Assignment 2

What is LAW and ETHICS ?

Definition of Law

Law is determined by the individuals Moral, Political, Religious, and Ethical views, and influenced by the society in which he or she lives. Moreover, law can be defined as a set of rules, develop over a long period of time to regulate interaction between people. It set standard of conduct between one group of individual and another as well as between individuals and the government, which are enforceable through sanction.
A concept that is closely associated with law is JUSTICE. Justice basically means that which is right or fair. Furthermore, Justice is what right minded members of the community of those who have the right spirit within them believe to be fair.


Law and Ethics.

Ethic is not a Law but Law is a part of Ethics. Although law is important as a source of rules and conduct, society would still be unable to function effectively unless its individuals possess some form of moral standards and belief which may be termed as ethical considerations.
The purpose of laws is to govern the conduct of all members of society , both natural and artificial.
Ethical guides of rules, and their impact upon relationships. Law and ethics are often related, particularly in the area of business law. Business adopt codes of ethics or conduct to guide employers and employees when considering ethical issues during the decision making.
For example, Bankers are guided by the BNM/GP7, the codes of ethics issue by Bank Negara Malaysia of the minimum standard required in a bank code of conduct.

The following are some of the legal rules relevant to business law which have ethical considerations:

• Web issue such as privacy and cyber-squatting
• intellectual property consideration
• consumer protection

REFERENCE

•  Notes chapter 4 from EIB 20103 BUSINESS ETHIC and CORPORATE GOVERNANCE 1

Ikhlas Haji Takaful

Necessity of takaful in your life.

• family takaful plan not only protects the participants but it ensures well-being.
• it allows one to get protection and freedom at the same time
• one family takaful plan not because he was going to die but to ensure that the lives of loved ones secure.
• takaful concept is a form of cooperation among participants who had promised to help each other if misfortune.

Takaful plan features

• based on Islamic law
• based on tabarru
• not a sale and purchase contract
• no element ghara
• no gambling
• no element of riba

The benefits of takaful.

Through the spirit of cooperation and joint-responsibility among participants, the act of charity and benevolence allows participants the opportunity to obtain two forms of benefit. First the monetary benefits through the Takaful plan itself. Secondly the “benefits” in the spiritual sense, through the act of Tabarru’ (donation), participants will receive God’s grace and blessings in life Hereafter. The Takaful system does not differentiate colour or creed; it is meant to benefit all participants, irrespective of their religious beliefs.

IKHLAS HAJJ SAVINGS TAKAFUL is a packaged plan consists of IKHLAS Savings Takaful (IST) with top-up option, IKHLAS Immediate Death Expense Takaful Rider (IDE) and IKHLAS Critical Illness Takaful Rider (CI). This plan has its own target group. The plan is packaged such that it provides a means to accumulate fund for the purpose of performing Hajj or other noble intention. The coverage provided in this plan encompasses death and total permanent disability benefits as well as critical illness benefit.

WHAT DOES IKHLAS HAJJ SAVINGS TAKAFUL COVER?

1. DEATH BENEFIT

[This Takaful Benefit is guaranteed by the Tabarru' fund]

Death benefit equivalent to the Sum Cover plus the accumulated amount in PIA will be payable to the Participant's nominee(s) or next of kin. The nominee(s) or the next of kin is encourage to use part of the death benefit to pay for "Badal Haji" on behalf of the Participant.

2. TPD BENEFIT

[This Takaful Benefit is guaranteed by the Tabarru' fund] In the event of total and permanent disablement of the Participant within the term of the Certificate, the Sum Cover plus the accumulated amount in PIA will be payable to the Participant.

3. IMMEDIATE DEATH BENEFIT

[This Takaful Benefit is guaranteed by the Tabarru' fund]

Immediate Death Expense benefit equivalent to RM 2,000 will be payable within 24 hours (since submission of claim form, burial permit or death Certificate to the company) to the Participant's nominees or next of kin.

4. ACCELERATED CRITICAL ILLNESS BENEFIT

[This Takaful Benefit is guaranteed by the Tabarru'fund]

RM 10,000 is payable upon Participant being diagnosed assuffering from any critical illnesses as defined in Certificates contract. Benefit payment(s) under this benefit will reduce the base Sum    Cover.

5. TOP-UP BENEFIT

[This Takaful Benefit is not guaranteed]

Top-up is an additional Contribution which functions like a regular savings account by financial    institution. The amount of top-up will be determined at the onset based on the expected (or    desired) amount to be achieved at maturity.

6.MATURITY BENEFIT

[This Takaful Benefit is not guaranteed]

A lump sum amount equivalent to the balance in the PIA and PRIA, is payable upon maturity.

Things to note:

TERMS AND AGE LIMIT

Issue Age             :  30 days - 60 years old, age next birthday

Expiry Age            :  Minimum expiry age 20 years old and

                              Maximum expiry age of 65 years old

Coverage Terms    :   5, 10, 15, 20 and 25 years

 Plan option:

IF INTERESTED TO  ASK MY ADVICE AND WANT TO TAKE TAKAFUL FOR YOURSELF OR YOUR FAMILY THROUGH MY EMAIL/PHONE :

# atenafiqah@yahoo.com / 0134222049

FOR ANY INQUIRIES YOU CAN DIRECT CALL OR EMAIL ME

CORPORATE GOVERNANCE

Definition of corporate governance.

Corporate governance refers to the set of systems, principles and processes by which a company is governed. They provide the guidelines as to how the company can be directed or controlled such that it can fulfil its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term. Stakeholders in this case would include everyone ranging from the board of directors, management, shareholders to customers, employees and society. The management of the company hence assumes the role of a trustee for all the others. 

source here

Benefits of Corporate Governance

1. 
   
2. Good corporate governance ensures corporate success and economic growth.
3. Strong corporate governance maintains investors’ confidence, as a result of which, company can raise capital efficiently and effectively.
4. It lowers the capital cost.
5. There is a positive impact on the share price.
6. It provides proper inducement to the owners as well as managers to achieve objectives that are in interests of the shareholders and the organization.
7. Good corporate governance also minimizes wastages, corruption, risks and mismanagement.
8. It helps in brand formation and development.

source here

Corporate governance  the system by which companies are directed and controlled. It involves regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders and other stakeholders, and the goals for which the corporation is governed. Lately, corporate governance has been comprehensively defined as a system of law and sound approaches by which corporations are directed and controlled focusing on the internal and external corporate structures with the intention of monitoring the actions of management and directors and thereby mitigating agency risks stemming from the devious deeds of these corporate officers.

Corporate governance consists of the set of processes, customs, policies, laws and institutions affecting the way people direct administer or control a corporation. Corporate governance also includes the relationships among the many players involved (the stakeholders) and the corporate goals. The principal players include the shareholders, management, and the board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large.

Investopedia explains 'Corporate Governance’:

Corporate governance became a pressing issue following the 1992 introduction of the Sarbanes-Oxley Act in the U.S., which was ushered in to restore public confidence in companies and markets after accounting fraud bankrupted high-profile companies such as Enron and WorldCom.

Most companies strive to have a high level of corporate governance. These days, it is not enough for a company to merely be profitable; it also needs to demonstrate good corporate citizenship through environmental awareness, ethical behaviour and sound corporate governance practices.

The system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.

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Faten syafiqah

OXYMORON

Assalammualaikum,

Why business ethics is considered as oxymoron?

By oxymoron, that mean the bringing together of two apparently contradictory concepts like cheerful pessimist of deafening silence.

The main purpose of a business activity is to maximize profit. Many cases have been recorded till date on how ethics cannot be applied in business. Some of the famous cases on wrong conduct of business are the cases of Franklin Jurado guilty to money laundering and the cases of bribery in Malaysia.

by,

Faten syafiqah

Assalammualaikum and good morning.

For the first question for my assignment is what the definition of Business Ethic?

Business can be defined as an economy activity, a transaction where an offer is made by a seller and offer is accepted by a buyer. It also an organization or economic system where goods and services are exchanged for one another or for money. Every business requires some form of investment and making an output in order to make a profit. Businesses can be privately owned, not-for-profit or state-owned.

Ethics may be defined as the set of moral principles that distinguish what is right from what is wrong. Ethics has a twofold objective:

1.    it evaluates human practices by calling upon moral standards

2.    also it may give prescriptive advice on how to act morally in a given situation.

Ethics, therefore, aims to study both moral and immoral behaviour in order to make well-founded judgments and to arrive at adequate recommendations. Sometimes ethics is used synonymously with morality. An action, which is morally right, is also called an ethical one. Codes of morality are called ethical codes.

Business Ethics

Business Ethics is a study of business situations, activities and decisions. Moreover, it examines ethical principles and moral or ethical problem that arise in a business. Business ethics is dealing with business by taking consideration with ethics. However, Business ethic is not a law. It is ethic in the business life "structured examination of how people and institutions should behave in the world of commerce" but business ethics are often guided by law, while other times provide a basic framework that business may choose to follow in order to gain.

Ethics in Islam

Islam places the highest emphasis on ethical values in all aspects of human life. In Islam, ethics governs all aspects of life. Ethical norms and moral codes discernible from the verses of the Holy Qur’an and the teachings of the Prophet (sws) are numerous, far reaching and comprehensive. Islamic teachings strongly stress the observance of ethical and moral code in human behaviour. Moral principles and codes of ethics are repeatedly stressed throughout the Holy Qur’an. Besides, there are numerous teachings of the Prophet (sws) which cover the area of moral and ethical values and principles. Says the Holy Qur’an:

“You are the best nation that has been raised up for mankind; you enjoin right conduct, forbid evil and believe in Allah” (3:110)

The Prophet (sws) also says:

I have been sent for the purpose of perfecting good morals. (Ibn Hambal No: 8595)

“A business that make nothing out money is a poor business” Henry Ford

by,

Faten syafiqah

BUSINESS ETHICS & CORPORATE GOVERNANCES

Assalammualaikum and good morning,

Firstly, I would like to thanks my beloved lecturer of subject Business Ethics and Corporate Governances, Professor SR Dato Dr Kamarudin Mohd Nor or we just call him as Abah in the class. I would like to give some information about my lovely lecturer Professor SR Dato Dr Kamarudin Mohd Nor. Professor  Dato Dr Kamarudin Mohd Nor is lectures and researches in the areas of sustainable development, project management and construction technopreneurship. His present interests are on green procurement/purchasing, lowcarbon building design, eco-township and sustainable construction materials. He is involved in the Master of Green and Energy Efficient Building programme at UniKL or university Kuala Lumpur and as a subject matter expert on Sustainable Construction under the MSc Project management programme at the Open University Malaysia. Professionally, he is a corporate building surveyor and building engineer. He is also a certified Green Building Index Facilitator. Professor Kamarudin Mohd Nor has a broad spectrum of experience both as an academic and a practitioner in the industry for more than 38 years. At 16 january 2013, I had given an assignment from Abah to create a blog about subject Business Ethics. He prefers us to use fully English in our blog. So, I would try my best to give a post an attractive and informational well written with English.

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                          Faten syafiqah