Transparency And Halal Procurement In The Hotel Industry

Abstract

The demand for the halal industry is increasing each year across the globe. Businesses are actively improving their understanding of halal products and practices in meeting this demand. As one of the highest contributors to the country's economic development, the hotel industry is not left to grab this opportunity. One of the broadest sections of the halal sector is food supply chains, focusing on halal risk management, halal integrity, halal logistics, and halal warehousing. However, the study on transparency in the halal supply chain is minimal, whereas the existing research mainly focuses on traceability. Even though transparency and traceability are intimately related, there is a major difference in properly executing halal procurement. This paper discusses the understanding of transparency, the impact of transparency in halal procurement, and management's role in practising transparency. This conceptual study was based on the comprehensive literature review of the most recent available research on transparency and halal procurement. The findings provide societal value by guiding the hotel industry or businesses to adequately implement the halal practices according to Shariah compliance, resulting in better overall services, thus recommending transparency practises in halal procurement policy. Further empirical research should be conducted in testing the relationship between transparency and halal procurement.