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CHAPTER I

INTRODUCTION

1.1. Issues Background

The inclusion of Indonesia as one of country AEC (Asean Economic Community)


form the starting point for the young Indonesian entrepreneurs the opportunity to
participate. To become a competitor countries in MEA (Asean Economic Community)
State of Indonesia needs to improve the formation of the number of young entrepreneurs.
Generation of young entrepreneurs who formed should have a good entrepreneurial spirit
as risk-taking creative and innovative. Not only have the entrepreneurial spirit is good
but the generation of Indonesian entrepreneurs will need to understand business ethics
Business ethics is a field of economics that is sometimes forgotten by many
people, but through business ethics is one can understand a business of tough competition
though, how to be nice, to be polite, dress well until the last-spoken all its meaning. How
does this global era are required to create a competitive rivalry so as to completion of the
purpose well, collusion, corruption, relying on connections, collusion becomes
commonplace in the order of business, in which the principle master the field and to do
anything to win the competition became a commonplace, but his ethics less
To balance the business ethics applicable law required businesses to become
Indicator of healthy competition. so that the existence of healthy competition will benefit
all stakeholders, including consumers and small businesses, and produsan itself, because
it will avoid a concentration of powers in one or more specific business.
Without legal certainty, the market mechanism will be threatened. The existence of laws
that would have to maintain order and ensure the transparency of the market. This paper
aims to assess the relevance of business ethics to business competition in Indonesia.

1.2 . Problem formulation


1. How does the business legal ethics in the business?
2. How is the role of business legal ethics in the business?
3. What is the effect of business legal ethics in the business?

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1.3 . Purpose
1. To add perception about business ethics and law in entrepreneur.
2. To find out more about how the role of business ethics and law in entrepreneur.
3. To find out what the effect of business ethics and law in entrepreneur.

1.4 . Benefit
Benefits of this paper is to give the reader , especially entrepreneurs can find
out about the legal ethics of business and influence in the business . Thus, in the open or
maintain its business , wirusahawan remain competitive without having to harm others
who are also involved in it .

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CHAPTER II
DISCUSSION

2.1 Business Law Ethics in Business


2.1.1. Understanding Ethics Business Law
2.1.1.1. Understanding Ethics
Ethics (etymology), derived from the Greek word is "Ethos", which means the
character of decency or customs (custom). Ethics is usually closely related to the word
moral is a term from the Latin, ie "Mos" and the plural "Mores", which also means
custom or way of life of a person by doing good deeds (decency), and avoid things
action the bad one. According Mahmoedi (1996: 24) ethics comes from the Greek ethos
(single) which means the customs, character, character, attitude, feeling, and thinking.
plural ta etha as the plural of ethos, ta etha means custom or mindset adopted by a group
of people called the community or a pattern of action that upheld and maintained by the
community and passed on to the next.

2.1.1.2. Understanding the Law


A law is a man-made system to limit human behavior that human behavior can be
controlled, the law is the most important aspect in the implementation of a series of
institutional power, law has a duty to ensure legal certainty in the community. Therefore
any masyarat entitled to have a defense before the law so that it can be interpreted that
the law is the law or the provisions of the written and unwritten that govern people's lives
and provide sanctions for violators.

2.1.1.3. Understanding Business


Business is an activity that is carried out continuously ranging from a doubling of
goods and services, processors, until distributed to consumers with the goal of
maximizing prosperity. According Redi Panuju (1995: 42) that business is an interaction
that occurs as a result of the need that can not be obtained solely by individu.Menurut A
Sony Keraf (1998: 34) argues that businesses like gambling game terms, the business is a
form of competition that put the interests private in a game full of competition, the rules
used are different from the rules that exist in social life in general, then the moral will

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abide by the rules that are in an unfavorable position amid fierce competition that
justifies any means.
2.1.1.4. Understanding Ethics Business Law
According Muslich (2004: 9) business ethics can be defined as knowledge about
the procedures for setting up and managing ideal business into consideration the norms
and morality universally applicable and economically / socially, and the application of
these norms and morality support the intent and purpose of business activities. Business
ethics issues related to the assessment of the activities and business conduct which refers
to the truth or honesty attempted (Murti Sumarni, 1995: 21) .Chandra R (1998: 20) adds
that the major changes in today's business management oraktik cause attention to ethics
business is increasingly important.
Business law is a legal instrument governing the procedures and the
implementation of a business or trade activities, industry, or the finances associated with
the exchange of goods and services, production activities and events put the money being
made by the entrepreneur with the business and certain motifs which have considered all
the risks that may occur.
So ethical business law is a legal instrument that contains procedures for setting
up and pengeleloaan ideal business based norms and morality universally applicable
related to the activities and the conduct of business, the law governing the conduct of a
business or trading activity, industry or finance

2.1.2. Business Law Ethics in Business


2.1.2.1. Good Corporate Governance
As for some basic principles that must be considered in the Good Corporate
Governance, among others :

1. Transparency (transparency)

Provision of adequate information, accurate and timely information to


stakeholders must be done by a company that can be said to be transparent. Adequate
disclosure is required by investors in his ability to make decisions about the risks and
benefits of a comprehensive financial statement investasinya.Kurangnya difficult for
outsiders to determine whether the company has a debt that piled up in an alarming rate.
The lack of information would limit the ability of investors to estimate the value and

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risks and accretion of capital changes (volatility of capital).
In essence, companies must improve the quality, quantity and frequency of reporting
keuangan.Pengurangan of fraudulent activities such as manipulation statements (creative
accounting), the recognition of incorrect tax and the application of the principles of
reporting defects, all of which is a crucial issue to ensure that the management company
can maintained (sustainable). Thorough implementation of the requirements of
examination and appropriate reporting law will increase the honesty and disclosure
(disclosure).

2. Can Accounted (accountability)

Many companies in Asia are controlled by a small group of shareholders or by the


owner's family (family-owned) .This cause problems in maintaining objectivity and
adequate disclosure (adequate disclosure) .In many companies, management companies
sit on the board so that there is a lack of accountability and the potential for additional
kepentingan.Komplikasi conflict is a repeat of the gap (lack) in the commission of audit
report (audit committee reporting) to the board and a weak or ineffective control system
internal.Dalam such cases, the end result (net result) is such integrity management low,
bad business ethics and rules of force rather than the rule of law.

3. Honesty (fairness)

The third principle of the management of the company is its emphasis on honesty,
especially for shareholders minoritas.Investor must have clear rights of ownership and
system of rules and laws are made to protect their rights.

4. Responsibility

Ie suitability in the management of the company to the legislation in force and the
principles of healthy corporate.

5. Independency

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That is a condition in which the company managed pro-fesional without conflicts
of interest and the influence / pressure from the Manage- that does not comply with the
legislation in force and the principles of healthy corporate.
The steps needed to addressed the issue of governance that will strengthen the
business community there are two, namely:
1. First, instructions for effective management of the company should be
established in each country in consultation with business leaders, public accountants,
securities regulators and other stakeholders.
2. Second, the promotion of business ethics to provide a solid foundation of
corporate governance. Steps management company does not mean that if the
management does not have confidence that the true and sincere in it, and understand
(understanding of), of ethical behavior should bisnis.Tujuan is always encouraging
responsible treatment (Responsible conduct) is more than just prevent wrong
(misconduct).

2.1.2.2. Ethical Principles of Business Law

Sonny Keraf (1998) explains, that the principles of business ethics as follows:

1. The principle of autonomy is the attitude and ability of humans to make decisions and
act based on his awareness of what he thinks is right to do.
2. The principle of honesty. There are three scope of business activities can be clearly
demonstrated that the business will not last long and successful if it is not based on
honesty. First, be honest in fulfilling the terms of the agreement and contract. Second,
honesty in offering goods or services with the quality and prices are comparable. Third,
be honest in internal working relationships within a company.
3. The principle of justice; demanded that everyone be treated equally in accordance with
the rules of a fair and rational criteria are objective and accountable.
4. The principle of mutual benefit (mutual benefit principle); demanded that the business
is run in a way that benefits all parties.
5. The principle of moral integrity; mainly experienced as internal demand within
businesses or companies, that need to run the business while maintaining the good name
of the leadership / the people and the company.

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2.1.2.3. Creating Business Law Ethics in Business

In creating business ethics, there are several things to consider, among others are:

1. Self-control
That is, business people and the parties concerned are able to control themselves each to
gain nothing from anyone and in any form. In addition, businesses themselves do not
benefit by way of cheating and suppress others and use the profits despite the advantage
it is right for the business, but their use should also pay attention to the condition of the
surrounding community. This is the business ethics "ethical".

2. Development of social responsibility (social responsibility)

Businesspersons here are required to be concerned with the state of society, not only in
the form of "money" by making a donation, but more complex lagi.Sebagai examples in
the opportunity that is owned by businesses to sell at a high price level when the excess
demand should be of concern and concern for businesses to not seize this opportunity to
reap more profit ganda.Jadi, in a state of excess demand businesses should be able to
develop and manifest the attitude of responsibility towards the surrounding society.

3. Maintaining identity and not easy to be swayed by the rapid development of


information and technology

Not that business ethics and anti development of information technology, but the
information and the technology that should be used to raise awareness for the weak and
not to miss the culture of due to the transformation of information and technology.

4. Create a healthy competition

Competition in the business world need to improve efficiency and quality, but the
competition does not kill the weak, and vice versa, there must be closely interwoven
between big business and the middle and lower class, so that the development of large
enterprises are able to provide a spread effect on the surrounding development. For that
to create competition there should be a balanced forces in the business world.

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5. Applying the concept of "sustainable development"

The business world should not think of profit only in the present, but need to consider
how the future state this clearly mendatang.Berdasarkan businesses required not her
"exploitation" and the current state of the environment is now as much as possible
without considering the environment and circumstances in the future even though the
time is now the opportunity to earn huge profits.

6. Avoid 5K properties (note, collusion, Connection, Collusion and Commission)

That is, if the businesses it is not reasonable to accept credit (as an example) because the
requirements can not be met, do not use the "note" of the "connection" and perform
"collusion" with the wrong data. Also, do not force yourself to hold the "collusion" and
provide a "commission" to the relevant parties.
If businesses have been able to avoid this kind of attitude, we are sure it will not happen
again what is called corruption, manipulation and all forms of foul play in the world of
business or various cases of defaming the nation.

7. Fostering mutual trust between the groups powerful businessmen and entrepreneurs
group down

To create the business conditions are "favorable" there must be mutual trust (trust)
between groups with a strong entrepreneur class entrepreneurs for entrepreneurs weak
weak able to develop together with other businessmen who own large and mapan.Yang
during this belief exists only between the strong group, when it's time provides the
opportunity for the intermediate to develop and take part in the business world.

8. Consequent and consistent with the rules that have been agreed

All the concepts of business ethics which have been determined do will be impossible if
everyone does not want consistent and consistent with the ethics. Why? If all when the
business has been agreed, while there is a "person", both employers themselves nor the
others try to do a "fraud" for the sake of self-interest, clearly all business ethics concepts
that would "fall" of the spring one.

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9. Develop awareness and a sense of belonging to what has been agreed.

If this ethic has had by all, clear all provide a peace and comfort in doing business.

10. Need for the majority of business ethics set forth in a positive law in the form of
legislation.
This is to ensure legal certainty of business ethics, such as "protection" against weak
employers.

2.2 In business or business activities are grouped in 3 areas


2.2.1 trading activity: Buying and selling
2.2.2 Business or Business in the sense of industrial activity
2.2.3 Business or Business in the sense activity services

2.3. Role of Business Law Ethics in Business


Business ethics is thinking or reflection about morality in economics and
bisnis.Moralitas means those aspects of good or bad, commendable or reprehensible and
therefore permitted or not from human behavior. Morality is always related to what the
human and economic activities is an area of human behavior that is very important.
Business ethics concerning the behavior of all parties involved directly or indirectly with
stakeholders and other parties.
Still according to Richard de George, if companies want to record success in
business then it should require three main things that poduk good, good management and
ethics. As long as the company has a quality product as well as useful to society and in
addition managed with proper management but do not have ethics, the lack of it sooner
or later will become a stumbling block for the company. This means that the existence of
ethics is very important for the sustainability and future of a company.
Business concept from the standpoint of economic problems is to promote the
advantages or good business is a business that brings untung..Mengapa businesses should
be ethical? That is the question we are past until sekarang.Kalau terms of normative
course we should pay attention to ethical issues. ethical behavior is important, especially
for long-term success. The importance of ethical behavior in business can be viewed in
two perspectives.
1. Macro Perspective.

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In terms of macro-economic existence of ethics in business is necessary to ensure
continuity of the company and achieve business success in the future. If we do not pay
attention to ethical issues in a business practice it will have an impact on distortions and
market mechanisms that result in the allocation of resources is inefficient. The growth of
a country or a company depends on its market system than their system. Market system
command associated with effectiveness and efficiency. Some circumstances require such
a market system
a. Recognition and protection of property rights or personal assets
b. Everyone's freedom to sell and buy goods and services of interest.
c. Availability of accurate information about goods and services.
If from one of the subsystems in the market this system perform behaviors / actions
unethical it will affect the balance of the system and inhibit the growth of macro system.
The influence of unethical behavior in the macro perspective:
1. Bribes or kickbacks
Practice bribe to influence authority holders establish a favorable decision the company
with low quality products or disqualify, take the opportunity or the right of companies
that produce high quality products. The impact of the practice of this graft are indirectly
or directly is
a. Injustice because the harm of high-quality entrepreneurs
b. state losses
c. Lowering the quality of public servants.
d. Discrimination against employers who have more right
2. Restrictions
The restriction is a policy or action limit the company and the community sells its
products only to certain companies (monopsomi) or memaksi other companies and the
public to buy products only from a certain company (monopoly)
3. Theft
A takeover of the rights of others or other party without his consent. Rights of other
parties in question may be physical, can also form or information systems.
4. Discrimination
Diskriminasu action is the act of treating a person or group of people or a company
different from others. The difference can also benefit someone or be detrimental
seseorang.Tindakan discrimination creates injustice and a violation of human rights.

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5. Building trust
The confidence of the parties concerned (stakeholders trust) whether consumers,
investors, workers, government and community is key in business. The effects of the
growing confidence will create a high commitment and loyalty to the company
2. Micro Perspective
Perspective from the point of micro regarding ethical behavior associated with the trust
of the micro sphere stakeholder.Dalam there is a relation between investors, consumers,
workers and supliyer. These relations will affect the macro level in a company. If the
company does not heed to business ethics in its business it will lose the trust of the public
who have an impact for the loss of customers.

2.4 Influence Business Law Ethics in Business


2.4.1. Benefits of Business Law Ethics in Business

According to the Post et al. (2002: 104) there are at least seven reasons which
prompted the company to run its business in an ethical manner, among others;

1. Increased public expectations that the company conducts business in an ethical


manner.

Companies that do not succeed in doing business ethically will undergo scrutiny,
criticism, and even punishment. For example, a case relating to a case BULOG yng
gratification (gifts) in connection with the import of 500 thousand tons of rice from
Vietnam. Activities such bribery would be profitable for a private person, but whether the
actions of the company perform an act of bribery moral? Because it makes people upset.
And for those who run a business that is unethical and immoral will undergo scrutiny,
criticism, even the threat of punishment.
2. Companies and workers do not perform a variety of actions that endanger and other
stakeholders.

For example, refineries Final Disposal (TPA) unprofessionally conducted by PD


Cleanliness Bandung Territory Leuwi Gajah Bandung Regency has resulted in
catastrophic landslide of garbage with a volume of about 20 million cubic meters that hit
a residential population in the surrounding area, resulting in 112 deaths duni and material

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loss community around the landfill menacapai hundreds of millions of rupiah.
Another example, which is now crowded into the conversation is a matter Lumpur
Lapindo. As a result, as we all know the negative effects produced remarkable. The
damage resulting economic disruption, especially in East Java. Losses due to mudflow
resolutely menacapai 7.3 trillion a year estimated economic potential eroded hamper
economic activity could reach 16.4 trillion (Jawa Pos, Wednesday, April 18, 2007). Not
to mention the material losses suffered in the surrounding communities bursts which I am
sure will not be paid out no matter how great its value.

3. Improve the performance of the Company

A study by De Paul University showed that "there is a significant relationship


between the control of the company that emphasizes on the application of ethical and
responsible behavior on the one hand with good financial performance on the other side".
I am sure if it is applied in Indonesia, the possibility of Indonesia become a developed
country like other countries. And this will impact on the country's economy.

4. Improving the quality of the business relationship between the two parties to
cooperate.

The application of business ethics such as honesty, keeping promises and reject
bribery led to increased confidence among the parties involved in the business
relationship against the other party. Conversely, if a party applies can not be trusted, then
the parties can not be trusted will be ignored by business partners and even by the
business community in general. If the application of ethics is implemented properly then
there would be no more cases of corruption in Indonesia. And the moral of the
Indonesian nation will be better, that there is a moral respect yourself more organized.

5. Avoiding abuse committed employees and competitors

For example, the crime of theft of money the company that made the owners and
managers of companies are the main causes of bankruptcy of the company than the
factors described above lainnya.Seperti that honesty is the main thing in all respects.

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6. Avoiding violations of the rights of workers by the employer

Companies seen as acting ethically if the company meets the basic rights of
workers as wages and working conditions are adequate, fair enforcement of votes secar
work, their reward and punishment policy are clear, and others. At the time of making a
decision that could have an impact on employees, companies must pay attention to the
expected reaction by the unions. As a representative of the workers, trade unions can
fight for the acquisition of basic rights which must diperleh labor, according to the Labor
laws and government regulations. The imposition of the will or unethical act unilaterally
by employers may lead to strikes, demonstrations which could hurt the company.

7. Prevent the company did not obtain legal sanctions.

Companies urgently need to implement a business ethics in its business in order to


prevent (which represented the pimpinannnya) did not obtain legal sanction for running
its business secar unethical.

2.4.2 Advantages of Business Law Ethics in Business


The main purpose of business is the pursuit of profit. The advantage is that
essential for business continuity, although not the sole purpose, as well as the business
outlook ideal.Dari adopted an ethical perspective, the advantage is not morally buruk.
Even morally advantage is that good and acceptable. Because :
The advantage of allowing the company to survive in their business.
Without obtain the advantage of no capital owners are willing to invest, and because it
means there will be no productive economic activities to spur economic growth that
ensures national prosperity. Advantage enables companies not only to survive but also be
able to support its employees even on the level and standard of living that better.There
some arguments that can be submitted here to show that it is precisely for the sake of
gain much-needed ethics, very relevant, and has a very strategic place in this
bisnis`dewasa.
First, in today's modern business, business people are charged to people
professionaldi field.
Both in business competition strict modern business people are well aware
that consumers are actually king. Because the most essential thing to be profitable and

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survive in a competitive market is the extent to which a company can earn and maintain
consumer confidence.
Third, in the open market system with the role of government that is not
pro-neutral but effectively keeping the interests and rights of all government guaranteed,
and business people are trying as much as possible to avoid interference from the
government, which for him would be very detrimental to the survival of the business.
Slaah the most effective way is to run their business is good business and ethical is to run
a business in such a way without intentionally harming the rights and kepentinga all
parties associated with the business.
Fourth, modern enterprises are also increasingly aware that the employee is
not a force ready for exploitation for the sake of dredge keuntunga as much as
besarnya.Justru the contrary, employees increasingly regarded as a major subject of
business a company that would determine success or failure, whether or not the company
survive.
Business ethics is associated with even very rely on ethics. In other words,
businesses do have ethics and business ethics because it is irrelevant to talk about. The
argument on the relationship between business objectives and profit and ethics show that
in a business climate that is open and free, a company that conducts its business fairly
and ethically, ie companies that pay attention to the rights and interests of all parties
associated with its business, will succeed and survive in activities business.

2.5 Some Examples Companies Already Implementing Business Law Ethics in


Business or a Business

2.5.1 A development company in Lampung make a deal with a company


contracting company to build a factory. In accordance with this arrangement
gives developers the building to the specifications of the contracting company. In
doing so, the contracting company specifications fit the factory building that has
been promised. The factory building so durable and not damaged. In this case the
contractor has complied with the principle of honesty because it has met the
specifications of the building they have shared musyawarahkan party developers.

2.5.2 A Forward Foundation Always high school education. In the new


school year charge amounting to 500,000, - to each new student. The school levy

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is communicated to them as would apply, so that once accepted, they must pay.
Then the school to provide this information to parents that the levy used to
finance the manufacture of school uniforms that will be worn by all students at
each Wednesday-Thursday. In this case the Foundation and schools can be
categorized as follows transparency.

2.5.3 In the 1990s, a case that is still easy to remember that Enron. That
Enron is a very good company and at that time the company can enjoy a booming
energy industry and that's when Enron successfully supplying enegrgi to bergitu
large market share and have a tremendous network wide. Enron even managed to
synergize the energy transmission lines for information technology path. And the
existing data from skilus business, Enron's profitability is quite tempting. Along
with the booming energy industry was finally positioned himself as the Enron
energy merchants and even referred to as "spark spead" The story was originally a
member of a good market, follow the rules in the market as it should. In the end,
Enron left the achievements and good reputation, for fraud and deception .. As an
American company's eighth largest, then the Enron collapse in 2001.

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CHAPTER III
COVER

Conclusion
In the business world the competition is very tight, business ethics is a fixed
price, which is not negotiable. In this age of openness and breadth of current information,
good or bad a business can spread quickly and widely. Violations of ethics and business
law may undermine the competitiveness of industrial products on the international
market, this can happen attitude of our entrepreneurs.
Even worse when Indonesian businessmen underestimate the business ethics
that apply generally and not binding it.
The tendency of the increasing number of violations of business ethics make the concerns
of many parties. Abandonment of perceived business ethics will bring harm not only to
society, but also for the national economic order. Knowingly or not, employers who do
not pay attention to business ethics will destroy their own name and country.

In social life, known values and ethical norms. So also in the business world in
general. Businesses need to know and pay attention both in terms of law or ethics. In a
world of intense competition, a successful business is a business that memprhatikan
moral values. So between ethics and business there relevasinya. The existence of intense
competition between businesses and their economic principles to obtain kaentungan
profusely, making the business person acted dishonestly.
Consumer protection efforts, there are still obstacles, among others due to low consumer
awareness of their rights. In order to protect consumers and producers of domestic and
foreign trade, the government issued Law No. 8 of 1999 on Consumer Protection.

Suggestion
1. Keep their education or counseling on business ethics kapada businesses. Similarly,
the extension of the life of the business is based on ethics which is economic justice,
as well as the results of the application of justice, namely the realization of social
justice
2. The Government needs to develop and grow aparatyang has the ability, sensitivity,
as well as the authority to implement pengawasanserta guidance to businesses, in
order to abandon practices that business ethics is not done anymore.

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References

http://www.slideshare.net/ahmadfajarjabrik/etika-bisnis-2-42573206
http://www.zahiraccounting.com/id/blog/ini-manfaat-penerapan-etika-bisnis-dalam-
perusahaan/
http://andreassetiadi.blogspot.co.id/2011/10/etika-bisnis-dalam-perusahaan.html
https://vtastubblefield.wordpress.com/2013/01/30/pentingnya-etika-dalam-berbisnis/
http://trisultanefendi.blogspot.co.id/2013/01/etika-bisnis-dalam-lingkup-globalisasi.html
https://docs.google.com/document/d/1dphvBV-
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http://yanawulan.blogspot.co.id/2013/11/peranan-dan-manfaat-etika-bisnis-di.html

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