Coretan si Gaptek: Opposite

Coretan si Gaptek: Opposite

Yup, perbedaan adalah rahmat, karna bedalah kenapa setiap manusia diciptakan menjadi unik......

So... "whatever do you think, think the opposite" mungkin judul'a lebih menarik itu...

The Sanction and Embargoes

As we know the Sanctions and embargoes are political trade restrictions put in place against target countries with the aim of maintaining or restoring international peace and security. The terms of embargoes and sanctions refer to governmental action that distorts free flow of trade in goods, services or ideas for decidedly adversarial and political, rather than economic purpose. Sanctions and embargoes are political trade tools, mainly put in place by the United Nations (UN) and the European Union (EU). For most of America's history, the word "embargo" was used to refer specifically to a prohibition on the departure of ships or exports from a nation's own ports, whereas the words "boycott" and "no importation" were used to describe prohibitions of imports or ship entries, and "no intercourse" was used to describe a total prohibition of trade with a nation. But the word "embargo" also was used generically to refer to all stoppages of trade. Sanctions are coercive restrictions implemented for political reasons by countries and international organizations. The aim of sanctions is to maintain international peace and security and to combat violations of international law. They are usually adopted to bring about a change in policy or activity by the target country, government, entities or individuals. Sanctions may take various forms such as arms or other types of embargoes (a legal ban or boycott on trade in certain goods) and/or economic, financial, diplomatic or cultural measures. The objective of each measure should be clearly stated. Sanctions and embargoes are reviewed and either lifted, revoked or adapted in the light of changes in the behavior of the target.
The main aim of all UN sanctions and embargoes is to implement decisions by its Security Council to maintain or restore international peace and security. The EU imposes sanctions and embargoes to further its Common Foreign and Security Policy (CFSP) objectives. The EU can impose measures to preserve peace and strengthen international security, promote international co-operation, and safeguard the common values and security of the EU. EU measures can also be imposed to uphold respect for human rights, democracy and the rule of law.
Sanctions, including economic sanctions, are put in place for a number of reasons. All recent UN and EU sanctions contain information as to why they have been imposed and specify what their aim is. Their principal purpose is usually to change the behavior of the target country's regimes, individuals or groups in a direction which will improve the situation in that country.
The ultimate objective of a sanction varies according to the situation. For instance, an arms embargo and a ban on the export of certain items or raw materials could be aimed at supporting a peace process and restricting the financing of weapons by the combatants. Sanctions may also be aimed at preventing weapons from falling into the wrong hands, disrupting terrorist operations, or trying to change the policies and actions of the target.

TYPES OF SANCTIONS AND EMBARGOES
When a sanction or embargo is set, the UK follows international procedure to put it in place in British law. The United Nations (UN) Security Council imposes sanctions through Security Council Resolutions. The European Union (EU) acts on these by adopting a Common Position and where appropriate, an EU regulation directly applicable to member states is introduced. Where sanctions and embargo measures require more than administrative action to implement them, the UK introduces new, or amends existing, secondary licensing and enforcement legislation.
The most frequently applied measures are:
• embargoes on exporting or supplying arms, and associated technical assistance, training and financing
• a ban on exporting equipment that might be used for internal repression
• asset freezes on individuals in government, government bodies and associated companies, or terrorist groups and individuals associated with those groups
• travel bans on named individuals
• bans on imports of raw materials or goods from the sanctions target
Other measures may be applied according to individual circumstances.
Arms embargoes are imposed by the UN and EU on "arms and related materiel", for example, military ammunition, weapons and goods. The UK interprets this as covering all goods and technologies on the Military List. Controls on the supply of military items between another third country and the sanctions target (trafficking and brokering) also apply.
THE EXAMPLE OF EMBARGOES AND SANCTIONS
The United States Embargo against Cuba (described in Cuba as el blouse, Spanish for “the blockade”) is a commercial, economic, and financial embargo partially imposed on Cuba in October 1960. It was enacted after Cuba expropriated the properties of United States citizens and corporations and it was strengthened to a near-total embargo in February 1962 The embargo was codified into law in 1992 with the stated purpose of maintaining sanctions on the Castro regime so long as it continues to refuse to move toward “democratization and greater respect for human rights”. It is entitled the Cuban Democracy Act. In 1996, Congress passed the Helms-Burton Act, which further restricted United States citizens from doing business in or with Cuba, and mandated restrictions on giving public or private assistance to any successor regime in Havana unless and until certain claims against the Cuban government are met. In 1999, U.S. President Bill Clinton expanded the trade embargo even further by ending the practice of foreign subsidiaries of U.S. companies trading with Cuba. In 2000, Clinton authorized the sale of certain “humanitarian” US products to Cuba.
It has been advocated that the pro-embargo Cuban-American exiles, whose votes are crucial in Florida, have swayed many politicians to also adopt similar views. The Cuban-American views have been opposed by business leaders whose financial interests prompt them to argue that trading freely would be good for Cuba and the United States. The embargo has been roundly condemned by the most of the international community. At present, the embargo, which limits American businesses from conducting business with Cuban interests, is still in effect and is the most enduring trade embargo in modern history. Despite the existence of the embargo, the United States is the fifth largest exporter to Cuba

Foreign Direct Investment (FDI)

APA ITU FDI?

Investasi langsung asing (FDI) dalam bentuk klasik didefinisikan sebagai sebuah perusahaan dari satu negara melakukan investasi fisik untuk membangun sebuah pabrik di negara lain. Ini adalah pembentukan suatu perusahaan oleh orang asing. [1] Secara lebih spesifik, investasi langsung asing adalah lintas-perbatasan mekanisme tata kelola perusahaan di mana perusahaan memperoleh aktiva produktif di negara lain. [2] Its definisi dapat diperluas untuk mencakup investasi yang dilakukan untuk memperoleh bunga abadi di perusahaan-perusahaan yang beroperasi di luar ekonomi investor. [3] hubungan FDI terdiri dari perusahaan induk dan afiliasi asing yang bersama-sama membentuk bisnis internasional atau perusahaan multinasional (MNC).
Dalam rangka untuk memenuhi syarat sebagai investasi FDI harus mampu perusahaan induk kontrol atas afiliasi asing. IMF mendefinisikan kontrol dalam hal ini sebagai memiliki 10% atau lebih dari saham biasa atau kekuatan suara dari sebuah perusahaan yang tergabung atau yang setara untuk sebuah perusahaan tak tergabung; kepemilikan saham rendah dikenal sebagai investasi portofolio.
JENIS INVESTOR ASING LANGSUNG
Seorang investor langsung asing dapat diklasifikasikan dalam setiap sektor ekonomi dan bisa menjadi salah satu dari berikut ini:
1. Perorangan
2. Sekelompok individu yang terkait;
3. Gabungan (group) atau entitas;
4. Perusahaan publik atau perusahaan swasta;
5. Kelompok perusahaan terkait;
6. Badan pemerintah;
7. Estate (hukum), kepercayaan atau organisasi kemasyarakatan lainnya; atau
8. Kombinasi di atas.

METODE INVESTASI ASING LANGSUNG
Investor langsung asing dapat memperoleh 10% atau lebih dari hak suara suatu perusahaan dalam suatu perekonomian melalui salah satu metode berikut:
1. Dengan memasukkan anak perusahaan atau perusahaan
2. Dengan mengakuisisi saham di perusahaan terkait
3. Melalui merger atau akuisisi dari perusahaan yang tidak berhubungan
4. Berpartisipasi dalam ekuitas joint venture dengan investor atau perusahaan lain
Insentif investasi asing langsung dapat mengambil bentuk-bentuk berikut:
1. Tarif pajak korporasi dan pajak penghasilan rendah
2. Konsesi jenis pajak lainnya
3. Tarif preferensi
4. Zona ekonomi khusus
5. Subsidi investasi keuangan
6. Pinjaman lunak atau jaminan pinjaman
7. Lahan gratis atau tanah subsidi
8. Relokasi subsidi
9. Pelatihan kerja & pekerjaan subsidi
10. Infrastruktur subsidi
11. Research & Development support
12. Pengurangan dari peraturan (biasanya untuk proyek-proyek besar)

PENTINGNYA FDI BAGI DUNIA GLOBAL
Jawaban yang sederhana adalah bahwa membuat investasi asing langsung memungkinkan perusahaan untuk menyelesaikan beberapa tugas:
1. Menghindari tekanan pemerintah asing untuk produksi lokal.
2. Menghindari hambatan perdagangan, tersembunyi dan sebaliknya.
3. Membuat bergerak dari penjualan ekspor domestik secara lokal berbasis kantor penjualan nasional.
4. Kemampuan untuk meningkatkan kapasitas produksi total.
5. Kesempatan untuk co-produksi, usaha patungan dengan mitra lokal, pemasaran bersama pengaturan, perizinan, dll;
Efek yang paling mendalam telah terlihat di negara-negara berkembang, di mana tahunan arus investasi langsung asing telah meningkat dari rata-rata kurang dari $ 10 milyar pada tahun 1970-an dengan rata-rata tahunan kurang dari $ 20 milyar pada tahun 1980-an, meledak di tahun 1990-an dari $ 26,7 miliar pada tahun 1990 menjadi $ 179 miliar pada tahun 1998 dan $ 208 miliar pada tahun 1999 dan kini terdiri dari sebagian besar FDI global .. Didorong oleh merger dan akuisisi dan internasionalisasi produksi dalam berbagai industri, FDI ke negara-negara maju tahun lalu naik menjadi $ 636 miliar, dari $ 481 miliar pada tahun 1998 (Sumber: UNCTAD). Pendukung investasi asing menunjukkan bahwa pertukaran arus investasi menguntungkan kedua negara asal (negara dari mana berasal investasi) dan negara tuan rumah (tujuan investasi).

Penjelasan sederhana ini adalah perbedaan perspektif antara eksekutif dari perusahaan-perusahaan multinasional dan kecil dan perusahaan menengah. Perusahaan multinasional hampir selalu berkaitan dengan kapasitas produksi di seluruh dunia dan kedekatan dengan pasar utama. Perusahaan kecil dan menengah cenderung lebih peduli dengan menjual produk mereka di pasar luar negeri. Munculnya Internet telah diantar masuk yang baru dan sangat berbeda pola pikir yang cenderung lebih berfokus pada masalah akses. UKM khususnya sekarang berfokus pada akses ke pasar, akses terhadap keahlian dan sebagian besar dari semua akses ke teknologi.

Akses pasar yang baru juga merupakan alasan utama lain untuk berinvestasi di luar negeri. Pada tahap tertentu, ekspor produk atau jasa mencapai massa kritis jumlah dan biaya produksi atau di mana lokasi asing mulai menjadi lebih hemat biaya. Setiap keputusan mengenai investasi dengan demikian kombinasi dari sejumlah faktor-faktor kunci termasuk: penilaian sumber daya, internal, dan persaingan.


Apa yang akan menjadi beberapa persyaratan dasar untuk mempertimbangkan perusahaan investasi asing? Tergantung pada sektor industri dan jenis bisnis, investasi langsung asing dapat menjadi pilihan yang menarik dan. Dengan globalisasi yang cepat di berbagai industri dan integrasi vertikal dengan cepat mengambil tempat di tingkat global, minimal perusahaan harus terus mengikuti tren global dalam industri mereka. Dari sudut pandang yang kompetitif, penting untuk mengetahui apakah perusahaan pesaing yang memperluas ke pasar asing dan bagaimana mereka melakukan hal itu. Pada saat yang sama, ia juga menjadi penting untuk memantau bagaimana globalisasi mempengaruhi klien domestik. Seringkali, menjadi keharusan untuk mengikuti ekspansi klien kunci luar negeri jika hubungan bisnis yang aktif harus dipertahankan.

TRADE AND INVESTMENT LIBERALIZATION EFFECTS ON SME DEVELOPMENT: A LITERATURE REVIEW AND A CASE STUDY OF INDONESIA

International trade and investment policy have undergone fundamental change in Indonesia over the past two decades. Significant trade liberalization began in 1986 and since 1994 Indonesia has significantly reduced its applied MNF tariffs from an unweighted average of about 20% in 1994 to 9.5% in 1998. In 1998, tariffs on food items were reduced to a maximum of 5%. Besides tariffs, Indonesia has undertaken to remove all non-tariff barriers and export restrictions. Since the beginning of the 1997/98 Asian financial crisis, Indonesia has also deregulated its trade regime in the main agricultural commodities (except rice, for social reasons), terminated production and trade monopolies in certain intermediate industries (cement, plywood, rattan) and reduced export taxes on wood.

The impact of international trade and investment policy reforms on the Indonesian economy, focusing on economic growth and development of domestic manufacturing industry has been studied extensively enough. However, the implication of these trade and investment policy reforms on the growth of small and medium enterprises (SMEs) in Indonesia remains an under-researched area of both the literature on SMEs in Indonesia and in general.

Following a comprehensive review of the available literature on the effects of international trade and investment policy reforms in section II, overviews of International trade and investment reforms in Indonesia and of the development of Indonesian SMEs are given in, respectively, sections III and IV. Effects of the reforms on Indonesian SMEs are examined in section V, complemented by findings from a cased study of a cluster of Indonesian manufacturing SMEs in section VI. Conclusions and policy recommendations are in section VII.

No doubt that the surge in exports of manufactured goods from Indonesia that occurred in the late1980s until the mid-1990s coincided with a sharp increase in FDI in the country. Several previous studies have indicated that multinational enterprises (MNEs) were the source of a large portion of the surge of manufactured exports and also made important contributions to changes in export composition of Indonesia.
Trade policies in Indonesia also played an important role in the growth of the country’s manufactured exports and the change in composition of manufactured exports. James and Ramstetter (2005) emphasized how low protection which adopted by the Indonesian government in the 1980s with respect to certain industries was a key facilitator of rapid export growth of those industries. Despite a slowdown in export growth that began in 1996 and continued into 1998 with the Asian financial crisis, Indonesia did not reverse its export-oriented trade liberalizing reforms. After the crisis, many MNEs expanded their operations in Indonesia (Takii and Ramstetter 2004).

1. Effects of International Trade Reform on SMEs

It is generally believed that trade liberalization should beneficial for domestic economy as well as the world as a whole. At an aggregate level, the channels through which trade reform could bring benefits are broadly the followings: improved resource allocation; access to better technologies, inputs and intermediate goods; economies of scale and scope; greater domestic competition; availability of favorable growth externalities like transfer of know-how and many others.

Theoretically, reform towards international trade liberalization could affect (positively or negatively) individual local firms in four major ways:

• by increasing competition: lower import tariffs, quotas and other non-tariff barriers have the effect of increasing foreign competition in the domestic market, and this is expected to push inefficient/unproductive local firms to try to improve their productivity by eliminating waste, exploiting external economies of scale and scope, and adopting more innovative technologies, or to shut down. Openness of an economy to international trade is also seen as increasing plant size (i.e. scale efficiency), as local firms adopt efficient technologies, management, organization, and methods of production

• by lowering production costs due to cheaper imported inputs: local firms benefit from lower input costs, thereby allowing them to compete more effectively in both domestic markets against imports and in export markets;

• By increasing export opportunities: opening up to international competition will not only induce increased efficiency in domestic firms but it will also stimulate their exports;

• By reducing availability of local inputs: eliminating export restrictions on unprocessed raw materials will increase export of the items at the cost of local industries.

In Indonesia, within many existing studies on SMEs in the country, perhaps the only evidence on the effects of trade reforms before the 1997/98 economic crisis on SMEs’ exports is from a field study conducted by Berry and Levy (1994). They surveyed 91 SME exporters in three sub-sectors of manufacturing, and conducted intensive interviews with 30-40 public and non-profit agencies active in SMEs issues between January and June 1992. The three sub-sectors were garment in Jakarta and Bandung (both are in West Java), rattan furniture in Jakarta and Surabaya (East Java), and carved wooden furniture in Jepara (Central Java). From a total of 33 interviewed rattan product exporters, they found that all but one of the firms sampled exported 90% or more of their output, and 26 of 33 firms began exporting the same year they entered into production. Most of them started to export or increased their export share in their total production since the Indonesian government imposed bans on the export of unprocessed and semi-processed rattan in 1986 and 1988-89 respectively. So, it seems that the ban has been a key factor leading to a major expansion in rattan furniture exports of Indonesia’s SMEs.7Indeed, there are many cases, though unfortunately no official data are available, showing that free exports of raw materials have created difficulties for SMEs.

2. Effects of Investment Liberalization on SMEs

As with trade liberalization, investment liberalization should also take into consideration what impact (positive and negative) would have on the SMEs. Theoretically, investment liberalization affects SMEs in a number of ways.
On the positive side, a better investment environment generates many new firms or/and encourage existing firms (including SMEs) to expand their production capacities. The expansion of local SMEs can also take place with direct link to LEs, including MNCs/FDIs through e.g. subcontracting production linkages (‘complementary effect’).

On the negative side, however, reform towards FDI liberalization has the effect of increasing new LEs at the cost of existing SMEs unable to compete (‘competition effect’). Thus, ‘complementary effect’, rather than ‘competition effect’, can be considered to minimize the negative impact of investment liberalization on SMEs. SMEs in Indonesia, it is hard to say whether the long-term gradual process of investment liberalization, started first by the introduction of Foreign Direct Investment Law in 1967 marking the beginning of the openness to FDI, and followed by the ‘real’ liberalization with the introduction of various incentives to attract FDI (including more sectors open for FDI) in the second half of the 1980s and reached the climax after the crisis 1997/98 with the IMF Reform Agreement, has created complementary net effects or competition net effects on local SMEs.

FDI is an important source of technology transfer to local firms in developing countries,16suggesting that investment liberalization will also act as a stimulus for local SMEs from this perspective. Based on his study on the role of FDI in the so-called Newly Industrializing Countries (NICs) such as South Korea, Taiwan, Hong Kong, and Singapore, Soesastro (1998) states the following: there is no doubt that FDI plays an important role in cross-border flows, transfers and the diffusion of technology.

An Islamic Approach to Business Ethics

Banda Aceh, Indonesia Dr Sabahuddin Azmi summarized by Ilham Maulana What is Ethics? Ethics may be defined as the set of moral principles that distinguish what is right from what is wrong. Ethics has a twofold objective: it evaluates human practices by calling upon moral standards; 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 can also be defined as business morality. Business Ethics Business Ethics is the branch of ethics that examines ethical rules and principles within a commercial context; the various moral or ethical problems that can arise in a business setting; and any special duties or obligations that apply to persons engaged in comerce. Generally speaking, business ethics is a normative discipline, whereby particular ethical standards are formulated and then applied. It makes specific judgments about what is right or wrong, which is to say, it makes claims about what ought to be done or what ought not to be done. Generally speaking, business ethics is concerned with the study of what is good and bad, right and wrong, and just and unjust in business. 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 discernable 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) This goes without saying that there is a general consensus among human beings about certain fundamental ethical values. However, the Islamic ethical system substantially differs from the so-called secular ethical systems as well as from the moral code advocated by other religions and societies. In the Islamic scheme of things, adherence to moral code and ethical behaviour is a part of I%man (faith) itself. According to the Islamic teachings, Muslims have to jealously guard their behaviour, deeds, words, thoughts, feelings and intentions. Islam asks its believers to observe certain norms and moral codes in their family affairs; in dealings with relatives, with neighbours and friends; in their business transactions; in their social affairs, nay in all spheres of private and public life. Islam has its own distinctive value-based ethical system for business dealings. It prescribes certain specific guidelines for governing business ethics. It (i) enumerates the general ethical rules of business conduct, (ii) identifies ethically desirable forms of business, and, (iii) specifies the undesirable modes of transactions. Given the nature of Islamic ethical and moral codes, it would be beyond the capacity of one paper to fully comprehend the subject. In the following pages, our effort will be to confine ourselves to the discussion of some specific principles of business ethics in Islam. Freedom of Enterprise Islam gives complete freedom to economic enterprise. Each individual in an Islamic society enjoys complete freedom in the earning of his livelihood. He can start, manage and organize any kind of business enterprise within the limits set by the Islamic Shari‘ah. However, freedom does not and must not operate without a sense of responsibility. An individual is free to pursue his economic activities provided he respects the code of conduct prescribed for the profession, which broadly means choosing things lawful and shunning matters unlawful. The dictates of the Holy Qur’an and the teachings of the Prophet (sws) serve to set a scale in everybody’s mind to distinguish between the lawful and the unlawful means of earning, and to prohibit or disapprove of all things that are either morally wrong or socially unacceptable. Islam, as a matter of principle, prohibits all activities which may cause harm either to the traders or the consumers in the market. It encourages the prevalence of free market where everyone earns his sustenance without government intervention. However, it puts certain restraints in order to eliminate the incidence of injustice and check malpractices and unlawful operations. In all other respects market in Islam is free from any state intervention. However, if the people fail to take guidance from the Holy Qur’an in matters relating to business transactions, an Islamic state will strive to organize the market transactions on sound Islamic principles. Freedom of enterprise in an Islamic market will, therefore, be regulated by the (i) dictates of the Holy Qur’an and the teachings of the Prophet Muhammad (sws) and (ii) the directives of the temporal authority. During the early centuries of Islam, this function was mainly performed by the institution of Muhasbah (headed by a Muhtasib or market inspector). The institution of Muhasbah was an important institution whose functions were broad-based and multifarious, chief among them being keeping a watch on the harmful practices prevalent in the market and the society and checking the incidence of injustice and malpractices in the market. Islamic Tenets Concerning Business Transactions Islam demands a certain type of behaviour from the economic agents – the consumers and the producers. The behaviour prescribed for the economic units of the society are so devised as to lead to a happy state of affairs, which is the ultimate goal of Islam. An Islamic market is characterized by certain norms that take care of the interests of both the buyer and the seller. There are a number of rules of ethical discipline in Islamic commercial transactions without which business contract would be regarded as lacking perfection in the light of the code of good manners, decency and ethical excellence. Some of these tenets are as follows: Keenness to Earn Legitimate (Halal) Earnings Islam places great emphasis on the code of lawful and unlawful in business transactions. Many Qur’anic verses disapprove the wrongful taking of the property. Says the Holy Qur’an: Do not devour one another’s property wrongfully, nor throw it before the judges in order to devour a portion of other’s property sinfully and knowingly. (2:188) Do not devour another’s property wrongfully – unless it be by trade based on mutual consent. (4:29) The above verses prohibit the believers in no uncertain terms to devour the property of others by illegal means. The Prophet (sws) endorsed the importance of legitimate ways of earning in the following words: Asked ‘what form of gain is the best? [the Prophet] said, ‘A man’s work with his hands, and every legitimate sale’. (Ahmad, No: 1576) From the above it is clear that a Muslim trader must be determined to earn only through legitimate means. He should not only avoid illegitimate means in earning his provisions and livelihood but also distance himself from matters dubious and doubtful. The Prophet (sws) is also reported to have said: Leave what makes you doubt for things that do not make you doubt. (Tirmidhi, No: 2442) Things legitimate and illegitimate are clearly defined in Islam and, in between them, are doubtful things, which should be avoided. A true Muslim businessman should be wary of the doubtful things in order to keep himself clear in regard to his faith and his honour because one who falls into doubtful matters is sure to fall into that which is unlawful (Haram). A tradition of the Prophet (sws) states: A time will come upon the people when one will not care as to how he gets his money whether legally or illegally. (Bukhari, No: 1941) Foremost among the unacceptable business practices strongly condemned in Islam is Riba. Riba (interest), by definition, is the extra sum the moneylender charges from the borrower for deferred payment. Islam has forbidden all forms of Riba since it involves both oppression and exploitation. Islam strictly forbids this form of tyrannical dealings and condemns it in severe terms. The Holy Qur’an says: Allah has permitted trading and forbidden Riba (usury). (2:275) Devour not Riba doubled and re-doubled. (3:130) It further states: O you who believe! fear Allah and give up what remains of your demand for usury if you are indeed believers. If you do it not, take notice of war from Allah and his Apostle: but if you turn back you shall have your capital sums; deal not unjustly and you shall not be dealt with unjustly. (2:278) The Sunnah is equally emphatic in denouncing Riba. The Prophet (sws) is reported to have said: May Allah send down His curse on the one who devours Riba and the one who pays it and on the two witnesses and on the person writing it. (Ahmad, No: 624) These and many other verses of the Qur’an and traditions of the Prophet (sws) clearly demonstrate that all those business transactions which involve interest in one form or other, are unlawful in the sight of Islam. According to the Qur’anic teachings there is a clear distinction between genuine business profits and interest; while the former is recommended and desirable, the latter is hated and undesirable. Truthfulness in Business Transactions Islam encourages truthfulness in business transactions and raises the status of a truthful merchant so much so that he will be at par with the holy warriors and martyrs, in the Hereafter. The Prophet (sws) is reported to have said: The truthful merchant [is rewarded by being ranked] on the Day of Resurrection with prophets, veracious souls, martyrs and pious people. (Tirmidhi, No: 1130) The Prophet (sws) has also exhorted the believers to strictly adhere to truthfulness in business transactions. He says: The seller and the buyer have the right to keep or return the goods as long as they have not parted or till they part; and if both the parties spoke the truth and described the defects and qualities [of the goods], then they would be blessed in their transaction, and if they told lies or hid something, then the blessings of their transaction would be lost. (Bukhari, No: 1937) The tradition implies that Allah blesses business dealings if both the buyer and the seller are true to each other. Telling lies and hiding facts will result in the loss of divine blessing. A tradition reads. The Holy Prophet said: ‘Traders are wicked people’. The Companions asked: ‘O Messenger, has Allah not permitted business?’ The Messenger replied: ‘Of course He has declared trading lawful. But they (i.e. the traders) will swear by Allah and do evil, they will not speak but tell lies’. (Ahmad, No: 14982) Trustworthiness in Business Transactions Trustworthiness is one of the most important principles of ethical discipline in commercial transactions. Trust is a moral virtue and duty incumbent on a Muslim in the performance of his affairs. It demands sincerity in work and purity of intention from every believer. A true Muslim trader will not, therefore, barter his Akhirah (hereafter) for worldly gains. He will avoid fraud, deception, and other dubious means in selling his merchandise. The sense of mutual trust demands that the pros and cons of commodity be revealed to the buyer so that he purchases the commodity in full satisfaction. Says the Holy Qur’an: O you believers! Do not betray Allah and the Messenger, nor knowingly, betray your trusts. (8:27) Fair Treatment of Workers Islam puts certain conditions and restrictions to obviate the chances of bitterness between the employer and employees. Islam encourages and promotes the spirit of love and brotherhood between them. According to the Islamic teachings it is the religious and moral responsibility of the employer to take care of the overall welfare and betterment of his employees. Fair wages, good working conditions, suitable work and excellent brotherly treatment should be provided to the workers. The last Prophet of Allah (sws) has explained this principle in the following words: Those are your brothers [workers under you] who are around you, Allah has placed them under you. So, if anyone of you has someone under him, he should feed him out of what he himself eats, clothe him like what he himself puts on, and let him not put so much burden on him that he is not able to bear, [and if that be the case], then lend your help to him. (Bukhari, No: 2359) The Prophet (sws) also said: I will be foe to three persons on the Last Day: one of them being the one who, when he employs a person that has accomplished his duty, does not give him his due. (Bukhari, No: 2109) The Prophet (sws) is also reported to have said: The wages of the labourers must be paid to him before the sweat dries upon his body. (Ibn Majah, No: 2434) Prohibited Matters in Business Transactions So far we have focused on one aspect of the business ethics – guidelines prescribed by Islam for conducting business transactions. Another aspect of business ethics is the various forms of unethical business practices a Muslim businessman must avoid in his business dealings. Some of these prohibited and undesirable business practices are as follows: Dealing in Prohibited (Haram) Items Dealing in unlawful items such as carrion (dead meat), pigs and idols is strongly prohibited in Islam. Dead meat would mean the flesh of any bird or animal dead from natural causes, without being properly slaughtered in an Islamic way. A Muslim, therefore, will not eat the flesh of such an animal or bird. Flesh of an electrocuted animal, or of an animal killed by the blow of a blunt weapon, and of the strangled one is also proscribed in Islam. Also proscribed is the flesh of the animal that has been killed or slaughtered in ways other than Islamic. It is, therefore, not permissible for a Muslim to trade in dead meat. Likewise, trading in pork or intoxicants and sale of idols and statues is not permitted in Islam. A verse of the Holy Qur’an says: Forbidden to you [for food] are: dead meat, the blood, the flesh of swine and that on which name of other than Allah has been mentioned. (5:1) The Holy Qur’an also says: O you who believe! Intoxicants and gambling [dedication of] stones and [divination by] arrows are an abomination of Satan’s handiwork: so avoid it in order that you may prosper. (5:90) The Prophet (sws) is also reported to have said; Allah and His Messenger made illegal the trade of alcoholic liquors, dead animals, pigs and idols. (Bukhari, No: 2082) The Prophet (sws) also said; If Allah makes something unlawful, he makes its price also unlawful. (Ahmad, No: 2546) Conclusion In modern times business ethics has become a major topic of discussion among business communities and other related organizations. Each and every society has evolved ethical and moral codes of conduct for business transactions. However, the Western secular ethical values are by and large supposed to be utilitarian, relative, situational and devoid of any spiritual sanctioning power. The Islamic ethical codes, on the contrary, are humane rather than utilitarian or relative. They are good for all times and absolute. Ethical and moral codes in Islam are part of the overall Islamic faith and observing them will not only lead to a happy state of affairs in this world but also holds the promise of manifold returns in the Hereafter. Islamic ethical and moral codes thus create a sense of responsibility and accountability in the minds of the believers, be they buyers or sellers. Our effort in this paper has been to present the Islamic perspective concerning business ethics. As we saw, the ethical code of Islam is multidimensional, far reaching and comprehensive. Islamic ethical framework is repeatedly stressed throughout the Holy Qur’an, and the teachings of the Prophet and encompass all spheres of life including business financial dealings and obligations. The fundamental codes of moral behaviour such as truthfulness, trustworthiness, generosity and leniency, adherence to business commitments and contracts, fair treatment of workers, avoidance of evil practices (such as fraud, cheating, deceit, hoarding of foodstuff, exploitations, giving short measures etc.) provide, to a large extent, the general background of Islamic business ethics. The writer believes that there is a pressing need to study and implement Islamic moral values in the context of the present day business situations.

The Ethics of Job Descrimination

JOB DICRIMINATION: IT’S NATURE

Discrimination is happened because of diversity influence in our life. The root meaning of the term discriminate is “to distinguish one object from another,” a morally neutral and not necessarily wrongful activity. However, in modern usage, the term is not morally neutral; it is usually intended to refer to the wrongful act of distinguishing illicitly among people not on the basis of individual merit, but on the basis of prejudice or some other invidious or morally reprehensible attitude. Discrimination in employment must involve three basic elements: (1) it is a decision against one or more employees that is not based on individual merit; (2) the decision derives solely or in part from racial or sexual prejudice, false stereotypes, or some other kind of morally unjustified attitude against members of the class to which the employee belongs; (3) the decision has a harmful or negative impact on the interests of the employees, perhaps costing them jobs, promotions, or better pay.

Forms of Discrimination: Intentional and Institutional Aspects

A helpful framework for analyzing different form of discrimination can be constructed by distinguishing the extent to which a discriminatory act is unintentional and institutionalized. First, a discriminatory act may be part of the isolated (no institutionalized) behavior of a single individual who intentionally and knowingly discriminates out of personal prejudice. Second, a discriminatory act may be part of the routine behavior of an institutionalized group, which intentionally and knowingly discriminates out of the personal prejudices of its members. Third, an act of discrimination may be part of the isolated behavior of a single individual who intentionally and knowingly discriminates against someone because the individual unthinkingly adopts the traditional practices and stereotypes of the surrounding society. Fourth, a discriminatory act may be part of the systematic routine of a corporate organization or group that unintentionally incorporates into its formal institutionalized procedures practices that discriminate against women or minorities.

DISCRIMINATION: IT’S EXTENT

How do we estimate whether an institution or a set of institutions is practicing discrimination against a certain group? We do so by looking at statistical indicators of how the members of that group are distributed within the institution. A prima facie indication of discrimination exists when a disproportionate number of the members of a certain group hold the less desirable positions within the institutions despite their preferences and abilities. Three kinds of comparisons can provide evidence for such a distribution: (a) comparisons of the average benefits the institutions bestow on the discriminated group with the average benefits the institutions bestow on other groups, (b) comparisons of the proportion of the discriminated group found in the lowest levels of the institutions with the proportions of other groups found at those levels, and (c) comparisons of the proportion of that group that holds the more advantageous positions with the proportions of other groups that hold those same positions.

The argument mustered against discrimination generally fall into three groups:

1. Utilitarian Arguments; which claim that discrimination leads to an inefficient use of human resources.

2. Rights Arguments; which claim that discrimination violates basic human rights.

3. Justice Arguments; which claim that discrimination results in an unjust distribution of society’s benefits and burdens.

Discriminatory Practices

Regardless of the problems inherent in some of the arguments against discrimination, it is clear that there are strong reasons for holding that discrimination is wrong. It is consequently understandable that the law has gradually been changed to conform to these moral requirements and that there has been a growing recognition of the various ways in which discrimination in employment occurs. Among the practices now widely recognized as discriminatory are:

1. Recruitment Practices. Firms that rely solely on the word-of-mouth referrals of present employees to recruit new workers tend to recruit only from those racial and sexual groups that are already represented in their labor force.

2. Screening Practices. Job qualifications are discriminatory when they are not relevant to the job to be performed.

3. Promotion Practices. Promotion, job progression, and transfer practices are discriminatory when employers place White males on job tracks separate from those open to women and minorities.

4. Conditions of Employment. Wages and salaries are discriminatory to the extent that equal wages and salaries are not given to people who are doing essentially the same work.

5. Discharge. Firing an employee on the basis of race or sex is a clear form of discrimination.

Sexual Harassment

Women, as noted earlier, are victims of a particularly troublesome kind of discrimination that is both overt and coercive: They are subjected to sexual harassment. Although males are also subjected to some instances of sexual harassment, it is women who are by far the most frequent victims. For all its acknowledged frequency, sexual harassment still remains difficult to define and to police and prevent.

AFFIRMATIVE ACTION

To rectify the effects of past discrimination, many employers have instituted affirmative action programs designed to achieve a more representative distribution of minorities and women within the firm by giving preference to women and minorities. In fact, affirmative action programs are now legally required of all firms that hold a government contract. The heart of an affirmative action program is a detailed study (a “utilization analysis”) of all the major job classifications in the firm. The purpose of the study is to determine whether there are fewer minorities or women in a particular job classification that could be reasonably expected by their availability in the area from which the firm recruits. The firm appoints an officer to coordinate and administer the affirmative action program, and it undertakes special efforts and programs to increase the recruitment of women and minorities so as to meet the goals and timetables it has established for itself.

Affirmative Action as Compensation

Arguments that defend affirmative action as a form of compensation are based on the concept of compensatory justice. Compensatory justice implies that people have an obligation to compensate those whom they have intentionally and unjustly wronged. Affirmative action programs are then interpreted as a form of reparation by which White male majorities now compensate women and minorities for unjustly injuring them by discriminating against them in the past.

The difficulty with arguments that defend affirmative action on the basis of the principle of compensation is that the principle requires that compensation should come only from those specific individuals who intentionally inflicted a wrong, and it requires them to compensate only those specific individuals whom they wronged.

Affirmative Action as an Instrument for Achieving Utilitarian Goals and Equal Justice

A second set of justifications advanced in support of affirmative action programs is based on the idea that these programs are morally legitimate instruments for achieving morally legitimate ends.

The major difficulties encountered by three utilitarian justifications of affirmative action have concerned, first, the question of whether the social costs of affirmative action programs outweigh their obvious benefits. Second, opponents of these utilitarian justifications of affirmative action have questioned the assumption that race is an appropriate indicator of need.

Although utilitarian arguments in favor of affirmative action programs are quite convincing, the most elaborate and persuasive array of arguments advanced in support of affirmative action have proceeded in two steps. First, they argue that the end envisioned by affirmative action programs is equal justice. Second, they argue that affirmative action programs are morally legitimate means for achieving this end.

Implementing Affirmative Action and Managing Diversity

Opponents of affirmative action programs have argued that other criteria besides race and sex have to be weighed when making job decisions in an affirmative action programs. First, if sex and race are the only criteria used, this will result in the hiring of unqualified personnel and a consequent decline in productivity. Second, many jobs have significant impacts on the lives of others. Third, opponents have argued that affirmative action programs, if continued, will turn us into a more racially and sexually conscious nation.

The success or failure of an affirmative action program also depends in part on the accommodations a company makes to the special needs of a racially and sexually diverse workforce.

The honest Canteen overview in Indonesia

The honesty canteen is one of popular program in Indonesia, the objective of this program are want to increase the honesty of human and to create a good person with honestly. The program start by Komisi Pemberantas Korupsi (KPK) RI, now start to be followed in Sulawesi Selatan and other province in Indonesia. The system of this canteen and the traditional canteen it’s very different. In the honest canteen, there is no one who keeps and serves the customer. But, the content of the canteen still secure and save. In this canteen, we can enjoy choosing everything we want to buy and if there have any cash back, customer can take that by their self. Most of the program opened at the schools in Indonesia for remember “fight against to corruption day” on December 9^th 2008.

The honesty canteen is media to generate the value of honesty to the young generation. It is also media for accustoming student-self to “be honest to their self”. The existence of honesty canteen very important to practice and train the students to be more honest in order to they understand how to be honest which begin from small act. But, it is also necessary controlling and monitoring. Without that, the honesty canteen program will be fail. For long-term idea, this honesty canteen may anticipate corruption act to the future generation.

Unfortunately, this program also faces some problem like income of honesty canteen decrease than canteen as usual. It is caused there are students pay less because just miscount when they buy the food or soft-drink and even sometimes they just take the foods and do not pay, other problem is money-back for the students frequently is not available there.

Outside of all of that, the honesty canteen provides benefit to the students. They attempt to be more honest to their self and their environment. They will be more responsibilities, and respect that honesty are one of important thing in their life. Honest canteen, self services, that is not impossible if we want to apply that in our life. But before that we need to prepare our mentality on that program. We should to prepare our society with the good education, we should to tell to our children that good or bad, ethics or un ethics. If we success to lead our children Indonesia will be a country that doesn’t have any corruption any more.