STATISTICS & MANAGERIAL ETHICS :
OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS
by
Prof. Shaya’a Othman
Group Chief Executive Of...
STATISTICS & MANAGERIAL ETHICS :
OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS
Shaya’a Othman
Propose Definition of Statistics

“Statistics is a scientific method of collecting, organizing, presenting,
analysing and ...
OK
Increasing Explicit Unethical Behaviours
of Organisations
“The

main reason why ethics in economy and finance are
increasi...
CRITICAL POINTS OF ABUSE
COMMON ERRORS
UNINTENTIONALLY AND INTENTIONALLY
[UNETHICALS]
CRITICAL POINTS 1 and 2

CRITICAL
POINT 1

CRITICAL
POINT 2
Data Collection Design
[CRITICAL POINT 1]
Errors in Sampling Design
[ CRITICAL PONT 2]
I
!!
No not
am ing
ask AT
WH ula,
m
for HOW
t
bu u do
yo t?
i

Example : Using Simple
Regression Line to forecast the
futu...
Do ethics really matter?
Do they have any practical use?”
At its core, ethics is about making conscious choices in line wi...
Unitized System vs. Stick System
In
Curtain Wall Systems
Comparison between Stick and
Unitized in Curtain Wall Systems
“Th...
CURRENT SITUATION
FAILURE TO PROMOTE A HIGHER CAUSE
by Jay Lorsch and Rakesh Khurana, Harvard Business School

“…….what

our role has
been i...
Financial Crisis: Blame Business-Schools
Business schools are largely responsible for the U.S. financial
crisis

MBA
BA
St...
Financial Crisis: Blame Business-Schools
Business schools are largely responsible for the U.S. financial
crisis
“The curre...
FINANCIAL CRISIS : BLAME BUSINESS SCHOOLS

“In the run up to the crisis, many business executives
were so self-interested ...
THE NEED TO SHIFT THE MIND SET OF OUR
STUDENTS & MANAGERS

WHAT?
HOW?
This is normally we
teach our students

We should te...
OK

OK
Social Responsibility and
Managerial Ethics

Organizational Business Mangement by SHAYAA OTHMAN

24
What is Social Responsibility

Classical View : Organizations should concern only on financial returns –advocated
by econo...
26
Social Responsibility and Economic Performance

Positive Relationship between Social Responsibility and Economic Performan...
Valued-Based Management

Valued-Based Management : An approach to managing in which managers
establish , promote, and prac...
SHARED
ORGANIZATIONAL
VALUES

Organizational Business Mangement by SHAYAA OTHMAN

29
Greening of Management

Global Environmental Problems ;
Serious Situations : Natural Resources Depletions [Oils, Menials, ...
Managerial Ethics

WESTERN VIEWS – 4 VIEWS
1.Unitarian Views of Ethics; Ethical decisions are made solely on the basis of ...
Managerial Ethics

Universal Islamic Ethics

32
Ultimate Objectives [Maqasid al-Sharia]
Muslims Scholars include al-Gazali [505HA/1111AC],
hold the opinion that the Ultim...
. Source : Othman, Shaya’a, (2011) Islamic Management, Maqasid Al-Shariah in
Islamic Finance, Alor Setar, Kolej Universiti...
. Source : Othman, Shaya’a, (2011) Islamic Management, Maqasid Al-Shariah in
Islamic Finance, Alor Setar, Kolej Universiti...
OK

OK
Fighting fraudulent
online reviews with
math
Online reviews can make or break a
business. Unfortunately, unscrupulous
indi...
TOTAL APPROACH OF ADDRESSING PROBLEMS OF ETHICS

ETHICS
Development of Organizational Ethical Index
1. Corporate Responsibility Index (CRI)
The Australian government has funded t...
Definition of Ethics
“a set of moral principles, especially ones relating to or
affirming a specified group, field, or for...
ETHICS

Source: Shaya’a Othman (2012). 1st ISM International Statistical
Conference, Johor Baharu , Malaysia
MANAGERIAL
ETHICS

MANAGEMENT
•PERSONAL
•FAMILY
•COMMUNITY
•ORGANIZATION
•NATION
Maqasid al Shariah as a Administrative Foundation of
managing the Nation should be mentioned here
The principles and work ...
Success of Applying
Managerial Ethic in
Accordance to
Islamic Principles
“Statistics is a scientific method of collecting, organizing,
presenting, analysing and interpreting numerical information...
OK

OK

OK
SUMMARY OF TOTAL SOLUTION
Effective, Efficient, Ethical
Adherence to Islamic Values

THANK YOU FROM
Prof. SHAYA’A OTHMAN
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
STATISTICS & MANAGERIAL ETHICS :  OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH
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STATISTICS & MANAGERIAL ETHICS : OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH

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This is a Key Note Presentation entitle "STATISTICS & MANAGERIAL ETHICS : OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS" was presented at The 1st ISM International Statistical Conference (ISM-1)”, Johor Baharu, Malaysia, 4-6 September 2012, which was held at Persada International Convention Centre, Johor Baharu, Malaysia.
I have revised the presentation to include Maqasid Al Shariah as a solution to problems Managerial Ethics in Statistics. I have redefined statistics as follows:

"Statistics is a scientific method of collecting, organizing, presenting, analysing and interpreting numerical information, developed from mathematical theory of probability, within the ethical values of Maqasid al-Shariah”


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STATISTICS & MANAGERIAL ETHICS : OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS INCLUDING MAQASID AL SHARIAH

  1. 1. STATISTICS & MANAGERIAL ETHICS : OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS by Prof. Shaya’a Othman Group Chief Executive Officer CAPRICE GROUP, TURKIYE The 1st ISM International Statistical Conference (ISM1)”, Johor Baharu, Malaysia, 4-6 September 2012 Persada International Convention Centre, Johor Baharu, Malaysia Note: I have revised my presentation to include Redefinition of Statistics & Managerial Ethics to include Ethical Values according to Maqasid Al Shariah Shaya’a Othman (1435/ 2014)
  2. 2. STATISTICS & MANAGERIAL ETHICS : OVERVIEW OF PROBLEMS AND TOTAL SOLUTIONS Shaya’a Othman
  3. 3. Propose Definition of Statistics “Statistics is a scientific method of collecting, organizing, presenting, analysing and interpreting numerical information, developed from mathematical theory of probability.” Definition by Shaya'a Othman, KUIS [2008]
  4. 4. OK
  5. 5. Increasing Explicit Unethical Behaviours of Organisations “The main reason why ethics in economy and finance are increasingly brought to the agenda not only in scientific researches but also in public discussions is the increasing explicit unethical behaviours of organisations especially in developed countries and increasing negative impact of such behaviours. Examples such as the cases of Enron, Worldcom and Bernard Madoff in the USA, the scandals of Parmalat in Italy, Siemens in Germany should be regarded as incidents arising mainly from unethical practices of the companies and their management” Mehmet Akif ÇKE [2011],Global Financial Crisis from an Ethical Perspective Research Journal of Internatıonal Studıes - Issue 19 (June., 2011), University of Istanbul..
  6. 6. CRITICAL POINTS OF ABUSE
  7. 7. COMMON ERRORS UNINTENTIONALLY AND INTENTIONALLY [UNETHICALS] CRITICAL POINTS 1 and 2 CRITICAL POINT 1 CRITICAL POINT 2
  8. 8. Data Collection Design [CRITICAL POINT 1]
  9. 9. Errors in Sampling Design [ CRITICAL PONT 2]
  10. 10. I !! No not am ing ask AT WH ula, m for HOW t bu u do yo t? i Example : Using Simple Regression Line to forecast the future Analysis of Data [Critical Point 3]
  11. 11. Do ethics really matter? Do they have any practical use?” At its core, ethics is about making conscious choices in line with an explicit framework of values and principles. It is this reflective engagement with the world that stops individuals, organisations and institutions from stumbling, blindly, into ethical ‘death traps “ There is no longer a need to offer even a marginally sophisticated answer. All that one has to do is point to the billions of dollars of wealth destroyed, at the millions of lives adversely affected by loss of homes, opportunities; savings … the list goes on. Dr Simon Longstaff is Executive Director of St James Ethics Centre. This article was first published in Living Ethics, issue 74, summer 2008 http://www.ethics.org.au/living-ethics-overviews/living-ethics-issue-87-autumn-2012
  12. 12. Unitized System vs. Stick System In Curtain Wall Systems Comparison between Stick and Unitized in Curtain Wall Systems “There are two types of curtain wall systems; "stick" and "unitized". Although the stick system is cheaper, the unitized system has the advantage of more flexibility relative to allowable deflection of the supporting structure” Curtain wall Primer for Design Professionals, Matthew Stuart, P.E., S.E., F.ASCE http://www.pdhonline.org/courses/s119/s119.htm
  13. 13. CURRENT SITUATION
  14. 14. FAILURE TO PROMOTE A HIGHER CAUSE by Jay Lorsch and Rakesh Khurana, Harvard Business School “…….what our role has been in fostering a culture that allows executives to walk off with millions of dollars while their firms lay in tatters and society is left with the bill” Source: http://roguemedia.org/tag/finance/ Executives Walk off with millions, while the society struggling to keep alive
  15. 15. Financial Crisis: Blame Business-Schools Business schools are largely responsible for the U.S. financial crisis MBA BA Statistical Diploma/Degrees Research Methodology Module ? Subject on Ethics
  16. 16. Financial Crisis: Blame Business-Schools Business schools are largely responsible for the U.S. financial crisis “The current crisis highlights the growing complexity of the financial system and underscores the sea change in business education from the generic to the specific, from the old boys’ network to the global financial network, and from boardroom tactics to risk analytics. By training tomorrow’s leaders to manage the risks of the financial system effectively and ethically, we’ll have a fighting chance of surviving even the largest crises. This is what business schools do, and we need to do more of it, not less. CON: BUSINESS EDUCATION—WE NEED MORE, NOT LESS by Andrew W. Lo, MIT Sloan School of Management Financial Crisis: Blame B-schools Business schools are largely responsible for the U.S. financial crisis. http://www.businessweek.com/debateroom/archives/2008/11/us_financial_ cr.html
  17. 17. FINANCIAL CRISIS : BLAME BUSINESS SCHOOLS “In the run up to the crisis, many business executives were so self-interested they failed to consider themselves as custodians of their own institutions. All of us involved in business education need to ask what our role has been in fostering a culture that allows executives to walk off with millions of dollars while their firms lay in tatters and society is left with the bill” FAILURE TO PROMOTE A HIGHER CAUSE by Jay Lorsch and Rakesh Khurana, Harvard Business School
  18. 18. THE NEED TO SHIFT THE MIND SET OF OUR STUDENTS & MANAGERS WHAT? HOW? This is normally we teach our students We should teach our students HOW “What is Weighted Average?” How Weighted Average works?
  19. 19. OK OK
  20. 20. Social Responsibility and Managerial Ethics Organizational Business Mangement by SHAYAA OTHMAN 24
  21. 21. What is Social Responsibility Classical View : Organizations should concern only on financial returns –advocated by economists Milton Friedman. Organizational resources for any “social good” are adding to the costs and should be passed to consumers through higher price. Socioeconomic View : Goes beyond making profits to include protecting and improving society’s welfare. Corporation not only responsible exclusively to stakeholders but also to the large society who supported them through buying their products PETRONAS in Sudan, Turkmenistan, etc. JOHORCORP – Wakaf Medical Clinics, etc. Syed Mokhtar – Islamic Art Center KL, Education Foundations, etc 25
  22. 22. 26
  23. 23. Social Responsibility and Economic Performance Positive Relationship between Social Responsibility and Economic Performance. Corporate Social Performance positively associated to financial performance [prior & future] – concluded by many researches . Social Screening : Applying social criteria [screen] to investment decisions. Mutual stocks Fund will not invest in liquor, gambling, tobacco, nuclear power, weapons, price fixing, or fraud. Good Examples Islamic Funds, Islamic Banks. “ THERE IS LITTLE EVIDENCE THAT A COMPANY SOCIALLY RESPONSIBLE ACTIONS SIGNIFICALLY HURTS ITS LONG-TERMS ECONOMIC PERFORMANCE” 27
  24. 24. Valued-Based Management Valued-Based Management : An approach to managing in which managers establish , promote, and practice an organization’s shared values. An Organization’s values reflect what it stands for and what it believes in. Examples Patagonia US [Maker of Outdoor sports strong environmental commitment. - from products design to shipping – gives 10% profit to environmental causes & actively educate customers on environmental issues. KUIS as Islamic Organizations – Islamic Principles all the way from up to down. Shared Values: share the corporate values From Managers’ Decision & Actions to Employee Behaviors , and products and services. KUIS, etc?? Organizational Business Mangement by SHAYAA OTHMAN 28
  25. 25. SHARED ORGANIZATIONAL VALUES Organizational Business Mangement by SHAYAA OTHMAN 29
  26. 26. Greening of Management Global Environmental Problems ; Serious Situations : Natural Resources Depletions [Oils, Menials, etc] ; global warming; pollution [air, water, and soil]; industrial accidents, and toxic wastes. How to Green Protect & Preserver Natural Environment : Example 3M Corporation Program 3 Ps Program = Pollution Prevention Pays Organizational Business Mangement by SHAYAA OTHMAN 30
  27. 27. Managerial Ethics WESTERN VIEWS – 4 VIEWS 1.Unitarian Views of Ethics; Ethical decisions are made solely on the basis of their outcomes or consequences. Using Quantitative Method of Making Decision. 2.Rights Views of Ethics: Respecting & protecting individual liberties and privileges –right to privacy, freedom of conscience, free speech, life and safety. 3.Justice View Ethics: Managers impose and enforce rules fairly and impartially and do by following all legal rules and regulation 4.Integrative social contracts : ethical decisions should be based on empirical [what is] and normative [what should be] factors. Integration of two “contract” general social contract of business to operate with acceptable rules and among members of communities – wage levels – norms of industry - 31
  28. 28. Managerial Ethics Universal Islamic Ethics 32
  29. 29. Ultimate Objectives [Maqasid al-Sharia] Muslims Scholars include al-Gazali [505HA/1111AC], hold the opinion that the Ultimate Objectives [Maqasid al-Sharia] necessary [al-daruiriyyah] for mankind’s peaceful co-existence according to al-Quran and alSunaah, include 5 main areas : 1.Protection 2.Protection 3.Protection 4.Protection 5.Protection of of of of of al-Din Islam Life Intellect or Faculty of Reason Progeny or Offspring Material Wealth Eidin Atta (2010}
  30. 30. . Source : Othman, Shaya’a, (2011) Islamic Management, Maqasid Al-Shariah in Islamic Finance, Alor Setar, Kolej Universiti Insaniah.
  31. 31. . Source : Othman, Shaya’a, (2011) Islamic Management, Maqasid Al-Shariah in Islamic Finance, Alor Setar, Kolej Universiti Insaniah.
  32. 32. OK OK
  33. 33. Fighting fraudulent online reviews with math Online reviews can make or break a business. Unfortunately, unscrupulous individuals frequently cheat by submitting fraudulent online reviews that either increase or lessen a business’ reputation, regardless of whether the individuals have actually used the product or service or have an opinion. These reviews are sometimes quite hard to catch and weed out, but researchers at State University of New York, Stony Brook, have found that there’s a way to catch these reviews by using mathematics Catching fraudulent online reviews is no miracle – it's math. (Photo Credit: CC BY/mad LOLscientist/Flickr) http://personalmoneynetwork.com/moneyblog/2012/06/19/fighting-fraudulent-online-reviews/
  34. 34. TOTAL APPROACH OF ADDRESSING PROBLEMS OF ETHICS ETHICS
  35. 35. Development of Organizational Ethical Index 1. Corporate Responsibility Index (CRI) The Australian government has funded the St James Ethics Centre to provide a website,www.thehub.ethics.org.au, to build communities of responsible business practice in Australia. This CRI is 0ne of its best known benchmarks , which addresses business practices as environmental, social/community, workplace practices, marketplace and business conduct and ethical governance 2. Global Reporting Initiative (GRI), About 80% of the global Fortune 250 companies now disclose their sustainability performance with about 60% of these using the sustainability reporting framework of GRI, an independent internationally networked organisation. The framework measures economic, environmental and social performance 3. Global Compact [GC] of UN United Nations launched its Global Compact, in 2000, a voluntary corporate citizenship initiative, which asks a commitment from business and others to advance 10 universal principles in the areas of human rights, labour standards, environment and anti-corruption
  36. 36. Definition of Ethics “a set of moral principles, especially ones relating to or affirming a specified group, field, or form of conduct” "Business Ethics" can be defined as the critical, structured examination of how people & institutions should behave in the world of commerce. In particular, it involves examining appropriate constraints on the pursuit of selfinterest, or (for firms) profits, when the actions of individuals or firms affects others http://www.businessethics.ca/definitions/business-ethics.html
  37. 37. ETHICS Source: Shaya’a Othman (2012). 1st ISM International Statistical Conference, Johor Baharu , Malaysia
  38. 38. MANAGERIAL ETHICS MANAGEMENT •PERSONAL •FAMILY •COMMUNITY •ORGANIZATION •NATION
  39. 39. Maqasid al Shariah as a Administrative Foundation of managing the Nation should be mentioned here The principles and work ethics upheld by the Prime Minister’s Office include the following: Trust to perform duties with full responsibility Integrity to practise values of honesty, sincerity and integrity in all matters Responsibility to possess high accountability and responsibility in performing duties, without abusing power and position for self-gain or the benefit of other interested parties Excellence to constantly endeavour to improve knowledge, creativity and innovation as well as team spirit Loyalty to have undivided loyalty to the department and nation at all times so as to safeguard image and sovereignty Commitment to carry out work with full responsibility at all times and not disregard public responsibilities because of personal interest Dedication to be prepared to take on responsibilities at any time with no expectations of reward but for the good of the department and the government Discipline to be constantly on good behaviour, observe the laws and regulations and punctuality Diligence to carry out duties efficiently, effectively and productively at all times in order to produce excellent service Professionalism to constantly improve knowledge and skills to provide efficient, prompt and meticulous services as well as to possess characteristics of creativity, innovation, motivation, competitiveness and accountability
  40. 40. Success of Applying Managerial Ethic in Accordance to Islamic Principles
  41. 41. “Statistics is a scientific method of collecting, organizing, presenting, analysing and interpreting numerical information, developed from mathematical theory of probability.” Definition by Shaya'a Othman, KUIS [2008] “Statistics is a scientific method with ethical values, of collecting, organizing, presenting, analysing and interpreting numerical information, developed from mathematical theory of probability.” Definition by Shaya'a Othman, INSANIAH[2011] “Statistics is a scientific method of collecting, organizing, presenting, analysing and interpreting numerical information, developed from mathematical theory of probability, within the ethical values of Maqasid al-Sharia” Definition by Shaya'a Othman, INSANIAH, [2012] REDIFINATION OF STATISTICS TO INCLUDE ETIHICAL VALUES ACCORDING TO SHARIAH
  42. 42. OK OK OK
  43. 43. SUMMARY OF TOTAL SOLUTION
  44. 44. Effective, Efficient, Ethical Adherence to Islamic Values THANK YOU FROM Prof. SHAYA’A OTHMAN
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