Product-centric halal business: a critique from an Islamic perspective

Abstract

Purpose: The purpose of this paper is to explain the importance of the understanding of the halal business from an Islamic perspective. Business use of the Quranic and fiqhi word halal is now conspicuous because of the penetration of halal product ideas not only into the food products but also into the pharmaceutical, cosmetic, leisure and entertainment industries. Design/methodology/approach: This paper evaluates the Islamic authenticity of the prevailing halal business initiatives. Toward this evaluation, explains the frame of reference and shows the Islamic ethical excellence of business enterprises. This framework is based on the Quranic injunctions and instructions regarding usury (riba), intoxicants (khamr), trade with mutual consent (taradim minkum) and trading during Friday prayer (Jumuah), which have direct or indirect implications for the management of business enterprises. Then, it describes and evaluates two cases, namely, halal chicken and Sharīʿah-compliant hotel. Materials for these cases are obtained through an internet blog and literature review. Findings: The evaluation reveals that these halal business cases are overwhelmingly product-centric and they violate or neglect people’s rights. On the scale of ethics and social responsibility, while they largely maintain legal responsibility, moral and spiritual responsibilities hardly draw their attention. Hence, a need for a fundamental reorientation of halal business thought is suggested in the conclusion. Practical implications: The findings may serve as a useful input for halal business owners in improving their practices to confirm with all moral and spiritual standards of Islamic business conduct, and not the only product. These standards have significant implications for equitable growth in a society and a blissful eternal life. Originality/value: The topic of product-centric halal business has not been fully explored and understood by its stakeholders. This paper aims to give insights to an overwhelming trend toward equating halal products with the whole of the halal business.