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Good Governance and Corporate Social Responsibility: A Critical View

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Title: Good Governance and Corporate Social Responsibility: A Critical View


1
Good Governance and Corporate Social
ResponsibilityA Critical View
  • Muhammad A. Al-Buraey, Ph.D.

2
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.
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.
3
Modern International societies The Children in
Education Systems.
4
The grassroots of modern International societies
the children in the educational systems
80 of Students Cheated 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.
59 Are willing to serve a 6 month jail sentence to commit an illegal act resulting in large financial benefits.
67 Yes, I plan to inflate my expense account when I get out in the business world
50 Would File false insurance claims.
66 Would lie to achieve a business objective
Reported by the Pinnacle Group
5
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!.
6
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.
7
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?
8
Ethics can hardly be taught by a set of
classroom courses. Rather, they need to be
built-in through training and live examples.
9
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!
10
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 545). 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)
(3159).
11
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. (2189). 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. (858). 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. (458)
12
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).
13
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
mega-governments regardless of race, religion,
place, or time!
14
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!
15
All Muslim countries with no exception should
strive to attain the following as part of their
duties and responsibilities towards the
world1. 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.
16
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.
17
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
18
Thanks .
???? ?????
Terima Kasih
Have a Good day!
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