Abdul-Samad Saadi, CIFP 2009
Assignments guide for IE2001, January 2010
IE2001 Ethics and Governance
Quick guide to assignment questions 1 and 3, January 2010 semester.
Note:
This guide is not aimed at providing the answers to the candidates taking this paper. It is
meant to give candidates some suggestions on how to approach answering the assignment
questions. Assignment question 2 will not be addressed as it is quite a straightforward essay
to construct. Since assignment questions 1 and 3 are quite abstract in nature, I have been
tasked with providing the candidates with some assistance to help ease the burden on
completing assignments.
The approach I will be taking in outlining this guide is simple: to raise certain key questions
for consideration, to suggest different perspectives and to highlight areas of concern (for
example, issues of practical application). Any questions or points raised are not arranged
according to order of importance or relevance. Please keep this in mind.
Candidates are encouraged not to take this guide as a definitive solution for how to answer to
questions, but instead to use this guide as either a starter or as an alternative viewing angle in
terms of their approach. Originality is highly recommended, and candidates need to show a
process of thinking which will indicate to the examiner the depth and breadth of
understanding.
Each assignment must be not less than five pages long, using either Arial or Times New
Roman fonts, size 12 and 1.5 spacing.
Good luck with your assignments, and may Allah guide you to success.
Abdul-Samad
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Abdul-Samad Saadi, CIFP 2009
Assignments guide for IE2001, January 2010
Assignment 1
Effectiveness of values inculcation on organizations is measured only by the sustained
growth and profitability of the organization. Do you agree? Discuss in the context of
IFIs.
It is important to note that this question requires candidates to first identify what they are
required to elaborate. As such, prior to beginning the essay, candidates are suggested to
research at least the following areas (where possible):
1) Definitions and descriptions of ‘values’ – first from a wider perspective, then narrowed
down to the business perspective as well as Islamic perspective
2) Search for existing values inculcation programmes and understand what it means to
‘inculcate values’
3) The relationship between values and ethics, as well as governance (remember that this
paper is about ethics and governance)
4) The operations of IFIs – generic descriptions will suffice, but specific examples would
help (for example, Public Bank’s vision and mission, and how this relates to Public Islamic
Bank as its subsidiary)
6) Optional – Look for examples of IFIs that are considered successful and identify if they
have won relevant awards to reflect their successes in values inculcation/enrichment (for
example, Public Bank has won numerous awards in corporate governance)
After gathering research materials, candidates should begin to build a framework of their
essay by identifying an area or areas of focus. Some of the main questions which candidates
ought to dissect are:
What is the relationship between effective inculcation of values and the success of a
business? Is there a positive relationship? Does the same apply in recessions?
Of course, these are not exhaustive, and candidates are encouraged to devise their own
questions for consideration. Reflecting on different perspectives and experiences will be
immensely helpful to improving the quality of the essay. When answering the question,
candidates should keep in mind that the essay is suggesting the profitability and growth of a
business as being the only measuring stick for evaluating the effectiveness of a values
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Abdul-Samad Saadi, CIFP 2009
Assignments guide for IE2001, January 2010
inculcation programme or initiative, and not the other way around. Remember also not to be
‘boxed in’ and avoid approaching the essay from a narrow perspective – candidates may wish
to consider the following points in their essays:
1) Can businesses be successful without inculcating values? If so, how?
2) Are there any alternative measures to assess the effectiveness of values inculcation?
3) If a business fails, or is not too successful, can there be another explanation than the
ineffectiveness of values inculcation?
4) What is different about IFIs?
5) Why is there a need to talk about values inculcation in the context of IFIs?
6) Can a business have strong values, and yet still fail? If so, what are the factors that may
cause such failure, in spite of having strong values inculcation?
Do not forget that since each essay is to have a minimum of five pages, candidates will be
expected to elaborate at some length on the relevant issues, showing logical steps in
developing points and making critical analyses. It is important to be able to synthesize to
show a higher level of understanding, so do try to learn how to synthesize if there is a need
to.
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Abdul-Samad Saadi, CIFP 2009
Assignments guide for IE2001, January 2010
Assignment 3
“IFIs should have at least one Shariah scholar as an independent director”. Do you
agree with this statement? Discuss.
There are no tricks to this question, but it is not such a straightforward one to answer. The
direct method would involve simply going into the argument straight away, which is not what
is expected of candidates at this level. There are several potential pitfalls to be wary of, for
example:
1) Not being aware of the differences in legislative requirements in different regions (i.e.
Malaysia vs Europe vs GCC)
2) Not being aware of the differences in the make-up of Shariah Supervisory Boards (SSBs)
and Shariah Advisory Committees (SACs) between regions (i.e Bank Negara Malaysia’s
guidelines on the Shariah Advisory Committee; AAOIFI governance standards)
3) Focusing too much on the role of the independent director, which means candidates forget
about answering the question
4) Giving too much attention towards providing an opinion either supporting or rejecting the
statement in the question
There is no specific answer to this question. Take the time to identify the main points for
discussion and dissection.
Candidates are reminded that this paper is about ethics and governance, so you will need to
discuss the essay question in light of those core topics. There are several angles which
candidates may wish to look at with regards to analysis regarding the Shariah scholar, among
which are:
1) The qualifications of a Shariah scholar
2) The role of the Shariah scholar as a member of the SSB or SAC and the role of those
boards and committees in IFIs
3) The make-up of the SSBs and SACs
4) The balance of power between the BoD and the SSB or SAC
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Abdul-Samad Saadi, CIFP 2009
Assignments guide for IE2001, January 2010
In constructing the essay, it is important for candidates to demonstrate an understanding of
‘the bigger picture’. This means that there is a need to consider the wider perspectives with
regards to governance and its function in organizations. For research, candidates are advised
to look at the following (where possible):
1) The Malaysian Code on Corporate Governance (revised 2007)
2) Other codes and principles on corporate governance (e.g. OECD principles, Combined
Code)
3) IFSB Exposure Draft on Shariah Governance System
4) Legislation, such as the Companies Act 1965 (the relevant provisions only)
5) Issues on corporate governance (e.g. agency cost, moral hazard)
6) Relevance of ethics in relation to governance
A final reminder – there is no specific answer to this question. As with the first assignment
question, candidates ought to be able to elaborate sufficiently on the various perspectives
being analyzed. While it is sufficient to be able to draw some conclusion from the arguments,
it is more important for candidates to be able to express a logical thought process and
demonstrate synthesis in constructing the essay.
Final note:
With regards to both assignment questions, candidates must be aware of current events as
well as major historical developments and events relating to issues of ethics and governance.
Ideally, candidates would be able to demonstrate application of theories in hypothetical reallife situations. Drawing upon personal experiences, if relevant, is encouraged – but this must
be done appropriately and candidates must show the link to the issues being elaborated.
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Abdul-Samad Saadi, CIFP 2009
Assignments guide for IE2001, January 2010
Disclaimer:
Since this guide is not meant to provide definitive solutions to the assignments, there is no
guarantee that the suggestions forwarded will be sufficient for candidates to do well in their
essays. As mentioned in the beginning, please take this guide as merely a starting point or
alternative viewpoint. Keep in mind that if several candidates decide to rely on this guide to
formulate their essays, then the likelihood will be that nearly everyone who does so will have
similar or near identical essays. Be mindful of this and consider the wider ramifications of
such situations. It is best to be original and creative, while this guide should merely serve as a
reminder to consider various perspectives and issues.
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