Leadership’s Role in Overcoming Ethical Challenges: Implementing Islamic Business Ethics in the Palm Oil Industry
DOI:
https://doi.org/10.59110/aplikatif.v3i2.428Keywords:
Company, Islamic Business Ethics, Leadership, TBS Kelapa Sawit Mega LestariAbstract
This study investigates the role of leadership in implementing Islamic business ethics at TBS Kelapa Sawit Mega Lestari, focusing on identifying challenges and strategies to overcome them. A qualitative descriptive approach was employed, involving direct observations, semi-structured interviews with 10 key informants (comprising company leaders, field employees, and local farmers), and an analysis of documentation. Findings indicate that the successful implementation of Islamic business ethics—centered on fairness, honesty, transparency, and social responsibility—is heavily dependent on the leadership's ability to educate employees and establish ethically aligned partnerships. Key challenges identified include employees’ limited understanding of Islamic ethical principles and inconsistencies with partner companies not adhering to these values. To address these, the leadership implemented Focus Group Discussions (FGDs) conducted quarterly to enhance awareness and introduced measures to collaborate with partners fully aligned with Islamic ethics. This study concludes that while notable progress has been made, continuous efforts are required to standardize ethical practices and foster a culture aligned with Islamic principles within the palm oil industry.
References
Agustian, K. (2023). Comparative analysis of ethical and legal principles in the Islamic business management model. Journal of Contemporary Administration and Management (Adman), 1(2), 101–107. https://doi.org/10.61100/adman.v1i2.52
Agustino. (n.d.). Implementation of public policy: Van Meter and Van Horn model. Retrieved September 20, 2022, from https://kertyawitaradya.wordpress
Agustiranda. (2024, January 18). Interview with Head of TBS Kelapa Sawit Mega Lestari Warehouse, Geulanggang Gajah, at 11:00 AM.
Alazmi, T. (2014). The relationship between Islamic religion and ethical leadership. International Journal of Customer Relationship Marketing and Management, 5(1), 31–43. https://doi.org/10.4018/ijcrmm.2014010103
Astuti, A., Afiyah, Z., Ningsih, S., Pranata, A., & Jannah, R. T. (2022). Kepemimpinan Dalam Islam. Educational Leadership: Jurnal Manajemen Pendidikan, 2(01), 72-85. https://doi.org/10.24252/edu.v2i01.29939
Azzumi, A. (2023). Considering dawam raharjo as the foundation of Sharia digital business ethics. MONEY, 1(2), 115–121. https://doi.org/10.31004/money.v1i2.15991
Badroen, F. (2006). Business ethics in Islam. Jakarta: Prenada Media Group.
Bahadori, M., Ghasemi, M., Hasanpoor, E., Hosseini, S., & Alimohammadzadeh, K. (2021). The influence of ethical leadership on organizational commitment in fire organizations. International Journal of Ethics and Systems, 37(1), 145–156. https://doi.org/10.1108/ijoes-04-2020-0043
Beekun, R. (2012). Character-centered leadership: Muhammad (P) as an ethical role model for CEOs. The Journal of Management Development, 31(10), 1003–1020. https://doi.org/10.1108/02621711211281799
Budianto. (2024, January 16). Interview with Secretary of TBS Kelapa Sawit Mega Lestari, Geulanggang Gajah, at 12:15 PM.
D’Souza, L. (2024). Transformational leadership in Indian organizations: Adaptation and effectiveness in the 21st century. International Journal of Research Publication and Reviews, 5(3), 1660–1667. https://doi.org/10.55248/gengpi.5.0324.0712
Destiya, A., et al. (2022). Analysis of Islamic business ethics principles. Bogor.
Engelsberger, A., Cavanagh, J., Bartram, T., & Halvorsen, B. (2021). Multicultural skills in open innovation: Relational leadership enabling knowledge sourcing and sharing. Personnel Review, 51(3), 980–1002. https://doi.org/10.1108/pr-10-2019-0539
Ferryanto, H. (2015). Implementasi Prinsip Kepemimpinan Islam Dalam Proses Inovasi Produk Pada Sentra Batik Jetis Sidoarjo (Doctoral dissertation, UNIVERSITAS AIRLANGGA). https://repository.unair.ac.id/6934/
Harti, S. (2024). Catalyzing ethical business practices: Exploring the role of Islamic finance in contemporary markets. International Journal of Business Law and Education, 5(2). https://doi.org/10.56442/ijble.v5i2.663
Hassan, A. (2016). Islamic ethical responsibilities for business and sustainable development. Humanomics, 32(1), 80–94. https://doi.org/10.1108/h-07-2015-0047
Heri Juanda. (2024, January 16). Interview with Treasurer of TBS Kelapa Sawit Mega Lestari, Geulanggang Gajah, at 11:30 AM.
Indrianasari, N., Puspitasari, N., & Sukarno, H. (2022). Sharia financial performance perspective: Business or compliance oriented. Assets Jurnal Ilmiah Ilmu Akuntansi Keuangan Dan Pajak, 6(2), 57–63. https://doi.org/10.30741/assets.v6i2.817
Ismaeel, M., & Blaim, K. (2012). Toward applied Islamic business ethics: Responsible halal business. The Journal of Management Development, 31(10), 1090–1100. https://doi.org/10.1108/02621711211281889
Koku, P., & Savas, S. (2014). On corporate social responsibility and Islamic marketing. Journal of Islamic Marketing, 5(1), 33–48. https://doi.org/10.1108/jima-04-2013-0028
Laiqkafana, A. (2023). Analysis of the impact of Islamic leadership on the Islamic work ethics of Pegadaian Syariah employees. Journal of Islamic Economic and Business Research, 3(1), 125–137. https://doi.org/10.18196/jiebr.v3i1.114
Liestyowati, L. (2024). Islamic ethics in business and finance: Implications for corporate governance and responsibility. COUNT, 1(3), 195–213. https://doi.org/10.62207/h5emhx78
M. Yusuf. (2024, January 16). Interview with Head of TBS Kelapa Sawit Mega Lestari Company, Geulanggang Gajah, at 10:00 AM.
Malayu, S. P., & Hasibuan. (2007). Human resource management. Jakarta: Bumi Aksara.
Mas, N., & Karmila, K. (2023). Islamic business ethics review of chicken farming business in the middle of community settlements in North Luwu Regency. Jurnal Ekonomi Syariah, 8(1), 76–85. https://doi.org/10.37058/jes.v8i1.6920
Merile, S. G. (2002). In Budi Winarno, Theory and process of public policy. Yogyakarta: Media Pressindo.
Muhammad. (2002). Islamic business ethics. Yogyakarta: Unit Penerbit dan Percetakan Akademi Menejemen Perusahaan YKPN.
Mujahidin, & Farhan. (2024, January 18). Interview with employees of TBS Kelapa Sawit Mega Lestari, Geulanggang Gajah, at 3:00 PM.
Murtaza, G., Abbas, M., Raja, U., Roques, O., Khalid, A., & Mushtaq, R. (2014). Impact of Islamic work ethics on organizational citizenship behaviors and knowledge-sharing behaviors. Journal of Business Ethics, 133(2), 325–333. https://doi.org/10.1007/s10551-014-2396-0
Rafii, M., Fitriyanti, F., Romadhan, M., & Mumtazah, N. (2022). The position of online ojek based on the perspective of Islamic law. International Journal of Social Science and Business, 6(4), 553–560. https://doi.org/10.23887/ijssb.v6i4.51193
Reyaz, S. (2024). The influence of leadership styles on employee motivation and job satisfaction. International Research Journal of Advanced Engineering and Management, 2(3), 339–344. https://doi.org/10.47392/irjaem.2024.0049
Ridwansyah, R., Fauzan, R., Hendri, M., Kalis, M., & Rosnani, T. (2023). Relationship of Islamic work ethic to work culture through innovative work behavior of madrasah teachers. International Journal of Social Sciences and Humanities, 7(1), 88–97. https://doi.org/10.53730/ijssh.v7n1.14065
Rosyadi, F., Mulyo, J., Perwitasari, H., & Darwanto, D. (2021). Export intensity and competitiveness of Indonesia's crude palm oil to main destination countries. Agricultural Economics (Zemědělská Ekonomika), 67(5), 189–199. https://doi.org/10.17221/371/2020-agricecon
Shahin, A., & Wright, P. (2004). Leadership in the context of culture. Leadership & Organization Development Journal, 25(6), 499–511. https://doi.org/10.1108/01437730410556743
Shivers-Blackwell, S. (2004). Using role theory to examine determinants of transformational and transactional leader behavior. Journal of Leadership & Organizational Studies, 10(3), 41–50. https://doi.org/10.1177/107179190401000304
Silvia, C., & McGuire, M. (2010). Leading public sector networks: An empirical examination of integrative leadership behaviors. The Leadership Quarterly, 21(2), 264–277. https://doi.org/10.1016/j.leaqua.2010.01.006
Solehudin, E. (2024). Study on Sharia compliance principles in halal tourism business in Bandung Regency: An implementation of Islamic business ethics principles (professional ethics). Keuangan Islam Dan Peran Kesejahteraan, 39–66. https://doi.org/10.20885/millah.vol23.iss1.art2
Sroka, W., & Szántó, R. (2018). Corporate social responsibility and business ethics in controversial sectors: Analysis of research results. Journal of Entrepreneurship Management and Innovation, 14(3), 111–126. https://doi.org/10.7341/20181435
Wirawan, W. (2013). Leadership (1st ed.). Rajawali Press.
Yarar, B. (2023). Analyzing the Justice and Development Party’s changing discourse on the headscarf issue as the constitutive part of its drift toward authoritarian politics in Turkey. European Journal of Cultural Studies, 27(2), 175–194. https://doi.org/10.1177/13675494231153692
Zhang, S., Liu, X., & Du, Y. (2021). When and how authoritarian leadership influences employee innovation behavior in the context of Chinese culture. Leadership & Organization Development Journal, 42(5), 722–734. https://doi.org/10.1108/lodj-08-2020-0342
Zulianih, F., & Amarudin, A. (2020). Implementasi corporate social responsibility CV. Karya Perdana di Desa Sumbermulyo dalam perspektif etika bisnis Islam. Dinamika Jurnal Kajian Pendidikan Dan Keislaman, 5(2), 109–124. https://doi.org/10.32764/dinamika.v5i2.810
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Raihan, M. Ambia
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
