ABSTRACT

Leaders make a significant contribution to the management of a company. The purpose of this research is to reveal the role of leaders in instilling Islamic values. A descriptive qualitative approach was employed. There were three main informants and seven supporting informants of this research. The data collection techniques were observation, in-depth interview and documentation. The results of this study reveal that the leaders have several main roles in instilling Islamic values. 1) “Model the way,” by always giving advice and behaving exemplarily to the employees. 2) “Inspire a shared vision”, where the leader ensures that employees understand the company vision. 3) “Challenge the process” within the organization, where leader performs monitor and build relationships with outside parties to ensure the development of human resources or employees. 4) “Enable others to act,” by empowering them to take action and establish good relationships with employees. 5) “Encourage the hearts” by sincerely encouraging and motivating employees. Furthermore, the cultivation of Islamic values is done through the performance of Islamic rituals, including the five obligatory prayers in congregation, prayer time for customers, being patient and kind, celebrating the prophet’s birthday, donating to orphanages, allocating 2.5% of income for charity, and with prohibition from drugs, alcohol, gambling and prostitution.