The children of Israel had wandered away from God. They had inherited the Promised Land and in their joy of receiving the promise, they had forgotten the true God Jehovah.
God raised up the prophet Micah to speak to His people. He reminded them that He was the one that had delivered them from bondage. He didn't want sacrifices.
The prophet Micah was active during the reigns of Jotham, Ahaz and Hezekiah. He had a first hand view of the idolatrous lifestyles of the Israelites.
Jotham was an okay king (he followed God but was cursed with leprosy near the end of his reign because he decided to burn incense to God). He was not able to motivate the children of Israel to serve the true God (II Kings 15:34-35).
His son Ahaz was an idolater who sacrificed his sons to the god Baal (II Chronicles 28:1-4). Hezekiah was a good king but the people still followed after the Baals.
In chapters 2 & 3, Micah speaks about the condition of the state:
Let's look at a few of the original word meanings:
Justly: mishpat - a verdict pronounced favorably or unfavorably especially a sentence or judgement
Mercy: chesed - kindness(toward God), piety, loving mercy, mercy, pity, reproach
Humbly: tsana - to be humble, modest, lowly, to show humility
God's people were not serving him as they ought to.
In short, they were doing every thing except what God had told them to do.
God has told us what is required:
God's word reaches across the ages and speaks to us today. He doesn't want us to make sacrifices to Him.
He wants us to have a relationship with Him. He wants us to treat each other with love the kind of love that covers all flaws.