ETHICAL CONSIDERATIONS IN HALAL SUPPLY CHAIN MANAGEMENT: BALANCING RELIGIOUS PRINCIPLES AND BUSINESS PRACTICES

Abstract

The increasing demand for halal products and services nowadays raises concerns over ethical compliance in Halal Supply Chain Management (HSCM), which could undermine the integrity of the related products and services. Multiple external and internal issues have arisen that are linked to the production process. It could be associated with both the work environment and the product itself. Therefore, the present paper intends to (1) assess the Islamic ethical framework and business practices of HSCM, (2) examine the challenges and risks associated with HSCM, and (3) integrate HSCM practices with the Sustainable Development Goals (SDGs). This study utilised a qualitative methodology, gathering data from respectable and trusted literature sources available as secondary sources. The findings demonstrate an extensive link between business practices and the Islamic ethical framework in HSCM, and it has been found that integrating both values and practices promotes moral behaviour and societal responsibility. The paramount ethical concepts in business are unity, justice, commitment, and benevolence, and these principles prioritise moral conduct, social accountability, and devotion to Islamic values. Nevertheless, the design and implementation of HSCM encountered several significant hurdles in the business process that could impede effective execution. Thus, this research also presents several recommendations and measures to ensure the harmonisation between religious principles and business processes and their correlation with the Sustainable Development Goals (SDGs).