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Transcript
ISLAMIC BUSINESS VALUES BEYOND HALAL CERTIFICATION
Ahmad Rafiki
Department of Business Administration, University College of Bahrain
P.O. Box: 55040, Manama, Kingdom of Bahrain
Correspondence: [email protected]
Abstract
The paper attempts to reveal the Islamic principles and values behind an obtainment of halal
certification. All values are based on the Al-Quran and Hadith as the main sources and the ultimate
guidance for any business concepts including consuming and producing products. Each of the values
introduced is clearly embedded in such certification which will give great benefits to the producers
and consumers. It is also proven that Islam seeks to deliver the goodness to all mankind through its
integrated system of the Islamic worldview, which encompasses all aspects of both the world and the
hereafter - including the aspect of business.
Keyword: Islamic Business Values, Halal Certification
INTRODUCTION
Muslims have sought for the assurance that the products they consume are a true manifestation of
Islamic principles, where they should be toyyib, meaning wholesome and good (World Halal Forum,
2009). In fact, the discussion on the development of the halal certification continues progressively
worldwide. All countries including the non−muslim countries, have an interest and concern on the
advancement of halal certification. Halal certification is related to various aspects such as the
legislation and regulatory framework, human capital and physical infrastructure and connectivity in
processed food, cosmetics and personal care, ingredients, livestock and services – logistics, tourism,
healthcare. Meanwhile, the contributions to the macro−economy of export, the employment and the
increased number of exporters have also emerged.
The halal certification process starts with the selection of an organization that meets the needs for the
markets to be serviced. Many countries, like Singapore, Indonesia and Malaysia, have governmentapproved halal programs, whereas the predominantly food-exporting countries have independent
certification bodies. According to Nakyinsige et al. (2012), the identity and authentication of
ingredients in processed or composite mixtures have emanated into the appointment or formation of
credible halal certification bodies like the Halal Food Authority (HFA) in the UK, the Islamic Food
and Nutrition Council of America (IFANCA), the Halal Food Council International (HFCI), the
Australian Federation of Islamic Council (AFIC), the Federation of Islamic Association of New
Zealand (FIANZ), the Islamic Religious Council of Singapore (MUIS), the Ulama Council of
Indonesia (MUI), the Central Islamic Committee of Thailand (CICT) and the Department of Islamic
Development (Jabatan Kemajuan Islam Malaysia) (JAKIM) in Malaysia. Crucially, such bodies
1
should endeavour to clarify which food is halal and ensure accurate labelling in order to protect
Muslim consumers as well as to promote fair trade.
The halal certification can work as an assuror, installing confidence in Muslim consumers and
diminishing possible skepticism (Mukhtar & Mohsin, 2012). For example, McDonald’s in Singapore
has welcomed the visits of eight million customers a year after obtaining a halal certification (Lada et
al., 2009). The government is responsible for protecting consumers from any form of cheating and
misappropriation of halal products. Although some of the goverments have made tremendous
initiatives, it is important to ensure that the present laws are fully enforced and if there are loopholes
in those laws, reviews and amendments must be made. Few cases have been reported such as in the
UEA, where Bhatkallys (2006) found non-halal food, imported from Britain, being sold in the halal
food sections of two Dubai supermarket chains. The case was either the government agencies had not
taken the supposed responsibility or the producers were not aware of the requirements of consuming
foods for Muslims. In fact, a Malaysian expert told the Gulf News that 95 percent of the halal food
exported from the US is not really halal (Saleem, 2008) due to the corruption among certifiers and
ignorance among producers. It could conclude that the parties involved are not aware of this very
important halal certification.
Meanwhile, the halal products recognition has been argued by some authors such as Mukhtar and
Mohsin (2012), who posited that there are certain products which are difficult to be explicitly
categorized as unlawful (Haram) in Islam, either because people advocating the religion is silent
regarding the matter, or the product is the latest in its invention. The role of Islamic institutions may
reduce these uncertainties, among others through formal education, training, conferences or
exhibitions. This paper attempts to explain the Islamic values embedded in the obtainment of the halal
certification that has been highlighted in the Al-Qur’an and Prophet’s traditions (Hadith), thus the
awareness and understanding of such certification have emerged and become widespread to the
stakeholders.
LITERATURE REVIEW
Concept of Halal
The Quran and Hadith play a central role in constituting Islamic laws that describe and govern the
duties, morals and behaviour of Muslims in every aspect of their lives (Luqmani et al., 1987; Terpstra
and Sarathy, 1994). Halal means lawful or permitted typically referring to the food that has certain
dietary standard. Al-Quran mentions in detail all the requirements of the food to be consumed and
produced such as in verses; Al-baqarah 2:172, Al-maidah 5:3;4; 88; 94; Al-baqarah 2:168; 219; Alan’am 6:121; An-nisa’ 4:43; An-nahl 16:67; Ar-ra’d 13: 2-4; Al-anbiya 21:79. The certified halal
products emphasize quality and healthy aspects that must be delivered to all consumers, more than as
a process of slaughtering animals or concocting alcoholic ingredients. Certainly, halal is no longer
2
just purely a religious issue. It is associated with business and trade, and becoming a global symbol
for quality assurance and lifestyle choice.
The demand for halal foods and products in countries around the world has greatly increased
(Muhammad, 2007). It is also known that the Islamic halal products are claimed as one of today’s
fastest growing markets that are expected to grow at a rate of 7 percent annually with the market
volume estimated worth to be USD2.3 trillion annually1. Meanwhile, according to Fleishman-Hillard
Majlis (2012), the halal industry will increase in tandem with the growth of the Muslim population
which is estimated to be 2.6 billion in 2050. Yousef (2010) further calculates that the halal food
consumption is worth $66.6 billion in Europe, $16.1 billion in North America, $20.8 billion in China
and $23.6 billion in India while the GCC countries alone consumed $43.8 billion worth of halal
products in 2009. This development shows positive acceptance of the global market of the halal
certified products.
Islamic Business Values in Halal Certification
Religion is one of the most influential social institutions that are significantly associated with people’s
attitudes, values and behaviours (Rafiki & Wahab, 2014). It sheds light specifically on the effects to
the organizational matters including the managers and employees’ approaches and decisions. Spilka et
al. (2003) asserted that religion plays an inseparable role in numerous forms of human interactions. As
a comprehensive religion, Islam governs all aspects of life as an integrated system that clearly stresses
on the importance of its values and practices in order to seek for Allah’s blessings and mercy (rida).
In the business field, however, a combination of profit and mashlahah maximization would bring the
business into achieving real success. In the consumption world context, religious obligations, values
and beliefs direct peoples’ attitude and feeling towards a range of products, such as food, cosmetics
and pharmaceutical products (Jamal, 2003; Essoo & Dibb, 2004; Mullen et al., 2000).
In relation to halal certification’s application, the producers or consumers have implemented Islamic
business values which are well considered as an act of ibadah (when it is based on good intention or
niyyah). Numerous Islamic values were found and reported by many scholars. In his book Theory of
Virtue, Al-Ghazali mentions several Islamic values such as good appearance, justice, nobility,
servitude, sincerity, and trust (Ismail and Badron, 2012). Meanwhile, according to Ali (2005), AbuSaad (1998), Alhabshi (1994), Al-Ammar et al. (2012) and Rafiki and Wahab (2014), some values,
such as perfectionism, fairness, responsibility, accountability, trustworthiness, benevolence,
competence, capability, honesty, transparent and cleanliness were also found in Al-Qur’an and have
been directly stated in the Prophet’s traditions (Table 1).
1
Fleishman-Hillard Majlis, “The next billion: The market opportunity of the Muslim world” (July 2012) and
PwC, “Islamic finance, Creating value” (June 2013)
3
Table 1. Prophet's tradition references of Islamic business value
Values
Hadith
Fairness/ Justice
Reported by Ibn Taymiyya
Narrated by Abu Hurayrah (Sunan Abu-Dawood)
Honesty/ Sincerity
Narrated by Jarir bin Abdullah and Abu Huraira
Narrated by Ziyad bin ‘Ilaqa
Justice
Narrated by Abu Hurayrah (Sunan Abu-Dawood)
Competence/capability
Reported in Ibn Taymiyya
Integrity
Reported in Al-Tirmidhi
Transparency
Reported by Imam al-Tabrani
Cleanliness
Reported in Tirmidhi
Narrated by Abu Dharr Jundub ibn Junaadah, and Abu Abd-ir-Rahmaan
Perfectionism
Reported by Imam al-Tabrani
Trust/trustworthiness
Narrated by Jabir ibn Abdullah; Abu Hurairah (Bukhari and Muslim, Abu
Dawud)
Narrated by Abdullah bin Amr in Al-Tirmidhi
Piety
Mu’aadh bin Jabal (Tirmidhee and Imam Nawawi)
Consistency
Narrated by A’isha (Sahih Bukhari, Al-Muwatta)
Benevolence
Reported by Sahih al-Bukhari and Muslim
Right intention
Narrated by 'Umar bin Al-Khattab and Abu Mas'ud
Cooperation
Narrated by Imran ibn Hussein
Below we can follow through the descriptions of Islamic business values in the obtainment of halal
certification:
Fairness in dealings. The fairness and equity are rooted from the meaning of ‘Adl’ in Islam.
Producers are happy with their deliverance of quality products while consumers appreciate it. There is
no discrimination in business dealings. Muslims sell the halal certified products to the non-Muslim
consumers. It also means safeguarding the rights, property, honor and dignity of all people. This
emphasis is mentioned in Qur’anic verses such as Al-Anaam 6:1522, Al-Mumtahina 60:8 3, Al-Maida
5:84.
Continuous improvement. All related parties including the government agencies as the issuers of the
certification are looking towards the improvements of the standard and quality of the products. Some
products that are newly invented or discovered need to be recognized, reexamined, and tested. At the
2
‘ .......; give measure and weight with (full) justice;- no burden do We place on any soul, but that which it can
bear;- whenever ye speak, speak justly, even if a near relative is concerned; and fulfil the covenant of Allah:
thus doth He command you, that ye may remember.’
3
‘Allah forbids you not, with regard to those who fight you not for (your) Faith nor drive you out of your
homes, from dealing kindly and justly with them: for Allah loveth those who are just.’
4
‘O ye who believe! stand out firmly for Allah, as witnesses to fair dealing, and let not the hatred of others to
you make you swerve to wrong and depart from justice. Be just: that is next to piety: and fear Allah. For Allah is
well-acquainted with all that ye do.’
4
same time, companies who insist on applying such certification means that they are concerned with
the pivotal improvement and assessment of the content of products which result in customer
satisfaction. This is stated in the Qur’anic verse of Al-Araf 7:425.
Honesty and transparancy. Doing any transactions in Islam means that one must posses some
transparent and honest values in revealing the content of the products. The halal certification exposes
the process of producing products which comply with the standards. The process includes the
document evaluation – application forms and supporting documents with detailed analysis on the
company’s profile with declared ingredients, suppliers’ details, manufacturing process and
procedures, etc.; physical inspection of an assessment of declared ingredients, storage methods of raw
materials, and finished products, cold rooms, processing plant manufacturing flows and handling
aspects of production, packaging materials, general hygiene, quality control and assurance practices;
report preparation – a full technical report on the status of the application based on its site inspection;
and evaluation committee and recommendation – before the report will be tabled and evaluated. The
said values will clearly give positive impact to the consumers of gaining tributes when buying the
products. This is stated in Qur’anic verses such as Az-Zumar 39: 26; 37, Al-Baqarah 2: 2828.
Competency. The halal certification has an established policy of making sure that high standard
products will be produced. It would be a brand, logo or sign as a source of competitive advantage that
will carry products’ differentiation and quality. The competency is also proven with the potential
growth of halal products market share at the global level. Wilson and Liu (2011) posited that the halal
label philosophically covers all constructs such as branding, marketing, products development and it
is further related to the management, organizational behavior, anthropology and sociology. It is more
than a recognized symbol that is associated with religious obligations. Yousef (2001) and Siddiqui
(2002) asserted that being competitive would as also be seen as an Islamic value. Meanwhile, Hassan
(2003) added that the pursuit of competition and for competitiveness to become an Islamic value must
be integrated with a cooperative value. This is also stated in Qur’anic verses such as in Al-Hujraat
49:99.
Capability. This value is prominent, based on the commitment and readiness of companies or the
owner-managers in applying for the halal certification. A line of qualified employees who work
together in a team supported by sufficient investment, would be among the requirements to obtain
5
‘But those who believe and work righteousness,- no burden do We place on any soul, but that which it can
bear,- they will be Companions of the Garden, therein to dwell (for ever).’
6
‘Verily it is We Who have revealed the Book to thee in Truth: so serve Allah, offering Him sincere devotion.’
7
‘Is it not to Allah that sincere devotion is due? But those who take for protectors other than Allah (say): "We
only serve them in order that they may bring us nearer to Allah." Truly Allah will judge between them in that
wherein they differ. But Allah guides not such as are false and ungrateful.’
8
‘O ye who believe! When ye deal with each other, in transactions involving future obligations in a fixed period
of time, reduce them to writing Let a scribe write down faithfully as between the parties: let not the scribe refuse
to write: as Allah Has taught him, so let him write........’
9
If two parties among the Believers fall into a quarrel, make ye peace between them: but if one of them
transgresses beyond bounds against the other, then fight ye (all) against the one that transgresses until it
complies with the command of Allah; but if it complies, then make peace between them with justice, and be fair:
for Allah loves those who are fair (and just).
5
such certification. Those employees must understand the process and policy of applying the halal
certification. Hence, the capability appears with quality products offered by the companies to the
consumers. In the case of small and medium enterprises who have the limitations in their compliance
with the halal certification’s requirements, presumably they do not have the capability to sell eligible
products to the consumers. The importance of the capability value is stated in the Qur’anic verses
such as Al-Baqarah 2: 28610.
Righteous/Good Intention. The religious motivation would be the basis in applying halal certification.
The righteous value can be reflected on the initiatives of the decision makers to deliver quality
products to the customers. The good intention drives the commitment and consistency to obtain such
certification. the emphasis of this value is stated in Qur’anic verses such as Al-Baqara 2: 22511, AtTaubah 9:10512.
Social order and consideration for others. When consumers purchase halal products and they lead a
healthy lifestyle, it appears to be a precursor to a better society. The welfare and sustainability of life
tend to be derived from the types and categories of food consumptions. The suggestion of the social
order is mentioned in Qur’anic verses such as Al-Imran 3:11013, Al-Baqara 2:27314, whereas for the
consideration for others it can be found in An-Nisaa’ 4:3615, Al-Mumtahina 60: 916.
Cleanliness. Any halal certified products have fulfilled the cleanliness requirements in terms of the
ingredients or manufacturing processes including the use of equipment and tools. Producers are
practicing Islamic values of cleanliness while obtaining halal certification as well as the consumers
who are concerned with choosing to purchase such certified products. The emphasis of this value is
found in the Qur’anic verse of Al-Baqarah 2: 22217.
Responsibility and accountability. The responsibility in providing halal certified products is based on
the command of Islam to gain Allah’s blessings, which is then followed by spreading the better food
10
...... ’On no soul doth Allah Place a burden greater than it can bear. It gets every good that it earns, and it
suffers every ill that it earns.’
11
‘Allah will not call you to account for thoughtlessness in your oaths, but for the intention in your hearts; and
He is Oft-forgiving, Most Forbearing.’
12
And say: “Work (righteousness): Soon will Allah observe your work, and His Messenger, and the Believers:
Soon will ye be brought back to the knower of what is hidden and what is open: then will He show you the truth
of all that ye did.”
13
‘Ye are the best of peoples, evolved for mankind, enjoining what is right, forbidding what is wrong, and
believing in Allah. If only the People of the Book had faith, it were best for them: among them are some who
have faith, but most of them are perverted transgressors.’
14
‘(Charity is) for those in need, who, in Allah's cause are restricted (from travel), and cannot move about in the
land, seeking (For trade or work): the ignorant man thinks, because of their modesty, that they are free from
want. Thou shalt know them by their (Unfailing) mark: They beg not importunately from all the sundry. And
whatever of good ye give, be assured Allah knoweth it well.’
15
‘Serve Allah, and join not any partners with Him; and do good- to parents, kinsfolk, orphans, those in need,
neighbours who are near, neighbours who are strangers, the companion by your side, the wayfarer (ye meet),
and what your right hands possess: For Allah loveth not the arrogant, the vainglorious;’
16
‘Allah only forbids you, with regard to those who fight you for (your) Faith, and drive you out of your homes,
and support (others) in driving you out, from turning to them (for friendship and protection). It is such as turn to
them (in these circumstances), that do wrong.’
17
‘....For Allah loves those who turn to Him constantly and He loves those who keep themselves pure and
clean.’
6
consumption for the consumers. The issuers (the government agencies) of such certification have the
responsibility to make sure that the mechanism and processes are established accordingly including
providing the awareness, training and education. These values are stated in the Qur’anic verse in AnNisaa’ 4:5818; 5919.
Perfectionism, piety and benevolence. These values have received great attention in the Islamic
literature by Alhabshi (1994); Al-Qaradawi (1995); Kamri and Mokhtar, (2004). Perfectionism, for
example, has been highlighted in the Prophet’s traditions when addressing the performance or
assessment of foods/products. Importantly, among all of the values, piety is considered the most
devotional act of religious commitment to Islamic teaching. Piety is emphasized as the only merit that
distinguishes a Muslim from other Muslims as clearly narrated in one of the Prophet’s traditions 20.
Mohsen (2007) stated that although piety is an internal value, which can only be ultimately judged by
God, several elements appear in those who have piety (al-muttaqin) and these characteristics can be
measured objectively by looking at their manifestation in a Muslim’s behaviors. According to Beekun
and Badawi (1999) and Mohsen (2007), piety would lead a person to be proactive and to possess the
qualities of integrity and justice. At the same time, another value worth mentioning is benevolence.
According to Al-Ghazali in his book Ihya Ulumuddin, benevolence is an act of giving something extra
to another beyond the material benefit, although that extra is not an obligation but merely an act of
generosity. These values are the motivation factors towards the initiation of obtainment of halal
certification. The growing acceptance of halal products is based on the belief of such values that have
been practiced by Muslims. It is stated in Qur’anic verses such as An-Nahl 16:9021 which indicates its
importance as an Islamic value.
Trustworthiness. Halal certification shows the credence process through its quality characteristics that
can hardly be evaluated or ascertained by the individual consumers, even upon or after consuming the
food. Halal products refer to the nature and originality in the processing method of the food. These
characteristics are not visible and cannot be validated by the consumer even after experiencing the
product. Muslim consumers’ trust in halal meat relates to the certainty about the process attributes
and the safety in terms of the meat wholesomeness. This comes with the assumption that there is a
very strong link between the slaughter method and health and safety perception. The Islamic slaughter
method is believed to lead to a complete bleed-out of the animal whereby consumers believe less
18
‘Allah doth command you to render back your Trusts to those to whom they are due; And when ye judge
between man and man, that ye judge with justice: Verily how excellent is the teaching which He giveth you! For
Allah is He Who heareth and seeth all things.’
19
‘O ye who believe! Obey Allah, and obey the Messenger, and those charged with authority among you. If ye
differ in anything among yourselves, refer it to Allah and His Messenger, if ye do believe in Allah and the Last
Day: That is best, and most suitable for final determination.’
20
‘God does not look at your bodies or your forms but looks at your hearts.’
21
‘Allah commands justice, the doing of good, and liberality to kith and kin, and He forbids all shameful deeds,
and injustice and rebellion: He instructs you, that ye may receive admonition.’
7
bacterial contamination can occur, hence resulting in healthier meat (Hanzaee & Ramezani, 2011).
This value is also stated in Qur’anic verses such as Al-Baqarah 2:18822.
CONCLUSION
Islam is a perfect religion that governs every aspect of life. There are values practiced by the Prophet
(PBUH) to be followed by all Muslims which bring mashlahah (benefits/welfare) to all mankind.
These are known as Islamic related-business values which are embedded when producers or ownermanagers obtaining the halal-certified products, while consumers are buying the products. Any
transactions or dealings in Islam carry values beyond commercial orientations. Halal certification
becomes a trust mark resulted in a competitive advantage through its high standard and quality which
has been accepted globally. This shariah-compliance concept should be superior to other concepts.
Muslims are obliged to adopt all values as an act of an ibadah, aiming to get the rida’or blessings
from Allah SWT in their life endeavours.
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9