Good Governance and Corporate Social Responsibility: A Critical View

Muhammad A. Al-Buraey, Ph.D.

This certainly provides us all with an opportunity to reflect on an area that is growing in complexity and importance at a rapid pace, and poses a real challenge to modern leadership in general and Islamic leadership in specific.

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countries across the world score less than 5 on a scale of 1 to 10 on the Corruption Perceptions Index of the largest American companies acknowledged Having been victims of corrupt practices during the Preceeding year. 2

76%

Modern International societies: The Children in Education Systems.

The grassroots of modern International societies: the children in the educational systems
80% of Students Cheated 56% Competition for Good Grades. 53% Cheating Didnt seem like a big deal.
Reported by Whos Who Among American High School Students.

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59% 67% 50%

Are willing to serve a 6 month jail sentence to commit an illegal act resulting in large financial benefits. Yes, I plan to inflate my expense account when I get out in the business world Would File false insurance claims.

66%

Would lie to achieve a business objective

Reported by the Pinnacle Group

Are we just talking about children? Of course not; via these children, we are talking about our future: We are talking about the middle manages of the year 2020, about parents of the year 2025, and about the CEOs, holders of leadership posts in society and

heads of major organizations in the year 2030!.

Whats needed, then, is recognition that there is a core set of values that need to be and must be taught, right from the childhood. ...... But while we are interested in ethical conduct and good governance, there is a serious concern about whether we are doing anything about it.
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Huge resources amounting to billions of dollars are now being rallied, to research and in institutionalizing good governance. ...... Is it enough? Is it effective? And is it sustainable?

Ethics can hardly be taught by a set of classroom courses. Rather, they need to be built-in through training and live examples.

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The Golden Rule of Monotheism (or Tawheed in Arabic): namely one and only one God of all, the creator, the sustainer, the nourisher, the provider, the redeemer, who is the source of all knowledge, all guidance, all existence and all morality. .... To mention just one example, Love for others what you love for yourself. is what Prophet Muhammad (PBUH) stated 14 centuries ago. That is the law. Common ethical ground? I would say so! Pragmatic? Down to earth! Teachable? Certainly! 9

The Islamic perspective on excellent leadership and good governance.

In choosing excellent leaders and making appointment of public officials, only merit matters, nothing else
Governance powers are prudently disciplined, checked, and the rule of law is ensured through supremacy of God's (Allahs) directionAnd whosever does not govern by that which Allah has revealed, such are the wrongdoers ( Quran 5:45). The Quran narrates: And by the Mercy of Allah, you dealt with them gently. And had you been severe and harsh-hearted, they would have broken away from about you; so pass over (their faults), and ask (Allahs) Forgiveness for them; and consult them in the affairs. Then when you have taken a decision, put your trust in Allah, certainly, Allah loves those who put their trust (in Him) (3:159).
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And do not devour your wealth among yourselves through falsehood, and offer it not as a bribe to the authorities that you may knowingly devour a part of the wealth of other people with injustice. (2:189). If you fear treachery from any people throw back (their covenant) to them (so as to be) on equal terms (that there will be no more covenant between you and them). Certainly Allah likes not the treacherous. (8:58).

There is no governor who rules Muslim subjects and dies, having played foul with them, but Allah will forbid him Paradise
If he does not strive diligently to promote their welfare, he will not enter Paradise with them. Verily, Allah commands you to make over the trusts to those entitled to them. And that when you judge between them, you judge with justice. 11 (4:58)

These are but a few vital building blocks of excellent leadership and good governance that an Islamic system establishes. To sum up, it provides for merit, rule of law and discipline of authority, collective decision-making, tolerance, compassion, basic rights, transparency, and enforceability of contracts, integrity, community welfare, free and fair justice, ad accountability. These have to be absolute and all pervasive, and must be sought with perfection (Ihsan).
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Islam has a set of goals and values encompassing all aspects of human life, including social, economic and political. Since all aspects of life are interdependent and the Islamic way of life is not fragmented but a consistent whole, its goals and values in one field determine the goals and values in the other fields as well in a very nice synergistic way. .... The rules of good governance and excellent leadership are fully scalable right from individual, to small, medium and large corporations and all the way to megagovernments regardless of race, religion, place, or time!

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Here a stark question should arise: If Islam does indeed offers such superb roadmap, why then are most of the current Muslim societies and states are corrupt? My short answer to this is the Prophets saying: Your actions determine your rulers!
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All Muslim countries with no exception should strive to attain the following as part of their duties and responsibilities towards the world:
1. Bring to the forefront examples of excellent leaders in contemporary time who transformed their countries to advance steps in the ladder of development. 2. Develop and put into practice the practical concept of the Islamic Common Market as the first step to political unity. 3. Emphasize the non-Machiavelli approach where ends justify the means and show the world how Islam acts when put into practice in all spheres of life (political, economic, social, etc.). Theories and existing literature are abundant on this topic. 4. Show the world through actual practice that Islam is for international peace, and harmony as it used to be in the past and a chance to govern and rule. 5. Emphasize the role of Islamic Mass Media, which will portray the true picture of Islam in all aspects and stands face to face against grossly-biased Mass media which aims at the distortion of Islam. 15

It may not surprise you to learn that Islamic approach is holistic.

No such thing as business ethics, neither is there any such thing as medical ethics, or religious ethics, or political ethics.

There is only ethics. No dividing up of ethics into compartments:

Theres only ethics.

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Finally, let me conclude with a piece of advice drawn from the literature: Fear of God and REAL accountability to Him is the heart of wisdom. May I ask everyone to bear this in their consciousness, all the time? And, with God's loving guidance, help and mercy the world will indeed be a lovely place for all and forever.

Fear of God and REAL accountability to Him is the heart of wisdom

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Thanks
Terima Kasih Have a Good day!
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