Halal Assurance System Requirement

Topics: Halal, Cosmetics, Supply chain Pages: 6 (2622 words) Published: May 31, 2014
Halal Assurance System Requirements and Documentation in Cosmetics Industry Mohd Fuad Mohd Salleh, PhD
fuadsalleh@unisel.edu.my

Rosita Hussin
rosita@unisel.edu.my

Faculty of Business
Universiti selangor.

Abstract

The purpose of this paper is to introduce a new framework to optimise the design of halal management in cosmetic industry, called the “Halal Management Model in Cosmetic Industry”. In this research the main management processes are defined, which are the determinants for the halal management performance. The focus of this research is to determine the halal assurance system requirements and documentation in maintaining halal process, production and certification, thus, increase the confidence level of halal product usage among the end user.

Introduction

Many countries are now turning their focus to the word “Halal” as one of the focus in the business because of the awareness of the people. The volume of halal business is estimated at USD2.1 trillion. As an example, Non-Muslim Dutch consumers have shown interest in Halal food where the total demand is estimated to reach about US$3 billion annually; Port of Rotterdam has a Halal dedicated storage facility; French Muslims spend about 30 to 35 percent of their income on food products. Quantity of meat consumed by Muslims in France amounts to an average of 400,000 MT annually. The average income of a Muslim in France is about Euro 1,220/ month. This is lower than the country’s average at between Euro 1,550 and 1,850 per month (HDC, 2012). The word Halal is originated from an Arabic phrase that means “permissible” or “lawful” under Islamic Law (Shari`ah). The Islamic Law is the law that refers to two main sources, Al-Quran and Sunnah (the teaching and exemplary conduct of Prophet Muhammad PBUH). Basically, the term halal designates any object or action which is permissible to use or engage in, according to Islamic law. The opposite word of Halal is Haram (forbidden) which refers to anything that is prohibited under Islamic law. Muslim all over the world is facing everyday problem related to the concept of halal and haram, because the concept of halal and haram are not only limited to food products, it is covers more than that. Islamic or Halal brand is not a new issue in the halal market. The exploration of the halal concept towards branding and business are still in the early stage and the halal concepts in Islamic branding have a good potential (Jonathan & Jonathan, 2011). Besides that, the application of brand theory unnecessarily restrict to the term of halal but it also represent the interpretation of its meaning and overall concept of halal in Islam. Instantaneously, halal-conscious customers have a high perspective of the halal concept, and they tend to use behavioral traits as a halal-decision making process (Jonathan & Jonathan, 2011; Karijn, et. al. 2007). While in general, Muslim and Non-Muslim customers tent to choose halal products or services based on attitude, subjective norm and perceived behavioral control (Arshia & Mohsin, 2012; Zainalabidin et al, 2012).

Halal (permissible, lawful) is clearly based on values, namely Islamic values (Zakaria and Abdul-Talib, 2010). As argued by Lada et al. (2009), Alserhan (2010b), Ibrahim and Mokhtarudin (2010), Jonathan & Jonathan (2010) and Tieman (2011), halal needs a supply chain approach, where the value chain and its supply chain should be fully aligned (Christopher, 1998; van Amstel and van Goor, 2001; van Assen et al., 2010) to fulfil the promise of halal to the end-consumer: that the food they consume is a true manifestation of Islamic principles (World Halal Forum, 2009).

Halal supply chains now are becoming more complex because of many reasons on the integrity issues. Lamand Alhashmi (2008) wrote that halal integrity issues are more likely to occur than before because of increasing complexity of supply chains. Another factor is the focus on cost reduction or cost saving in the...

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