The Integration of Blockchain Technology in Halal Supply Chain Management HSCM): Enhancing Transparency in Islamic Business Practices

Abstract

In the contemporary global halal industry, ensuring transparency, accountability, traceability, and trustworthiness across the supply chain is of paramount importance. However, the industry continues to face challenges related to fraud, mislabeling, and lack of real-time verification. This study explores the integration of blockchain technology into halal supply chain management as a strategic approach to strengthen Islamic business ethics and operational integrity. Blockchain, with its immutable ledger and decentralized system, offers a reliable platform for recording and verifying every transaction and process within the halal supply chain from sourcing raw materials to final consumer delivery. The research adopts a qualitative approach through case studies and expert interviews within halal certification bodies, logistics providers, and halal food manufacturers. It investigates the extent to which blockchain can address key challenges such as fraudulent halal claims, non-compliance risks, and lack of real-time traceability. Findings suggest that blockchain integration not only enhances the efficiency and reliability of halal certification processes but also aligns closely with the principles of amanah (trust), taqwa (good deed), and mas'uliyyah (accountability) in Islamic business conduct. This paper contributes to the growing body of knowledge on Islamic business practices by highlighting how the implementation of blockchain technology can significantly enhance transparency, reduce fraud, and streamline processes within halal supply chains. It offers practical recommendations for halal industry stakeholders, policymakers, and tech developers to leverage this innovation in upholding Shariah-compliant standards while fostering ethical practices and supporting the growth and sustainability of the halal economy.