halal business
Content
INTRODUCTION In the world with the advancement of the science and technology, everything becomes fast growing and new invention were created as to follow with the current trend. However, in order maintain the well along with the current trend, our humanity is in dangerously state or can be said become careless that can only be solved by adapting the ethical behavior. For centuries, most philosophers were debated, especially on this ethical and humanity on identify; what is wrong? What is right? What human should do? What are the best rules to guide ethical judgment? o develop a well ethical humanity, normative ethics, especially on the business ethics, should be applied practically. !ormative ethics is a classification within western philosophy that attempts to derive its standard of right and wrong from subjectively interpreted social behavior. !ormative ethics can be related with the Islamic ethics, which is with the similar aim, to enhance the ethical on humanity. "oreover, the ethical behavior could be developing by the involvement of the social institution li#e, international organi$ation, !%&'s, business association and regulating bodies. hese social institutions could help in term of business ethics through mechanism li#e regulation, certification, disclosure, media coverage, advocacy, codes of ethics and other mechanisms. In short, this paper aims to contribute to research in business ethics application, especially on Islamic business ethics and together will discuss it application using the e(ample of Halal regulation and certification.
LITERATURE REVIEW 1
WHAT IS ISLAMIC BUSINESS ETHICS? In Islam, people will be judged in hereafter based on their actions and responsible on their commitment to their mission on )arth. *ll man#ind need to worship ALLAH through establish and maintaining a just and prosperous life on )arth. Islamic teachings cover different aspects of life either in clear and detailed instructions or general guidelines, and in both cases "uslims are as#ed to commit to these teachings. Shari’a as Islamic +aw,“but the boundaries of Shari’s extend beyond the limited horizons of law” ,-ardar, .//0 cited in 1usu#i, .//23. -hari'a is “a set of norms, values and laws that make up the slami! way of life” ,*hmad, .//0 cited in 1usu#i, .//23. he norms and values components of Shari’a can be used to enhance business ethics in "uslims business practices. Shari’a is dynamic and uses a methodology to derive rules which is based on interpretation, reasoning and judgment. *bdallah ,./4/3 stated that this method is the called "sol Al#$i%h. "sol Al#$i%h developed ma(ims to be used in deriving Shari’a rules. 5amali ,46643 had state that the aim of ma(ims is to enhance benefits and eliminate harms for individuals and the public as well. )(amples of these ma(ims are7 • • • • • • harm must be eliminated; harm is not to be inflicted nor reciprocated in Islam; harm is eliminated to the e(tent that is possible; harm is not eliminated by another harm; preventing harm is given preference over gaining benefit; and public interest ta#es precedence over personal interest.
8oth "sol Al#$i%h methodology and ma(ims can be used to answer contemporary ethical issues. However, effective application of this methodology needs a solid understanding and awareness of different elements and forces affecting the relevant issue. * practical e(ample of applying these ma(ims to a very contemporary ethical issue which are information security and privacy ,*bdallah,./4/3. WHY THERE ARE PROBLEMS IN APPLICATION OF ISLAMIC BUSINESS ETHICS? 2
Wilson ,.//93 said that mar#ets were regulated through the institution of Hisba's that functioned as a trading standards authority, but the business environment had changed, and traditional mechanisms of applying Islamic business ethics is difficult to meet the new contemporary challenges. here is a a lot of considerable number of published papers that based on Islamic business ethics but most of are normative; they e(plained the Islamic value system and ethical guidelines that can form a strong and effective ethical system, but the reality in "uslim countries, we will find clear discrepancies between the normative Islamic business ethics and practices of "uslims ,8ee#un and 8adawi, .//:; ;ice, 4666; 5ula, .//43. he potential concept that can be applied in business ethics is #nown as <moral filter= that wor#s with the price mechanism to regulate mar#ets. <"oral filter= is a mechanism that minimi$es unnecessary claims on resources ,>hapra, 466. cited in ;ice, 46663. by "uslim itself. 5ula ,.//43 presented a number of &urani! verses and Hadiths ,teachings of the ?rophet "ohammed3 that are very clear in encouraging "uslims to protect the environment. here are e(amples of Hadiths that prohibit e(cessive use of water ,or any other resources3. >onspicuous or wasteful consumption is clearly prohibited in Islam ,5ula, .//4; >hapra, 466. cited in ;ice,46663, but these norms cannot be effective in reality without practical definitions, mechanisms and tools designed to apply them in a contemporary conte(t. he application of Islamic business ethics needs fle(ibility and consideration of different conte(tual and situational factors. his is a significant challenge in establishing an effective and practical Islamic business ethics system. he concept is very promising and can add to the domain of business ethics, but in reality this concept is not applied
WHAT IS MULTI-LEVEL ISLAMIC ETHICS FRAMEWORK? 3
"uslims are able to build up a strong civili$ation and control international trade for centuries and support the idea that Islam does not enforce an idealistic view on life and ethics. Fle(ibility and adaptability had been shown by the successful practical in "uslim. Fle(ibility and adaptability of Islamic ethics are part of the dynamism of Shari’a. concepts in Islamic theology; levels of religion or 'een. here are three levels of religion ,'een3; slam, man and hsan this is based on famous Hadith #nown as Hadith (ibril,. slam is more concerned on obeying the instructions and teachings of Allah ,the %od3. he second level is man, it concerned strengthening believes and values in one's heart. While the third and ultimate level hsan, that concerned with living a spiritual e(perience by god watching in every single action. "uslims have different levels of ethical awareness and commitment according to the richness and depth of their religious e(perience. Frederic# >arney ,46203 has proposed that any religious ethic consists of an obligation, a virtue and a value component. "oad ,.//@3 also proposed that the three levels of religion in Islam “ slam, man and hsan represent what >arney calls the obligation, value and virtue components, respectively, of the Islamic ethic=. his approach of ethical levels is also supported by Shari’a objectives as defined by "sol Al#fi%h scholars. 8ased on HallaA ,.//B3;5amali ,46643, Shari’a objectives were classified into three categories7 essentials ,'aroriyyat3, complimentary ,Ha)iyyat3 and embellishment ,*ahsiniyyat3. hese can easily lin# between these three levels of Shari’a objectives and the levels of religion and ethics components. *nother support for the multiClevel approach can be found in the normative theories of ethics; <normative theories of ethics are traditionally classified into three main categories7 deontological ethics, conseAuentialist ethics and virtue ethics= ,Donsson, ./443. In deontological ethics, ethical judgment is constant for any action, in other words, any action is either right or wrong because of its intrinsic nature. While in conseAuentialist ethics, the rightness of any action depends on its conseAuences rather than its intrinsic nature, so a certain action can be right in a given conte(t and wrong in another conte(t based on its conseAuences. Eirtue ethics theory is more holistic; it does not judge every action as right or wrong, rather it loo#s at ethics as a living e(perience for those who have an ethical personality. *bdallah present that Islamic ethics system can be conceived as being a synthesis between deontological, conseAuentialist and virtue ethics theories. hey be supported by the fundamental
4
HOW HALAL REGULATION AND CERTIFICATION? Halal regulation and certification was developed to help consumers to identify products, which comply with the Islamic principles. he first efforts is on 46@/, were made to set up a system declaring and certifying food products as Halal. his is because, western fast food chains started entering the uprising "uslim countries and naturally, those restaurants were not always applying Islamic standards in their food production. >haudry and ;ia$ ,.//B3 analy$ed that, more and more international food brands appeared in the mar#ets of "uslim countries and li#ewise pushed the matter of Halal certification. his mechanism is more built on confidence and common values among Halal food producers and customers, but this system does not wor# in business environment today. Halal mar#s F even less when the product was imported from nonC"uslim countries. Increasing of demand for trustworthy Halal certificate result the governments in "alaysia, Indonesia and other "uslim countries to comply by establishment %overnmental 8odies to supervised and regulate the food mar#et. It also prohibits the usage of Halal logo ,>haudry and ;ia$, .//B3. Institutes li#e the "alaysian Dabatan 5emajuan Islam "alaysia ,D*5I"3, which is one of today's leading institutes in Halal matters, also in -ingapore and Indonesia official bodies were established to supervise and develop the national Halal mar#et. he -ingaporean counterpart to D*5I" is the "ajlis Glama Islam -ingapura' ,"GI-3, the Indonesian institute is called <"ajelis Glama Indonesia=,"GI3. Halal or Shari’a compliant products are already common in food and financial industries, but the concept is continue in e(panding to new industries li#e cosmetics, pharmaceuticals, tourism, entertainment, etc. he Halal mar#et is one of today's fastest growing mar#ets, even in nonC "uslim countries li#e France, Halal already overtoo# organic and bioCproducts in mar#et volume ,*hmed, ./443. he global Halal mar#et volume is estimated to be G-H:2/ billion a year and the Halal food industry is e(pected to grow at a rate of @ percent annually ,-aad and ?atric#, .//2 cited in *lam and -ayuti, ./443. he "uslim customers demanded more on transparency of product ingredients and did not trust in simple
5
METHODOLOGY his research were reviewed the current practices of Halal regulation and certification and literature on Islamic ethics in order to identify a practical approach for Islamic business ethics.
FINDINGS 4. W& "*D&; 1)E)+&?")! - H* >*! )!;I>H H*+*+ 8G-I!)-- ?;*> I>)a. H*;"&!II* I&! - ;G> G;) 6 &F %+&8*+ - *!1*;1*!1 %&E);!*!>)
b. I! )%;* I!% ;)-?&!-I8I+I J K ) HI>*+ I--G) I! H*+*+ - *!1*;1* great potential can derived from Halal industry from an ethical point of view7 Halal standards are able to easy e(tending beyond the Halal products attributes. It is by integrating corporate social responsibility ,>-;3 practices and general ethic values. In addition, also by enhancing it's already e(isting ethical element. In conseAuences, for modern business development, the Halal business can contribute to more responsible business practices and become a role model. It can help to integrate more criteria and herewith further develop a responsible Halal business by applying >-; practices. !aturally, Islamic business ethics and >-; share similar elements; both practices are built on responsible behavior, strong values, and sustainability and also the ethical permissibility of things and behavior. *s a result, in Halal business practices, >-; has good opportunities to be successfully integrated and contribute to a successful future movement of Halal. *ccording to *lbareda,.//23 and ?attberg,.//93, in order to help corporations adopt >-; practices, selfCregulating instruments and multiCsta#eholders initiatives have appeared. 8y using and adapting already wellCproven tools from >-;, Halal business practices obtain benefit. here is potential to form up an overall ethical brand, based on Islamic business ethics and enhanced with product attributes li#e organic, animal welfare, healthy, environmentally friendly, fair wor#ing condition and others by integrating >-;. *s a result, if there are reliable certificates provide and also nonC"uslims to Halal products, especially in times of recurrent food scandals and the financial crisis with its discredited ban#ing practices, Halal companies can enlarge their target group and attract. 7
*s an e(ample, currently, in the Islamic finance sector, nonC"uslim consumers of Islamic ban#s <eAuated Islamic finance with ethical living. hey said that they were attracted by the prospect of their money not being invested by the ban#, in such things as pornography and arms. ?lus, according to Wilson and +iu ,./4/3, they were also agreed that the Islamic position of wealth being only generated through legitimate trade and investment in assets, and not by ma#ing money from money=. For potential e(pansion and development of Halal business practices, there is another e(ample which is to integrate animal welfare issue in Halal standards, especially in considering slaughtering practices.. he focuses of modern Halal business are on the animal welfare and apply accepted stunning methods. It can be simplify as the Halal production those are especially in nonC"uslim countries, because of the animal welfare laws Halal production is sometimes bloc#ed until now. In addition, in order to calm down animal welfare activists and develop the vocation of Halal food among nonC"uslims, commitment in animal welfare is needed. he benefit is this can help to develop the Halal mar#et on an international level.
..
W& *??;*&>H I! I"?+)")! * I!% &F I-+*"I> 8G-I!)-- ) HI>here are two approaches proposed to facilitate the implementation of islamic business ethics namely multiClevel Islamic ethics framewor# and a multiClevel Halal regulation and certification. E!"i#$ #o%&onen! Eirtue S"'(i)' O*+e#!i e$ )mbellishment 8 Ce(!i-i#'!ion le el ;esponsible
Religion le el Ihsan
E!"i#$ !"eo(, Eirtue ethics
Iman Islam
Ealues &bligation
>omplimentary )ssentials
>onseAuentialism 1eontology
Halal business ;esponsible Halal product Halal product
Fig.(e / 0 M.l!i-le el #e(!i-i#'!ion 'n1 %.l!i-le el I$l'%i# e!"i#$ -('%e2o(3 here are the relationships between the Islamic ethics and the level of halal certification. In order to integrate the >orporate -ocial ;esponsibility and ethical issues in Halal standards, a new approach to Halal regulation and certification is needed. It can be based on the multiClevel islamic ethics framewor# proposed namely Ihsan,Iman and Islam. Islam means the obey of *llah's instruction and obligation for the "uslim. -o, in term of certificate level, it is the basic standard of halal certification for the halal products. Halal products are the products that meet the basic halal standard such as meet slaughtered according to -hariLa r'les and interest free financial products. Instead of meeting the basic halal standard, "uslim should commit themselves to higher levels of moral conciousness and need more information on products and business to ensure that they match their values and not only their obligation. -o,the new standards and certificates can focus on ethics and responsibility attributes of products ,responsible Halal product3 or the whole business practices ,responsible Halal business3.
;esponsible Halal products are the product that meets Halal and responsibility standard such as organic and Halal product and -haria'a compliant investment in environmentalC friendly technologies. While the responsible halal business means the overall company strategies and management process meet and may e(ceed Halal responsibility standards. he second religious level, Iman means the strengthening of beliefs and values in one's heart. -o it is suitable to e(plain the certificate level namely the responsible Halal
9
product.It is because "uslim should concern more on the values or attributes of any product and not only concerned the status of the end products itself. he ne(t level of religious ethics that is Ihsan means that "uslim should act as *llah is watching them. -o,in a business, an entrepreneur will start up their business strategies and management process according to Islamic rules. It is to ensure that the business meet the Halal responsibility standards. In a nutshell, the Halal regulation and certification bodies should set the new standards of the level of Halal certification based on the Islamic ethics proposed.
CONCLUSSION *s a "uslim, it is an obligation for us to ta#ing serious on searching a halal product that stems from the halal business ethics in order to achieve our religious commitment while living in the world with the advancement of science and technology, where everything were count on money, where anybody could do anything for money. Halal business is different with one country with another country due to the differences of the reliability and also the governance structure of the country itself. Halal regulation can be developed by adding some proven tools from the domain of >-; and by including ethics and responsibility with Halal standards. "ultiClevel approach can be used to achieve this regarding the information of the products and businesses covering ethical and responsibility criteria in addition of the Halal standards.
REFERENCES
10
LITERATURE REVIEW 1
WHAT IS ISLAMIC BUSINESS ETHICS? In Islam, people will be judged in hereafter based on their actions and responsible on their commitment to their mission on )arth. *ll man#ind need to worship ALLAH through establish and maintaining a just and prosperous life on )arth. Islamic teachings cover different aspects of life either in clear and detailed instructions or general guidelines, and in both cases "uslims are as#ed to commit to these teachings. Shari’a as Islamic +aw,“but the boundaries of Shari’s extend beyond the limited horizons of law” ,-ardar, .//0 cited in 1usu#i, .//23. -hari'a is “a set of norms, values and laws that make up the slami! way of life” ,*hmad, .//0 cited in 1usu#i, .//23. he norms and values components of Shari’a can be used to enhance business ethics in "uslims business practices. Shari’a is dynamic and uses a methodology to derive rules which is based on interpretation, reasoning and judgment. *bdallah ,./4/3 stated that this method is the called "sol Al#$i%h. "sol Al#$i%h developed ma(ims to be used in deriving Shari’a rules. 5amali ,46643 had state that the aim of ma(ims is to enhance benefits and eliminate harms for individuals and the public as well. )(amples of these ma(ims are7 • • • • • • harm must be eliminated; harm is not to be inflicted nor reciprocated in Islam; harm is eliminated to the e(tent that is possible; harm is not eliminated by another harm; preventing harm is given preference over gaining benefit; and public interest ta#es precedence over personal interest.
8oth "sol Al#$i%h methodology and ma(ims can be used to answer contemporary ethical issues. However, effective application of this methodology needs a solid understanding and awareness of different elements and forces affecting the relevant issue. * practical e(ample of applying these ma(ims to a very contemporary ethical issue which are information security and privacy ,*bdallah,./4/3. WHY THERE ARE PROBLEMS IN APPLICATION OF ISLAMIC BUSINESS ETHICS? 2
Wilson ,.//93 said that mar#ets were regulated through the institution of Hisba's that functioned as a trading standards authority, but the business environment had changed, and traditional mechanisms of applying Islamic business ethics is difficult to meet the new contemporary challenges. here is a a lot of considerable number of published papers that based on Islamic business ethics but most of are normative; they e(plained the Islamic value system and ethical guidelines that can form a strong and effective ethical system, but the reality in "uslim countries, we will find clear discrepancies between the normative Islamic business ethics and practices of "uslims ,8ee#un and 8adawi, .//:; ;ice, 4666; 5ula, .//43. he potential concept that can be applied in business ethics is #nown as <moral filter= that wor#s with the price mechanism to regulate mar#ets. <"oral filter= is a mechanism that minimi$es unnecessary claims on resources ,>hapra, 466. cited in ;ice, 46663. by "uslim itself. 5ula ,.//43 presented a number of &urani! verses and Hadiths ,teachings of the ?rophet "ohammed3 that are very clear in encouraging "uslims to protect the environment. here are e(amples of Hadiths that prohibit e(cessive use of water ,or any other resources3. >onspicuous or wasteful consumption is clearly prohibited in Islam ,5ula, .//4; >hapra, 466. cited in ;ice,46663, but these norms cannot be effective in reality without practical definitions, mechanisms and tools designed to apply them in a contemporary conte(t. he application of Islamic business ethics needs fle(ibility and consideration of different conte(tual and situational factors. his is a significant challenge in establishing an effective and practical Islamic business ethics system. he concept is very promising and can add to the domain of business ethics, but in reality this concept is not applied
WHAT IS MULTI-LEVEL ISLAMIC ETHICS FRAMEWORK? 3
"uslims are able to build up a strong civili$ation and control international trade for centuries and support the idea that Islam does not enforce an idealistic view on life and ethics. Fle(ibility and adaptability had been shown by the successful practical in "uslim. Fle(ibility and adaptability of Islamic ethics are part of the dynamism of Shari’a. concepts in Islamic theology; levels of religion or 'een. here are three levels of religion ,'een3; slam, man and hsan this is based on famous Hadith #nown as Hadith (ibril,. slam is more concerned on obeying the instructions and teachings of Allah ,the %od3. he second level is man, it concerned strengthening believes and values in one's heart. While the third and ultimate level hsan, that concerned with living a spiritual e(perience by god watching in every single action. "uslims have different levels of ethical awareness and commitment according to the richness and depth of their religious e(perience. Frederic# >arney ,46203 has proposed that any religious ethic consists of an obligation, a virtue and a value component. "oad ,.//@3 also proposed that the three levels of religion in Islam “ slam, man and hsan represent what >arney calls the obligation, value and virtue components, respectively, of the Islamic ethic=. his approach of ethical levels is also supported by Shari’a objectives as defined by "sol Al#fi%h scholars. 8ased on HallaA ,.//B3;5amali ,46643, Shari’a objectives were classified into three categories7 essentials ,'aroriyyat3, complimentary ,Ha)iyyat3 and embellishment ,*ahsiniyyat3. hese can easily lin# between these three levels of Shari’a objectives and the levels of religion and ethics components. *nother support for the multiClevel approach can be found in the normative theories of ethics; <normative theories of ethics are traditionally classified into three main categories7 deontological ethics, conseAuentialist ethics and virtue ethics= ,Donsson, ./443. In deontological ethics, ethical judgment is constant for any action, in other words, any action is either right or wrong because of its intrinsic nature. While in conseAuentialist ethics, the rightness of any action depends on its conseAuences rather than its intrinsic nature, so a certain action can be right in a given conte(t and wrong in another conte(t based on its conseAuences. Eirtue ethics theory is more holistic; it does not judge every action as right or wrong, rather it loo#s at ethics as a living e(perience for those who have an ethical personality. *bdallah present that Islamic ethics system can be conceived as being a synthesis between deontological, conseAuentialist and virtue ethics theories. hey be supported by the fundamental
4
HOW HALAL REGULATION AND CERTIFICATION? Halal regulation and certification was developed to help consumers to identify products, which comply with the Islamic principles. he first efforts is on 46@/, were made to set up a system declaring and certifying food products as Halal. his is because, western fast food chains started entering the uprising "uslim countries and naturally, those restaurants were not always applying Islamic standards in their food production. >haudry and ;ia$ ,.//B3 analy$ed that, more and more international food brands appeared in the mar#ets of "uslim countries and li#ewise pushed the matter of Halal certification. his mechanism is more built on confidence and common values among Halal food producers and customers, but this system does not wor# in business environment today. Halal mar#s F even less when the product was imported from nonC"uslim countries. Increasing of demand for trustworthy Halal certificate result the governments in "alaysia, Indonesia and other "uslim countries to comply by establishment %overnmental 8odies to supervised and regulate the food mar#et. It also prohibits the usage of Halal logo ,>haudry and ;ia$, .//B3. Institutes li#e the "alaysian Dabatan 5emajuan Islam "alaysia ,D*5I"3, which is one of today's leading institutes in Halal matters, also in -ingapore and Indonesia official bodies were established to supervise and develop the national Halal mar#et. he -ingaporean counterpart to D*5I" is the "ajlis Glama Islam -ingapura' ,"GI-3, the Indonesian institute is called <"ajelis Glama Indonesia=,"GI3. Halal or Shari’a compliant products are already common in food and financial industries, but the concept is continue in e(panding to new industries li#e cosmetics, pharmaceuticals, tourism, entertainment, etc. he Halal mar#et is one of today's fastest growing mar#ets, even in nonC "uslim countries li#e France, Halal already overtoo# organic and bioCproducts in mar#et volume ,*hmed, ./443. he global Halal mar#et volume is estimated to be G-H:2/ billion a year and the Halal food industry is e(pected to grow at a rate of @ percent annually ,-aad and ?atric#, .//2 cited in *lam and -ayuti, ./443. he "uslim customers demanded more on transparency of product ingredients and did not trust in simple
5
METHODOLOGY his research were reviewed the current practices of Halal regulation and certification and literature on Islamic ethics in order to identify a practical approach for Islamic business ethics.
FINDINGS 4. W& "*D&; 1)E)+&?")! - H* >*! )!;I>H H*+*+ 8G-I!)-- ?;*> I>)a. H*;"&!II* I&! - ;G> G;) 6 &F %+&8*+ - *!1*;1*!1 %&E);!*!>)
b. I! )%;* I!% ;)-?&!-I8I+I J K ) HI>*+ I--G) I! H*+*+ - *!1*;1* great potential can derived from Halal industry from an ethical point of view7 Halal standards are able to easy e(tending beyond the Halal products attributes. It is by integrating corporate social responsibility ,>-;3 practices and general ethic values. In addition, also by enhancing it's already e(isting ethical element. In conseAuences, for modern business development, the Halal business can contribute to more responsible business practices and become a role model. It can help to integrate more criteria and herewith further develop a responsible Halal business by applying >-; practices. !aturally, Islamic business ethics and >-; share similar elements; both practices are built on responsible behavior, strong values, and sustainability and also the ethical permissibility of things and behavior. *s a result, in Halal business practices, >-; has good opportunities to be successfully integrated and contribute to a successful future movement of Halal. *ccording to *lbareda,.//23 and ?attberg,.//93, in order to help corporations adopt >-; practices, selfCregulating instruments and multiCsta#eholders initiatives have appeared. 8y using and adapting already wellCproven tools from >-;, Halal business practices obtain benefit. here is potential to form up an overall ethical brand, based on Islamic business ethics and enhanced with product attributes li#e organic, animal welfare, healthy, environmentally friendly, fair wor#ing condition and others by integrating >-;. *s a result, if there are reliable certificates provide and also nonC"uslims to Halal products, especially in times of recurrent food scandals and the financial crisis with its discredited ban#ing practices, Halal companies can enlarge their target group and attract. 7
*s an e(ample, currently, in the Islamic finance sector, nonC"uslim consumers of Islamic ban#s <eAuated Islamic finance with ethical living. hey said that they were attracted by the prospect of their money not being invested by the ban#, in such things as pornography and arms. ?lus, according to Wilson and +iu ,./4/3, they were also agreed that the Islamic position of wealth being only generated through legitimate trade and investment in assets, and not by ma#ing money from money=. For potential e(pansion and development of Halal business practices, there is another e(ample which is to integrate animal welfare issue in Halal standards, especially in considering slaughtering practices.. he focuses of modern Halal business are on the animal welfare and apply accepted stunning methods. It can be simplify as the Halal production those are especially in nonC"uslim countries, because of the animal welfare laws Halal production is sometimes bloc#ed until now. In addition, in order to calm down animal welfare activists and develop the vocation of Halal food among nonC"uslims, commitment in animal welfare is needed. he benefit is this can help to develop the Halal mar#et on an international level.
..
W& *??;*&>H I! I"?+)")! * I!% &F I-+*"I> 8G-I!)-- ) HI>here are two approaches proposed to facilitate the implementation of islamic business ethics namely multiClevel Islamic ethics framewor# and a multiClevel Halal regulation and certification. E!"i#$ #o%&onen! Eirtue S"'(i)' O*+e#!i e$ )mbellishment 8 Ce(!i-i#'!ion le el ;esponsible
Religion le el Ihsan
E!"i#$ !"eo(, Eirtue ethics
Iman Islam
Ealues &bligation
>omplimentary )ssentials
>onseAuentialism 1eontology
Halal business ;esponsible Halal product Halal product
Fig.(e / 0 M.l!i-le el #e(!i-i#'!ion 'n1 %.l!i-le el I$l'%i# e!"i#$ -('%e2o(3 here are the relationships between the Islamic ethics and the level of halal certification. In order to integrate the >orporate -ocial ;esponsibility and ethical issues in Halal standards, a new approach to Halal regulation and certification is needed. It can be based on the multiClevel islamic ethics framewor# proposed namely Ihsan,Iman and Islam. Islam means the obey of *llah's instruction and obligation for the "uslim. -o, in term of certificate level, it is the basic standard of halal certification for the halal products. Halal products are the products that meet the basic halal standard such as meet slaughtered according to -hariLa r'les and interest free financial products. Instead of meeting the basic halal standard, "uslim should commit themselves to higher levels of moral conciousness and need more information on products and business to ensure that they match their values and not only their obligation. -o,the new standards and certificates can focus on ethics and responsibility attributes of products ,responsible Halal product3 or the whole business practices ,responsible Halal business3.
;esponsible Halal products are the product that meets Halal and responsibility standard such as organic and Halal product and -haria'a compliant investment in environmentalC friendly technologies. While the responsible halal business means the overall company strategies and management process meet and may e(ceed Halal responsibility standards. he second religious level, Iman means the strengthening of beliefs and values in one's heart. -o it is suitable to e(plain the certificate level namely the responsible Halal
9
product.It is because "uslim should concern more on the values or attributes of any product and not only concerned the status of the end products itself. he ne(t level of religious ethics that is Ihsan means that "uslim should act as *llah is watching them. -o,in a business, an entrepreneur will start up their business strategies and management process according to Islamic rules. It is to ensure that the business meet the Halal responsibility standards. In a nutshell, the Halal regulation and certification bodies should set the new standards of the level of Halal certification based on the Islamic ethics proposed.
CONCLUSSION *s a "uslim, it is an obligation for us to ta#ing serious on searching a halal product that stems from the halal business ethics in order to achieve our religious commitment while living in the world with the advancement of science and technology, where everything were count on money, where anybody could do anything for money. Halal business is different with one country with another country due to the differences of the reliability and also the governance structure of the country itself. Halal regulation can be developed by adding some proven tools from the domain of >-; and by including ethics and responsibility with Halal standards. "ultiClevel approach can be used to achieve this regarding the information of the products and businesses covering ethical and responsibility criteria in addition of the Halal standards.
REFERENCES
10
