THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY (CSR) AND MALAYSIA HALAL INDUSTRY Hubungan antara Tanggungjawab Sosial Korporat dan Industri Halal di Malaysia

The Malaysia halal industry is growing, and a lot of interventions have been taken by the government to grow the industry. Halal certified status carry a very strong obligation towards Muslim community. However, some food and products businesses were caught with unethical and irresponsible act due to multiple cases related to halal food and products indirectly impacted Muslim consumers at large. The study is a desk and descriptive research. It is based on secondary data. Author reviewed the existing literatures such as journals, magazines and research works related to the conceptual of Corporate Social Responsibility (CSR) and halal industry. The analysis has shown food manufacturer need to undertake a serious move to review company procedures in dealing with halal issues to engage in productive and legitimate operations. Therefore, this paper elaborates the halal concept from the lens of various scholars and its relationship to the Corporate Social Responsibility (CSR) and business ethics related to halal industry.


INTRODUCTION
The Malaysia halal industry has developed and growth locally and internationally. Muslimpopulation.com (2019) informed there are 2.18 billions of Muslim around the world and it has generated trillions of sales within halal industry. Even non-Muslim countries take part in halal business to catch up halal market (Aidi & Ooi, 2014).
Malaysia was the pioneer in implementing the halal regulations and remains a global power in halal certification (MIFB, 2019). The United Nations (UN) recognised Malaysia halal standard due to the efficiency of halal standardisation that practised within country. The majority of Malaysia population are Muslims and receiving halal products and food is not an alternative as it is essential for Muslim (Norah, 2017). As a result, halal industry has grown further due to the escalation in requesting halal products from Malaysia as well as the foreign markets. The halal regulations were advanced to assist Muslim consumers to identify any products that fulfilled the Islamic halal standard in every phase producing food and products (Mahiah, Faridah, Rosidah & Naziman, 2014). However, there are businesses and individuals that are simply and unethically falsify the halal certification and logo establish by Malaysian Islamic Development Department (JAKIM) with motive to dictate Muslim market and gain profit.
Albeit, expanding gains is not the company's main aims when the stakeholder's wellbeing is at stake within the stages of producing food and products. The financial success is not the only parameter to measure the company achievement, but halal awareness also takes into account. Company should see the importance of being responsible to the stakeholders and failure to act responsible could deteriorate their business and reputation.
In order to secure halal certificate company needs to pursue the regulations determined by Malaysian Islamic Development Department (JAKIM) and this signify companies are not taking halal matters for granted. Projecting their awareness and concern toward halal, it represents that their business is responsible and responsive.
Corporate Social Responsibility (CSR) topic extensively discussed and examined including the extent and quality of disclosures. Companies are expected to be responsible for their act and behaviour; companies' mismanagement and negligence could affect the stakeholders at large. Companies should practise transparency, be clear in their activities, action and decision. Companies were preferring to disclose CSR activities related to the community and environment and less information related to food processes being informed. The stakeholders have right to know the entire processes involve producing a product; this is a concept of Halalan and Toyyiban. Disclosure of these processes heighten the consumers trust and make sure consumers have used and opted product that reach the JAKIM standard. However, studies on halal disclosures are still insufficient. Thus, motivated by the gap identified, this paper intends to oversee the implementation of CSR in halal industry.

UNDERSTANDING THE CONCEPT OF HALAL
Halal refers to any object or an action which is allowed to consume as referring to Islamic regulations. Halal term is commonly used to define the quality of specific substances including food and meat products, cosmetics, personal care, pharmaceuticals and food materials (Islamic Council of Victoria, 2019). Although halal requirements can be implemented in all sectors, halal knowledge and compliance were the greatest level of compliance within the food and beverage sector (MIFB, 2019). It has been stated that food make up about 60% of the halal industry which includes primary meat, processed goods, bakery food, and confectionary. In order to claim the food and products are halal it requires to comply with Shariah law and halal is not just limited to the foods and drinks only, it also link to safety, welfare, social justice and sustainable environment issues (Kasmarini et al, 2015). Therefore, the concept of consuming halal is not only bound to the food itself but include their production (Nik Zam et al, 2014). Halal also related to the idea of Halal and Toyyiban which uplifts the elements of hygiene, safety, quality of foods and premises. WimVerbeke (2006) outlined consumers are concerned to food safety, health, naturalness, pleasure, convenience, information, ethical issues in the foods taken by consumers. Halal has multiple functions and it is not solely about religion motive; consuming halal objects encourage Muslim well-being as every halal product has passed through the strict checking process and guaranteed health, hygiene, friendliness to environment and animal welfare before it reached the mass market (Wim Verbeke, 2006).
Halal emphasises the aspect of cleanliness and food security, these traits have made halal concept acceptable to the mass market which prioritises safety and healthy lifestyle. Based on Norah (2017) in his study, there are six aims of the halal principles in Islam: (1) preserving the purity of Islam (2) preserving the Islamic personality (3) preserving life (4) preserving property (5) preserving future generations and (6) cultivating respect and honesty.
According to Halal Malaysia Official Portal dated September 2019, halal term uses to describe the processes that involve in trading and doing food business and it also label in multiple ways as halal, its guaranteed Muslim food as to indicate the food is permissible to be consumed by Muslim. Therefore, halal food has it owns characters for instance: 1) Does not contain any part or matter of an animal that a Muslim is prohibited by Shariah law to consume or that has not been slaughtered in accordance with Shariah law. 2) Does not contain anything which is unclean according to Shariah law. 3) Has not prepared, processed or manufactured using any instrument that was not free from anything unclean according to Shariah law and 4) Has not during preparation, processing or storage been in contact with or proximity to any food that fails to satisfy paragraph a, b or c or anything that is unclean referring to Shariah law.
Obtaining the halal status required food manufacturers to comply with Malaysian Accreditation procedures to ensure the food safety and quality assurance (Kasmarini et al, 2015). Halal requirements emphasize the aspect of ISO 9000, Good Hygienic Practise (GHP), Good Manufacturing Practises (GMP) and veterinary inspection. These procedures are meant to guarantee the quality of products standards (Talib & Ali, 2009).

THE PERSPECTIVE OF INDUSTRY TOWARDS HALAL
Based on industry, halal business idea has opened business opportunities to Muslim and non-Muslim entrepreneurs. This sector has shown great potential as halal market is rising and demanding from Muslim consumers worldwide due to the awareness on halal products and services.
Definition of halal business has tremendously expanded from food and beverages to non-food industries. Currently, the halal business has penetrated the banking and finance sector, insurance, travel and tours, education and training certification, consultancy and healthcare (Othman et al, 2010). Referring to Johnson (2019), the global halal industry worth USD 9.7 trillion (RM 40.63 trillion) within 2018 until 2025 constituting 2.18 billion Muslim population. The industries that include are food, beverages, pharmaceutical, cosmetics and personal care. However, to invest in halal sector, entrepreneurs need to comprehend and appreciate the religious and scientific basis of halal requirements (Kasmarini et al, 2015).
According to Aliff, Hafifi, Adilin and Chemah (2015) halal products should reach the international standard in order to penetrate the international market in terms of products quality and value for money. Therefore, in obtaining international standard of halal certification, specific body should be able to take charge and monitor the procedures to ensure the quality and authenticity of certification.
Agency responsible for halal certification must be reliable, competent, efficient and trusted to operate internationally. World recognition on halal status is important so that halal products could be universally accepted. Malaysia aims to become Regional Hub for halal Products so that Department of Islamic Development Malaysia (JAKIM) is working to ensure our halal certification is recognised and accepted by other countries. Thus, Malaysia is currently paving a modern and progressive Islamic country which produce and process quality halal products for the global acceptance.

CORPORATE SOCIAL RESPONSIBILITY (CSR) IN HALAL INDUSTRY
Modern companies have responsibilities towards society, according to the Corporate Social Responsibility (CSR) idea, which extend beyond their obligations towards the company's stakeholders (Carroll, 1999). The CSR dimension generally includes environmental security, staff and worker support, community support, equal opportunities, goods, corporate philanthropy, social disclosure, women's and minority representation (Sen & Bhattacharya, 2001).
Corporate Social Responsibility (CSR) is about building confidence in the community acting responsibly towards consumers, staff and others in society would assist businesses to improve their position and value (Murphy, 2019). A greater understanding of Corporate Social Responsibility (CSR) by stakeholders; direct participation by stakeholders; and a greater sense of social responsibility by individuals are some of the main drivers that significantly impact on raising the focus of company on CSR (Hohnen, 2007). There are numerous issues involving food and products companies that raise consumers concern; food, products safety, alcoholic use and packaging handling in this industry (Cuganesan et al, 2019).
In Malaysia, study conducted by Nik Zam et al (2014) showcased 67.4 % of consumers heighten the importance of halal logo on their products especially food because it is religion obligation. On top of that, Malaysia's 'Halal Certified' stamp on a label is seen as a sign of trustworthiness indicating genuineness by authorised body. Thus, manufacturers are responsible to ensure their products receive halal status as to fulfil the needs of consumers and community.
Meanwhile, Malaysia consumers are worried about safety and ingredients of products especially food. Muslims consumers must guarantee that not only the final products are halal, but also the components and the manufacturing procedures must be halal (Suhana et al, 2016). The complete method of manufacture of halal products requires the food industry to comply with ￼comprehensive JAKIM regulations. In selecting food, halal-related issues should always be high priority. There are variety of social media, like Facebook, Twitter, WhatsApp and others, should be made useful to inform consumers on the unethical operations of business for the benefit of Muslims. Any confusion regarding the ingredients with businesses should be clearly explained.
As for Islam, the CSR places humanity first in achieving al-falah and barakah in life to guarantee enduring achievement and a blessing on God (Muhammad, 2007). According to the concept of an Islamic CSR organization, staff, clients, vendors, the government, the state and financial institutions are socially accountable for the stakeholders (Muhammad, 2007). Therefore, in developing and claiming halal goods as truly halal it must be certified by authorized halal organizations and halal companies must be transparent.

ISLAMIC ETHICS IN HALAL FOOD INDUSTRY
Ethics is a philosophy which addresses moral conduct. Morality refers to the right, wrong, good or bad, something. While morality is a complex concept, it can be defined as a means and ends. Means are the process, whilst the ends are about the impact (Cherrington & Cherrington, 1995). Ethics is also defined as the code of moral principles, which establishes good or bad, good or bad behaviour standards (Schemerhorn 2008). Ethical behaviour is acceptable in the context of the governing moral code, as good and right as opposed to bad (Ahmad, 2009).
Islamic business ethics shall be defined as the moral codes of the Al-Quran and the Sunnah (Mansoureh & Kamaruzaman, 2017). Ethics thus apply to every aspect of the life of Muslims, including business and administration. Muslim experience and sometimes do not know how to deal with ethical issues at work. Unethical issues include corruption, nepotism, robbery, lying, fraud, misrepresentation, conflicts of interest, quality control issues, discrimination, information falsification, abuse of public funds, and environmental pollution (Samir, 2009). A Muslim must follow the Islamic ethical code in Islam, and it's driven by belief or iman, which implies the law of Shariah, and taking part in what is halal, avoiding haram and prohibited (Hussein, 2016).
Islamic ethics emphasize the concept of public good (Maslahah). The concept is designed to encourage the common good and human interest, to prevent it from being detrimental and dangerous for public advantage and well-being (Schatzschneide, 2012). Islamic teachings provide guidelines on specific food codes; it is crucial to establish a broad understanding of the matter in a professional-scientific knowledge of nutrition and food (Schatzschneide, 2012). These two components are essential to issue a legitimate legislation (fatwa) and therefore it is essential for Islamic scholars to work closely with food scientists and experts. However, the sources of Al-Quran and Sunnah should not be contradicted by worldly matters concerning food production.
In the discussion about the halal industry, food sustainability plays an important role. This term is broad and covers a number of food topics. World Business Council for Sustainable Development (WBCSD, 2019) defines sustainability as to meet current needs without jeopardizing the capacity of future generations to respond to their needs. Food safety is an important component of food sustainability; it seeks at maintaining the conditions and quality of food against food-borne contamination and diseases. Food safety focuses on techniques of manufacturing such as crop manufacturing, harvesting and processing, but also transportation, preparation, distribution and storage of foodstuffs (WHO, 2015). Most food-related illnesses are the cause of bacteria, viruses and parasites as well as the result of the toxicity and the transfer of chemicals from food into the body (WHO, 2019). Thus, practising appropriate and guided business ethics in producing food and beverages could guarantee food safety and its sustainability.
Some may overlook adding the Islamic adjective to business ethics. But one has to realize that Islam is not only a religion, but also a way of life, in the spiritual sense of the word. In Islam, the secular and the spiritual are not separated. There is no distinction between worship and business. Business has to do good to secure harmony community and environment.

DISCUSSION
Halal business owners need to place CSR as an important element in their activities in reference to business ethics and CSR concepts. As the business ethics emphasizes the confidence in God's creation, justice, sincerity and akhlaq. Halal's businessmen should operate their work based on this ethics to achieve the blessings of God. Halal business owners must strive to create as much profit as possible in order to contribute to the entire Muslim economy. The profitable market offered by the halal sector allows companies to maximize profit, but it also has a social responsibility towards customers. As mentioned in Islamic business ethics, it is a duty for company to be ethical in conducting their business and fulfil the CSR pyramid's ethical obligations.
In halal company, the philanthropic duties can be enforced when a company fulfil its social obligation to society. In Islam, for instance, paying zakat, sadaqah (donation) and wakaf is part of the duty of company to help the poor and those in need.
CSR is an imperative exercise for the halal company. The concept of halal and CSR are originated from Islamic teaching. The ideas of Al-Falah and Barakah should be the greatest objective for any halal company. Islamic company must guarantee that environmental and social concerns are addressed, including shareholders, clients, vendors, government, employees, public authorities and debtors.

CONCLUSION
Therefore, it is the duty of all food manufacturers to be ethical and accountable to the society that they serve. To review its company procedures and remove improper businesses from its organisation and to engage in productive and legitimate operations that benefit consumers and other stakeholders. It is the duty of everyone to look seriously at their organisation and enforce conducive policies and processes. For Muslims, halal and haram issues are serious, however it also offering everybody a good business chance. Properly processed and halal-certified consumer products are useful to seize the lucrative worldwide halal sector. As a general guide to Muslims and non-Muslims in halal food industry, the following key principles should be adopted; love God and His orders more than your trade or company, be frank and truthful, maintain your word, be humble in how we live our lives, do not cope with fraud, do not bribe and deal fairly. Further researches are required to ensure the issues of halal and CSR are addressed extensively. Study can be expanded by exploring the philosophy of Malaysia food manufacturers dealing with halal and CSR conception.