Islamic Values in Halal Organisations PDF

# Islamic Values in Halal Organisations ## Anis Najiha Ahmad, PhD Assistant Professor, International Institute for Halal Research and Training (INHART) ## Core Values ### Learning Outcomes 1. Be exposed to the definition of values and importance of values in Halal organizations. 2. Learn about...

# Islamic Values in Halal Organisations ## Anis Najiha Ahmad, PhD Assistant Professor, International Institute for Halal Research and Training (INHART) ## Core Values ### Learning Outcomes 1. Be exposed to the definition of values and importance of values in Halal organizations. 2. Learn about Islamic values 3. Understand about the integration of Islamic core values in organizational practices/management system. ## Topic Outlines | Lesson | Topic | | :------ | :--------------------------------------------------------------------------------- | | 1 | The definition of values and importance of values in Halal organisations | | 2 | Learn about Islamic values | | 3 | Core values in organisational practices/ in managing system | ## What is Value? In Your Own Word? ## The Importance of Values in Halal Organisations ### Definition of Halal Organisations - Organisations that engage with halal related services or produce Halal products, certified or non-certified. ### Effective Management System A diagram of a circle divided into four sectors is shown. Each sector is labeled as follows: - Top Management Commitment - Teamwork - Human Factors - Halal Personnel Empowerment Connected to the circle by a line is a box labeled, “Effective Management System”. ### The Importance of Values in Halal Organisations 1. An individual is the most essential element in an organisation since he or she plays a-key role in achieving the objectives of the organisation. 2. A competent and talented individual may lead his or her organisation towards excellence. 3. However, competence and talents alone are insufficient as the best performance of an individual also depends on appreciation and practice of good values. 4. Someone could be highly capable but could also be morally corrupted. ## Definition of Values - **(Ghazali, 1994) In management:** refer to something the society believes strongly on, whether it is positive or negative. - **MS 2300:2009:** beliefs of a person or social group in which they have an emotional investment (either for or against something). ## Individuals with good values are the organisation’s backbone - Individuals with positive/good values are the backbone the success of an organisation. - Fundamental core of individual values such as honesty, trustworthiness, integrity and responsiveness are imperative especially to the implementation of halal management system. ## Organisational Values - Individual values should be aligned with the shared organisational values. - Organisational values function as guides to what is seen as good and important in the organization (VandenBos, 2007; Williams, 1970). - They are influencing the selection and evaluation of decisions and actions in an organization (Kluckhohn, 1951; Rokeach, 1973; Schwartz, 1992). ## Values vs. Halal Fraud - Organisational values reflect behaviours or actions in the organization that are: - Right vs. wrong - Acceptable vs. unacceptable - Preferred vs. undesirable, - Tolerable vs. intolerable - Individuals and organisations with good values, perhaps are a great defense against multiple problems in the food industry. ## Fake halal food in Malaysia: Factories accused of packing products originating from China and India **This is a news article with a title, author, and date:** - **Title:** Fake halal food in Malaysia: Factories accused of packing products originating from China and India - **Author:** By Tingmin Koe - **Date:** 30-Jul-2018 **This article is accompanied by three smaller articles on Halal Food fraud:** 1. **Title:** U.S. businessman jailed over fraud halal exports to Malaysia - The Washington Post - Saturday, 27 Feb 2016 2. **Title:** 7 Key Considerations for Microservices-Based Application Delivery - TheStar - **Content:** This article is a list of key considerations for microservices-based application delivery, - **Source:** Expert advice on building your cloud native application strategy 3. **Title:** Concerns rise over halal fraud - **Content:** This article discusses the rise of halal food fraud. - **Author:** By Omar Sacirbey - **Date:** June 27, 2013 - **Source:** Religion News Service ## The Case of Halal Fraud **Food Fraud:** - The act of purposely altering, misrepresenting, mislabeling, substituting, or tampering with any food product at any point along the farm-to-table food supply-chain. - Food fraud can occur in the raw material, in an ingredient, in the final product, or in the food’s packaging. **Types of Food Fraud:** - **Dilution:** Process of mixing an ingredient with high value with an ingredient with a lower value. - **Substitution:** Process of replacing a nutrient, an ingredient, a food or a part of a food with another one of lower value. - **Concealment:** Process of hiding the low quality of food ingredients or products. - **Unapproved enhancement:** Process of adding unknown and undeclared compounds to food products in order to enhance their quality attributes. - **Counterfeit:** Infringements to intellectual property rights. - **Mislabeling:** False claims or distortion of the information provided on the label/packaging. - **Grey market, forgery:** Production, theft, diversion. **Motivation behind Food Fraud:** - **Economically Driven:** Motivation is ‘GAIN’. - **Ideologically Driven:** Motivation is ‘HARM’. - **Intentional:** Adulteration ## How Values Help Fighting Fraud **Ethical practices** → **Halal integrity** - Those working in the halal industry must uphold halal integrity throughout the halal supply chain by practicing and internalising ethics in daily affairs. - "But, what is integrity?" ## Control and Mitigate **Adequate mitigation measures alleviate vulnerability to food fraud** - Companies could mitigate, prevent, control this via any plans and activities which include: - Conduct lab testing - Implement product-based digital traceability - Adequate evaluation and selection of Halal suppliers - Adequate verification **Vulnerability Assessment:** - **Inherent vulnerabilities:** - Raw material composition and processing - Past and potential raw material adulteration - **Business pressure:** - Market price, Market price fluctuation. - Raw material demand/ business need. - **Your control and mitigation measures:** - Level of verifications - Adequacy of raw material specifications - Traceability - Availability of methods ## Food fraud: how the right culture can ensure integrity and systemise trust - The profit-driven focus of the food sector places pressure on employees and the food chain to deliver products at the lowest possible cost. - "Ultimately, this increases the risk of food fraud." - Arun Chauhan, fraud expert and founder of Tenet Compliance & Litigation, explains how leadership style within an organisation plays a part in preventing and mitigating the risk of food fraud. ## Cultural Shift Needed to Cut Food Fraud Risk: ‘Put Product Ahead of Profit’ - **Content:** This article discusses the need to prioritize product safety over profit in order to reduce the risk of food fraud. - **Author:** By Katy Askew - **Date:** 15-Jul-2019 - **Source:** https://www.foodnavigator.com/Article/2019/07/15/Cultural-shift-needed-to-cut-food-fraud-risk-Put-product-ahead-of-profit ## Organisational values - Organisational values are bind the employees to work and interact in order to achieve the mission and goals of an organisation. - These values provide a common ground, bonding element for members of the entire organisation. ## The Important of Values - Powerful explanation for behaviours of the individual or workers, the team and the organisation (Maznevski & Peterson, 1997; Munson & Posner, 1980). - To improve organisational effectiveness, efficiency, and the work environment - To predict individual behaviours, goals, and attitudes in the workplace (England, 1967; Sikula, 1973) ## Values in Halal Industry - Values guide decision-making and a sense of what’s important and what’s right. - In our context, Halal industry context good values is one of the defenses to fight fraud and misconduct that could affect the companies and Halal ecosystem in general. ## Part 2: Values in Islam ## Halal Professional - Islam dictates all aspects of individual Muslims’ life including the values and way Muslims shall act, conduct, and manage the business. <start_of_image> - A simple illustration of a man adjusting his tie is shown. The text "Halal Professional" is on the left. The image is surrounded by positive signs. ## Islamic Values 1. In Islam, shared values are grounded with the Oneness of God (Tawhid) paradigm 2. This paradigm that provides harmonious linkages between the worldly affairs and the Hereafter. 3. As a Muslim, this paradigm is always ever present in individual and organisational contexts, including our dealings with people from other faiths. - A word cloud is shown, the words are primarily "Tawhid" and resemble a dove. ## Goodness vs. Evil 1. The paradigm requires one to engage in the promotion of goodness (ma'ruf) and prevention of evil (munkar), 2. The two principles that are general and universal in nature. 3. In executing the fundamental duties of ma'aruf vs. munkar a person should possess knowledge, true belief and integrity. ## Halal vs. Haram 1. One’s knowledge includes a broad understanding of the concept of ma'ruf which includes goodness, righteousness, and lawful, which in turn deserve positive rewards. 2. Whilst Munkar includes bad, sins, and prohibited (haram) which in turn are related to corresponding punishment in the Hereafter. - There is a simple image to the right of this text. It is a sun and the text “Goodness!" is on the image. ## Islamic Values' ...(CONT.) ### The Islamic Value vs. The Conventional Value-Based System - **In Islamic perspective:** both tangible and intangible aspects of values are important (Shuriye & Adam 2009). - **Intentions:** which is intangible are equally important with the outcomes (i.e. productivity and quality). - **Islam considers work:** as good deeds and those who perform their duties diligently will be rewarded. ## Islamic Values' ...(CONT.) ### Islamic Value vs. Western Value | Islamic Value | Western Value | | :--------------------------------- | :--------------------------------------------------- | | The timeless religious principles | The role of the law in enforcing morality | | The different understanding of rights | The rejection of moral autonomy as a goal of moral education | | The stress on reward in the Hereafter as a motivator of moral behaviour | - **Author:** (Halstead, 2007) ## Islamic Value vs. Western Value ### What is Freedom? - **Content:** This page is about a news article on how the Sultan of Brunei gave back his Oxford degree over LGBT laws, which is in contrast to the Western value of freedom. The article also discusses George Clooney's boycott of hotels owned by the Sultan of Brunei, which is in support of LGBTQ rights. - **Source:** BBC News, Forbes News, The Washington Post, Forex.com - **Differences in view on LGBT:** is an example of incompatibility between what is considered as Western value and Islamic value. ## Other Examples? ## Western and Islamic Concepts About Animal Rights (A Comparative Study) - **Author:** Dr. Muhammad Sarwar - **Author:** Dr. Muhammad Ashfaq - **Author:** Dr. Ahmad Raza - **DOI:** https://doi.org/10.5281/zenodo.8397259 - **Keywords:** animal rights, Western perspective, Islamic perspective, ethics, religion, culture, compassion, stewardship. - **Published Date:** 17-07-2023 ## Abstract This paper explores the contrasting perspectives on animal rights in Western and Islamic traditions. The Western viewpoint often emphasizes the ethical treatment of animals based on notions of sentience, empathy, and ecological sustainability. In contrast, Islamic teachings approach animal rights through a religious and ethical framework, with emphasis on compassion, stewardship, and moderation in resource utilization. By analyzing these two distinct viewpoints, the paper contributes to a more comprehensive understanding of global perspectives on animal rights and encourages dialogue for more humane treatment of animals worldwide. The Quranic injunctions against causing unnecessary harm align with the principles of animal welfare, urging Muslims to provide for and protect animals under their care. However, differences emerge in the philosophical justifications and practical implications of animal rights. The Western discourse tends to emphasize the intrinsic value of animals' sentience, while the Islamic framework underscores the ethical responsibilities of humans as stewards of creation. ## Islamic and Western Ethical Values in Health Services Management: A Comparative Study - **Content:** This article discusses the comparative study of Islamic and Western ethical values in health services management. - **Author:** Afsaneh Mohammadi, Zohreh Vanaki, Robabeh Memarian, Ramezan Ali Fallahrafie - **First Published Date:** 15 April 2019 - **DOI:** https://doi.org/10.1111/2047-3095.12244 - **Conflict of interest:** The authors of this article hereby declare that there is no conflict of interest regarding the authorship or publication of this paper. ## 'Islam is not compatible with British values and Sadiq Khan's diversity crusade will fail' - Alex O'Connor - **Source:** GB News - **Date:** May 14, 2024 - **Content:** This article contains the opinion of Alex O'Connor. He believes that Islam is not compatible with British values and that Sadiq Khan's diversity crusade will fail. The article also includes a video of O'Connor discussing his opinion. - **Other Articles:** - Sinaloa cartel assassin extradited from Mexico: US Attorney General - Two people are injured in a motorcycle crash in Todd County ## Part 3: Core Values in Organisational Management ## Islamic Values' ...(CONT.) - Two different types of Islamic values as proposed by Wahab (2012). ### Islamic Values vs. Evidence of Values Specifically Mentioned in the Qur'an, the Hadith, and Other Islamic Sources - The values are not in contradiction with Islamic sources ## Core Values - **Responsibility** - **Coaching** - **Innovation** - **Ethics** - **Goals** - **Teamwork** - **Customers** - **Trust** ## 7 Leadership Principles at Apple | Principle | Description | | :--------------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | | Great products | We believe that we’re on the face of the Earth to make great products, and that’s not changing. | | Simple, not complex | We’re constantly focusing on innovating. We believe in the simple, not the complex | | Ecosystem | We believe that we need to own and control the primary technologies behind the products we make | | Collaboration | We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. | | Say No | We believe in saying no to thousands of projects so that we can really focus on the few that are truly important and meaningful to us. | | Excellence | We participate only in markets where we can make a significant contribution. | | Accept mistakes | We don't settle for anything less than excellence in every group in the company, and we have the self-honesty to admit when we’re wrong and the courage to change. | ## Malaysian Standard - Value-Based Management Systems - Requirements From An Islamic Perspective - **Standard:** MS 2300:2009 - **Descriptors:** value based management systems, requirements, Islamic perspectives - **Copyright:** 2009 ## Core Values for Organisation as Categorized by MS 2300:2009: **[Source: MS 2300: 2009]** | Value | Subcategories | | :-------------------- | :------------------------------------------------------ | | Piety (Taqwa) | Trustworthiness, Justice, Sincerity, Honesty, Gratefulness, Courage | | Moral (Akhlaq) | Caring, Cooperation, Courtesy, Humility, Tolerance, Respect | | Quality (Itqan) | Learning, Discipline, Commitment, Innovativeness, Efficiency, Effectiveness | ## Piety (Taqwa) - Derived from the word "waqy" (self defense and avoidance) - To observe the divine commandment, conscientiously, scrupulously and to avoid all forbidden, wicked, and shameful things (Wahab, 2012). - Achieved by iman (faith), this will lead to love and fear of Allah (swt). - Taqwa (state of mind) - Taqwa will purify one’s heart and soul and will lead him to do virtuous deeds and avoid what are sinful. ## Piety (Taqwa) - Trustworthiness (tthiqah) - Justice ('Adalah) - Sincerity (ikhlas) - Honesty (Amanah) - Gratefulness (Shukur) - Courage (Shaja'ah) ## Example of Management Practices related to Core Value of Piety (Taqwa) in Halal Management System (MS2300:2009) | Value | Example of Management Construct | Example of Management Practices | | :-------------------- | :---------------------------------- | :--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Trustworthiness (Thiqah) | Supplier Management | Fulfilling contracts and agreement with suppliers, Compliance to requirements/standard | | Justice ('Adalah) | Customer focus, Employee focus | Ensuring customer’s right is served, Ensure protection of employee’s right, No discrimination policy is available, Reward system based on tasks, Enforcement of rules for all position and employees | | Sincerity (ikhlas) | Employee commitment, Top management | Employee are sincere in ensuring the, product are produced in accordance to requirements | | Honesty (Amanah) | Document and Record Management | No data manipulation, Transparent documentation and record | | Gratefulness (Shukur) | Employee management, Employees' commitment | Appreciation of employees’ potentials, Availability of employee’s formal reward system | | Courage (Shuja'ah) | Leadership (courageous leaders' trait), Employees' commitment | Leaders prioritize fulfilling Halal requirement against profit making, Employee reports anything against Halal processing | ## Moral (Akhlaq) - **Akhlaq (plural word):** the duties and responsibilities as defined by Islamic teaching - **Khuluq (singular word):** the character in which the actor performs its actions without thought or deliberation (Omar, 1994) - **Under the ethic or moral value** (Rafiki & Wahab, 2014). - **Moral is associate with adab or good behaviour** (Halstead, 2007). - **Adab:** "the good manner adopted by Islam derived from its teachings and instructions” (Al-Kaysi, 2015). ## Moral (Akhlaq) - Caring (Ihtimam) - Cooperation (Ta'awun) - Courtesy (Mulathofah/Adab) - Humility (Tawaduk/Wadho'ah) - Tolerance (Tasaamuh) - Respect (Ihtiram/Ri'ayah) ## Example of practices related to Moral (Akhlaq) values in Halal Management System (MS2300:2009) | Value | Example of Management Construct | Example of Management Practices | | :-------------------- | :---------------------------------- | :----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Caring (Ihtimam) | Employee focus, Customer focus | Customer views are actively sought via multiple mechanisms and understood, Ensure employee’s welfare is taken care of. | | Cooperation (Ta'awun/Musa'adah) | Teamwork | Information sharing among employees or/and stakeholders in the supply chain | | Courtesy (Mulathofah/Adab) | Customer focus | Customer relationship is fostered in the company | | Humility (Tawadu'/Wadho'ah) | Employee management | A strong focus on employee engagement | | Tolerance (Tasāmuh) | Employee management | Policy and procedure for employee that are in need | | Respect (Ihtiram/Ri'āyah) | Employee empowerment, Leadership | Employee are empowered to make decisions | ## Itqan - **Itqan:** 'goodness'. - The high-quality work outcome obtained through careful, meticulous, hardworking ethics. - Highly encouraged by Islam as the quality associates directly to Allah s.w.t. - **The Prophet s.a.w said:** “Allah loves to see one's job done at the level of Itqan” (Narrated by Al-Baihaqi). ## Quality (Itqan) - Learning (Ta'allum) - Discipline (Intizam) - Commitment (iltidzam/lida') - Innovativeness (Tajdid/(ihdath) - Efficiency (Iqtidar/Fa'aliyyah) - Effectiveness (Syiddah al-Maf'ul) ## Example of practices related to Itqan values in Halal Management System (MS2300:2009) | Value | Example of Management Construct | Example of Management Practices | | :-------------------- | :------------------------------- | :-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Learning (Ta'allum) | Training for all staff | Continuous training, Resources are available for training | | Discipline (Intidzam) | Employee Management | Availability of reward and penalty system | | Commitment (Iltizam) | Top management commitment | Top management allocate adequate resources toward efforts to ensure halal integrity. | | Innovativeness (Tajdid) | Product management | Embedded innovativeness mindset/develop policy on innovation, Allocate resource for innovation | | Efficiency (fa'aliyyah) | Process management | Ensuring efficiency through process management (e.g. by mapping and identifying all processes of the companies, map and identify the firm’s competencies; define roles, responsibilities and competencies for each process; define and declare ownership for each process; think in process logic) | | Effectiveness (Fa'aliyyah) | Process management | Ensuring effectiveness through process management (developing effective procedures; clarifying the standards; monitoring activities) | ## A Question to Ponder - Out of these value which one you think could fight against halal food fraud? - **Ethical practices** → **Halal integrity** - Those working in the halal industry must uphold halal integrity throughout the halal supply chain by practicing and internalising ethics in daily affairs. - "But, what is integrity?" ## Thank You