toptermpaper.com

Rahul Jacob, “Inside Track: Traditional Values at the Click of a Mouse,” Financial Times, August 1, 2000, p. 14.

Online bookseller Amazon.com transformed the book industry forcing traditional book retailers to respond.

Some information in this section comes from previous Harvard Business School Case Studies: “Li & Fung: Beyond “Filling in the Mosaic”-1995-98,” (HBS Publishing No. 398-092) Michael Y. Yoshino, Carin-Isabel Knoop, Anthony St. George; January 1, 1998; and “Li & Fung (Trading) Ltd.,” HBS Publishing (No. 396-075) Gary Loveman, Jamie O’Connell, October 26, 1995. With a press conference the following day, William was confident of the Group’s performance and lifung.com’s prospects. But he knew that important issues remained unresolved: Was there any chance of channel conflict or cannibalization between the offline business and the start-up? How would the market react to the start-up once it was launched the following year? And how specifically would e-commerce ultimately transform his family’s century-old company?

Company Background

Li & Fung was founded in 1906 by William’s grandfather, Fung Pak-Liu and his partner, Li To- Ming in Guangzhou, China as an export trading company selling to overseas merchants. In the 1920s and 1930s the company diversified into warehousing and the manufacture of handicrafts. Shortly after Fung Pak-Liu passed away in 1943, his son Fung Hon-Chu assumed charge of the company. Two years later, silent partner Li To- Ming retired and sold his shares to the company. The company retained Li’s surname, a homophone “I’m not an Internet guy, I’m a business guy,” quipped William Fung, managing director of Li & Fung Trading Co. Clad in his chinos and black American Eagle T-shirt, Fung looked much more like a new economy entrepreneur than the selfdescribed offline, “old economy relic”: “I’m 51, I’m more than a grey hair in Internet terms, I’m a fossil.”1 Nor did lifung.com, his elder brother Victor’s new online company, resemble a typical Internet start-up, particularly with a 96-year-old parent born at the end of the Qing Dynasty. In August 2000, the day before beta launch of the new business-to-business (B2B) e-commerce portal, William described the challenges facing Li & Fung: About three or four years ago, Victor and I discussed the Internet and how it impacts us. Our starting point was a defensive posture: Would the Internet disintermediate us? Would we get Amazoned2 by someone who will put together all of the information about buyers and factories online? After a lot of research we realized that the Internet facilitates supply chain management and we weren’t going to be disintermediated. The key is to have the old economy know-how and yet be open to new economy ideas.

EXHIBIT 1 Li & Fung Consolidated Income Statement (December 31, 1999), in HK$* 2000 1999 1999 1998 (HK$ thousands) (HK$ thousands) (HK$ thousands) (HK$ thousands) (June 30) (December 31) (June 30) (December 31)

Turnover 10,267,606 16,297,501 6,583,730 14,312,618

Cost of sales (9,262,171) (14,585,881) (5,895,432) (12,891,709)

Selling expenses (191,616) (354,124) (143,136) (287,524)

Administrative expenses (87,741) (867,842) (56,436) (747,725)

Profits before taxation 328,943 613,861 208,936 471,098

Taxation (29,805) (36,638) (14,536) (16,425)

Profit after taxation 299,338 577,223 194,400 454,673

*In August 2000, US$1 _ HK$7.78. for “profit” in Chinese, which, along with “Fung,” a homophone for “abundance,” had an auspicious ring when combined.

Li & Fung relocated permanently to Hong Kong at the end of World War II, expanding its operations to include toys, garments, plastic flowers, and electronics. In the early 1970s, both Fung brothers had just returned from the United States: William had earned his MBA from Harvard Business School and returned to the business in 1972. Victor had recently completed his PhD in economics at Harvard University and, following a two-year stint teaching at Harvard Business School, rejoined the business in 1974. Their return heralded Li & Fung’s transition from a family-owned business to a professionally managed firm, with a planning and budgeting system in place for the first time. William and Victor, the third generation to run the company, felt that the next logical step in growing the company was to go public. In 1973, Li & Fung became the holding company for the Group and was listed on the Hong Kong Stock Exchange (HKSE). Throughout the 1980s, Li & Fung expanded its regional network of offices throughout the Asia-Pacific region as more sources of supply emerged in the rapidly industrializing Asian economies. In 1988 the Group was privatized and streamlined, incorporated in Bermuda in 1991, and its trading activities were again listed on the HKSE in July 1992. With the 1995 acquisition of Inchcape Buying Services (formerly Dodwell), Li & Fung expanded its customer base in Europe while simultaneously shifting its sourcing network beyond East Asia to include the Indian subcontinent, the Mediterranean, and Caribbean basins.

By 2000, Li & Fung was a $2 billion global export trading company with 3,600 staff worldwide, sourcing and managing the global supply chain for high-volume, time-sensitive consumer goods. (Exhibit 1 shows recent Li & Fung financial data.) By 2000, 69 percent of Li&Fung’s sales were in the United States and 27 percent in Europe. Key customers included The Limited, Gymboree, American Eagle,Warner Brothers, Abercrombie & Fitch, and Bed Bath & Beyond. Tesco, Avon Products, Levi-Strauss, and Reebok had become customers within the last two years; Royal Ahold, GUESS? jeans, and bebe had signed on in 2000. Li & Fung’s product mix included hard and soft goods. Soft goods referred to apparel, including woven and knit garments for men, women, and children. Hard goods included fashion accessories, festive or holiday products, furnishings, giftware, handicrafts, home products, fireworks, sporting goods, toys, and travel goods. Hard goods provided higher margins than soft goods because, despite a generally lower item value per unit, they required higher value-added services for orders that were also usually much smaller than soft goods orders. Hard goods items such as watches, shoes, suitcases, kitchenware, or teddy bears required an inspector for quality control evaluation for even the smallest batch order, thereby greatly increasing what Li & Fung could charge. Margins for soft goods were roughly 6 percent to 8 percent, while we get an order from a European retailer to produce 10,000 garments. We determine that, because of quotas and labor conditions, the best place to make the garments is Thailand. So we ship everything from there. And because the customer needs quick delivery, we may

Product
Development
Raw Material
Sourcing
Production
Planning
Factory
Sourcing
Manufacturing
Control
Quality
Assurance
Export
Documentation
Shipping
Consolidation
Fashion Accessories
Festive Products
Furnishings
Garments
Giftware
Handicrafts
Home Products
Sporting Goods
Toys
Travel Goods
Li & Fung
Total
Value-Added
Package

EXHIBIT 2

Li & Fung

Total Value-

Added Services

Source: Company documents.

divide the order across five factories in Thailand. Effectively we are customizing the value chain to best meet the customer’s needs. Five weeks after we received the order, 10,000 garments arrive on the shelves in Europe, all looking like they came from one factory.5 Li & Fung clients benefited in several ways: supply chain customization could shorten order fulfillment from three months to five weeks, and this faster turnaround allowed clients to reduce inventory costs. Moreover, in its role as a middleman, Li & Fung reduced matching and credit risks, and also offered quality assurance to its customers. Furthermore, with a global sourcing network and economies of scale, Li & Fung could offer lower cost and more flexible sourcing than its competitors. In addition, through acquisitions and global expansion, Li & Fung was extending this knowledge base to sub-Saharan Africa, Eastern Europe, and the Caribbean. Finally, Li & Fung provided up-to-date fashion and market trend information to clients. As a result of its Camberley acquisition in 1999, it started offering clients virtual manufacturing or product design services.

According to Victor, “Li & Fung does not own any of the boxes in the supply chain, rather we manage and orchestrate it from above. The creation of value is based on a holistic conception of the value chain.” In recent years, however, Li & Fung had begun to improve operations by controlling or owning strategic links in the chain. In some cases, Li & Fung offered raw material sourcing. In the past when clients placed an order, Li & Fung would determine the manufacturer best suited to supply the goods, and that factory would source its own raw materials. But Li & Fung understood its clients’ needs better than its manufacturing plants did, so by offering raw materials to its suppliers, the company both ensured greater quality control and bought larger and thus more cost effective amounts of raw materials, thereby producing cost savings for each manufacturer. In such cases, Li & Fung also earned revenue by charging its factories a commission on each raw material purchase they made. By mid-2000, nearly 15 percent of Group sales involved Li & Fung’s raw material sourcing service.

Joan Magretta, “Fast, Global, and Entrepreneurial: Supply Chain Management, Hong Kong Style, An interview with Victor Fung,” Harvard Business Review, September-October 1998, p. 106.

Corporate Culture and Compensation

From the 1992 privatization on, the division of labor between the Fung brothers was clear-cut: as Group chairman, Victor was primarily concerned with the Group’s strategic issues and long-term planning; as Group managing director, William attended to everyday operations of the publicly listed trading arm, or as he joked in a recent interview, “Victor is the deep thinker, and I just make the money.”6 In another interview, Victor joked that “William calls me the visionary, meaning that I don’t really know what’s going on.”7 But both brothers lived in the same apartment building as their mother and sisters and conversed every day to keep abreast of developments at Li & Fung. The duo created a strong synergy that was described by the CEO of the Group’s e-commerce venture as A combination of both thought leadership and execution, with the unique relationship between Victor and William cementing the entire organization. They create a very particular kind of culture that blends pragmatism and, at the same time, a recognition of and openness to innovation. According to Victor, once the business was successful, it was essential to keep an open mind and rather than resting on their laurels, that the challenge was to move past success and look forward. Furthermore, Victor held that it was imperative to cultivate a corporate culture that not only tolerated but encouraged diversity, or in his words, “keep the culture so that it remains humble, agile, and responsive all the time and keep the people externally focused.” Biannual retreats were held in Hong Kong, senior management meetings attended by division-level managers in order to foster communication across the Group.

Li & Fung’s 3,600 employees were spread around the globe in offices ranging in size from 6 staff in Saipan to 1,100 in the Hong Kong head office. Five of the 48 offices were hubs-Hong Kong, Taiwan, Korea, Thailand, and Turkey. Each 8 Joanna Slater, “Corporate Culture,” Far Eastern Economic Review, July 22, 1999, p. 12. (except the Hong Kong office) had 200 to 300 employees. Li & Fung was entrepreneurial, allowing senior managers to run 90 small, worldwide management teams as separate and individual companies. These dedicated teams of product specialists focused on the needs of specific customers and were grouped under a Li & Fung corporate umbrella that provided centralized IT, financial, and administrative support from Hong Kong. This decentralized corporate structure allowed for adaptability and rapid reaction to seasonal fashion shifts. As a meritocracy, performance-based promotion and compensation were cardinal principles. Each of Li & Fung’s top executives negotiated individual compensation packages. In contrast to companies that restricted executive bonuses to a fixed percentage of salary, Li & Fung bonuses were based on profits with no ceiling. It’s not every company that calls its executives “little John Waynes.” But for Li & Fung, the image captures perfectly the drive, dedication, and independence of the company’s far-flung managers. As Li & Fung extended its geographic reach, it also expanded its mix of cultures. And to manage the mix it uses a simple formula: give managers the freedom to work as they see fit, so long as they get the job done.8 Tripartite Growth Strategy In 2000 Li & Fung saw its future growth coming from a combination of organic growth, expansion through acquisition, and extension of its supply chain to new markets via the Internet.

Organic Growth

Since 1995, the Group had grown organically by receiving more orders from existing clients and by securing new mandates from strategic clients. Li & Fung further extended its network and diversified its sourcing around the globe with new offices in places as diverse as Bangladesh, sub-Saharan Africa, and Manchester, England (see Exhibits 3 and 4).

Louis Kraar, “The New Net Tigers,” Fortune Magazine, May 15, 2000, p. 310.

Joanna Slater, “Masters of the Trade,” Far Eastern Economic Review, July 22, 2000, p. 10.

The Mediterranean
Cairo
Denizli
Florence
Istanbul
Izmir
Oporto
Tunis
Turin
South Africa
Durban
Madagascar
Mauritius
South Asia
Bangalore
Bombay
Chittagong
Colombo
Dhaka
Karachi
Katmandu
Madras
New Delhi
Sharjah
North Asia
Beijing
Dallan
Guangzhou
Hong Kong
Liuyang
Nanjing
Qingdao
Southeast Asia
Bangkok
Ho Chi Minh City
Jakarta
Johor Bahru
Manila
Phnom Penh
Saipan
Singapore
The Americas
Guatemala
Honduras
Mexico City
New York
Vancouver
Seoul
Shanghai
Shantou
Shenzhen
Taipei
Zhanjiang
EXHIBIT 3 Li & Fung’s Global Network

Source: Company documents.

Central America 3%

Hong Kong/PRC 40%

Southeast Asia 20%

South Asia 8%

Korea 12%

Taiwan 9%

Europe 6%

Africa 2%

EXHIBIT 4 Li & Fung Sourcing Markets (Q1 and Q2, 2000) Source: Company documents.

David Wilder, “Internet Key to More Gains for Li & Fung,” South China Morning Post, September 4, 2000, Business Post, p. 1.

In 1996 Li & Fung adopted a “three-year plan” system, one which William described as having been adopted directly from the economic planning system of the Chinese Communist Party, that “allows the company to look ahead, but not too far ahead.” William elaborated: We thought that the Chinese had a neat system. They have five-year plans, fixed; we have three-year plans, fixed. We don’t want moving goalposts, we want set goals. At the beginning of every three-year plan we sit down and look at the business from its fundamentals. We use backwards planning, we recognize where we want to be in three years time, identify the gaps between that and where we are now, and see what we have to do to get there. During its first three-year plan (FY1993-1995), entitled “Filling in the Mosaic,” Li & Fung focused on filling in the gaps in its network of offices to cover new sourcing markets. The second three-year plan (FY1996-1998), “Margin Expansion,” was launched immediately after the Inchcape acquisition to increase its profitability. A third three-year plan “Doubling Profits” (FY1999-2001), established the goals of doubling profits every three years and achieving $3 billion in annual sales.

Investors liked the results: Li & Fung outperformed the Hang Seng Index by over 75 percent in 2000. The reward was inclusion in the Morgan Stanley Country Index for Hong Kong in May 2000, subsequent inclusion in the HSI in August 2000 and on the FTSE World Index Hong Kong Section in September 2000. With a market capitalization of $6.6 billion, by mid-2000 Li & Fung was the nineteenth largest Hong Kong stock trading with a company record price to earnings (P/E) ratio of nearly 60_. A local newspaper declared: It is difficult to find a bad word [about Li & Fung]. It could be a poster-child for shareholder value, with a return-on-equity of 60.2 percent at the end of last year. The firm is well positioned to benefit from the opening of the mainland market and Beijing’s accession to the World Trade Organization, with 40 percent of sourcing on the mainland and Hong Kong.9

Acquisitions

Li & Fung’s acquisition strategy was based on buying rival sourcing companies, thereby gaining new client accounts, integrating their operations, and eventually bringing the operating margins of these acquired units up to Li & Fung levels. In 1995 Li & Fung acquired Inchcape Buying Services, a 100-year-old company roughly the same size as Li & Fung and its closest competitor. The Dodwell acquisition brought access to sourcing markets on the Indian subcontinent and European export markets. This acquisition took nearly three years to be fully absorbed into Li & Fung’s operations. Within three years, Dodwell’s operating margins increased from 0.8 percent to 3 percent, primarily through the provision of Li & Fung value-added services to Dodwell customers.

In December 1999, Li & Fung acquired the export trading operations of the Swire Group, Swire & Maclaine and Camberley, which were Li & Fung’s next two largest Hong Kong-based competitors, and in the process became the only listed supply chain management company in Hong Kong. Like Li & Fung, Camberley did not own its factories. Instead, it provided “virtual manufacturing” in the form of in-house design, pattern and sample making, and raw material sourcing. Manufacturing was subcontracted to factories in China. Through Camberley, Li & Fung gained access to the design process- another link in the value chain-as well as access to new clients such as the Asia buying offices of Laura Ashley and Ann Taylor. As it had with Inchcape, Li & Fung expected to bolster its own bottom line by raising the operating margins of these two companies. With a robust cash flow and the solid financial performance of past acquisitions, Li & Fung was in position to continue growing its business by further acquisitions.

By August 2000, Li & Fung was nearly five times the size of its two closest local competitors, William E. Connor and Associates and Colby International, which had twice postponed the IPO of its B2B portal in 2000.

See Appendix A for more details on the intranet and extranet.

E-Commerce

A core element of Li & Fung’s three-year planning system included an introspective look at “whether we are still relevant, including whether or not we are going to be disintermediated.” Part of its response was an Internet initiative of its own. In 1995 Li & Fung launched an intranet to link the Group’s offices and manufacturing sites around the world, thereby expediting and simplifying internal communications. The progress of orders and shipments could be tracked in real time, and digital imagery allowed for online inspection and troubleshooting. For example, past quality problems with Bangladeshi production would require an on-site Li & Fung inspector to send physical samples to Hong Kong by express mail, whereas the intranet now allowed a high-resolution digital photo to be sent via the intranet for real-time response and remedy.

In 1997, Li & Fung launched secure extranet sites. Each site linked the company directly to a key customer and was customized to that customer’s individual needs. By 2000, 10 such extranets were in place, each taking nearly 6-9 months to fully implement, from design to testing of the user interface. Through each site, Li & Fung could carry out online product development as well as order tracking, obviating much of the cost and time necessary to send hard copies of documents back and forth. Furthermore, with Li & Fung as the key link between manufacturers and retailers, the extranet provided a platform for the two to interface, thus streamlining communications as the order moved through the supply chain. Customers could track an order online just as it was possible to track a UPS delivery. This monitoring of production also promoted quick response manufacturing. Until the fabric was dyed, the customer could change the color; until the fabric was cut, the customer could change the styles or sizes offered, whether a pocket or a cuff would be added, and a number of other product specifications. According to William, some customers went as far as connecting their entire ERP (enterprise resource planning) system to Li & Fung’s extranet system.

Li & Fung’s IT division had 60 people, all based in Hong Kong, but software development of both the intranet in 1995 and its extranets in 1997 was outsourced.10 Successful implementation of these systems provided the initial building blocks of Li & Fung’s e-commerce solution and with them in place, the Fungs became further aware of the extent to which integration of Internet technology enhanced internal efficiency and improved communication between Li & Fung divisions and customers and began to consider extending the organization’s online presence.

Competitive Threats

The Fung brothers said that they decided to go online to avoid being disintermediated. But a closer examination of local B2B portals and online exchanges led Victor to conclude that the online threat to their offline business was far less than first imagined. “People from the first wave were so far out and garbled in their thinking that we felt that there was no immediate threat,” he noted. “Therefore, we needed to think through e-commerce properly, to formulate a proper response.”

In Victor’s words, B2B exchanges were “a molecule thick and a mile wide,” based on many depthless relationships. Li & Fung preferred “narrow and deep” relationships nurtured with fewer customers and including value-added services. As William professed, “The same reason why we were not disintermediated by the offline guys is going to be the reason why we’re not going to be disintermediated by the online guys.”

However, William discovered on a 1999 visit to the United States that Li & Fung’s old economy retail customers felt seriously threatened by Internet pure plays. At first this hype did not make much sense: I asked my friend at Toys ‘R’ Us, “Why are you concerned about eToys? It does about $28-$30 million in sales whereas you do $11 billion, and it loses as much as its entire turnover? How can you worry about them?” And the first lesson I learned was that it’s not their size that is the threat but the fact that investors are throwing money at them.

William discovered that Internet companies could use the money that was pouring in to damage offline competitors, often by acquiring them or their key people. “They can hire away all of the talent that you have. The biggest weapon is the money they have. At one point, they could have hired away my entire management.”

Other possible threats came from online companies acquiring an old economy trading company, or from offline companies like Japanese trading companies or local sourcing firms that could partner with a dot-com and become a competitor overnight. William hinted that the Swire & Maclaine acquisition was a defensive move to preempt acquisitions by new economy companies.

William gave his view of the Internet revolution: I started off saying that the Internet is just another technology that affects the way information is transferred and people communicate with each other. It has a very dramatic impact, more dramatic than the fax. But for me it’s yet another in a series of technological changes that affects our business that we have to be keenly aware of. It may be the most important change until now, but it is probably not the last. According to Victor, The Internet is a revolutionary technology, but new technology is nevertheless still technology. Li & Fung always has been aggressive in adopting new technologies. When the telephone came along, my grandfather was shocked. When the fax came around, the technology changed our turnaround time into just days. With Internet technology, now we get answers within hours. When broadband and WAP comes online, there will be even less lag.

“Bubble In”

Once the Fungs determined that Li & Fung needed an e-commerce strategy, the remaining question was how and in what shape it would emerge, how specifically e-commerce would eventually add value to Li & Fung, and whether it would use the existing IT department of 60 or absorb a new team of “entrepreneurs.” Victor felt strongly that their e-commerce strategy should come from within the company, not outsourced as the intra- and extranets were, or as he phrased it, “bubble in, not bubble out.” According to Victor, only if the solution was an internal one could he be certain that “the technology would pervade the entire Li & Fung organization.” Neither did Victor care to start a brand-new entity separate from the parent:

I’m not interested in starting a dot-com division, getting a high valuation with, a $13 million cash flow, and then spinning it off. I want Li & Fung to be around for another 100 years, not just 5 or 15. To start a pure Internet division is as equally absurd as starting a fax division, a division that exclusively uses faxes. To better grasp the fundamentals of embarking on a new IT venture, Li & Fung added two new technical directors to its board, one a technology company CEO, the other an academic. According to William:

The one thing certain about our business is that it will be constantly changing, so we need to install a mechanism for monitoring external environmental changes that impact our business. We decided a long time ago that we were an information and knowledge-based services company, so anything to do with information technology is crucial to us. We keep up with what’s happening with board members who can help us scan the horizon.

Enter Castling

In 1997, Michael Hsieh (HBS ’84), president of LF International Inc., Li & Fung’s venture capital arm and 15-year Li & Fung veteran, received a telephone call from John Suh (HBS ’97), CEO of Castling Group, an Internet start-up company that, like the chess move allows you to defend your king and simultaneously position your rook for attack, used the Internet to both defend the offline, old economy companies against online companies’ threat to their markets while simultaneously extending their own online presence. The two met in San Francisco to discuss how a focused combination of technology and supply chain reform could transform retail.

Hsieh, well aware that Li & Fung was working on its own e-commerce strategy, noted: As a VC, I see numerous business plans that say that with Li & Fung behind an online exchange, we create significant value and therefore offer you 5 percent if you join us. However most of the plans do not make sense. They offer very little value and the founders lack either industry or technology expertise. John had the right blend of technology and business sense, the right mix of right and left brain. Like the Fungs, Hsieh favored a “bubble in” approach. He compared outsourcing e-commerce implementation to a third-party consultant for a $10 million fee as “putting the fox in the chicken coop.” It created a risky dependency on outsiders, particularly if future design changes were required and also provided outsiders with proprietary information, strategy, and the entire business model.

Finally, Hsieh remarked: “As a venture capitalist, I always have to think about the strength of the management team and what could go wrong with the venture. Can they deliver? Do they know the industry? Is this a credible business proposition? What if there is a negative reaction?” By late 1999, the time was right to act on their initial meeting. Hsieh commented that “both the evolution of Castling from B2C to B2B and Li & Fung’s needs complemented each other nicely; John had a real appreciation for the supply chain and a record for building successful e-commerce models.” In December 1999 Hsieh joined Castling’s board and LF International invested in Castling. They subsequently co-invested in an initial round of financing for lifung.com, and Castling committed key managerial staff to lifung.com. Suh described Li & Fung as “the perfect strategic partner. They have an entrepreneurial philosophy rooted at the core of their system. They’ve got an aggressive and visionary leadership team at the forefront of supply chain management. And they’re ready to operate according to the rules of the new economy.” In one fell swoop, San Francisco-based lifung.com’s management team was immediately staffed with Castling’s professionals, serving as vice president of Business Development, vice president of Operations, director of Marketing, and CTO (Chief Technology Officer). Suh stepped down as CEO of Castling, retaining the position of nonexecutive chairman, and signed on as CEO of lifung.com. Apart from Suh and CTO Derek Chen, 20 percent of lifung.com’s initial staff came from Castling, amounting to an in-house e-commerce incubation team that represented a slight twist on Victor’s “bubble in” strategy. Suh and Chen, the latter formerly of Andersen Consulting’s Advanced Network Solutions Group, brought along their experience from Castling e-commerce strategy projects for jcrew.com, hifi.com, giftcertificate.com, and ferragamo.com. The rest of the team came from either within Li & Fung (e.g., the senior vice president of Merchandising) or from outside the Li & Fung organization (e.g., the vice presidents of Sales and of Marketing). To facilitate the integration of the new online entity into the Li & Fung fold, a senior manager was tasked to provide an interface between the two groups. By Q3 2000, lifung.com had 40 full-time professionals and 25 consultants, with 80 full-time staff expected by year’s end. For B2B ventures, moving first and fast was often a prerequisite for dominance. Scarcely a year had passed since the initial meeting with Castling and its first round of financing. According to Suh, there were three stages of launching an online venture: the business strategy, the design-build-test phase, and then actual execution. “Moving quickly,” Suh remarked, Requires a fundamental trust in an organization that best arises from the experience of a team that has built things together, with members who know each other’s strengths and weaknesses. We do a lot of team building, because without trust you cannot move at the speed required. There are certain elements critical to the success of a dot-com . . . openness and constant communication are essential because there are so many skills and inter-functional dependencies that must be navigated for a successful launch. At lifung.com, we have a great mix of people, individuals with 30 years of merchandising experience, a deep operations staff,

Many ask the question, are leaders born or made. Vince Lombardi stated leaders arent born, they are made. They are made by hard effort, which is the price all of us must pay to achieve any goal which is worthwhile.” His quote suggests individuals are not born with the skills, gifts, or expertise needed to be a leader but with hard work, education, and experience an individual can become a leader. Aubrey Malphurs suggested leaders can be born and made. In her book, Being Leaders, Aubrey Malphurs (2003) speaks of a leader’s possession of God giving capabilities (innate traits or abilities) and developmental capabilities (knowledge, skills, and emotions) and how combined they make up the leaders total capabilities (pp. 75-87).

Malphurs book speaks mainly leadership in the church, but the information provided can be applied to any context. She defined leadership and built upon that definition by addressing the various components that comprise leadership. Several audits were provided to allow me to determine my strengths and weaknesses in relation to leadership. This leadership audit analysis is a summary of the results from the audits and inventories taken.

Christian Leader Audit

Christian leaders are Christian leaders outside of as well as inside the Christian community (Malphurs, 2003, p.13). A Christian leader can work in any context. They are able to guide, direct, and influence other individuals or groups in accomplishing a desired goal while bringing glory to God. Malphurs (2003) discussed eight core distinctives of Christian leadership, the second being committed to Christ. The Christian leader audit evaluates the strength of an individual as a Christian leader by assessing their level of trust, commitment, and faith in Christ. I scored a nine which indicates I am a strong Christian leader.

The church and Christianity have been a major part of my life. I have a trusted relationship with Christ, I am committed, the Bible is the source of truth for everything that I believe, and I try my best each and every day to display Godly character. Servant leadership is something I try to display in the workplace and the church. In order to practice servant leadership, you must be willing to serve. As a leader I am willing to help out in any way that I can. An area that I continue to pursue growth in is leading by the power of the Holy Spirit. I want to increase my reliance on Him in leading and guiding my workers as we strive to be a better unit and in our work with families and children. I want to be sure all I do is to glorify God so that I my workers will see the Godly character in me and strive to do the same. Let your light so shine before me, that they may see your good works and glorify your Father which is in heaven (Matthew 5:16, KJV).

Servant Leadership

Servant leadership is the humble service of others based on our love for them (Malphurs, 2003, p. 34). One of our purposes in life is to serve God by serving others, because by serving others we are serving God. Servant hood requires us to be humble, selfless servants who seek to help others with love. The servant leader audit evaluates an individual’s level of servant hood. I scored a 23 and my score indicates I am a strong servant.

I entered the social work field because of my strong desire to help people. I get satisfaction from seeing families eliminate the barriers hindering them from improving their situations and ensuring children are placed in safe, nurturing, environments. In completing this assessment I found majority of the statements to be true. Malphurs (2003) mentioned four characteristics of a servant leader: humility, service, focus on others, and love (p. 34). In my work as a supervisor I truly believe I display all four characteristics. Humility is very important to me in leadership. I have never been fond of leaders who exploit their authority. I work with fellow supervisors who are quick to call attention to the fact that they are the supervisor, even outside the workplace. As a supervisor, I want my workers to be comfortable coming to me and not see me as a domineering individual but as someone they can trust and depend on to help them out. Some areas I want to continue to progress in as a servant leader are bringing out the best in others and to lead in such a way that people see me as someone who is willing to help others become all that God wants them to be. For we are God’s handiwork created in Christ Jesus to do good work, which God prepared in advance for us to do (Ephesians 2:10. NIV).

Credibility

Leaders must conduct themselves in ways that let people see them as credible or trustworthy. The credibility of a leader consists of having a unity between ideas, promises, actions, and achieving. Malphurs (2003) spoke of eight ingredients that contribute in various ways to building leadership credibility: character, competence, clarity of direction, communication, conviction, courage, composure, and care (pp. 56-66). The credibility audit determines the strength of the leader’s credibility by examining the eight ingredients mentioned by Malphurs. I scored an eleven which shows I have high leadership credibility.

Credibility or trustworthiness is very important to me. Credibility can make or break you especially as a leader. There is a saying, “if you’re going to talk the talk you have to walk the walk,” which simply means back up what you say with action or do what you say you are going to do. As a supervisor, my workers are constantly watching what I do, listening to what I say, and determining if I have done what I said I was going to do. I communicate with my workers about what is happening and they trust me to be truthful and to share things with them. They know that I truly have their best interests at heart. They also understand there are some things, as a leader, I may not be able to share with them due to confidentiality.

As I read the credible leader chapter of Malphurs’ book, I found that I must realize as a leader I will make mistakes and it is okay. I have always been a person who seeks perfection in all that I do. I want to do my best in whatever task I set out to tackle. Malphurs (2003) stated even the best leaders’ make mistakes (p. 67). Although we may make mistakes that can affect our credibility, we must realize there are steps that can be taken to regain it. Admitting the mistake, accepting consequences, and acting to correct the situation will allow us to regain trust and credibility when it is lost.

Spiritual gifts

All Christians possess a spiritual gift that is to be used to glorify God and to build up His kingdom. Many are not aware of their spiritual gifts or may feel they don’t have one. Malphurs (2003) defines a spiritual gift as a unique, God given ability for service (p. 77). The spiritual gift inventory allows the leader to identify the gifts they were given and suggest ministries in which they may be effective. My highest scoring gifts were faith, giving, help, mercy, and administration.

I found the spiritual gift inventory to be interesting and I was anxious to see my highest scoring gifts. Honestly, initially I was concerned that leadership was not higher on my list because I currently serve in a leadership role. As I reflected on my higher scoring gifts I realized that these gifts are essential for great leadership. My highest score was the gift of faith. I truly seek to grow in this area daily. I have learned through various trials and tribulations that there are many things beyond my control and total dependence on God is the only way to endure and progress. I find myself striving to do things in the will of God.

Giving and helping were also high scoring spiritual gifts in my inventory. The spiritual gift of help would explain the strong desire I have always had to go into a profession in which I would be able to help others. My current job allows me to help individuals in various ways. I am able to help those who can’t have children foster or adopt and help those who had their children removed from their home to get the services they need to be reunified with their families. I find great joy in my job. I would also consider myself a giver of money, time, and talent. I’ve noticed that even in my season of struggling financially God continues to bless me to be a lender and not a borrower. In the giving of my time, I am a very loyal and dependable person. If I say I am going to do something, unless some extenuating circumstances arise I will do just that. Mercy was another high scorer. I believe it corresponds with the desire to help others and being a giver. As an individual who possess the spiritual gift of mercy, I am genuinely sympathetic, empathetic, and compassionate about others and how they feel.

Natural gifts

A natural gift, or talent, is an inherited or natural ability to do something. Unlike spiritual gifts, natural gifts can be possessed by believers and nonbelievers and usually given at birth. Natural gifts can be flourished with practice and training, but spiritual gifts can only flourish as we grow in God. The natural gifts and abilities indicator allowed me to observe the vocations and occupations that I have the strongest interest in. The highest vocational interests were social work and teaching and the occupational interests were social worker, teacher, and counselor.

Teaching has been an interest of mine since I was a little girl. I vividly remember playing school with my doll babies and my chalkboard. I obtained an Associate’s degree in Early Childhood and transferred to the University of North Carolina at Wilmington to obtain my Bachelors. An assignment for one of my courses was to go to a local school and work with a youth one on one who was having difficulty. This experience allowed me to see that teaching in a classroom was not for me. It was discovered the child had ADHD. To see the child initially display the behaviors associated with the disorder and then to see him slow down to the point that he couldn’t function a whole day at school and had to leave at 12:00 every day was too overwhelming. I realized that I would have a class of approximately 20 children and there would be children with ADHD and etc. that I would not be able to give that one on one attention to. Even though this experience led me to obtaining my Bachelors in Psychology and enter into the field of social work, I still have the opportunity to teach. I train individuals who are interested in being foster and adoptive parents and I love it. I truly believe I have a natural gift to teach or train.

A natural talent I possess that was not mentioned in the natural gifts and abilities indicator is the gift of budgeting. In my current position as foster care supervisor I have to manage money on a daily basis. The gift indicator allowed me to see that I am using my natural talents everyday in my current field of work.

Passion

Passion refers to a strong emotion about something. Malphurs (2003) states passion focuses on what the leader feels strongly and cares deeply about (p.78). Individuals motivated by passion and desire tend to be more satisfied in their jobs. This satisfaction could lead to better job performance and less stress. The passion audit allows an individual to identify their passions. My passion appears to be the strong desire to help others, particularly children.

My passion for helping others, especially children, gives me great satisfaction in the job that I do. The protection of children from physical abuse, sexual abuse, neglect, and dependency is my motivation. My goal in this field is to ensure that a child resides in a loving, nurturing, and safe environment. I am there to help and assist the parents and caretakers who are not able to provide such an environment due to barriers. I do believe there are times when an individual’s desire to do something is diminished because of restraints. For example, as social workers in the child protective services unit, we have a passion for protecting children and helping families seek the resources they need to provide a safe environment. However, sometimes we seem to get so bogged down with the paperwork and other tedious aspects of the job that our passion seems to dwindle away. The paperwork is definitely necessary but sometimes overwhelming. We have a huge turnover rate because people come to work in the field to help others but find there is much more required that they did not necessarily think the position entailed (court involvement, documentation, paperwork/forms, and etc.). I sometimes find myself getting so caught up in the logistics that I tend to forget what motivates me to do what I do. My passion is to help others, especially children.

Character Audit

Character, referred to as soul work, is the sum total of a person’s distinct qualities, good and bad that reflect who he or she is and affects what he or she does (Malphurs, 2003, p.80). The manner in which an individual interacts with and treats others displays who they are. A person’s character can also be determined by the way they react or respond to situations. The women’s character audit for ministry determines the overall strength of the leader’s character. I scored a 21 indicating I am a leader of strong character who will prove credible to followers.

A saying goes, “you measure a person’s character by how they act when no one is watching, and by the choices they make when they believe no one will ever know (Myatt, 2009). As a leader and an individual I seek to uphold a character that portrays my morals, beliefs, values, and knowledge, skills, and emotions. This is an area I continue to develop in. I have recently been experiencing some suffering in my personal life, suffering that I have seen tear others down. But God has allowed me to continue to grow and build my character and trust in Him. As a believer in Christ I know suffering will come and it comes to build our character and relationship with god. Suffering brings about patience, patience creates character and character brings about hope. I have found the experience of suffering is God’s way of showing is how we react in situations, which shows us where our heart really is. This experience can show us where we need to seek guidance and growth. Our character consists of our humility, passion, credibility, knowledge, skills, and so much more. For I know the plans I have for you,” declares the Lord, “plans to prosper you and not to harm you, plans to give you hope and a future (Jeremiah 29:11, NIV).

Conclusion

Leaders are born and made. There are some God given capabilities (spiritual and natural gifts) that leaders receive at birth or when they are born again in Christ that can bring strength to a leadership role. Malphurs (2003) states a leader’s gifts provide them with special abilities needed to carry out their ministry so leasers would be wise to know what their spiritual and natural gifts are and what gifts are needed to lead in their specific area of service (p.78). Leaders also possess God given capabilities they weren’t born with and that can be improved over time. Malphurs 92003) named at least four developed capabilities a leader must possess: character, knowledge, skills, and emotions (p. 80).

Malphur’s book, Being Leaders, allowed me to conclude you don’t have to be born a leader. Leaders can be made with hard work, increased knowledge, skills, and with faith in God. The audits and inventories allowed me to assess my strengths and weaknesses in leadership. The information obtained will enable me to build upon my strengths and continue to develop my weaknesses. The gifts or talents the Lord blessed me with at birth (passion to work with children and the temperament) enabled me to lead in my current workplace and the skills, knowledge, and training I have received and continue to receive has allowed me to become more effective.

King Solomon

King Solomon was the third and the greatest king of Israel. He ”was the second son of David by his wife Bathsheba, and the acknowledged favourite of his father” (Oussani). Solomon is mostly known for his great wisdom and just soul. His main accomplishmen, the construction of the temple of the LORD in Jerusalem, also made him well-known and honorable among his people and among other nations as well. Apart from great wisdom, God also gave Solomon discerning heart, wealth, and honour, but still, at the end, this didn’t prevent him from making the mistake of following other gods.

God played the major role in the king’s life. Since the day Solomon was born, the LORD guided him through his righteous life; he made him a successful, wise and discerning ruler, helped govern the nation, and build the temple and the the palace in Jerusalem. The fact that Solomon asked God to give him wisdom to govern his people, not long and joyful life, great power and wealth, makes us admire the king and honour his purpose to put the prosperity of his people before his own needs.

Long before Solomon grew up and became a powerful king of Israel, we, the readers of the Bible, could foresee his upcoming success. God always was with him since the day he was born, ”and because the LORD loved him, he sent word through Nathan the prophet to name him Jedidiah” (2 Samuel 12:25). The name Jedidiah means ”loved by the LORD”.

”Solomon’s wisdom was greater than the wisdom of all the men of the Earth” (1 Kings 4:30). He used his astude and wise mind to rule over his nation and to educate people. He gave them useful knowledge about plants, animals, birds, reptiles and fish. The king became famous and honourable, not only among his people, but also among other nations. ”Man of all nations came to listen to Solomon’s wisdom, sent by all the kings of the world, who had heared of his wisdom” (1 Kings 4:34).

Apart from having a great wisdom, Solomon was also a just and discerning judge. The scene in which two women ask him to decide who is the real mother of the child is the most famous example in which the king uses his discerning heart to jugde people. Solomon didn’t even need any evidences or the witnesses to make the right judgemen.

Soon after ascending his father’s throne, Solomon ”bagan to build the Holy Temple” (Schoenber). He was controling the whole process of building it. The temple and its construction were very important for the king. By this, he showed his gratitude towards God and also fulfiled the intention of his father David. It took Solomon seven years to build the temple. In the end he also brought up the ark of the LORD’s covenant in it.

During his life, Solomon ”composed 3,000 proverbs” (Shoenberg), which are mostly related to people’s everyday life. Through centuries, his proverbs helped people telling them how to live a righteous and successful life and teaching them how to be right before God: ”Do not envy a violent man or choose any of his ways, for the LORD detests a perverse man but takes the upright into his confidence” (Proverbs 3:31-32) Nowadays, we can still extract some useful knowledge from these proverbs and use it to make our lifes better.

One of the proverbs that we can find in the book of Proverbs tells: ”The fear of the LORD is the beginning of knowledge, but fools despise wisdom and discipline” (Proverbs 1:7). After becoming familiar with this proverb and knowing that Solomon was wise, and that the LORD is a jealous God, the following question arises: ”Why did Solomon follow other gods?” Only after God had punished him, Solomon understood that he did evil in the eyes of the LORD. Then, after Solomon’s confessions, which were not completely sincere, God showed his mercy on the king, but after his death, the LORD divided the kingdom into two, and the son of Solomon got the smallest part of it.

According to the Bible, Solomon was the greatest king in the Old Testament, who ”ruled over the people of Israel about three thousand years ago” (Maris). Thanks to his wise and discerning heart, that he got from the LORD, the king had no equals. Being a successful ruler and a just judge, Solomon taught people, had built the temple for the Name of the LORD his God in Jerusalem, and had written ”3,000 proverbs” (Schoenberg). Despite of his great wisdom that was given to him by God, Solomon did evil in the eyes of the LORD and followed the gods of his wifes. Still, he is remembered as a great and wise king. Wouldn’t it be better if our governers would follow his example of being just and discerning towards the people?

References

Maris, Micki. ”About the Proverbs of Solomon.” Proverbs of Solomon Family Discussion Guide. 11 Dec. 2009

Oussani, Gabriel. “Solomon.” The Catholic Encyclopedia. Vol. 14. New York: Robert Appleton Company, 1912. 11 Dec. 2009 .

Schoenberg, Shira. ”Solomon.” Jewish Virtual Library. 11 Dec. 2009 < ://www.jewishvirtuallibrary.org/jsource/biography/Solomon.html>

” Worldview refers to a general conception of the nature of the world , particularly as containing or implying a system of value-principles. Any total philosophical system may be so styled which derives practical consequences from its theoretical componentaˆ¦..”. According to that definition, such a system of value-principles may be inspired by religious tenets or by moral philosophy independent of religion. And also, the distinctive spiritual and material aspect of the society and individual lives in often end to mold their worldview. Therefore, in making a choice, someone is imperative to look at the worldview dynamics from the different social systems rest on. Individual in a society can still have their own principles or variations, but hopefully their average behavior would tend to conform to the norms of what has socially been agreed upon.

Worldview is considered as evolutionary and architectonic rather than contextual. Social phenomena are dynamic and because of the interaction between the changing realities of life and the social worldview perception, the latter invariably has a temporal dimension. Thus, worldview remains in a process of change and reconstruction over time around some unalterable elements. Therefore, because of worldview is coming from human being, it then starts to think about religious worldview, such as Islamic worldview.

Since factors affecting worldview differ, different worldview exits, leading to different “system” for different people. Secular and materialist worldview attach minimum importance to the material aspect of human well being and tend to ignore the importance of the spiritual aspect. They often argue that maximum material well-being can be best solution if the individuals are given unhindered freedom to pursue their self interest and to maximize their want satisfaction in keeping with their own tastes and preferences. In their extreme form they do not recognize any role for divine guidance in human life and place full trust in the ability of human beings to chalk out the proper with the help of their reason. That understanding of religion actually is not necessarily accepted nor applicable to all societies and civilization. The Christian civilization has experience and history which is inclined to secularize as follows : “aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ this dichotomy between the religious and the remainder of human life is a western product and concernaˆ¦. This distinction between the sacred and profane, between religion and other aspects of human endeavor is a result of the process of secularization that has been the experiences of Christian/Western civilization especially since the 17th century (Encyclopedia of Religion 12, 1987). Thus, in such worldview, there is little role for values or government intervention in

the efficient and equitable allocation and distribution of resources. When we identify whether social interest is served, the answer is that, government has given to everyone to pursue his/her interest, and they argue that social interest will automatically serve. There is no doubt that under its secular and materialist worldview, the market system led to a long period of prosperity, however, this unprecedented prosperity did not lead to the elimination of poverty or the fulfillment of everyone’s needs in conformity with the Judeo-Christian value system even in the wealthiest countries. Even, Marx which is proponent of socialist ideology, came up with the notion, the methodological struggle for economists was to alienate political economy from ethics. It is with Marx that the methodological problem in political economy became the demarcation of economic science from the ideology. So, the question later on, is there a place for morality in economics? Leading thinkers on methodological issues have adopted definitions of economics that put the subject in a wider perspective, and ultimately raise moral and religious issues. Pareto pointed out that political economy did not have to take morality into account, but an economist who extolled a particular practical measure should consider the moral as well as the economic consequences. Real men included not only homo oeconomicus, but also homo ethicus and homo religious. However, the economists who, in commending in law, consider only the economic effect was, in Pareto’s view, not much of a theories. When science become advance, then not

only are the different parts of a phenomenon separated, but they are subsequently put together in a synthesis. Hence, the economic, ethical, and religious consequences have all to be taken into account. Nobel-laureate Amartya Sen has, therefore, rightly argued that” the distancing of economics from ethics has impoverished welfare economics and also weakened the basis of a good deal of descriptive and predictive economics” and that economics ” can be made more productive by paying greater and more explicit attention to ethical consideration that shaped human behavior and judgment”. Hausman and McPherson also conclude in their survey article ” Economics and Contemporary Moral Philosophy” that ” An economy that is engaged actively and self-critically with the moral aspects of its subject matter cannot help but more interesting and more illuminating and, ultimately, more useful than one that tries not to be” . In contrast with this, religious worldview give attention to both the material as well as the spiritual aspect of human well-being. Islam also support to that statement. In Islam, the dichotomy and separation from other aspects of life are considered as contradictory, incoherent, and meaningless. Since religion of Islam is not “human creation” of, and for “infantile man” but it is a representative of a “way of life” for all times. Islam has come up with the concept of din, which is perfectly being taught ,including the Islamic worldview. As mentioned by Watt (1979, 3-4), the term din refer more to a :”aˆ¦aˆ¦aˆ¦..whole way of lifeaˆ¦aˆ¦aˆ¦covers both the private and public/societal lives of man, it permeates the whole fabric of society, and included theological dogma, forms of worship, political theory, and a detailed code of conduct, including even matters which the European would classify as hygiene or etiquetteaˆ¦.”. In addition, an Islamic worldview gives the meaning and purpose in our actions. It also dealing with why and how we exist, and it means that actually what ethical or moral values we should partake in, later on what type of behavior or actions we should consider as right or wrong. This is closely related with the concept of din in Islam. Since din is meant the place which man tested and asked by God to follow the straight path of the din. Therefore, all knowledge, notably economics discipline, is basically corrigible except the knowledge revealed by God. Furthermore, under the Islamic worldview, God has created the universe for the benefit of all creatures; with man made as His vicegerent. He has made the resources of the universe available to man who has the responsibility to make “the best use” of these resources without spreading corruption.

ISLAMIC WORLDVIEW AND MAQASID AS SYARIAH

The Islamic worldview also has well spell out objectives known as maqasid al-syariah. These are meant to promote the welfare of the entire mankind, and enjoin on believers the safeguarding of their faith, their human self, their intellectual, their posterity, and their wealth. Furthermore, in dealings with this, Islam has encouraged co-operation to achieve Maslahah (benefit in every day communal life. The other parts of maqasid is establishing justice which is indeed a manifestation of god’s mercy, but may also be seen as a principal objective of the shariah in its own right. Justice as a value or primary objective of the shariah which is everyone in Islam must establish an equilibrium between rights and obligations. The other purposes of maqasid is to educating the individual. In fact, in order to priority, it may even though to be placed before maslahah and adl. Essentially, community oriented values that acquire much of their meaning in the context of social relations, whereas the former seeks to make each individual a trustworthy agent just so as to strive to realize these values which benefit himself and the community. Indeed, the overall purpose of a great number of the stipulation of the shariah, especially in the spheres of Ibadah and akhlaq, is to train the individual to acquire the virtues of taqwa, and thus, to aid the fulfillment of the objective.

ISLAMIC WORLDVIEW AND ISLAMIZATION OF KNOWLEDGE

Islamic worldview is one of paradigm which are Muslim must be having. Islamic worldview is considered as purpose in our actions, since it gives the answers to questions dealing with why and how we exist. Therefore, Islamic worldview is able to direct on what type of behavior or actions we should consider right or wrong. As worldview also is defined as how one sees the world. Hence, value is attached to knowledge that one receives, because the information is processed by the knowledge-giver first before it passed down to the recipient. This knowledge, together with the value attached to it, is then assimilated into one’s mental framework and worldview. Accordingly, due to the impact of worldviews and the values attached to knowledge that would impact one’s perspective on life. Having viewed the important of knowledge, the Islamic scholars, such as Al Attas and Ismail Al-Faruqi come up with the notion, called to Islamization of Knowledge (IOK). Hence, IOK is a term which describes a variety of attempts and approaches to synthesize the ethics of Islam. Al- Attas adds up that the fundamental crisis of the modern-day ummah to be epistemological in nature-that is having its roots in the very conception of knowledge. This brought about the contents of their education by willing to take

bold measure and introduce curriculum reform in particularly Islamic economics programme. Also, the further challenge in terms of knowledge, is that, the curriculum must has the ability to shed light the different between what is considered as knowledge and not. Al-Attas adds up to identify the “confusion of knowledge” must be eliminated et all since it can exhaust the moral values of Ummah and lead to a ” loss of adab” and subsequently the “rise of false leaders” that would exacerbate the “confusion of knowledge”. Having realized of what important the IOK agenda is, we have to deal with the concept of existing modern knowledge which have been embodied in current system and how to develop IOK. In terms of the modern knowledge, Al-Attas had given his conception, is that, every Muslims have to call for the recognition of the proper authorities of knowledge. This means that since the modern knowledge or the west knowledge is at the forefront of science and technology and hence, Muslims are urged to learn

from them. However, the Muslim should possess the metaphysical (Islamic) worldview necessary to filter out theories, that are not in line with the aqidah and tasawwuf. He also noted that Muslim, in pursuit the knowledge, does not just stop at the reinterpretation of secular knowledge, but also should also possess the ability to form and establish new theories and solutions that support the Islamic worldview. And finally, the Muslim should be aware the supreme goal for knowledge is that the spiritual and immaterial in nature. Subsequently, to conduct IOK agenda need to further discussions and interpretations. The spirit of how to perform IOK agenda is that, the notion to integrate the two education stream, the heritage and modern knowledge. Later on, in this context, Al-Alwani (1989, p.89) states that the IOK agenda require the combination of “two readings”. Therefore, the IOK agenda requires six discourses, namely articulating the Islamic paradigm of knowledge and developing a Qur’anic Methodology, establishing a methodology which is dealing with the Qur’an and Sunnah, reexamining the Islamic intellectual heritage, dealing with the western intellectual heritage. Beside Al-Alwani, Ragab (1995, 1997, and 1999) was propounded the idea of “creative engagement” which ultimately was proposing a unified integral theoretical framework. He also signifies that the Islamizers should be qualified which are able to understand and mastery the substantive knowledge in the modern sciences , and has to involve in an

understanding of the Islamic Worldview, and capable of propounding a critical evaluation and

modification of modern social sciences from an Islamic viewpoint. Wan Mohd. Nor, 1998, also

attempts to note that IOK can be done by those who have a profound grasp of the nature, spirit, and attributes of Islam as religion, culture, and civilization as well as western culture and civilization. Unless the Islamizers clearly understand the Islamic worldview, they may not know what need to be isolated and what need to be infused, what are acceptable, what are not and what the Islamic alternatives are. Since, according to Al-Attas, IOK is an “epistemological and methodological” concern, dealing with how “Islamically creative minds can evaluate modern knowledge using Islamic benchmarks”. Thus, at the end of the process, Islamizers fervently wish to come up with idea of reconstruction or reformulation of contemporary knowledge and disciplines, either those existing or the creation of new disciplines if necessary.

CONCLUSION

Islamic worldview is considered and defined as general conception of the nature of the world in Islamic perspective. It contains a system of values principles, which based on dien of Islam. Islamic worldview would give meanings and purpose of all actions done by human beings, particularly Muslims. Muslims will be guided and directed to the area of inline with aqidah, tasawuff, and syariah principles and values. Ethical or moral values is viewed to be a central and basic every endeavor in performing activities, which are categorized as ibadah or muamalah. Subsequently, one attempts to apply and synthesize the ethic of Islam with modern thought is by introducing Islamization of Knowledge (IOK). IOK seems to be essential to be established is shedding out and considered as positive ways to mitigate the problem of corruption of knowledge which is believed has brought up the backwardness of Muslims ummah. In its implementation, IOK agenda is trying to integrate between the heritage of Islam with modern knowledge by undertaking a certain methodology. Certainly, integrating of two types of knowledge need a qualified Islamizer which require to understand the Islamic worldview comprehensively and perfectly.

The future of Conventional Accounting

“The traditional Western double-entry based accounting technology is well-suited to an orthodox, positivist society of any kind. It is not surprising that it is proving inadequate, as people are returning to more integrated world views, whether Islamic or otherwise” (Hayashi, 1989)

Critics on Conventional Accounting

Externalities is not included in financial report (Lee Parker, environmental accounting)

Intangible asset cannot be measured adequately(Lev Baruch)

Human resources and employee reporting interest are not included.

Social Interest is overlooked

Promote the exploitation of capitalist over labor and society.

Promote the concentration of wealth and power o the hand of the rich.

What is Islam?

“Peace” (in this world and hereafter)

“obedience” to Allah as his/her God, comply with the motivation of God’s creation of Man, which is “to serve Allah”, to be “his viceregent on earth”.

A comprehensive worldview, a unity of God, and an integration between world and hereafter.

Islamic principles: truth, justice, fair, goodwill, honesty, benevolent, accountability before the God.

Islam’s epistemology of Devine Unity:

“The Islamic world view is thereby, the comprehensive and universalizing, overreaching and complementing design of reality that is premise on the epistemology of divine unity and is evolved into intellection through the process orientation model of unification of knowledge in world system as derived from the primal sources of divine unity”.

Islamic Rules:

Allah (God) gives two guidance for mankind:

al-Quran (revealed world of God ) and

Hadist/Sunnah: Prophet Saying, God’s inspired acts, description of the conduct of the prophet’s companion of which Mohammad was uncritical.

Ijtihad/ijma’: shuratic and consensus process.

Guidance are related to all daily life of mankind including in business, management, and finance.

The phenomena of nature can be also a sign of God’s power and existence.

The purpose of shariah (Islamic law)

To promote the welfare of the people which lies on:

Safeguarding of their faith

Their life

Their intellect

Their posterity and

Their Wealth

Quranic verse on Accounting

i.e. Albaqarah (2) ayah 282:

“Oh you who believe! When you deal with each other, in transaction involving future obligations in a fixed period of time, reduce them in writing. Let a scribe write down faithfully as between parties”.

There is an integration between worship ritual and socio-economy-politico and daily life of mankind.

Allah rules out business and accounting.

Islamic accounting: Hayashi

“is an integrated discipline with social, political and economic domain ruled by Allah or “meta rule”. Islamic accounting should regulate and establish a harmonious integration among the parties of these diverse domain”.

Ancient Accounting Role in Islamic State is Muhasabah, it means:

Calculation of one’s act

Clear the account, make neutral

To take care of, to try to find

To anticipate a reward in the hereafter

To take into account, into consideration

To order Muslim to perform their duties

To avoid fraudulent practices in business and society, to check illegal contract, keep free market and fair price, prevent necessities from being hoarded. (Hayashi, 1989)

Islamic Accounting

1. To report accurate income determination

2. To promote efficiency and leadership

3. To comply with the shariah (Islamic principles)

4. Commitment to justice

5. To report a good things

6. To adapt to positive social change.

Conventional vs Islamic Accounting:

Conventional Accounting:

Based upon modern commercial law-permissive rather than ethical

Limited disclosure (provision of information subject to public interest)

Personal accountability (focus on individuals who control resources)

Economic rationalism

Secular

Individualistic

Profit maximization

Survival of fittest

Process

Absolute ownership

(Ec. rationalism: the desire to stand apart from others, to compete, to manipulate and to amass surplus”)

Individuality – oriented

Focus on individuality aspect without consider any social aspects

Accounting Law and Ethics

Secular

The normative accounting always influencing descriptive accounting or individuality interest

In operational, they permit everything to reach the highest profit

Measure as highest possible profit

Historical Cost

Firm doses not have separate financial obligation (I.e profit sharing scheme)

Depend on contractual agreement between party

One lunar year for zakat calculation

Quantity based and monetary based (zakat calculation)

Importance for fulfillment of duties and obligation to God, society and individual.

Clear conscience with God in fulfilling all duties.

Consistence to shariah rules

Most favorable to society (justice)

Islamic Accounting

Based upon ethical law originating in the Qur’an (Islamic law, As-Sunnah)

Full disclosure (to satisfy any reasonable demand for information in accordance with the Shari’a)

Public accountability (focus on the community who participate in exploiting resources)

Unity of God

Religious

Communal

Reasonable profit

Equity

Environment

Relative ownership

Focus on society aspect

Basically Al Qur’an & As Sunnah (Shariah)

Religious (must responsibility to God at the Judgment Day)

No differentiation between Normative and Descriptive Accounting (They always going simultaneously)

In operational, they do everything in boundaries of Islam (Shariah)

Measure as saleable value

Market (selling) price rather than historical cost

[Entity]Separation between business and owners

[going concern] Business continues forever

[Accounting period] Periodical measurement of performance

[unit of measure] Monetary Value

[Full disclosure principle] Decision making process

[objectivity] Reliability of measurement

[Materiality] Relative importance of information for decision making

[Consistency] Consistency based on GAAP

[Conservatism] Use least favorable impact on owners

When you hear the word leadership what comes to mind. At first thought, people generally thing of someone famous. For instance, one may think of great leaders of social movements or even great political leaders. However, after taking an ethics class, I have learned that leaders come in all shapes and sizes and leaders/leadership can be perceived differently to different people in different circumstances. Hence, the purpose of this paper is to give some insight on the values and perspectives pertaining to this matter found in my interview with an ethical leader.

As I look around my community, I am more aware of the leadership within it. I see individuals who are indeed leaders that may never become famous; however, their leadership is essential to the life of the community. The question is “would they be good, ethical leaders with positive intentions?” In order for me to make this determination, I had to ask myself what defines a leader, but most importantly, what defines an ethical leader? In my previous management classes I learned that leadership was described as the ability to influence individuals or groups toward the achievement of goals. Nevertheless, leadership, as a process, shapes the goals of a group or organization, motivates behavior toward the achievement of those goals, and helps define group or organizational culture. On the other hand, in reality, it is largely a process of influence. Leadership is an active or changing process in the sense that, while influence is always present, the persons exercising that influence may change (Hartman & DesJardins, 2011).

Still, I needed to know exactly what an ethical leader was or what may define an ethical leader. According to my readings and research I found that an ethical leader is one who knows their core values and possesses the courage to live them in all parts of their life in service of the common good(Grace, 2010). Such an individual is a leader that is identified by the quality of their actions and decisions. After gaining a better understanding of what an ethical leader stands for, I decided to look in a particular direction and profession for the best person to speak with about the topic. That direction was toward men and women of the cloth. I believed that I could not go wrong with the person I had in mind taking into account that he was a pastor as pastors play many diverse roles as leaders of church congregations. For example, they are spiritual directors as well as counselors and community leaders. Furthermore, they live their lives in the public eye. The ethical considerations of pastors must be manifold and play a role in their involvement in every domain of influence, whether corporate or individual (Mavrich). With that being said, I was able to choose an ideal ethical leader from my life and community for this assignment. He is my brother, Pastor Juan C. Walker of Encouraging Word Ministries located in Jacksonville, Florida. When I called him in regards to setting up an interview, he was more than willing; and I was just as curious to hear what he had to say.

Leadership background

The first thing I learned upon speaking with Pastor Juan pertained to his background. Pastor Juan firmly believes that every leader must first learn to be a good follower. His leadership background began during his childhood as he was brought up in the church and had two very strong parents that did the best they could to teach him morals and values. His father demonstrated leadership by being there no matter what as a provider, and most importantly as a man. In addition to his biological father, Pastor Juan has a spiritual father (whom he served under for 10 years) along with other mentors that have demonstrated leadership and helped mold him into the man and leader he is today.

Direct/Indirect Leadership

I did not even realize that his leadership extended to so many people. In addition to his family, Pastor Juan directly leads roughly 60 people in his church. But the numbers are numerous when it comes to indirect leadership. Pastor Juan felt that it was kind of hard to give an actual answer as to how many people he led because “as a pastor,” he said, “you lead whoever is following and there are a many that follow.” He went further to explain that as his reason for, figuratively speaking, “leading by example” on a daily basis because someone is always watching whether it be at church, at home or at work; which led me to our next topic of discussion.

Ethics and the workplace

Next we spoke about his mindset when interacting with others in the workplace. Pastor Juan made it perfectly clear that he has to have ethics present in his mind while interacting with others in the workplace because people have different backgrounds and may view life in many ways. After such a short and sweet answer, I moved on to the topic of subordinates, peers, and superiors. He says that ethics is something that one should not turn on and off and so he practices it in all aspects of his life; even at the job amongst superiors, co-workers, and customers alike. When I asked the question “Do you practice business ethics when training subordinates?” Pastor Juan paused before he spoke. Finally, he responded. His response was simply that he tries to have ethics present no matter what he does. When training subordinates, Pastor Juan says he does so in the same manner as he does with anything and that is by example. However, he explained to me that he does acknowledge the fact that no matter an individual’s background, the job must be done decent and in order. He believes that a person can only be trained how to do a jobaˆ¦not how to think or act. On the other hand, he does feel that when someone sees that an individual has a standard, they would strive to accomplish it also. I followed up with the question of “do you promote ethical behavior to subordinates, peers, and superiors?” He believes that subordinates to be trained in leadership. This means equipping them to lead and reminding them that they must first learn to follow as a leader cannot truly lead unless he first learns to follow. Pastor Juan told me that he always tries to promote ethical behavior regardless of who the person is because it allows that person the opportunity to be aware of whom they are dealing with. This response had me a little curious. So I went on to ask “Do you select teams based on their personal ethical code?” I learned from Pastor Juan that he did not use his personal ethical code during the selection of committees, boards, or groups because it was not very significant when selecting any type of group or team in the workplace. He felt that the selection of the members should be made based on an individual’s knowledge and qualifications pertaining to the criteria of the project. In regards customer relations, Pastor Juan added that ethical behavior greatly affects customer relations in that he believes “people will remember how you made them feel before they remember what you said.” This is why he promotes love by showing it and being hospitable. He said he does so by demonstrating in his actions because they speak louder than words.

Ethical Issues/Decision-Making

After learning how important ethics are to Pastor Juan, I inquired about the amount of time he spends dealing with ethical issues. Pastor Juan replied that he spends a lot of time dealing with ethical issues as a minister. He went on to explain to me how as a minister he has many roles that all involve ethical issues in one way or another. He informed me that he and his wife are sometimes responsible for the spiritual and emotional care of members of their congregation through counseling. Therefore, they have developed specific ethical guidelines in regards to counseling. In essence, Pastor Juan says that dealing with ethical issues is his job. “There is no taking a break from ethics in my position, he explained. “For me, it is a lifestyle.”

Pastor Juan also spoke on his social responsibility. He expressed that his guidance projects a sufficient amount of attention when it comes to social responsibility. He mentioned that although it could sometimes be a very trying and challenging task, he tries to be available to serve the people which means being accessible and available when needed.

Other ways he discussed involved other churches and politics. In regards to other churches, there are several ethical issues, however Pastor Juan only focused on one. He made clear to me that pastors must determine where to draw the line amongst being ethical and serving a community that is not so committed to old-fashioned denominational structures as opposed to taking and recruiting members from another church. Pastor Juan went on to explain that despite the separation of church and state, pastors find they must struggle with the ethical beliefs and concerns that surround political issues, such as abortion and homosexuality. He understands that such situations should be handled with care as they deal with both religion and politics. Pastor Juan says he never puts himself in the position to judge, as he knows it is not his place and leaves certain things between the individual and God. All he can do is “let the Bible speak” by preaching and teaching accordingly.

Following that topic, I focused on how ethics impacted his decision-making on a daily basis and throughout the year. He gave me a look and smiled as if to say that the question asked was an easy one. He told me that ethics play a major role in his decision-making as with everything thing else he does. This includes decision-making in both his personal and professional life. He included that in his position, he is held to very high standards and that he also had to lead the life he encourages everyone else to lead which goes back to living in the public eye because we never know who’s watching.

Moreover, expanding a little bit more on the previous questions asked, I went on to ask, “Is having a sound ethical code of ethics important in competitive environments?” Pastor Juan feels that having a sound ethical code of ethics is very important in our environment. He went further to say that he feels this way because he believes that even when being competitive there should be present a line of respect that others should follow. I would say it’s like having good sportsmanship and integrity.

Conclusion

As I approached the end of my interview, I wanted to know if there were any ethical ideas that Pastor Juan had to offer as a guide to prospective or current leaders in developing solid and sound decisions with the goal of overall success within the organization. Pastor Juan felt that the best advice he could give was that we all come from different backgrounds and we must respect how others view life. He explained that “if we take the time out to get to know one another, we would find out that we are far more similar than we may be different.” So with that being said my final question for Pastor Juan was “If you were to summarize in one sentence on what ethics is, what would it be?”

Pastor Juan was quoted saying, “I would say that ethics is a moral standard and individual lives by.” He added that as he previously stated, “it should not be turned on or off. Everyone should have a standard and stick to that standard no matter what the cost.”

For the Pastor Juan, I believe it is safe to say that ethics is ultimately abiding by to the biblical creed, “do unto others as you would have them do unto you.”

Taking everything into account, I could not have picked a better example of ethical leadership than Pastor Juan. He is the epitome of righteous, just, and fair. He possesses all of these qualities and the many other characteristics of an ethical leader. This has become more evident after doing this interview and hearing his responses to the questions asked. He gave me a lasting impression of the type of person that he is and his role in the community. I cannot speak for anyone else but I can speak for myself; and I personally feel that anyone who comes in contact with this man of the cloth would be touched in some manner that would make them want to exhibit ethical characteristics as well. In any event, doing what is morally right and fair for the greater good of society is what ethics is all about and modeling such behavior on a daily basis is certainly true leadership.

13 When Jesus heard what had happened, He withdrew by boat privately to a solitary place. Hearing of this, the crowds followed him on foot from the towns. 14When Jesus landed and saw a large crowd, he had compassion on them and healed their sick.

15 As evening approached, the disciples came to him and said, “This is a remote place, and it’s already getting late. Send the crowds away, so they can go to the villages and buy themselves some food.” 16 Jesus replied, “They do not need to go away. You give them something to eat.” 17 “We have here only five loaves of bread and two fish,” they answered.

18 “Bring them here to me,” he said. 19 And he directed the people to sit down on the grass. Taking the five loaves and the two fish and looking up to heaven, he gave thanks and broke the loaves. Then he gave them to the people. 20 They all ate and were satisfied, and the disciples picked up twelve basketfuls of broken pieces that were left over.

21 The number of those who ate was about five thousand men, besides women and children.

The bible’s new testament contains a plethora of information and stories that chronicle the life and times of Jesus. Most of the accounts in the new testament are filled with symbolism and are regarded as relating to matters of higher purpose and deep significance. The new testament still provides moral guidance and clarification on improving ourselves even two thousand years after the passages were written. One of the many well known accounts of the new testament is Matthew 14:13-21, otherwise known as the feeding of the five thousand.

In Matthew 14:13-21 the structure is relatively straightforward. The focal point is certainly the miracle that was carried out to satisfy a need. But the conversation that leads up to it is significant to the interpretation, Jesus is using the miracle to get something more across. Jesus does not simply do the miracle, but first instructs the disciples to give the people something to eat. They, of course, have nothing to give the thousands. And so Jesus gives to them, so that they might give to the people. The point of the passage is the revelation of Jesus as the Messiah, and as the Messiah He can and will meet all the needs of his people.

The principal message is for Christians to have the same compassion that Jesus did. If we see the poor, needy, hungry, and are stirred with compassion, then we must follow the teachings of Jesus. We are called by Jesus to feed the hungry. Though we may not necessarily have a lot to give, we may have more than the needy. We can reason that they will only squander what we give them, or that we should not give because it will only encourage them to remain poor and dependent, but that is not what the Bible tells us to be concerned about. In order to become more like Christ we will need to be moved by compassion, which we then go to meet the needs of the people.

Another idea suggested by the passage is that the provision of food has a spiritual meaning as well. The people would have had it in their thinking that man does not live by bread alone, or, that God provides things for people in order that they will listen to Him. We too have received the word from the Lord, and so must give it to the people. Any time God provides something for people it is a call for faith, a call for them to believe that Jesus is the Messiah, and that they need to trust in Him. This message calls people to take the spiritual ‘food’ that Christ gives and to give it to the spiritually needy people of the world. It may well be that in providing physical food for the hungry and the masses there will also be the opportunity to tell them of true sustenance. The provision of life from Christ is always available for those who are spiritually needy.

The story of Jesus feeding the 5000 has a message and meaning that still holds true to this day. The story tells us to be compassionate for the needy, and to provide them with the sustenance of God. With Jesus showing compassion and contributing his time and food, he wants others to follow his lead and do the same. This miracle reveals Jesus’ power as the messiah, through his limitless capacity to satiate the needs of the people.

Bible interpretation table

Text reference

Notes

Introduction

Literary analysis

What form/genre is the text?

Who are the characters?

What is the point of the text?

What words does the author use to get this point across?

What is the style of the text?

What images are used in the text?

What type of tone is used in the text?

What words are repeated?

The text chronicles the life of Jesus with storytelling.

The characters in the story are Jesus, the disciples and the 5000 people that Jesus fed.

The purpose of the text is to spread the message of Jesus through one of his miracles.

The image of the 5000 people is to provide readers with an understanding of the sheer numbers that Jesus had to feed.

Historical background

Where was the text set?

What major historical events were taking place at the time in which the text is set?

Where was this text written?

Who is the author?

When was this written?

What major historical events were taking place at the time the text was written?

What was the society like in which this text was written?

What religious background needs to be known to understand the text?

Who are the characters of the text and what was their role in society?

What cultural context must be known to understand the text?

The location of the story is somewhat disputed. Luke says it was in the “area of Bethsaida.” Therefore it would be somewhere on the northwest shore of Galilee.

All of the gospels contain the miracle of the feeding of the 5000 so the identity of the first author is unknown.

The story was probably written at the end of the first century A.D.

At the time, Jesus was travelling around with his disciples, teaching the people. Jesus was asserting his role as the messiah.

Theological Meaning

What have others written about the meaning of this text?

What is your interpretation of the meaning of the text?

Others have written that Jesus represented Gods will to provide for his people.

The food represents Jesus’ spirituality, which he then splits and shares with everyone else.

Conclusion

Why is this text significant?

It spreads the message of Jesus with a relatively simple yet powerful story of one of his miracles.

I think one of our contradictions and limitations of our democracy was conferral of group rights. Through this provision every religion most importantly Christianity and Muslims can have their own set of religious rights including having their own personal law and all the religious institutions are free to propaganda their own religion and raise money without taxes. Since 1947,Various religions,castes and tribes have been accommodated in our country through group rights, liberal constitutionalism and layered federalism.(Bajpai,2003) I think adopting group rights in our constitution it led to a form of liberalism discourse where as there is a conflict between state sovereignty and Individual rights.

In India the concept of religion is deeply rooted, from time to time the ruling classes and the forces which want to control the society has always used religion to mobilise people for electoral votes. In the post-1947 period, all the political parties in order create their exclusive vote banks, they resort to linguistic, regional, religious identities which leads to polarisation among the masses. For eg: targeting Muslim vote banks, congress always appeased the fundamentalists of the community and agreed to all their religious demands while ignoring the basic issues of Muslims which would enable their political participation and economic and cultural development. The political parties to divert the attention of people from miserable ground realities will come up with deceptive slogans and issues. Exploiting the media they will create religious and communal differences among the common masses for their political interests. The decade of 1980s was a decade which saw “secular-nationalist” discourse. Its the time when the “Indian Identity” got fragmented into various smaller sectional identities. To put it in Foucauldian terms “Insurrection of littleselves” . He notes that this modern form of power is characterized by “an immensely flexible braiding of coercion and consent (Nigam,2000).In 80’s, BJP, a Hindu nationalist, right wing party dubbed the Congress’s secularism as “Pseudo-secularism”. The secular theory was condemned in the context that it did not respect the wishes and interests of Hindu majority; They felt Hindus were the ones most affected by it. They claimed it pampered the minority, especially Muslims and lower caste. By not respecting Hindu values, it snubs the Indian idea of secularism which calls for aˆzequal respect for all religions (“sarva dharma-sambhav”). According to BJP, “true secularism, can only be achieved through true equality, which must start from the premise that Hindus constitute the majority population” (Hansen 1996). The real pursuit of the discourse of Hindu Nationalism is to achieve “equality through difference”. The rise of religious identities in India is questioning the fundamental values of democracy.

Though Hindu nationalism was steadily growing in 1980s it got radicalized in 1990s. The actors behind this radicalization were assertiveness of lower caste, underperforming political- administrative system (license Raj), increased insecurity because of Globalisation and feeling of dislocation of nation and national identity. The fervour of Hindu nationalism was at its peak at this time and struck chord with Hindu middle classes. Thus Nation-state became a vehicle to disseminate hindutva Ideology. This dogmatism resulted in the demolition of “babri masjid”. In this discourse to Hindu Nationalism, Muslims were demonized as “operational others” as they are constraining India to achieve modernity because their cultural obsoleteness and population overgrowth. Also they are considered to be the reason for the dislocation of the nation in the past and the contemporary times. They according to Hindu nationalism,” also block the full realization of democracy due to their block voting and stunt the full development of a tolerant secularism due to their intransigence and intolerance” (Hansen 1996).

Thus the varied notions of authenticity, sovereignty and superiority among these religious groups especially Hindus and Muslims and discourse of rights and equality among these social groups lead to Hindu Nationalism.

Hindu Nationalist discourse sought to portray the muslims as inherently doctrine, undemocratic, anti-modern and patriarchal. Hindutva forces like RSS,BJP used a religious language to create a political discourse. To acquire power Hindtuva forces came up with a political ideology to influence the voters and mobilise them on religious grounds by making them increasingly religious consciousness. Hindutva’s manifested Hinduism was more hegemonic, chauvinistic and political in character. Hindutva politics used selective religious symbolism that forms a to promote a particular version of Hinduism that fitted the RSS’s larger vision of the nation-state by wiping those ideologically inconvenient components of Hinduism. The whole Hindu nationalist movement promoted a view that religion no longer needs to be hidden from the public space, under the garb of secularism.

Hindutva forces adapted an aggressive and chauvinistic form of Hinduism. For eg: They brought out the whole concept of “Bharartha Matha” who is pictured as one form of Hindu kali. During processions they calls for Hindu unity are common and one frequently heard chant is ‘This country is a Hindu country! It’s the Hindu people’s own country!’ Most prevalent of all is ‘Om Kali! Jai Kali! Bharatmata ki jai!’ In other words, while proclaiming victory in Hindi to ‘Mother India’ – unambiguously understood as Bharat, Hindu India – it is supremely violent Kali who is invoked and praised. RSS’s activists say Kali’s name inspires courage in them, but almost all slogans are plainly intended, too, to be aggressively Hindu and they are understood as such by Muslims and Christians, who hear them most vigorously, yelled out when a procession passes a mosque or church. [1]

The thematic Hindu nationalism sought the support of religious institutions, orders and festivals in this regard. Among the various festivals, Hindutva has systematically targeted few religious festivals like Ganesh Chaturthi for political purposes. Through indoctrination of colourful, seductive processions the Hindutva forces on a daily basis succeeds in Hinduisation of the public spheres. Lot of Hindu festivals are no more a symbol of religious and cultural traditions but are symbols of communalism.

In the name of nationalist ideology, Hindutva forces manifest Hinduism through various institutions in an attempt to make the public internalise Hinduvta ideas which indirectly influences the masses in everyday life. Thus these political elites artificially constructed this whole atmosphere of Hindu-Muslim antagonism through indoctrination and enfranchisement of manifested religious ideas and portrayed muslims as “enemies”. This resulted in systematic “excorcision of muslims”.Thus this resurgence of religious identities is not a problem of democracy or secularism it’s a problem of political vested interests executed through our democratic institutions.

Muslims in India are increasingly facing socially exclusion. Muslims are looked at with suspicion and contempt. It’s a very disturbing trend to see reports like Muslims are not able to find homes [2] and the highest number of untrailed cases are from muslim community [3] .

How can we be a good democracy if Minorities of our country doesn’t feel at peace?

A liberal secular democracy shouldnot tolerate matters of faith triumphing over ourconstitution. Religion should not interfere in state affairs. Understanding tolerance as secularism is wrong.as citizens regardless of which community we belong to we must not tolerate certain things.

This assignment will explore the place of inculturation in contemporary mission by defining mission in the present world and exploring how the various aspects of mission are affected by mission and the origins of the word ‘inculturation’. There will also be exploration into the ethics of inculturation in mission and an exploration of the biblical perspective of mission. The assignment will consider whether inculturation is part of the Missio Dei. This assignment will focus on inculturation in the western world as inculturation is most important when applied to a post-Christondom society as these are the lease likely to have a view on God. It is also more likely to be within the interest of the target audience for this essay.

There is considerable controversy surrounding the meaning of the term inculturation. The relationship between gospel and cultures is recognised as a crucial question for Christian mission. [1] The two main words used when relating culture with the Gospel and these are contextualisation and inculturation. These terms differ only by a matter of perspective – contextualisation is to make the Gospel relevant to the culture and inculturation is the perspective of the Gospel represented within those situations. The Gospel is communicated in and through language, symbols, music, traditions, and customs. In other words, the Gospel is communicated through culture. This is where inculturation begins. Each of the four gospels was written for a specific culture. For example, the gospel of Matthew was written for Jewish communities. The Gospel message transforms the world and continues to be inculturated in different times and places (Matthew 5.1-16). Among the problems vexing modern missiology is the urgent need for adaptation, both due to declining congregations in the post-Christendom era and because of the constant need for adaptation to promote acceptance of faith. Mission partners are told to adjust themselves to the people whom they labour. [2] This is the product of inculturation.

The ‘making of disciples’ is a process that begins at the point of conversion, but continues long after it, for the entirety, one could argue, of a Christian’s life. The International Standard Dictionary Bible Dictionary defines disciples thus: ‘after the death and ascension of Jesus, disciples are those who confess Him as the Messiah.’ [3] The process of becoming a disciple thus begins with a confession of faith, but must continue as part of the Body of Christ, and in the Church.

The term ‘winning souls’ implies in itself an eschatological view of salvation, and places a heavier emphasis on life in Christ after the resurrection of the dead than life in Christ in this world. In principle salvation is the effect on the soul of a conversion to Christianity. There is, however, a distinction to be made between ‘saving’ and ‘winning’ souls. Whilst the former has a firmly eschatological meaning, the latter is more ambiguous. It is therefore imperative that the motives of the church are clear; namely, from what are these souls being saved from? Butler describes American culture as something that people need to be saved from. [4]

The practice of Paul laid out in 1 Corinthians 9:22 is that Christianity appeared to those on the outside of faith to adapt to the circumstances in which they find those to whom they are preaching. The word inculturation is of recent coinage and has rapidly been accepted within theological debate. [5] This would appear to imply that it meets a need identified recently and that there is general agreement on its significance within contemporary mission – that it is a vital component to successful mission both when inculturation is naturally occurring and when it is formulated for the purpose.

Academics agree that the message of the New Testament entails mission. Passages such as Matthew 28:18-20 and Mark 16:15-16 are usually referred to by scholars as the ‘Great Commission’. [6] Due to this the Church of Jesus has a mandate to take the salvific message of the Gospel to the ends of the earth and to make Disciples of Christ in every nation.

There is some ambiguity regarding the understanding of mission. [7] Practicing one’s faith in community is an important way of participating in mission. [8] Through baptism, Hebrews 10:25 withholds that Christians believe that they become sisters and brothers belonging together in Christ. The church is the coming together of the faithful and their going forth in peace and this is the mission God is said to require of his people and this is also known as the Missio Dei. [9] Bosch is one theologian strongly in favour of witnessing as a Christian, saying that ‘Mission means serving, healing, and reconciling a divided, wounded humanity.’ [10] Sometimes to achieve these aims set out by Bosch it is required to adapt ones personal understanding in favour of a greater meaning which can put into motion these missiological acts.

Bosch describes mission in general terms as ‘the activity of proclaiming and embodying the gospel among those who have not yet embraced it.’ [11] The basic premise of mission is that all Christians should be involved in the Great Commission of Jesus as spoken in Matthew 28:19-20. The teaching of the contemporary missional church is that the church has a mission because Jesus had a mission. [12] Hirsch describes mission when he says ‘missional church is a community of God’s people that defines itself, and organizes its life around, it’s real purpose of being an agent of God’s mission to the world.’ [13]

Through inculturation, the Church provides an incarnational in cultures and at the same time introduces people along with their cultures, into the churches own community, providing that it is biblical. [14] People of faith transmits these Biblical ideologies into their own values, at the same time taking the elements which already exist within their cultures and adapting those that do not into a more applicable form. [15] Due to this action within the local churches, the universal Church has developed forms of expression and ethics in the various sectors of Christian life, such as evangelization, worship, theology and social justice. [16]

A consequence of inculturation is that a given culture has an opportunity to be transformed by faith, and ideally the culture in question is introduced into the Church. Inculturation has this effect because humanity reflects God as they are created in His image (Genesis 1:27). God has planted His holy spirit, in every individual, and as such, every community. This is a normal consequence of humanity’s creation in the image and likeness of God. [17] Christians believe, as described by Paul in his letter to the Corinthians that the Holy Spirit is active in all of humanity, regardless of whether they have faith in him. This is this reason that the Gospel message can be unchanging despite inculturation of the Gospel into cultures. [18] It is the duty of evangelism which is made possible due to inculturation, to reveal this presence and this activity, to discover and affirm holy spirit and to challenge everything in the culture, which impedes the full manifestation of God’s truth and love. [19] This provides a full circle of inculturation from applying the Gospel to the culture in question, to the culture being transformed by the Gospel message and to some extent un-inculturating themselves.

There are various different ways of explaining transformation of culture by faith. One opinion, represented by Galder, is to situate the process in what is called the Missio Dei, which basically means ‘the Mission of God’. [20] The Missio Dei reaches its potential in the great commandment of love (oneanother as oneself) and its practical implementation in the life and sacrifice of Jesus described in John as ‘God so loved the world that he gave his only Son’ (John 3: 16). [21] Another approach taken by theologians, represented by Wainwright & Tucker, is to see inculturation as a consequence of the Incarnation. [22] By becoming human, God identified himself with human culture. [23] Culture was part of the human nature adopted by God the Son, Jesus. [24] This identification was completed in the death of Jesus on the cross. [25] Through his death and resurrection, Jesus transcended the limitations of an earthly life and has extended his saving power interculturally. [26] This process of the ‘inculturation wheel’ involves the death and resurrection of each and every culture. [27] Christians believe, according to Wainright, that their faith is the perfection of every culture. [28] Both of these arguments represent valid points however, despite being seemingly distinctive in academic writings, they have no requirement to be mutually exclusive. For this reason, one may conclude that one could incorporate the incarnation with the Missio Dei for maximum beneficial results.

Inculturation affects every aspect of the Christian life, particularly how that life of faith begins. Evangelism as Witness, a model put forward by Abraham, is the idea that a Christian’s everyday life should serve as a witness to their faith and that this should be a route to evangelism. [29] The basis for this idea is found in the Sermon on the Mount, when Jesus tells his disciples, ‘In the same way, let your light shine before others, so that they may see your good works and give glory to your Father who is in heaven’ (Matthew 5:16). Abraham himself is ambivalent about this approach: while it is effective at making evangelism a natural part of a Christian’s daily life, there is a danger that it can ‘[allow] us to pretend that the church has fulfilled its obligations in evangelism when in reality it has reduced evangelism to our acts of mercy and love.’ [30] Furthermore, by making evangelism an inherent part of the Christian lifestyle, but distinctive from secularisation, it becomes removed from the culture of a community and represents its own, faithful culture. [31] This would leave room for new converts to detach from an inculturated Gospel message and begin their faith from pure eyes. [32] Through the eyes of inculturisation evangelism as witness appears to be a shallow representation of the understanding of the role of inculturism in contemporary culture.

However, one thing that may be said of evangelism by witness is that its motives are inherently pure. Because the Christian lifestyle is not a means to an evangelistic end but an end in itself, evangelism is not a purpose in itself; rather a Christ-like life is the purpose, and evangelism is merely a by-product. This is the danger that Abraham expresses in The Art: that witness as evangelism ‘exaggerates what can be conveyed through acts of mercy and love alone.’ [33]

One characteristic of Jesus Christ is his willingness to serve. He spent his human life serving the apostles and all those he came in contact with. Through the scriptures, his service has become much more far reaching, beyond the people he came in direct contact with. The stories that are told teach all of us why service is important. When Christ was teaching the multitudes of people and it was a meal time, the community of people got hungry. Jesus was compassionate to their needs and fed them. Not only did he perform a miracle to show that what He provided both in the meal and in his saving actions, that there was enough for everyone, but he also shared his time with His people. Jesus is taken as the ultimate idol in a time where people feel the need to be provided with an external locus of identity. His example surpasses culture, it is an intercultural need that supposes time and space, for that of food, nutritionally and spiritually. This could be argued to be evidence for a resolution to some issues facing faith across cultures.

Christianity is a religion that has surpassed centuries and inculturation is is entwined throughout the church’s history. As a result of this historical process there is a certain accumulation of cultural elements, which begin with those biblical influences where the culture is present whilst continually being affected and adapted by cultures. [34] The cultures of the Bible are necessary for the understanding of Scripture, which, in the Christian tradition, cannot be replaced by any other historical influence. [35]

Within more traditional church practices there is the use of words, gestures and rites – particularly those that belong to the liturgy of the sacraments. There are other traditions the church has help which Jesus himself did or has commanded his followers to participate in: Baptism and the bread and wine which Jesus substituted for the blessings of the Jewish Passover. [36] The Church feels unable to change these practices without being unfaithful to the historical Jesus. [37]

The process of the inculturation into other cultures is costly in time. Tanye describes it as ‘not a matter of purely external adaptation, for inculturation means the intimate transformation of authentic cultural values through their integration in Christianity and the insertion of Christianity in the various human cultures.’ [38] The process is thus a profound and all-embracing one, which involves the Christian message and also the Church’s reflection and practice. At the same time it is a difficult process, as the attraction to compromise the distinctiveness and integrity of the Christian faith is strong.

The Church identifies with biblical culture, but this is ever further from its own living culture of today. The cultures of the first century AD are, in fact, cultures which are not naturally occurring in modern society. The reason for emphasis on biblical culture is because it belongs to the humanity and historicity of Jesus himself, who is the subject of evangelization/inculturation. People of every culture have to do this and it is part of the reality of inculturation itself, especially where these elements are essential to Christian identity. Inculturation is a slow journey which accompanies the whole of missionary life. It involves those working in the Church’s mission and the Christian communities as they develop.. It is an integral component to evangelism. For this reason inculturation is essential to the current church in the west however is not ideal for a longer-term plan for the church.

Without technology, our lives wouldn’t be just the usual walk in the park daily routine. Technology is a huge contributor to the well being of human kind. Just try to imagine how hard it would be to make it through the day without the simplest of technologies. We have grown by using the luxuries that technology provides that many wouldn’t know how to adapt to the traditional and simpler methods. Technology has surely proven itself to be very beneficial, if not necessary. Some people may be confused on what exactly technology is? Technology is the systematic study of the methods and techniques employed in industry, research, agriculture, and commerce. These studies are then put to use in order to make daily life much easier. Some might think that technology is not necessary due to the opinion that it brings out the worst in people.

The earliest technologies of all time are said to be made during the Paleolithic Era. When these technologies were made, language was a key factor in their creation. Right around 250,000 years ago, homo sapiens used the first kind of language. With this language, humans were able to communicate their different ideas, or technologies, through verbal communication. Human ancestors have been using stone and other tools since long before the emergence of Homo sapiens approximately 200,000 years ago. These tools greatly aided the early humans in their hunter-gatherer lifestyle to perform a variety of tasks including chopping wood, cracking open nuts, skinning an animal for its skin, and even creating other tools out of softer materials such as bone and wood. Other technological advances made during the Paleolithic era were clothing and shelter. the adoption of both technologies cannot be dated exactly.

But the results could be seen until our era also. In the past ten years technology has completely changed the way we live. The progress in technology have not slowed down and it continue to advance so must we and the world around us change also if we want to keep up. Before the turn of the century we were in a world of mass media. As a population we were stuck together and all marketed at in the same style regardless of our social class and other social and personal differences. Pop culture was central, hug and controlled by big trans-national media companies. This has changed drastically in the last decade. With the advancement in internet technology such as mobile internet and broadband people have more access to various forms of entertainment, information and communication. With all these changes the way we interact and use media has changed, however questions can be raised about how much influence this has on us and who controls this. The media corporations, which make up the mass media, have also had to change by using new technologies and platforms to sell their products. New technologies have raised new problems and questions can be raised as to whether this is really progress.The influence of the Internet has caused a change in the way we communicate, learn and shop.

The Internet is probably most famous for the ability to spread information, fact or fiction. We were once limited to news editors of a local paper, then to national cable news. Now anyone can search the globe, visit local papers in foreign countries, and see the views of all sides. This ease of information has also brought with it a large amount of hoaxes, money schemes, and fallacies.

There is no question that easy access to the Internet, like the introduction of mail service and the invention of the telephone, has changed the nature of people’s connection to others in their social world. Mail made possible connections among people without physical proximity, and the telephone facilitated communication among distant people, making rapid connections possible across long distances. But has this communication revolution changed the pure nature of interpersonal and group processes? On the one hand, since the primary use of the Internet is communication, some people might speculate that the Internet will have positive social consequences in people’s everyday lives because it increases the frequency and quality of interpersonal communications among people. People with easy access to others would feel better connected and more strongly supported by others, leading to happiness and engagement in families, organizations, communities, and society more generally. But, on the other hand, the ease of electronic communication may lead to weaker social ties, because people have less reason to leave their homes and actually interact face to face with other people. The Internet allows people to more easily work from their home, to form and sustain friendships and even romantic attachments from their home, to bank from their home, to vote and engage in political and social issue based discussions with others. In this modern high-tech world, the mobile phones have become an inseparable object from our daily life. The handset are gaining its importance in today’s world because of their communication features. Therefore it can be said that mobile phones have turned out to be one of the most popular additions to style statements. These devices can be seen out among people of all ages, all over the world. Many people consider that without mobile phone, they cannot imagine their life; both in terms of necessity and in terms of a fashion statement.

Apart from being a fashion accessory and communication gadget these phones add prestige value to the individual. The mobile phones have many other benefits to offer to their users such as camera, music player, games, GPS, Mobile office and much more. With high connectivity features, the users can stay connected with the world and their loved ones whenever and wherever they want.

As a matter of fact, initially mobile phones were launched in the market to provide the normal telephonic communication with the help of the wireless technology and the short message service(which is always known as SMS). The phones also provide phone book storage, organising of dates and time. The phones also worked as calculators also. These mobiles served as a suitable way of managing and detecting appointments

Technology has also considered a huge factor for the influence of television in our daily life this decade. Nowadays, television has become the most popular type of communication and entertainment. Because of this popularity, television clearly has a far-reaching effect on human life, and on people’s behavior.

On the one hand, television provides people with many advantages. With a TV, you can easily gain knowledge about everything. If you want to get some information about the current situation in Haiti, just turn on your TV and open CNN or BBC channels.

Also programs on TV can help people learn many practical skills to communicate with each other. The TV programs often simulate cases happening in all aspects of real life. Therefore, people can learn their own lessons from those cases. For example, from movies shown on TV, people could come to know how to behave in certain cases and then, apply into their real lives to solve their own issues. Also, TV brings a huge source of entertainment, making people’s lives more pleasant. After a long working-day, tired from all stuff you’ve done, you just want to stay at home, lying on the sofa to enjoy interesting films of all kinds, from action films, horror films to romantic films and so on. This helps you feel at relaxed and escape from your tensions. In general, TV has clearly become an essential part in human life.

TV also brings with it serious problems. Watching TV could lead to a number of health issues. For instance, in developed countries where TV is popular, many children acquire obesity because of watching TV too much without exercises. As a consequence, it leads to laziness and health deterioration. In addition, not only could TV harm people physically but it could also impact on people mentally in many cases. More and more violent behaviors are shown on TV today. As a result, they become persist obsessions in people’s mental and gradually lead them to violence in real life. Especially, young people’s fledgling brains are vulnerable to these stimuli. Many young criminals are found to commit crimes due to the fact that they simply imitate what they have seen on the screen. Since 2000 many companies have added a special filter in all LCD and PLASMA televisions and that aims to reduce epilepsy from all that colors and maintain the influence that images are having to our brain due to the velocity of the image cube that come and go in frond of us approximately 200 times per minute so since 2000-2010 TV has become safer and better for all of us since that this decade had been essential for TV companies. But this lead to even more addiction

Concluding 2000-2010 was a very important decade for technology especially on TV mobile phones and internet. Technology with the dawn of the millennium dramatically increased with super speeds internet got more updates and possibilities, as a result teenagers and people of all ages become even more internet addicts. new companies launched high definition TV’s and that cause all youngsters to get stuck with videogames and of course that was gold decade for mobile phone industries new models pop up with differed styles and colors possibilities become endless and the population became tech-addict and with an empty pocket. This decade is known as the most addictive era of all times. I believe that this decade truly should be considered as gold for technology and

The socket has been introduced in pre-colonial Malaysia .Before the British colonial Malaysia, the village in the country, as in other parts of the world developed through land settlement or colonization. One of the popular methods was the “collective Pondok system”, which was particularly common in the Muda Region of Kedah. By this system, a group of settlers would gather around and a person who is well -versed in Islamic Knowledge or who had already established himself as a religious teacher .After the they found a suitable place , they will build their “Pondok” (huts) around a Madras; a religious center for worship as well as teaching. In the case where the group has been established, they would invite a religious teacher from elsewhere to set up a Madras among them .This religious teacher was also the “Imam” of the community, in the sense that he led five prayers daily in the mosque or “madsarah.”

The group of peasant will be going out to open land around the clusters of their “Pondok”, leaving their children to the teacher for religious education at day time. For those wives who are unable to work with their spouse in the land also will obtained religious instruction from the teacher. The peasants will receive religious at least one or twice a week and longer on Friday because it was a day of rest. They will spend more time in the mosque than the field.

As an appreciation for the service provided by the teacher, the peasants usually will collectively clear a piece of land and cultivate if for the teacher. Slowly, as the land become more productive and the production level of each peasant family exceeds the “nisab of 480 Gantang” [1] for each harvesting; the peasant family would pay skate at their 10 % of the gross yield of the paddy. According to “Afifudin”, those early days all the skate form a specific group in the Pondok system would go to the teacher. If a group of 50 sacked paying peasants would contribute a minimum of 2400 Gantang each year .As time goes by, the wealth of the teacher can be accumulated. The teacher can use the socket for the expansion of Madras.

During the colonial period in Malaysia especially Kelantan, Zakat was administered by imam, who is the local religious leader managed the Zakat collection and supervised by the division of inherited party. In order to finance the intensified activities, the state required imams to surrender part of the Zakat they collected at the village level. However, this method is only partially successful due to the British regime replaced Grahman’s, the “Islamic administration” .The Grahman took charge of civil administration, he divested the imams of their “civil” function .which were transfer to the headman (ketua kampong).

According to secret institution in Malaysia .During British Colonial Period, The segregation between religions, custom and temporal matters took place during this period. All Islamic and Malay customs related matters were administered by a special body known as Majlis Agama Islam Negeri (MAIN). Other than that, the rest came under the purview of the British civil and criminal law system (Matters associated with socket were administered by MAIN. Accordingly, in Zakat Satu Tinjauan, Kelantan was the first state to establish the body which later became a model to other Malay States. Under this model, the Imam (spiritual leader) has been empowered to govern skate related matters and a portion of Zakat collection would be delivered to the state government as a financial resource for Islamic affairs. That was how the administration of soaked developed until today which remain under the supervision of State Islamic Councils.

After the independence of Malaysia, New Economic Policy has been introduced. The Zakat fund is use for investment purpose .In the early 1970s ,the minister of National and Rural Development, Encik Ghaffae Baba, who was also the chairman of Mara ,urged all the state Religious Councils to invested substantial portion of their money (mostly derived from the collection of Zakat) in Amanah Saham Mara .The objective is to eliminate the income gap between the ethnic group in Malaysia, especially the Muslim and Chinese.

DEFINATION AND CONCEPT

In the Islamic world, Muslims are required to give compulsory charity with determined purpose and established rules. This compulsory charity is known as Zakat. Zakat is one of the five fundamental pillars of Islam; it stands as the third pillar of Islam, just after Salat, the daily ritual prayer. Allah has mentioned Zakat about twenty times in the Holy Qur’an combined with Salat.

Basically, Zakat, or Zakat al-Mal, means obligatory “alms” or “alms upon wealth”. Alms is a gift of money, clothes or food, it is equivalent to charity and is a type of donation. Moreover, Zakat is literally means “to be clear, to grow, to increase”. It comes from the root letter “za, kaf, ya” which consists of few meanings, which are to be clean, to pay the obligatory charity, to be pure innocent, to be better in purity and to praise oneself, to justify. All of these have been included in the Quran and explain all of these things.

In addition, Zakat can be defined as the transferring ownership of an amount of material wealth specified by the Lawgiver to a poor Muslim who is neither Hashimi nor their client, without material benefit returning to the giver in any way, for the sake of Allah Most High. [Tumurtashi, Tanwir al-Absar] Hashimi in here means those from the family of the Prophet (Allah bless him and give him peace).

Besides, the term “Zakat” and “sadaqah” are often used interchangeably in the Quran and Sunnah, where “sadaqah” also means charity. However, Zakat refers to obligatory charity and sadaqah refers to voluntary charity. Zakat can be categorized into two types; there are Zakat-ul-Maal (Zakat on the wealth) and Zakat-ul-Fitr (Zakat on the individual). It is recommended to every Muslim to pay sadaqah after paid the two types of Zakat.

Other than that, Allah has prescribed Zakat as a duty to Allah, upon every wealthy individual. Every Muslim also has “nisab”, which is a designated minimal amount of wealth for the full cycle of a lunar year must, as a matter of worship, satisfy the duty of Zakat-Charity. This charity is to cleanse or purify the individual’s wealth. Unlike charity, Zakat can only give to Muslim; it is not valid to give Zakat to a non-Muslim.

THE OBJECTIVE OF ZAKAT

The primary objective of Zakat is to elevate the spirit of human being above the material acquisition. Consequently, Islam does not view the Zakat payer as a mere of sore of funds, but as a person who always needs purification and cleansing, both spiritually and materially .The prophet (p) summaries this purpose in the ayat ,”sadaqa from heir wealth by which you might purify and cleanse them.

Zakat, when paid out of submission to the command of Allah, is a mean of purifying the soul of a Muslim from greed and miserliness. The vices of selfishness and greed must be controlled in order for human beings to elevate their spirits, to succeed in their social relations in his life, and gain admittance to paradise .Allah Almighty says, “Truly man is niggardly! (17:100) and “But people are prone to selfish greed.)Zakat is a purifier that trains Muslims to give and spend selflessly .It liberates their souls from the love of wealth and slavery to materials gains and acquisitions.

On top of that, Zakat is a mean of training Muslims on virtues of generosity as much as it is a means of purification from greed .Being paid in repetitive pattern year after year, regular Zakat as well as Zakat al-fitr train Muslims to give and spend for charitable purpose. The Qur’an describes believers as the righteous who have the virtue of spending for good reasons. The very second sura of the Qur’an begins, “Alif .Lam .Mim.That is the Book with no doubt .In it is guidance for the god-fearing: those who believe in Unseen and establish the prayer and give of what we have provided for them.”This exhortation is reiterated many times in the Qur’an ,such as “Those who give away their wealth by night and by day ,secretly and openly ,”: “Those who give in times of both ease and hardship” and “The steadfast ,the truthful ,the obedient ,the givers ,and those who seek forgiveness before dawn.”

Also, once a person is trained to spend on public interests and to give to his brethren out of his own wealth, he is most likely to be freed from any urge to transgress on other people’s wealth and possessions.

Besides that, Zakat trains people to acquire divine characteristic. If man purified of miserliness and greed and becomes accustomed to the habit of giving and spending, his soul is elevated above low human trait of covetousness, “Truly man is niggardly!” (17:100) and aspire to the height of Divine perfection, since one of the characteristic of Allah is absolute and unlimited mercy, powers, theoretical and practical .Allah obliges Zakat in order to perfect human souls in graciousness to other people ,as the prophet says, Train yourselves to attributes of Allah. This encouragement to spend through Zakat and voluntary charity resulted with time, you in the emergence of charitable trusts all over Muslim world, trusts devoted not only to helping the poor and needy but to all causes for human beings as well as animals.

In addition, Zakat is to shows expression of thankfulness to Allah .Gratitude and thankfulness are among the best characteristics of human beings. Zakat is an expression of thankfulness to Allah for the bounties .He gives on us .Allah, says al-Ghazali, and has gives on human spiritual and materials bounties. Prayers and other acts of physical worship express gratitude for the blessing of creation, while Zakat and other acts of donator worship express gratitude for the material blessings of Allah .The concept that Zakat is thanks Allah for His bounties is s widespread and deeply rooted in the consciousness of Muslims that it is common to say that one must give Zakat in thanks for the grace of sight, hearing, health, knowledge, etc.

Also, Zakat stimulates personality growth in those who pay it .Through helping others overcome their financial difficulties, Zakat payers are enriched by feelings of self-worth and fulfillment. Zakat also helps offer the payer’s self to others and grow through helping them and gives the payer a noble sense of victory over his base desires and material drives-over his owns shaytan.

Last but not least, Zakat is to purify wealth. This is because Zakat is a right to the poor, not paying it means keeping something that belongs to others intermingled worth one’s wealth and this brings Allah’s wrath on the whole wealth. The Prophet (p) says, “If you pay Zakat on your wealth, you have taken away its evil.”

IMPACT OF ZAKAT IN SOCIETY

Undeniable, the concept of Zakat is the cornerstone in Islamic finance and economic system. Zakat is a compulsory charity that every Muslim must pay and to help the poor people. This has causes Zakat play an important role in the society, especially the Muslims society. Below are several impacts brought by Zakat system?

The Zakat system helps to make sure the society’s wealth circulation is in a fair and clean condition. Due to the wealth people must pay Zakat to the poor, the wealth will not become too rich whereas the poor will not become poorer. Definitely, there are some restrictions in order to choose the Zakat recipients, the restrictions can make sure those who receive the Zakat is with a reasonable and acceptable reason. In this case, Zakat has becomes the duty of wealth people, just like a compulsory charity must done by wealth people. But, the percentage of Zakat paid is depends on the wealth of an individual, it is not a system that forces people to pay a certain amount, but is require Muslims to pay their minimum amount according to their wealth which is affordable.

Zakat also allows an individual to purify and grow his wealth. Man is naturally greedy and always want more and more to fulfil their unlimited utility. Zakat, with the obligatory charity, require Muslims to do charity. This process might make the people to think of others and come out from the race of personal interests. It has help to cleanse the selfishness of an individual where someone may extend his financial in order to help more poor people and those in need. The Holy Quran also has mentioned that “And whose is saved from his own avarice such are they who are successful.” With more and more individual with this personality can maintain the peacefulness of the society and becomes the role model for the next generation.

Besides, Zakat system has helped to reduce the poverty problem in many countries. The main reason for poverty in any society is the concentration of wealth is limited to a very few people in a particular country. The introduction of Zakat system is actually for the purpose of this root cause of poverty. If everyone will need to pay Zakat, no poor or the unfortunate would have to involve in the begging. As the wealth is distributes to the poor, the poor will have the ability to continue struggling for their lives. In addition, Islam has prohibited the poor or needy from stretching hand before others.

In the economic perspective, Zakat has also help to increase the production volume. When the Zakat has distributed to the poor and people in need, they would spend the money to satisfy their personal needs or basic needs, which then results in the increase of production volume. A rich individual however, will not need to spend too much money in order to fulfil their needs in life. Even the one wants to spend much, it will not more than a group of poorer spending money for basic needs.

Moreover, the increase in production volume will led to the rise of several economic activities. In order to support the increased production, the economy would generate more jobs and more working opportunities which causes the unemployment level tends to reduce with the growth of economy in overall. The rise of job opportunities will then generates more demand of goods and services and more space for additional investment. And, finally, the growth cycle will lead to a balanced economic growth. Other than that, the Zakat system also will increase the overall savings of people, although with the concept of discouraging of over storage of money for an individual. Consequently, the income level of a society also has increased. All of these economic activities will led to the decrease in probability of economic recession. As the Zakat system is used to balance the wealth between the rich and poor, the chance of recession can be reduced.

The impact brought by Zakat towards economic has improved the living standard of society, the inequality and poverty problem reduced and helped to decrease the crime rate and any other social evil that would harm the society. This is how the Zakat system makes a difference towards the society.

TYPES OF ZAKAT

Zakat is divided into several types:

Zakat of Income

Zakat of Savings

Zakat of Business

Zakat of KWSP/LTAT

Zakat of Share

Zakat of Livestock

Zakat of Gold and Silver

Zakat of Crops

Zakat of Income

Extra payment received by an individual from their employer or individual itself in the form of physical energy or physically or professional employment for specific day, month and yearly also been required to pay Zakat.

Employment income includes: –

The annual salary

Other allowances

Unpaid wages

Other remuneration such as bonuses, etc.

Method of Calculation

First Method

Using gross income (without deduction) 2.5% on gross income per year.

Example:

Total gross income per year: RM 25,000.00

Amount of Zakat (2.5%): RM 625.00

Monthly Payment: RM 625.00 /12 = RM 52.08

Second Method

Using the net income (Income year less allowable expenses per year) x 2.5% Expenses allowed deduction (per year): -:-

Self: RM 8,000.00

Wife: RM 5,000.00

Children: RM 1,000.00

KWSP: 11% from gross income workers

Parents Contribution: RM (amount given) per month x 12 months

Contributions to organizations that pay the Zakat (for example: Lembaga Tabung Haji, Takaful)

Zakat of Savings

Contribution of workers and employers to KWSP People Provident Fund , Soldiers Provident Fund (LTAT) are also required to pay Zakat as the concept is similar to savings but the different is savings of KWSP and LTAT could not be withdraws anytime where never they like and it is subject the rules.

Fixed Deposit

Fixed deposit of RM 100,000 was kept for a year without the excluded (assumed nisab charity at that RM 9430.00)

Then charity is required to produce are: RM 100,000 x 2.5% = RM 2.500

Regular Deposit

Method of Calculation

(Duration haul is January 5, 1999 until February 7, 2000) (Assuming nisab of charity at that RM 3,323.50)

So Zakat are:

(Balances with lower interest bank refused WITH) X 2.5%

(RM 9,115.00 – RM 115.00) x 2.5% = RM 225.00

Zakat of Business

Zakat been given out by Sole Prop irate, Partnership, Cooperative Society, Societies and Organization which had reached one year and the time limit.

Method of Calculations

[(Current Assets – Current Liability) + Coordination x Percentage of Muslims Share x ZAKAT ABILITY (2.5 %)].

Zakat of KWSP

Contributions of employees and employers into the Employees Provident Fund (EPF), Lembaga Tabung Angkatan Army (LTAT),or the like imposed zakat as conceptually the same as saving money, but with the difference amount of savings, LTAT and so on shall not be issued at anytime because and subject to regulations that is fixed.

Method of calculation

First Method

2.5% of the contribution that issued once money issued.

Second Method

2.5% of contribution every employee is based on the annual statement

Zakat of Shares

Zakat which is given out for investment which has reached its time limit and minimum value.

Methed of Calculation

2.5 % the value of lowest share – share which is own for one year minus for shared borrowed.

If the lowest value is not determined, use the value beginning early in the year or in the year or whichever is the lowest.

For shareholders which must be owned by investors. Muslims in the long term to gain control a company or firm so his payment for Zakat will be based on the calculations that it will not affect the importance of other Muslims to get hold of the company.

If any of the owner’s shares has not reached one year, but the whole property being changed for a number of time for one year from shares to cash and vice versa, so use the lowest value with the mixture of money and shares, shares with basic to count Zakat multiply 2.5 %.

Zakat of Livestock

Livestock Zakat is property Zakat that required to be taken out in perfect the conditions. Domestic animal that obliged to pay Zakat is among them such as goat, cattle, camel, sheep, and buffalo. Prophet S.A.W said ” From Muaz Ibnu Jabal, had said, RasulullahS.A.W was sending me to Yaman and ask me to collect zakat from each of 30 cows, 1 lamb musinnah (1 female cattle aged up to 3 years ) and every 30 cows, tabi’ or tabiah ( 1 male or female cattle aged up to 2 years).” The livestock that we would like to give a Zakat must be perfect and no defects such as missing the foot or hand and so on.

COWS/BUFFALOES

Quantities

Zakat Amount / Sex

30-39 tail

1 tail, age 1 year / male

40-59 tail

1 tail, age 2 year / female

60-69 tail

2 tail, age 1 year / male

70-79 tail

1 tail, age 1 year / male

and 2 tail, age 2 year / male

80-89 tail

2 tail, age 2 year / female

90-99 tail

3 tail, age 1 year / male

100-109 tail

1 tail, age 2 year / female

and 2 tail, age 1 year / male

110-119 tail

2 tail, age 2 year / female

and 1 tail, age 1 year / male

120 tail above

tail, age 2 year / female

and 3 tail, age 1 year / male

GOATS

Quantities

Zakat Amount / Sex

40-120 tail

1 tail, age 2 year / male or female

121-200 tail

2 tail, age 2 year / male or female

201-399 tail

3 tail, age 2 year / male or female

Subsequent additions : Every of 100 tail plus

plus 1 tail, age 2 year / male or female

SHEEP

Quantities

Zakat Amount / Sex

40-120 tail

1 tail, age 1 year/ male @ female

121-200 tail

2 tail , age 1 year / male @ female

201-399 tail

3 tail, age 1 year/ male @ female

Subsequent additions : every 100 tail

Increased by 1 tail, age 1 year / male @ female.

Zakat of Silver and Gold

Gold and silver is a mineral that is required to charity. This is because these metals are very useful as it uses an exchange value of all things. As for other jewelry than gold and silver like diamond, pearl, silk, copper, are not obligatory Zakat on it.

Nisab Zakat gold used = 200gram

Gold Zakat Nisab unused = 85gram

Zakat of Crops

Zakat for basic food after it has reached the stage of satisfaction for the state which is 363 gantang / 1300 kg like paddy, wheat, cereals and so on.

Method of Calculation

First Method

Cereals and fruits which used by people energy, animals and machines will use a lot of expenditure and so that the Zakat is 10 % or 1/10

Second Method

Cereals and fruits depend on rain water, so Zakat is 5 % or 1/20

Third Method

Cereals and fruits depends both as above method, so Zakat is 7.5 %

ZAKAT PAYMENT
When Does Zakat Become Obligation

Only the wealth of Muslims is imposing to Zakat, it is not required from non-Muslim. First, this is because Zakat is one of the Pillar of Islam; it can’t expect any disbeliever to pay it. Second, Islam is one of religion which is prohibiting any action that enforce others accept Islam as one’s religion. In additional, if people just adapt them to Islam they should not be asked any past due of Zakat (the period of disbelief). According to the Shariah, Zakat is an obligatory for any Muslim who is:

Mature

Only major subject to the Zakat, qualify as a Zakat payer. Due to the lack of legal capacity, minor are not under a fard obligation to perform acts of ibadah. They are exempt from paying Zakat by using reason they deficiency of legal capacity.

Sane

As a Zakat payer, he should be sane. Before a child reaches mature, he considers as insane. He is exempt from the payment of Zakat during that period and liability of Zakat is start calculate when he get back his sanity. For another example, although the person was sane at the time of maturity but after that he becomes insanity. This person also exempts Zakat for the period his insanity. The liability of Zakat is calculated from the date of recovery of sanity. On the other hand, if the person only insanity of a part of the year, then his liability for Zakat of that year is calculated, no exempt.

Free

Owns the minimum (nizab)

As a Zakat payer, he must meet all these four conditions. If one condition is not met, he doesn’t have an obligation for the payment of Zakat. Besides, even a child, an orphan, or a mentally retarded person is exempt from Zakat payment but they are required to pay on their behalf. Last, if a person died without pay the Zakat was due, Zakat will take from the estate of a deceased person.

ZAKAT DISTRIBUTION
Categories Where Zakat Can Be Spent

Zakat is only paid to an individual who is really needed and deserve. In the Quran, Allah (swt) says that:

Zakat is for the poor and the needy and those who are in charge thereof, those whose hearts are to be reconciled; and to free those bondages, and to help those burned by debt, and for expenditure in the way of Allah, and for the wayfarer. This is an obligation from Allah. Allah is All- Knowing, All- Wise. (9:60)

According to this, Zakat only can pay under eight categories. There are:

The” poor” and the “needy”

The main objective of Zakat is to reduce or mitigate poverty and destitution in social. The way to achieve it is taken from the rich and rendered to the poor. Actually, people who are “poor” and “need” is different. People whose are categories as “poor” when they are in need but due to modesty and self-respect, they are not begging from others. People who are in need and they are submitted in begging from others are classified as people who are “needy”. A person has become “poor” and “needy” mostly is because they are shortage in their income, they cannot fulfil the essential needs, and they are totally poverty. Besides, “poor” and “need” also includes those are physical disability, old age, or accidental circumstances. According to Al-Qaradawi, full- time students can be in “needy” situation when they are continuing their education.

Workers in Zakat administration

A person who collects and distributes Zakat is the third category of Zakat recipients. Based on Al- Qaradawi, Zakat collection and administration is the function of an organized body paid employees. Workers can receive Zakat as a compensation for their works regardless they are poor or not. Besides, this compensation must compete with the market value of their labour.

Those whose hearts are being reconciled

Five types of people involved in this category, there are:

An individual who is close to become Muslim or whose clans may become Muslim.

An individual who may do evil or harm to Muslim. Giving a Zakat to those people will prohibit them to do it.

An individual who has just become Muslim, Zakat will help them to be engaged with Islam

An individual who has a positive influence on Muslim.

A Muslim who is expected to defend their Muslim land against attract from other. This happens especially when they are living on the boarder of a Muslim country.

Muslim whose influence is needed in the process of collecting Zakat in order to convince individuals whose will not pay their Zakat. This action can avoid having fought between government and whose reject in Zakat payment.

According to some jurists, such as Hanafis and Malikis, this category is not exist since the death of the Prophet but Al-Qaradawi and Mawdudi disagree with it, they state that Zakat recipients in this category have not stopped, but the payment only can make by the Islamic state, not by individual Zakat payers.

Emancipation of slaves

Contracted salves can use Zakat to pay his master in order to gain his freedom. Allah orders Muslims must show respect and give to give slaves who wish his contract is freeing. Besides, Allah also orders master to help his own slaves become freedom if they demand it.

Allah says,

“If any slaves you own desire to make a contract to free themselves, write it for them if you know of good in them some of the wealth Allah has given you”.

Those burned in debt.

According to the Hanafi School, a person is included in this category when he does not have enough wealth to serve his debt. The debts arise from consumer expenditure; it includes medical bills, building a house for personal residence, and marriage. Besides, victims those hit by natural disasters or accident and force them must borrow from other in order to continue their basic life also includes in this category. Zakat also consider as a high quality insurance against the financial effect from natural disasters or accidents.

Before applying the Zakat, four conditions must be met, they are:

The debtor must be in need of financial facilitating.

A person who can cover his debt with his own wealth can not apply from Zakat. Besides, people who do not have sufficient wealth but they still can serve his debt with the income is eligible for Zakat. This condition shows Zakat is not only for a debtor who is totally destitute. Zakat may pay with difference depend on the level amount of debt against the available wealth of the debtor.

The debt must come from Islamically lawful activity, for example borrowing in order to support the family.

Loans are used for activities those are prohibited by Islam cannot be paid by Zakat. These activities include consumptions of alcoholic beverages and over-spending on lawful items. The main reason Zakat cannot be used to pay in these activities is to stop other to do this sin activities.

The debt must be due immediately.

Different scholar has a different idea of this condition. Some scholars approve that if the debt is due after one year, the debtor cannot get Zakat to pay it. Some disapprove of this; they argue that Zakat can give help to debtors regardless of the due date of the loans. One can be confirming is obligations owed to God are excluded in this category.

The debt should by reason of other human beings.

For example, obligation to Allah is excluded in this category. Obligation to Allah can be due Zakat and compensation for breaking a certain condition in Shariah.

Expenditure in the way of Allah.

After concluding the views of the Hanafi, Maliki, Shafi’i, and Hanbali, three points are agreed with them. There are:

Jihad considers a part of this category.

The fighter who fighting for the sake of Allah is lawful to receive Zakat. However the equipment and arms to fight is not agreed with some scholar.

Public works such as building school, mosques, highways and roads, and irrigation canals is not qualified to receive Zakat. Four schools say that this public works have other funds to pay it such as fay’ and kharaj.

Wayfarer

Majority jurists believe that someone who just desire and just start travelling isn’t classified in this category. This is because term ‘Ibn as-sabil’ is meant someone on the road and a person who starts and desire travelling is still staying at home. Besides, a person considers as travellers will cut off his financial means at home. That means no income for him when he is travelling. A person who is desire for travel hasn’t cut off his financial means yet.

The wayfarer is one of a category can receive Zakat because of several reasons which are encouraged by the Quran:

Travelling for purpose work and opportunity.

Travelling can seek more knowledge and ponder on the signs of Allah in the world and on His animal and human communities.

Travel can for the purpose of jihad in the Way of Allah

Travel because of to attend the pilgrimage to the Sacred House of Allah.

Categories Who Can Not Receive Zakat

According to Yusuf al-Qardawi (1999), there are several categories of people who is cannot receive Zakat. These categories are:

The rich people

Zakat has purposed to reduce poverty and destitution in social. In order to achieve it, Zakat will be taken from the rich and rendered to the poor. If Zakat is given to the rich, th