This entry initially came out of a comment I made at Screenshots, where it occured to me in passing, but after pressing the ‘Post’ button I mulled over it and mulled some more, and here’s the thing: with respect to the whole furore over whether the sausages served at IKEA and produced by Mueller were encased in pork casings or otherwise, isn’t it always in the best interest of the company to have a JAKIM Halal certification? OK, perhaps it is best that I start at the beginning…
Two days ago I read in Utusan Malaysia that the companies currently under investigation for producing non-halal sausages were found not guilty of said offence – instead they were fined for operating with an expired JAKIM Halal certification. While I am unfamiliar with the whole system, I would conjecture here that the certification process would include periodic assessments conducted by JAKIM to ensure that the processes undertaken by the firm was indeed operating according to halal standards.
Now what struck me is that – if the certification expired, then why didn’t the company apply for a renewal? Given that Malaysian Muslims are very sensitive about halal food, wouldn’t it be in the best economical interest of food processing companies to have this certification? If we were to transpose this onto an agency theory framework, then we could argue that the certification is some form of bonding mechanism, not dissimilar to the audit process firms undergo – with one aim in mind: to reassure shareholders, or in this case, the general public, that they are indeed, kosher.
More: Read the rest of this entry…
