The Moral Obligation Toward Adopt Halal Practices

Abstract

The halal industry presents significant growth potential, extending beyond mere religious fulfilment for Muslims to encompass a broader lifestyle choice for non-Muslims. In response, JAKIM has established the Malaysian Halal Certification Standard for micro-enterprises to ensure compliance with Islamic guidelines for products and services. Adhering to halal standards enhances competitiveness and facilitates entry into global markets for micro-enterprises. However, recent issues involving illegal meat cartels and halal logo adulteration have tarnished Malaysia's reputation as a global halal leader. Therefore, fostering a sense of moral obligation among micro-enterprises is imperative to encourage the adoption of halal practices. This study seeks to validate the role of moral obligation in shaping micro-enterprises' behaviour towards halal adoption. Results from the SEM-PLS analysis of 361 micro-enterprises indicate that moral obligation significantly influences the intention to adopt halal practices. Micro-enterprises, particularly food producers, must voluntarily adhere to specific guidelines set by regulatory authorities to ensure compliance with Sharia requirements and uphold standards of cleanliness and safety in product delivery. Promoting moral obligation within halal practices is indispensable for the sustainable growth and success of micro-enterprises in the halal industry.