Exploring CSR in Ḥalal Industry: Insights from Malaysia

  • Shifa Mohd Nor Universiti Kebangsaan Malaysia
  • Mohd Helmi Ali Universiti Kebangsaan Malaysia
  • Aisyah Abdul-Rahman Universiti Kebangsaan Malaysia
  • Nurun Najihah Subakir Universiti Kebangsaan Malaysia
Keywords: Corporate social responsibility, Ḥalāl industry, Islamic moral economy, Ḥalāl products and services, Ḥalāl consumers


The ḥalāl industry in Malaysia has rapidly developed at international level. Not only Muslims provide and consume ḥalāl products and services nowadays. In fact, it has become a profitable business as it not only fulfills the needs of Muslims but it also captures the interest of non-Muslim consumers. Among the factors for accepting ḥalāl products and services beside religiosity is globalization. Through globalization and technology advancement, consumers embrace new culture and preference.  With growing demand for ḥalāl products and services focusing on ḥalāl certification and assurance, the ḥalāl industry has overlooked the importance of CSR which is important according to Islamic teachings. Therefore, this paper attempts to explore CSR understanding among consumers of ḥalāl industry in Malaysia. A web survey was carried out with 345 respondents in Malaysia. The results revealed that consumers are highly aware and have knowledge on CSR. Consumers believe that the ḥalāl industry needs to give back to society, ensure good governance and transparency besides offering quality products and services. The main motivation to perform CSR in Islām is religiosity. The study suggests that CSR may contribute to business sustainability by integrating social and economic objectives of the business as imposed in the Islamic moral economy.


Abd Aziz, N, H. Majdina, Y. Hassan, H.H. Zulkifly, M.S. Abd Wahab, M.S. Abd Aziz, N. Yahaya. and H.A. Abdul Razzaq. “Assessment of the Ḥalāl Status of Respiratory Pharmaceutical Products in a Hospital.” Procedia - Social and Behavioral Sciences 121 (2014): 158–65.

Ali, A., A. Ali, G. Xiaoling, M. Sherwani, and S. Hussain. “Expanding the Theory of Planned Behaviour to Predict Chinese Muslims Ḥalāl Meat Purchase Intention.” British Food Journal 120, no. 1 (2018): 2–17.

Amacanin, M.C. “The Strategic Implications of Corporate Responsibility and Sustainability in the UK Banking Sector.” Doctoral Dissertation, University of Nottingham, 2005.

Ambali, A.R., and A.N. Bakar. “People’s Awareness on Ḥalāl Foods and Products: Potential Issues for Policy-Makers.” Procedia - Social and Behavioral Sciences 121 (2014): 3–25.

Amran, A., H. Fauzi, Y. Purwanto, F. Darus, H. Yusoff, M. Zain, D. Naim, and M. Nejati. “Social Responsibility Disclosure in Islamic Banks: A Comparative Study of Indonesia and Malaysia.” Journal of Financial Reporting and Accounting 15, no. 1 (2017): 99–115.

Antara, P.M., R. Musa, and F. Hassan. “Bridging Islamic Financial Literacy and Ḥalāl Literacy: The Way Forward in Ḥalāl Ecosystem.” Procedia Economics and Finance 37 (2016): 196–202.

Asutay, M. “Conceptualisation of the Second Best Solution in Overcoming the Social Failure of Islamic Finance: Examining the Overpowering of Homoislamicus by Homoeconomicus.” IIUM Journal in Economics and Management 15, no. 2 (2007): 167-95.

Azid, T., and M. Asutay. “Does Ethico-Moral Coalition Complement to Economic Coalition? A Response in the Periphery of Islamic Economics.” Humanomics 23, no. 3 (2007): 153–73.

Badruldin, B., Z. Mohamed, J. Sharifuddin, G. Rezai, A.M. Abdullah, I. Abd Latif, and M.G. Mohayidin. “Clients’ Perception towards JAKIM Service Quality in Ḥalāl Certification.” Journal of Islamic Marketing 3, no. 1 (2012): 59–71.

Bonne, K., I. Vermeir, F. Bergeaud‐Blackler, and W. Verbeke. “Determinants of Ḥalāl Meat Consumption in France.” British Food Journal 109, no. 5 (2007): 367–86.

Bowen, H.R. “Social Responsibilities of the Businessman.” New York: Harper, 1953.

Brammer, S, G. Williams, and J. Zinkin. “Religion and Attitudes to Corporate Social Responsibility in a Large Cross-Country Sample.” Journal of Business Ethics 71, no. 3 (2007): 229-43.

Bryman, A. “Social Research Methods.” Oxford: Oxford University Press, 2016.

Carroll, A.B. “The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders.” Business Horizons 34 (1991): 39–48.

______. “Corporate Social Responsibility: Evolution of a Definitional Construct.” Business and Society 38, no. 3 (1999): 268-95.

Dinar-Standard and Dar-Al Istithmar. “Social Responsibility Trends at Islamic Financial Institutions.” Comparative Political Studies 37, no. 8 (2010).

Dusuki, A.W. “Banking for the Poor: The Role of Islamic Banking in Microfinance Initiatives.” Humanomics 24, no. 1 (2008a): 49-66.

______. “What Does Islām Say about Corporate Social Responsibility?” Review of Islamic Economics 12, no. 1 (2008b): 5–28.

El-Gamal, M.A. Islamic Finance: Law, Economics, and Practice. New York: Cambridge University Press, 2006.

El-Gohary, H. “Halal Tourism, is it Really Halal?” Tourism Management Perspectives 19 (2016): 124-30.

Exter, N., S. Cunha, and C. Turner. The Business Case for Being a Responsible Business. http://www.bitc.org.uk/sites/default/files/kcfinder /files/Business_case_final1.pdf

Farrag, D.A, and M. Hassan. “The Influence of Religiosity on Egyptian Muslim Youths’ Attitude towards Fashion.” Journal of Islamic Marketing 6, no. 1 (2015): 95–108.

Friedman, M. “A Friedman Doctrine - The Social Responsibility of Business is to Increase its Profits.” New York Times Magazine 13 (1970): 32-3. http://www.nytimes.com/.

Garriga, E., and D. Melé. “Corporate Social Responsibility Theories: Mapping the Territory.” Journal of Business Ethics 53, no. 1-2 (2004): 51–71.

Global Islamic Finance Report. “Overview of the Global Islamic Finance Industry.” 2017. http://www.gifr.net/publications/gifr2017/intro.pdf

Graafland, J., C. Mazereeuw, and A. Yahia, “Islām and Socially Responsible Business Conduct: An Empirical Study of Dutch Entrepreneurs.” Business Ethics: A European Review 15, no. 4 (2006): 390–406.

Henderson, J.C. “Ḥalāl Food, Certification and Ḥalāl Tourism: Insights from Malaysia and Singapore.” Tourism Management Perspectives 19 (2016): 160-4.

Herijanto, H. “The Raḥmatan li’l-‘ālamīn in Islamic Law and Economics.” International Journal of Business Marketing and Management 2, no. 1 (2017): 21–7.

Husain, R., I. Abd. Ghani, F. Mohammad, and S. Mehad. “Current Practices among Ḥalāl Cosmetics Manufacturers in Malaysia.” Journal of Statistical Modeling and Analytic 3, no. 1 (2012): 46–51.

Ibrahim, O, S.Z.M. Samsi, and M.F. Ahmad. “Ḥalāl Business Corporate Social Responsibility.” In International University Social Responsibility Conference and Exhibition, Kuala Lumpur, 2010.

Ismaeel, M. and K. Blaim. “Toward Applied Islamic Business Ethics: Responsible Ḥalāl Business.” Journal of Management Development 31, no. 10 (2012): 1090–100.

Jais, A.S. “Ḥalāl in Mainstream Education: Where Are We Now and What the Future Holds for Ḥalāl Education.” In International Seminar On Global Education II, (2014): 1-15.

Kaplowitz, M.D., T.D. Hadlock, and R. Levine. “A Comparison of Web and Mail Survey Response Rates.” Public Opinion Quarterly 68, no. 1 (2004): 94–101.

Karaosmanoglu, E., N. Altinigne, and D.G. Isiksal. “CSR Motivation and Customer Extra-Role Behavior: Moderation of Ethical Corporate Identity.” Journal of Business Research 69, no. 10 (2016): 4161–7.

Laudal, T. “Drivers and Barriers of CSR and the Size and Internationalization of Firms.” Social Responsibility Journal 7, no. 2 (2011): 234–56.

Marques-Mendes, A. and M.J. Santos. “Strategic CSR: An Integrative Model for Analysis.” Social Responsibility Journal 12, no. 2 (2016): 363-81.

Mazereeuw-van der Duijn Schouten, C., J. Graafland, and M.J. Kaptein. “Religiosity, CSR Attitudes, and CSR Behavior: An Empirical Study of Executives’ Religiosity and CSR.” Journal of Business Ethics 123, no. 3 (2014): 437–59.

Mohamed, A.S., and R. Ofteringer. “Rahmatan Lil-’alamin (A Mercy to All Creation): Islamic Voices in the Debate on Humanitarian Principles.” International Review of the Red Cross 97, no. 897–898 (2015): 371–94.

Mohd Dasuqkhi, M.S., M. Sahri, M.M. Khalid, and M.A.Z. Yaakob. “Introducing Ḥalālan Tayyiban Concept in Global Industry Practices: An Innovative Attempt.” International Proceedings of Economics Development and Research 44 (2013): 44-9.

Mohd Nor, S. “Integrating Moral in a Dynamic Model of Corporate Social Responsibility in Islamic Economics and Finance.” Asian and African Area Studies 11, no. 2 (2012): 137–50.

______, and N.A. Hashim. “CSR and Sustainability of Islamic Banking: The Bankers View.” Jurnal Pengurusan 45 (2015): 73 – 81.

______, R. Abdul Rahim, and Z. Che Senik. “The Potentials of Internalising Social Banking among the Malaysian Islamic Banks.” Environment, Development and Sustainability 18, no. 2 (2016): 347–72.

______. “Islamic Social Bank: An Adaptation of Islamic Banking?” Jurnal Pengurusan 46 (2016): 43-52.

Moon, J. “Responsibility to Sustainable Development.” University Business 306, no. 5 (2007): 296–306.

Mukhtar, A., and M.M. Butt, “Intention to Choose Ḥalāl Products: The Role of Religiosity.” Journal of Islamic Marketing 3, no. 2 (2012): 108–20.

Murphy, Maurice J, and Jan M Smolarski. “Religion and CSR: An Islamic ‘Political’ Model of Corporate Governance.” Business and Society, 2017. https://doi.org/10.1177/0007650317749222

Muslim ibn al-Hajjāj. Ṣaḥīḥ Muslim. Riyadh: Dār al-Salām, 2000.

Nazri, M. A., N.A. Omar, and A.J. Mohd Hashim. “Corporate Social Responsibility and Market Orientation: An Integrated Approach towards Organizational Performance.” Jurnal Pengurusan 52 (2018): 121-32.

Naqvi, S N.H. Perspectives on Morality and Human Well-Being: A Contribution to Islamic Economics. Leicester: The Islamic Foundation, 2003.

Nik Zam, N.W., N. Saidi, and S. Razak. “Ḥalāl Related Information: Corporate Social Responsibility Disclosures by Malaysian Food Industries.” Journal of Applied Environmental and Biological Science 4 (2014): 35–40.

Pallant, J. SPSS Survival Manual: A Step by Step Guide to Data Analysis Using SPSS. Step by Step Guide to Data Analysis Using the SPSS Program, 2016.

Pava, M.L. “Developing a Religiously Grounded Business Ethics: A Jewish Perspective.” Business Ethics Quarterly 8, no. 1 (1998): 65–83.

Platonova, E. “Corporate Social Responsibility from an Islamic Moral Economy Perspective: A Literature Survey.” Afro Eurasian Studies 2, no. 1-2 (2013): 272–97.

Rim, H., and C. Dong. “Trust and Distrust in Society and Publics’ Perception of CSR.” Social Responsibility Journal 14, no. 1 (2018): 1-19.

Samori, Z., and N. Sabtu. “Developing Ḥalāl Standard for Malaysian Hotel Industry: An Exploratory Study.” Procedia - Social and Behavioral Sciences 121 (2014): 144–57.

Sekaran, Uma, and Roger Bougie. Research Methods for Business: A Skill Building Approach. New Jersey: John Wiley & Sons, 2016.

Shah Alam, S., and N. Mohamed Sayuti. “Applying the Theory of Planned Behavior (TPB) in Ḥalāl Food Purchasing.” International Journal of Commerce and Management 21, no. 1 (2011): 8–20.

Shamir, R. “The De-Radicalization of Corporate Social Responsibility.” Critical Sociology 30, no. 3 (2004): 669–89.

Sharp, Z. and N. Zaidman. “Strategization of CSR.” Journal of Business Ethics 93 (2010): 51-71.

Shaw, W.H. “Marxism, Business Ethics, and Corporate Social Responsibility.” Journal of Business Ethics 84, no. 4 (2009): 565–76.

Siwar, C., and S. H. Md Harizan. “A Study on Corporate Social Responsibility Practices Amongst Business Organisations in Malaysia.” Institute for Environment and Development, Universiti Kebangsaan Malaysia (2006): 1–16.

Smith, A. “Making the Case for the Competitive Advantage of Corporate Social Responsibility.” Business Strategy Series 8, no. 3 (2007): 186–95.

Tabachnick, B.G., and L.S. Fidell. “Multivariate Analysis of Variance and Covariance.” Using Multivariate Statistics 3 (2007): 402–17.

Tieman, M. “Establishing the Principles in Ḥalāl Logistics.” Journal of Emerging Economies and Islamic Research 1 (2013): 1–13.

______. and Che Ghazali, M. “Ḥalāl Control Activities and Assurance Activities in Ḥalāl Food Logistics.” Procedia - Social and Behavioral Sciences 121 (2014): 44–57.

Tripp, C. Islām and the Moral Economy: The Challenge of Capitalism. Cambridge: Cambridge University Press, 2006.

Wan Jusoh, W.N.H., and U. Ibrahim. “Corporate Social Responsibility of Islamic Banks in Malaysia: Arising Issues.” Islamic Economic Studies 25 (Special Issue) (2017): 155–72.

Wibowo, M.W., and F. Sheikh Ahmad. “Non-Muslim Consumers’ Ḥalāl Food Product Acceptance Model.” Procedia Economics and Finance 37, no. 16 (2016): 276–83.

Williams, G., and J. Zinkin. “Islām and CSR: A Study of the Compatibility Between the Tenets of Islām and the UN Global Compact.” Journal of Business Ethics 91, no. 4 (2010): 519–33.

Wines, W.A. “Seven Pillars of Business Ethics: Toward a Comprehensive Framework.” Journal of Business Ethics 79, no. 4 (2008): 483–99.

Wright, K. B. “Researching Internet-Based Populations: Advantages and Disadvantages of Online Survey Research, Online Questionnaire Authoring Software Packages, and Web Survey Services.” Journal of Computer-Mediated Communication 10, no. 3 (2006).

Yunos, R.M., C.F. Che Mahmood, and N.H. Abd Mansor. “Understanding Mechanisms to Promote Ḥalāl Industry-The Stakeholders’ Views.” Procedia - Social and Behavioral Sciences 130 (2014): 160–6.

Yusof, M., L. Mohd Nor, and J.E. Hoopes. “Virtuous CSR: An Islamic Family Business in Malaysia.” Journal of Family Business Management 4, no. 2 (2014): 133–48.

How to Cite
Mohd Nor, S., Ali, M. H., Abdul-Rahman, A., & Subakir, N. N. (2019). Exploring CSR in Ḥalal Industry: Insights from Malaysia. International Journal of Economics, Management and Accounting, 27(2), 423-443. Retrieved from https://journals.iium.edu.my/enmjournal/index.php/enmj/article/view/635