An Analysis of Islamic Ethics in Small and Medium Enterprises (SMEs)
An Analysis of Islamic Ethics in Small and Medium Enterprises (SMEs)
An Analysis of Islamic Ethics in Small and Medium Enterprises (SMEs)
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Table 1Category <strong>of</strong> <strong>Small</strong> <strong>and</strong> <strong>Medium</strong> <strong>Enterprises</strong> (<strong>SMEs</strong>)Category Sector Def<strong>in</strong>itionMicromanufactur<strong>in</strong>g, manufactur<strong>in</strong>g Sales Turnover less than RM<strong>Enterprises</strong>related services <strong>and</strong> 250,000 OR less than 5<strong>Small</strong><strong>Enterprises</strong><strong>Medium</strong><strong>Enterprises</strong>agriculture <strong>in</strong>dustriesservices (<strong>in</strong>clud<strong>in</strong>g ICT) <strong>and</strong>primary agriculturemanufactur<strong>in</strong>g, manufactur<strong>in</strong>grelated services <strong>and</strong>agriculture <strong>in</strong>dustriesservices (<strong>in</strong>clud<strong>in</strong>g ICT) <strong>and</strong>primary agriculturemanufactur<strong>in</strong>g, manufactur<strong>in</strong>grelated services <strong>and</strong>agriculture <strong>in</strong>dustries;services (<strong>in</strong>clud<strong>in</strong>g ICT) <strong>and</strong>primary agricultureemployeesSales Turnover less than RM200,000 OR less than 5employeesSales Turnover between RM250,000 to less than RM 10million OR employeesbetween 5 – 50Sales Turnover between RM200,000 to less than RM 1million OR employeesbetween 5 - 19Sales Turnover between RM10 million to RM 25 million ORemployees between 51 – 150Sales Turnover between RM 1million to RM 5 million ORemployees between 20 - 50Furthermore, accord<strong>in</strong>g to Department <strong>of</strong> Statistics, Malaysia; the distribution, establishment bysector are divided <strong>in</strong>to three; manufactur<strong>in</strong>g, services <strong>and</strong> agriculture. The most highestdistribution is from service (87.9%), followed by agriculture (7.1%) <strong>and</strong> manufactur<strong>in</strong>g (5%).Table 2Distribution <strong>of</strong> establishments by sectorsSectorNo. <strong>of</strong>%establishmentsManufactur<strong>in</strong>g 85,946 5.0Services 1,523,842 87.9Agriculture 123,762 7.1Total 1,733,550 100.0<strong>Small</strong> <strong>and</strong> <strong>Medium</strong> Enterprise (<strong>SMEs</strong>) <strong>and</strong> Bus<strong>in</strong>essThis study attempts to explore the concept <strong>and</strong> the approach <strong>of</strong> bus<strong>in</strong>ess ethics <strong>in</strong> <strong>Islamic</strong>perspective focus<strong>in</strong>g especially <strong>in</strong> <strong>Small</strong> <strong>and</strong> <strong>Medium</strong> <strong>Enterprises</strong> (<strong>SMEs</strong>). It is important toqualitatively analyse the important <strong>of</strong> bus<strong>in</strong>ess ethics for <strong>Small</strong> <strong>and</strong> <strong>Medium</strong> <strong>Enterprises</strong> (<strong>SMEs</strong>).Accord<strong>in</strong>g to United Nations Economics Commission for Europe (2004), the advantages <strong>of</strong>bus<strong>in</strong>ess ethics <strong>in</strong> <strong>Small</strong> <strong>and</strong> <strong>Medium</strong> <strong>Enterprises</strong> (<strong>SMEs</strong>) activities is bus<strong>in</strong>ess leaders<strong>in</strong>creas<strong>in</strong>gly recognize the direct relationship between fulfill<strong>in</strong>g a company’s responsibilities <strong>and</strong>corporate survival. When a bus<strong>in</strong>ess is clear <strong>of</strong> its core purpose <strong>and</strong> values <strong>and</strong> aligns its br<strong>and</strong>, itis more likely to attract <strong>and</strong> keeps talented people, reduce <strong>in</strong>efficiency <strong>and</strong> stress caused byconflict<strong>in</strong>g messages <strong>and</strong> also attract more clients, customers <strong>and</strong> also supplier who delivergoods to the same high st<strong>and</strong>ards. Perhaps, the clear <strong>of</strong> the important <strong>of</strong> bus<strong>in</strong>ess ethics willassist the bus<strong>in</strong>ess leaders to implement <strong>and</strong> practice ethical bus<strong>in</strong>ess <strong>and</strong> management.UNITAR E-JOURNAL Vol. 4, No. 1, January 2008 50
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