders of an organization, such as suppliers, sub-contractors,
distributors and customers, must be updated on ethics programmes.
6. Ethical codes need to be enforced, whereby it is crucial to back any ethics
programme with timely action if any of the rules have been broken.
In addition to the above, it is imperative for businesses to consider three
viewpoints before resolving business issues, i.e. economic, legal and moral
viewpoints. Effective business decisions are made by integrating these three
viewpoints. The economic viewpoint and the law are critical to business decision
making. However, the long-term success and survival of organizations largely
depend on ethical standards and values that are practised by employees while
achieving the objective of profit maximization. Ethics must, therefore, be part and
parcel of the conduct of a business.
Next, we shall cover an area of business ethics which is widely discussed in
today’s global business world—social responsibility and sustainability development
in the conduct of business.
Social
Responsibility—a broader
concept of
ethics—
concerns the
impact of an
organization’s
activities on
society. It is the
obligation of
a business to
maximize its
positive impact
and minimize
its negative
impact on
society, being
an essential
part of the
community.
1.8 Social Responsibility and
Sustainable Development
Social Responsibility (SR) is a broader concept of ethics that concerns the
impact of an organization’s activities on society. It is the obligation of a business to
maximize its positive impact and minimize its negative impact on society, being a
part and parcel of the community at large.
Sustainability is defined as the long-term maintenance of systems according
to environmental, economic and social considerations. This definition captures
the broad understanding of the concepts in business, politics and wider parts of
society (Crane and Matten, 2007). Sustainable development is a pattern of resource
use that aims to meet human needs while preserving the environment, so that
these needs can be met not only in the present, but also for future generations.
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Social responsibility and sustainability are interrelated concepts. They
are certainly consistent with Islamic ethics which emphasize the role and
responsibility of humans in ensuring the progression of the earth. Man is duty
bound to keep the physical world in a balanced state. In the study of social
responsibility, corporations have been given focus due to their big impact on the
community. The concept Corporate Social Responsibility (CSR) is thus coined
to specifically emphasize the importance of corporations to be socially responsible,
apart from maximizing profits. However, CSR from a broad perspective refers to
an organization’s concern for the welfare of all its stakeholders, not just its owners
or shareholders. It applies to all business entities.
The above viewpoint, however, contradicts the argument put forward by
Milton Friedman, an influential economist in the 1960s who vehemently noted
that business had no social responsibilities other than to maximize profits within
the rules of the game. While this may be true from a narrow viewpoint of social
responsibility, advocates of social responsibility believe that businesses owe their
existence to the societies they serve. Furthermore, the success of businesses
depends on the provision of labour services and natural resources that every
member of the community has a stake in.
Therefore, businesses have other obligations in addition to pursuing profits.
They have responsibilities towards consumers, employees and the society at large.
A business decision maker, in the process of serving his own business interests,
is obliged to take actions that also protect and enhance society’s interests.
Nowadays, society has other concerns and interests besides rapid economic
growth. For example, concerns over quality of life as well as the preservation of the
environment and natural resources that are fast depleting due to over-exploitation
by businesses in the quest to maximize profits.
This is where the concept of sustainable development becomes relevant. In
fact, according to Melven Anshen, there is always a ‘social contract’ between
business and society. This contract is of course implicit, but it represents a tacit
understanding within society about the proper goals and responsibilities of
business (Shaw, 2008). Consequently, a study by Harvard University and University
of Michigan found that socially responsible organizations have a
competitive advantage in the following areas:


17
Sustainability is
the long-term
maintenance
of systems
according to
environmental,
economic
and social
considerations,
whereas
sustainable
development
is resource
use patterns
that aim to
meet human
needs while
preserving the
environment,
so that these
needs can be
met not only in
the present, but
also for future
generations.
Corporate
Social
Responsibility
is a business
concern,
especially a
corporation, for
the welfare of
society.
Social performance (i.e. good image or reputation)
Financial performance (including successful
social investment portfolio)
Th i s i m p l i e s t h a t , w i t h s o c i a l
responsibility, businesses can win
trust and respect from employees,
c u s t o m e r s a n d s o c i e t y, a n d
increase profits in the long term.
I n co nt r a s t , w i t h o u t s o c i a l
responsibility, there is the risk of
losing customers and encouraging
the public and government to take
legal action to restrict their activities.
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Business Management a Malaysian Perspective
We have actually reiterated points from earlier sub-topic, Importance of
Managing Businesses Ethically, to reemphasize the importance of upholding a
sense of social responsibility in the conduct of business. Next, we shall introduce
readers to a CSR model—the Pyramid of Corporate Social Responsibility—
developed by Archie Carroll, before ending this introductive chapter.
Pyramid of Corporate Social Responsibility
Voluntary responsibilities
Being a good corporate citizen.
Contributing to the community and quality of life.
Ethical responsibilities
Being ethical. Doing what is right,
just and fair. Avoiding harm.
Legal responsibilities
Obeying the law (society’s codification of right and
wrong). Playing by the rules of the game.
Economic responsibilities
Being profitable.
Source: Adapted from Pyramid of Corporate Social Responsibility: Toward the Moral Management of
Organizational Stakeholders, 1991.
Figure 1.9 Corporate social responsibility model
According to this CSR model, there are four dimensions of CSR:
Economic: Profit is the essential foundation of any business organization. Its
main existence is to make money!
 Legal: The next step is being legal; not going against any rules or regulations
imposed on the business.
 Ethical: Ensuring that whatever actions undertaken must be right, just and fair
to all involved.
 Voluntary: Additional activities that may not be required but promote human
welfare and goodwill.

This model acknowledges that while the main objective of a business
organization is to maximize profits, it must comply with the laws, rules and
regulations, conduct the business ethically and demonstrate corporate citizenship.
Philanthropic initiatives and corporate responsibility are equally important to win
customers’ loyalty and business sustainability.
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19
This model also describes the level of importance placed by business
organizations in fulfilling the four responsibilities mentioned above, i.e. economic,
legal, ethical and voluntary responsibilities. You may notice that economic
responsibilities are placed at the lowest level of the Pyramid of Corporate Social
Responsibility by Archie Carroll and voluntary responsibilities or corporate
citizenship are placed at the highest level; leaning towards fulfilling the needs of
the community as a matter of ethics, without having to be ‘forced’ to comply with
stipulated laws and regulations. Corporate citizenship relates to the organization’s
clear and sincere conscience to fulfil social responsibility on a voluntary basis
as a matter of accountability to the community at large. However, it is up to
organizations to decide which level of social responsibility they want to be
identified with as a matter of choice.
Why Must Organizations Be Socially Responsible
and Demonstrate Corporate Citizenship
Organizations, especially corporations, must demonstrate social responsibility
and corporate citizenship as they have great social and economic power in society.
Corporations are the largest form of business in any community. Whatever they
do in the production of goods and services will significantly affect the community.
Pollution, depletion of natural resources and other sustainability problems have
occurred largely due to activities by corporations. No doubt a corporation is a
legal entity in itself in principle, separate from its shareholders. Nevertheless, the
Board of Directors must be accountable for ensuring that corporations protect
the rights of all stakeholders. They must consistently display good governance and
social responsibility as a matter of ethics.
Although Archie Carroll’s CSR model was developed for corporations to realize
their responsibility to society at large, it may be applied by any business form or
entity—be it a sole proprietorship, partnership, franchise, etc. In other words,
businesses must be managed ethically, irrespective of form. It must therefore be
socially responsible. After all, from an Islamic perspective, every human being
is supposed to play the role of khalifah of Allah. And, as a khalifah, humans are
responsible and accountable for their actions, good or bad.
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Business Management a Malaysian Perspective
SUMMARY
To consolidate your learning, the learning outcomes are summarized below:
1. Define and explain the basic concepts of business, profit, entrepreneurship and
risk taking.
A business organization is an organization under one management, set up for the
purpose of making profits. The terms ‘firm’, ‘business’, ‘business organization’ and
‘enterprise’ mean the same thing. It either produces goods or services. Starting an
organization involves risk taking—the chance one takes of losing time and money
on a business that may not prove profitable. The higher the risk that one takes, the
greater the chance of making bigger profits. Profit is the reward earned by someone
for taking the risk to venture into a business. It is the difference between total
revenue earned and total cost borne by the business. An entrepreneur is basically a
person who takes risks and spends time and money to start and manage a business,
thus entrepreneurship involves taking calculated risks after considering the costs
and benefits of business undertakings.
2. Explain how businesses add to society’s standard of living and quality of life.
A nation’s businesses are part of an economic system that contributes to the
standard of living and quality of life for everyone in the community. Standard of
living refers to the amount of goods and services people can buy with the amount
of money they have. Businesses create and produce innovative products based on
consumers’ wants and needs. Consumers, with their purchasing power, are able to
choose from a wide range of goods and services provided by businesses. The ability
to buy a greater amount of goods and services will lead to a higher standard of living.
Quality of life refers to the general well-being of society in terms of political
freedom, a clean natural environment, education, health care, safety, free time
and everything else that leads to one’s happiness and satisfaction. New forms of
technology, service businesses and international opportunities promise to keep
production, consumption and employment growing. Business profits enhance
the personal incomes of owners as well as the shareholders. They also
generate the nation’s revenue to support the government’s activities
through the business taxes paid. Many businesses have also
supported charities and other corporate social responsibility
initiatives to enhance society’s quality of life. The more money
businesses create, the higher the potential for society to improve
its quality of life.
3. Discuss how businesses should respond to stakeholders.
Businesses today have realized the critical need to balance the
interests of all stakeholders to be successful. In the past, the
emphasis had been to fulfil the interests of shareholders or stockholders
since they have invested in the business. Stakeholders are all the people
or parties who stand to gain or lose by the policies and activities of a
business. They include shareholders, customers, suppliers, bankers,
employees, government agencies, non-governmental organizations
as well as competitors.
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For example, a poor relationship with a major supplier may disrupt the production
of the final goods. Similarly, by fulfilling customers’ needs, they will maintain their
loyalty to the products and sales will be stable. Businesses have to also consider
employees’ needs. Employees have to be fairly rewarded to commensurate with the
expected output from them. A highly motivated workforce will certainly improve
work productivity and generate higher profits for the organization.
4. Explain how business principles may be used in non-profit organizations.
Business principles are applicable to non-profit organizations. A non-profit
organization has goals that do not include making a personal profit for its owners or
organizers. However, the same set of knowledge and skills are required to manage it.
Let us relate to the operation of a government hospital. The hospital needs to run
efficiently to fulfil the needs of patients. In addition to its social objective, it needs
good financial management to justify to the Ministry of Health and Ministry of
Finance, i.e. the fund providers. It also needs effective management of information
and good leadership just like any business entity. Business principles are therefore
applicable to non-profit organizations for organizational effectiveness.
5. Identify and explain the business environment.
The business environment consists of the surrounding factors that either
help or hinder the development of businesses. They are economic conditions,
legislation, technological progress, the socio-cultural environment, competition
and globalization. Entrepreneurs must use their judgement and creativity to
react positively to the business environment to gain a competitive edge in seizing
opportunities. They must also realize that globalization will affect all aspects of
business organizations, be it social or economic aspects.
6. Define ethics and rationalize its importance in the conduct of business.
Ethics refers to the standards of moral behaviour that are accepted by society as right
versus wrong. It is concerned with moral obligation, responsibility and social justice.
In general, ethics provides the basic rules that are required in conducting any activity
in an acceptable manner. Specifically, it can be described as a set of principles that
contains behavioural codes to determine what is right or wrong. In addition, it
outlines the moral duty and obligations that any human being should practice.
It is important for businesses to be managed ethically for the following reasons:
(i) To keep existing customers
(ii) To attract new customers
(iii) To avoid lawsuits
(iv) To reduce employee turnover
(v) To please customers, employees and society, i.e. to be socially responsible
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Business Management a Malaysian Perspective
GLOSSARY
Business organization
An organization under one management, set up for the purpose of making profits for its
owners by making one or more items available for sale in markets. It is also referred to as
‘firm’ or ‘enterprise’.
Business environment
The business environment consists of the surrounding factors that either help or hinder
the development of today’s businesses.
Corporate philanthropy
An area of social responsibility which covers giving charity and donations to the needy.
Entrepreneurship
A special type of labour. The creative ability of individuals to seek profits by taking risks
and combining resources to produce innovative products.
Globalization
The global economic integration of many formal national economies into one global
economy.
Iman
An Islamic term for ‘faith’, i.e. pious adherence which is a highly regarded religious ideal
in the Al Quran. An individual who has iman (faith) is a mu’min (believer).
Innovation
Creating and developing new products or productive processes.
Khalifah
A concept by early Muslim scholars which focuses on the status and special quality (free
will) of humankind vis-a-vis other creatures in the universe: Leadership, Responsibility
and Accountability.
Legislation
Rules and regulations stipulated by the government or local authority.
Market
An arrangement where buyers and sellers interact to determine the price and quantity of
goods and services to be bought and sold.
Market share
The portion or percentage of the total market on which a business has control or
influence.
Niche market
Small but profitable market segments.
Non-price competition
This refers to a competition among businesses that emphasizes on product attributes
rather than price. These attributes include attractive packaging, speedy after sales
services, advertising and promotion, etc.
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Non-profit organization
A non-profit organization is an organization with goals that do not include making a
personal profit for its owners or organizers.
Quality of life
The general well-being of society in terms of political freedom, a clean natural
environment, education, health care, safety, free time and everything else that leads to
one’s happiness and satisfaction.
Risk
The chance an entrepreneur takes of losing time and money on a business that may not
prove profitable.
Shareholders
The individuals or parties that invest their funds in a business.
Stakeholders
All the people or parties that stand to gain or lose by the policies and activities of
a business. They include shareholders, customers, suppliers, bankers, employees,
government agencies, non-governmental organizations (NGOs) and competitors.
Standard of living
The amount of goods and services people can buy with the money they have.
Taqwa
An Islamic term for ‘piety’, i.e. protection or shield from what is harmful. An individual
with taqwa will consciously accept the existence of Allah, obey His rules sincerely and be
grateful to Him. This concept therefore relates to the importance of complying with the
rules of Allah as stated in the Al Quran, while assessing the rightness of actions. While
an individual with taqwa will always be conscious of Allah’s existence (although he/she
cannot see Him), he/she will also think seriously before committing sins because he/she is
consciously worried or afraid of Allah’s punishments (i.e. in this world and the hereafter).
Technology
Technology is a branch of knowledge that deals with industrial arts, applied science,
engineering processes, inventions or methods. It is also the body of knowledge applied to
produce goods and services.
Ummah
An Arabic word which means ‘community’ or ‘nation’. In the context of Islam, ummah
is used to mean the ‘Community of the Believers’ (ummat al-mu’minin), and thus, the
whole Muslim world.
Whistleblower
A person who reports illegal or unethical behaviour.
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Business Management a Malaysian Perspective
REVIEW AND DISCUSSION
1. In business, the reward for taking risks is profit making. Discuss.
2. Explain the difference between standard of living and quality of life. How does an
entrepreneur contribute towards improving a community’s standard of living and
quality of life?
3. You are appointed as Chairman of Evergreen Social and Charity Club. Explain how
you can apply business principles to run your charity organization.
4. “Businesses have to balance the needs and interests of stakeholders.” Discuss.
5. Define the business environment. How does the business environment affect
businesses of today?
CASE STUDY
A Fishing Trip at Tioman
Zikri, a professional Chemical Engineer, was appointed the department manager of
a new large chemical process plant which was to be designed and constructed by his
organization. Zikri’s responsibilities included organizing the process unit staff, overseeing
the project designers’ sketch plans to ensure that the plant was safely designed, operable
and maintainable, and then starting up the plant after construction.
From previous experience, Zikri had noted that a new type of valve sold by an
upcoming supplier could often be used in place of more common gate valves sold by
established suppliers. In any case, the new valve was less expensive and often gave a
tighter shut-off than the gate valve. Zikri convinced the project designer to add even
more of these valves and operators to the design of the process unit. This improved safety
because more flows could be shut off instantaneously in an emergency.
After a large number of valves had been specified and purchased, Andy, the salesman
of the new valves paid a visit to Zikri and invited him for a relaxing fishing trip at Pulau
Tioman. Zikri had not known Andy prior to the visit. Zikri also had no direct purchasing
responsibilities for the valves; both old and new. He had just wanted the organization to
opt for the new valves for increased safety in the new process plant. Zikri is in a dilemma,
whether he should accept or decline Andy’s invitation. For the last one week, Zikri had
been working day and night to ensure that the project design and construction were on
schedule. Should he go for the fishing trip with Andy to reduce his stress?
Case Study Questions
1. What do you understand about conflict of interest?
Give examples.
2. Based on this case, how can Zikri solve his dilemma ethically? Justify.
your answer
3. If you were Zikri, would you accept or decline Andy’s offer? Relate
you.
to
ant
to some underlying values or principles that are import
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REFERENCES AND SUGGESTED READING
Abdullah bin Haji Abdul Ghani and Mohamad Zainol Abidin bin Adam (2011). Business
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Boatright, J. R. (2009). Ethics and the Conduct of Business, 6th edn., New Jersey: Prentice
Hall.
Carroll, A. B. (1991). ‘Pyramid of Corporate Social Responsibility: Toward the Moral
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1991).
Crane, A. and Matten, D. (2007). Business Ethics, 2nd edn., Great Britain: Oxford
University Press.
Desjardins, J. (2009). An Introduction to Business Ethics, 3rd edn., Singapore: McGrawHill Higher Education.
Green, K. (2008). ‘What is Taqwa?’, <http://islamicbeliefs.suite101.com/article.cfm/what_
is_taqwa>, retrieved on 11 August 2010.
Hyman, D. N. (1997). Economics, 4th edn., USA: Irwin.
Jennings, M. J. (2006). Business Ethics, 5th edn., USA: Thomson West.
Khalidah Khalid Ali, Rohani Salleh and Mashitah Sabdin (2010). ‘A Study on the Level
of Ethics at a Malaysian Private Higher Learning Institution: Comparison Between
Foundation and Undergraduate Technical-based Students’, International Journal of Basic
and Applied Sciences IJBAS-IJENS, Vol. 10, No. 5, pp. 35–49.
Kuratko, D. L. and Hodgets, R. M. (2004). Entrepreneurship: Theory, Process and Practice,
6th edn., Ohio: Thomson South Western.
Mauro, N., Natale, S. M. and Libertella, A. F. (1999). ‘Personal Values, Business Ethics
and Strategic Development’, Journal of Cross Cultural Management, Vol. 6, No. 2, pp.
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Module on Entrepreneurship (OUMM2103) by Open University of Malaysia, 2006.
Nickels, W. G., McHugh, J. M. and McHugh, S. M. (2008). Understanding Business, 8th
edn., New York: McGraw-Hill.
Nickels, W. G., McHugh, J. M. and McHugh, S. M. (2005). Understanding Business, 7th
edn., New York: McGraw Hill.
Norazzah Kamri and Khairiah Salwa Hj. Mokhtar, The Role of Islamic Ethics in
Organizations: An Experience in Malaysia, USM.
Shaw, W. H. (2008). Business Ethics, 6th edn., CA: Thompson Wadsworth.
SnapComms (2010). ‘Communicating with Gen Y Employees’, <http://www.snapcomms.
com/solutions/communicating-with-gen-y.aspx>, retrieved on 8 June 2010.
Stanwick, P. A. and Stanwick, S. D. (2009). Understanding Business Ethics, New Jersey:
Pearson International Edition.
Tucker, I. (2003). Economics for Today, 3rd edn., Ohio: Thomson South Western.
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Business Management a Malaysian Perspective
http://www.answers.com/topic/iman-in-islam, retrieved on 8 April 2011.
http://www.merriam-webster.com/dictionary/integrity, retrieved on 13 August 2010.
http://www.oxforddictionaries.com/definition/integrity?view=uk, retrieved on 11
August 2010.
www.bnm.gov.my
www.nst.com.my
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