Halal Governance in Malaysian Companies
DOI:
https://doi.org/10.33102/jfatwa.vol20no1.3Keywords:
Halal, governance, Malaysian, companiesAbstract
Governance is an important component in Halal industry. Appropriate mechanism should be created to ensure the Halal certified company complies with the Shariah principles. Unlike Islamic finance, Halal industry is less regulated in term of governance. Halal certification is not compulsory and even Halal certificate holding companies do not have clear Shariah governance within the administration to ensure the company fulfil its duty and promise to the stakeholder and the customer. The establishment of proper Shariah governance framework for Halal industry will boosts confidence of the shareholders and the publics that all the practices and activities follow Shariah all the times. Thus, this study investigates current practice of Halal governance in several Malaysian companies. The internal mechanisme in Halal monitoring, controlling, improving and preventing any non-compliance will be assessed. The practice will then be compared to the practice of governance in Malaysian Islamic Financial institutions. The study will help to figure the best practice of Halal governance hence become a proper model to be followed
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Copyright (c) 2020 Yasmin Hanani Mohd Safian, Ahmad Zaki Salleh, Mohamad Aizat Jamaluddin, Muhammad Hafizuddin Jamil
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