A T I ON

R E P U T
HA L A L E N T
A G E M
M A N
ACHSANIA
REFERENCE

HALAL BUSINESS MANAGEMENT. 2021.

MARCO TIEMAN. ROUTLEDGE PUBLISHER.
The Cadbury case clearly shows that companies
need to understand that their brand and
business can be at serious risk with a halal
incident.

The Cadbury case clearly shows that companies

need to understand that their brand and
business can be at serious risk with a halal
incident.
In May 2014, a government officer from the Ministry of Health
Malaysia leaked information about a possible porcine
contamination with two Cadbury chocolate bars manufactured in
Malaysia. This rumour went viral, resulting in a waterfall of
negative messages on social media from Muslim consumers,
Muslim associations, and Islamic non-government organisations
(NGOs).

After the leak, Cadbury’s halal certificate for these two products
was suspended for 17 days by JAKIM. Only ten days after the
leak, based on a thorough investigation by the halal authority,
JAKIM in a public statement confirmed that Cadbury products
have no porcine DNA.

During these ten days, the Muslim consumer was uncertain and
confused about the halal status of these two Cadbury products.
Although Cadbury took immediate action, such as a product recall
of the two products, it affected not only the sales of Cadbury
products in Malaysia but in many of its Muslim markets. The Cadbury
issues also infected the entire Mondelez organisation and its
brands.
 Coupling of brands occurs when
producing different product brands
Corporate halal reputation is vulnerable from one production facility.
due to the way companies are organised

Muslim markets are supplied by global

A multinational uses one production
supply networks of multinationals
plant in Thailand to produce shampoos
manufacturing their brands in different
for the entire Asian marketing under
production locations with a different
different product brands
halal context, resulting in complex
global integrated halal supply chain
networks and a coupling of brands
Companies practise co-branding at the
product level (with a special ingredient
added to a product), outlet level (for
example Coca-Cola served in all
McDonald’s restaurants), and service
level (our products are delivered by DHL)
HALAL Halal authenticity is the halal DNA of a
AUTHENCITY company and the most valuable asset for
corporate halal reputation.

HALAL STRATEGY is a plan of action designed

to achieve a long term or overall aim.

CORPORATE HALAL STRATEGY is made

visible by its halal policy
.

DEGREE OF STRATEGY ALIGNMENT,

addressing both internal and external
alignment to ensure a mu-tually rewarding
relationship between the company and its
key stakeholders enables a firm to meet its
objectives and realise its purpose
 HCBs are diverse and could either be from There are no international HCB guidelines,
a business, nongovernment organisation, and there is no global accreditation of HCBs
unit within a mosque, or a govern-ment available, there is a wide spectrum of HCBs
department available: ranging from absolutely opaque
TRUSTWORTHINESS
and untrustworthy, to highly transparent
OF HALAL and trust-worthy
CERTIFICATION BODY
(HCB)
An HCB from a Muslim-majority country,
especially if government-linked, will have a
higher perceived level of trust from the
Muslim consumer than an HCB from a non-
Muslim country.
A higher reputation of HCB will influence the
consumer perception regarding the product
compliance with halal princi-ples: its halal
integrity. Therefore, HCBs could be ranked in
order to quantify their trustworthiness
 Communication can be used to protect
reputational assets during a crisis.
Positive messages regarding the
corporate halal reputa-tion by companies
and supply chain partners contribute to a
positive corporate halal reputation

The response of a company within the supply

chain is crafted by its corporate halal reputation
strategy, and operationalised through its (or lack
of ) halal issue management and halal crisis
management capabilities Halal issue management capabilities re-quire a
solid risk mitigation and communication plan
MESSAGES BY and ex-ecution through a cross-functional risk
mitigation team.
COMPANY AND
SUPPLY CHAIN
PARTNERS THE MORE CORRECT, CONSISTENT, COMPLETE, AND CLEAR THE
CORPORATE HALAL REPUTATION STRATEGY, HALAL ISSUE
MANAGEMENT, AND HALAL CRISIS MANAGEMENT, THE HIGHER
THE CORPORATE HALAL REPUTATION.
 Negative publicity about a
halal incident becomes a
threat to both the corporate
reputation and sales of
companies.

MESSAGES BY
EXTERNAL
STAKEHOLDERS

The level of connectivity Current company media The more advanced the
with Muslim communities, coverage in relation to connectivity with Muslim
ranging from mobile halal that can be found in communities, the more
connectivity, experimental newspapers, Google, positive the current media
Facebook, YouTube, coverage and track
con-nectivity, and the
Instagram, Twitter, etc record with halal issues
ultimate level of social
and crises, the higher the
connectivity
corporate halal
reputation.

HALAL
CRISIS
A halal issue can be defined as a
gap between the stakeholder’s
expected and perceived halal
practices of a brand owner.
The trigger of a halal crisis, a
halal issue, can be classified as
contamination, non-
compliance, or perception issue
the Muslim consumer is un-certain if CONTAMINATION
he or she has been ‘poisoned’ with
haram (forbidden) ingredients in their
food, cosmetics, pharmaceuticals, or
other halal products purchased
NON COMPLIANCE
There could be non-compliance due
to breakages in the halal supply
chain, as well as issues with the halal
certificate or halal logo. This
scenario would make the halal status
of the product doubtful,
PERCEPTION ISSUE
there is a possible mismatch
between perceived brand image and
the Islamic way of life
 TASKS!

DESCRIBE WHAT IS
HALAL REPUTATION
MANGEMENT &
WHY IMPORTANT?

LIST IMPORTANT
TERMS IN HALAL
REPUTATION