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FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES BACHELOR OF ADMINISTRATIVE SCIENCE (HONOUR) INTRODUCTION TO PUBLIC SECTOR QUALITY MANAGEMENT (ADS 411)

WRITTEN REPORT HALAL EXCELLENT AWARD - MCDONALDS

NO.

NAME

STUDENT ID

1.

NUR DIANA BINTI NORLAN

2020853108

2.

YASMIN ALPIYAH BINTI RAHIM

2020448686

3.

FAZIRAWATI BINTI MUSRIANTO

2020827744

4.

NURUL AISYAH BINTI ISHAK

2020489484

5.

NUR AINA BALQIS BINTI NOR AZAM

2020866524

GROUP: N4AM2282C PREPARED FOR : DR MARNI BINTI HJ GHAZALI

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INTRODUCTION McDonald’s is an American fast food company which is the world largest fast service

restaurant chain with revenue and also serving over 69 million customers daily in over 100 countries. Other than the world largest fast service restaurant, McDonald's is also the world's second largest private employer with around 1.7 millions employees. In the beginning, McDonald’s was founded by Raymond Albert Kroc and Ray Kroc was the sole manufacturer of the Multimixer and it is such a milkshake device. In the 1950s, the McDonald’s brothers Richard and Maurice McDonald owned and managed a San Bernardino, California, hamburger restaurant. In 1955, Kroc opened the first McDonald’s east of the Mississippi River. Corporation revenues of McDonald's come from the royalties, rent and fees paid by the franchisees as well as the sales in company operated restaurants. Mcdonald’s started operating in Malaysia around 1982 April 29, which is the first restaurant opened at Jalan Bukit Bintang, Kuala Lumpur and it is more than 35 years ago and Saudi Arabia’s Lionhorn Pte Ltd becomes the owner of McDonald’s Malaysia through the McDonald’s Developmental Licensee franchising structure. In Malaysia, McDonald’s hired more than 12,000 workers, 95 percent of whom are Malaysians because Malaysia has about 260 restaurants. In 2025, they planned to increase the number of McDonald’s restaurants to 450 and McDonald’s has affairs with 400 local suppliers. Already more than 1000 McDonald’s managers have completed McDonald’s Restaurant Management training for each year which equips their skills into restaurant leadership, communication, and operations for today and future. One of the achievements of Mcdonald’s is Halal Excellence Award. In February 1995, McDonald’s Malaysia received the Halal Certification from the Department of Islamic Development Malaysia (JAKIM). McDonald's adheres to halal principles by making sure all the food and drink produced are 100% Halal guaranteed by JAKIM and the other Halal certification bodies where it has been approved by JAKIM. McDonald’s Malaysia also has their own Halal policy which is they said, “McDonald’s Malaysia is committed to the principle of halal by ensuring that every operational process and every menu that we served meet the Manual Procedure for Malaysia Halal Certification requirements soas to meet the consumer expectation of halal and quality food.” Moreover, all the workers are required to take the Typhoid injections from the government recognized medical centre and they also must adhere to the worker’s code of ethics and good hygiene to ensure compliance with Halal requirements.

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IMPLEMENTATION

2.1 OBJECTIVES OF THE AWARD WON BY THE ORGANIZATION McDonald’s Malaysia was the winner of the World Halal Conference 2019 Halal Corporate Social Responsibility (CSR) Excellence Award (Anonymous, 2019). The award itself has its objectives. Objectives can be defined as a specific outcome that an individual or program aims to achieve within a time frame and available resources. The Halal Excellence Award has many objectives: providing accurate inspirational role models for other companies to emulate, honouring and rewarding organisations, and promoting creativity, success, and meaningful change in the global halal economy. The first Halal Excellence Award's goal is to recognise accurate, inspiring role models for other businesses to follow. The Halal industry has made a significant contribution to economic growth since 1974. In 2017, the sector contributed 7.5 percent of GDP, and by 2020, it contributes 8.7 per cent. Exports surpassed RM40 billion, slightly above the RM50 billion goal set for 2020. Malaysian halal exports are made up of food and drinks, halal foods, and palm oil derivatives (Halal Industry Development Corporation, 2019). McDonald's, for example, is one of the most substantial Halal companies among others and can serve as a blueprint for other Halal businesses. McDonald's is one of the Halal food and beverage companies, contributing to the global growth of its products. Furthermore, other Halal organisations may follow McDonald's instructions on preparing food, serving customers, and even contributing good deeds to the communities. The second award goal is to honour and recognise organisations that have made extraordinary sacrifices and accomplishments to the development of the Halal industry as a whole. This includes incorporating ethical values into their management practices, adhering to legal requirements, and showing reverence for individuals, cultures, and the environment. McDonald's Malaysia, for example, has earned the Halal Corporate Social Responsibility Award in recognition of its service efficiency and halal commitment. Customers, legal conduct, and environmental preservation are all priorities. Muslim food and beverage spending is projected to exceed US$ 1.9 trillion by 2023, with significant investment opportunities and the establishment of global halal brands. The award recognises the team's commitment and continuing efforts to support halal food development in Malaysia. To recognise the company's service efficiency, the winner received the McDonald's Halal Social Responsibility Excellence Award.

The Halal Excellence Award's third objective is to foster imagination, innovation and a fundamental transformation of the global halal economy by recognising, in particular through the high-class brands, companies and individuals, the Malaysian Champions. The halal economy has shown its potential for further development of advanced technology and growth in investment. Companies charge for halal compliance, foodstuffs, cosmetics and drug surveillance from plant to plant on the market chain block. Most importantly, the focus is on artificial (AI), virtual (VR) intelligence and the Internet of Things (IoT) (Halal Industry Development Corporation, 2019). In McDonald's Malaysia, we are well aware of belonging and have a positive environmental effect. The organisation focused on more than 10,000 community participation programmes to help vulnerable groups around the country in 2018. In recent years, McDonald has participated in some of the activities of the CSR, which include zakah contributions and recruitment under the Ministry's National Dual Training Framework to McDonald's learning programme for eligible tenure receivers.

2.2 THE EVALUATION OF THE AWARD Every company must prioritise Muslim needs since they will become the primary source of benefit maximisation. According to Malaysia's Statistics Department, Muslims account for 61.3 percent of the country's population, making them the largest religious group than Hindus and Buddhists. The Halal Excellence Award has a few assessment requirements, including Halal food and beverage suppliers, food storage, sanitation and cleanliness, and the Halal Label. Firstly, the criteria of the Halal Excellence Award is sources of Halal food and beverages. Food and drink are primary sources to humans created by Allah S.W.T on earth as a gift to its followers. As we know, foods and drinks come from various kinds. Any business organisation must consider Muslim cannot eat pigs, dogs, and animals that not based on Islamic laws. For drinks, radioactive water and alcoholic beverages which are dangerous to human health. For example, McDonald's Malaysia is recognised as a Halal fast-food organisation as they choose Halal Certified food suppliers who have higher cleanliness. McDonald's Malaysia also prevents itself from serving wines in their menu except Coca-Cola and Milo wages to customers' every day. The meat used to make burgers has been slaughtered according to Islamic Law by suppliers. Furthermore, the Halal Excellence Award evaluates companies in their consumer processing and food cooking processes. That ensures that all food processing is Halal in McDonald’s Malaysia because the ingredients used are Halal according to Malaysia's stringent Halal specifications. McDonald's Malaysia uses no non-Halal or unhealthy foods to feed their clients on the menu, other than that. Non-Halal or healthy additives like fats, pig oils, alcohol etc. McDonald's said that in the cooking of fries and nuggets, they use vegetable oil. Indeed, plant-based vegetable oils play an essential role in supplying food. It also plays an important part in food processing, improving food flavours, adding food texture, crisping baked foods, and helping heat to cook. In addition, McDonald’s Malaysia always ensures all stock of products, chicken and beef have been slaughtered and animal skins which have been preserved by tanning. Besides, McDonald’s also insists on controlling their preparation of food by preventing themselves from using any products that are made from an animal because it is clearly forbidden in Islamic law. Other than that, aspects of hygiene and cleanliness of the workplace are also one of the criteria that is assessed by the Halal Excellence Award. It is because this aspect is

important to the customers, especially Muslims. Hygiene is defined as a condition or practice conducive to maintaining health and preventing disease, especially through cleanliness. Due to pandemic Covid-19 McDonald's have been set down or prepared a good plan on how to increase the food safety and hygiene measures . All of the staff and customers must make a practice of this new situation in our daily life . McDonald’s Malaysia has taken extra measures for its delivery service , to ensure the safety of its customers and riders .

Last but not least, The organisation shall use the name 'HALAL' and 'CERTIFIED HALAL' or other declaration to allow Muslim citizens to consume drinks, produce, prepare and sell Muslims at Halal's premises. The mark indicating the Halal-product is governed by the Commercial Description Act 1975, which includes the declaration "Halal" and the Commercial Act 1975, which label food (Dr Ahmad, 2004). For example, McDonald's Malaysia ensures that the “Halal” symbol is utilised for Muslims to consume the food consumed with confidence to promote the menu for consumers. By using the 'Halal' name, McDonald's can receive the 2019 Halal Excellence Award.

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BENEFITS OF THE HALAL EXCELLENCE AWARD TO MCDONALD’S At the World Halal Conference 2019, McDonald’s Malaysia became one of the

recipients of the Halal Corporate Social Responsibility (CSR). The award is organized by Halal Industry Development Corporation to lead people to recognise companies that have demonstrated an on-going commitment in incorporating ethical values, compliance with legal requirements and respect for individuals, communities and the environment in the way they do the business. (New Sarawak Tribune, 2019) With this award to McDonald’s, it actively give the benefit to them such as show the people that they respect Muslim employees and consumer and can gain the consumer trust by giving the guarantee of best protection and hygienic standards for them. One of the benefit is can give a demonstration of social responsibility which is show respect for Muslim employees and consumer. It will show consideration for Muslim workers and customers as part of the market process, as Halal Corporate Social Liability stated by Nestle (2020). Muslims have a high population in Malaysia. So every food business required Halal certification. This award highlighted the cleanliness, ethical values and society that only consumes halal food. It will allow citizens to think that McDonald's treatment and respect of Muslim customers and also a sign to lead customer to favour McDonald’s over other food business as their very concerned about cleanliness and society. It also can gain the customer's trust by giving the guarantee of best protection and hygienic standards for consumers, including the advantages of halal corporate social responsibility (CSR) for McDonald’s. The granting of the Halal Award ensures that it is not easy to get a Halal Certification from the enterprise of best efficiency, protection and hygiene. For the purpose to meet Halal expectations, the food requirement is in keeping with Muslim regulations on the preparation of foods such as food product and beverages that following Muslim standard and the quality of food. McDonald's also need to make sure the premise follow Muslim standard and consumer’s good.

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CONCLUSION In conclusion, McDonald's has many branches that have been operating around the

world, not least in Malaysia. The report has introduced McDonald’s background up to the successes that the world’s largest fast food company has achieved. From the success that the McDonald company has achieved, we have agreed to choose the Halal Excellent Award. There are three objective awards that have been won by the McDonald’s company. Among the objectives of the award is to inspire other traders, respect each other and recognize the organization and finally is to hone the talents of imagination, innovation and transformation. The report has also shown the evaluation criteria such as halal food and beverage suppliers, food storage, sanitation as well as hygiene and Halal labels. In the meantime, there are many benefits to be gained from the award. Among them are social responsibility and respect for Muslim workers and consumers. In addition, it can guarantee the best standards of consistency, protection and hygiene for consumers, including the benefits of Halal corporate social responsibility (CSR) for McDonald's companies. We already know that on April 29, 1982 McDonald's started operating in Malaysia until today which focuses more on Halal food. This is because McDonald’s gains a lot of its market share and customers come from Muslims. McDonald's is one of the fast food restaurants in Malaysia that is trusted by consumers, especially Muslim consumers. Furthermore, McDonald’s has undergone rigorous scrutiny by Muslim clerics. This aims to ensure that the ritual cleanliness of the chain gets a Halal certificate indicating absolutely no pork products. In order to obtain awards such as the Halal Excellent Award, McDonald's needs to find a trusted supplier with a Halal certificate to process food at McDonald's. Finally, McDonald's has contributed significantly to the understanding and acceptance of Halal certification and the development of Halal products.

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REFERENCES

McDonald’s Malaysia receives Halal CSR Excellence Award | Borneo Post Online. (2019, April 10). Borneo Post Online; http://www.facebook.com/borneopost.online. https://www.theborneopost.com/2019/04/11/mcdonalds-malaysia-receives-halal-csr-excellen ce-award/ Halal Malaysian Portal. (n.d.). Halal Malaysian Portal. Retrieved April 29, 2021, from http://www.halal.gov.my/v4/index.php?data=bW9kdWxlcy9uZXdzOzs7Ow==&utama=pandu an&ids=gp2 McDonald’s Malaysia receives Halal CSR Excellence Award at World Halal Conference 2019 - New Sarawak Tribune. (2019, April 9). New Sarawak Tribune; https://www.facebook.com/newsarawaktribuneofficial/. https://www.newsarawaktribune.com.my/mcdonalds-malaysia-receives-halal-csr-excellenceaward-at-world-halal-conference-2019/ ScienceDirect.com | Science, health and medical journals, full-text articles and books. (n.d.). ScienceDirect.Com | Science, Health and Medical Journals, Full-Text Articles and Books. Retrieved April 29, 2021, from https://www.sciencedirect.com/science/article/pii/S1877042814011446/pdf?md5=0e6e1c490 bf059439dccbef11122eeef&pid=1-s2.0-S1877042814011446-main.pdf

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