Exploring strategic CSR communication on UAE banks' corporate websites

2020 ◽  
Vol 25 (3) ◽  
pp. 413-428
Author(s):  
Effrosyni Georgiadou ◽  
Catherine Nickerson
Keyword(s):  
Middle East ◽  
United Arab Emirates ◽  
Analytical Framework ◽  
Islamic Banks ◽  
Global Business ◽  
Content Type ◽  
Csr Communication ◽  
Corporate Websites ◽  
Domestic Banks ◽  
Global Banks

PurposeCommunicating CSR through corporate websites is one of the most effective ways for organizations to inform and engage stakeholders, earn legitimacy and reap the intangible and tangible benefits of practicing CSR. However, in emerging economies in the Middle East, online CSR disclosure remains limited while corporate websites are not used effectively as strategic tools. This study explores online CSR communication (CSRC) by banks in the dynamic, emerging economy of the United Arab Emirates.Design/methodology/approachThe study uses an adaptation of the analytical framework used by Chaudhri and Wang (2007) to examine the prominence and extent of the CSR information on the corporate websites of domestic and global banks in the UAE. It further compares domestic and global banks' CSRC patterns as well as domestic/government-owned versus private banks and conventional versus Islamic banks.FindingsAbout 70% of the domestic banks in the UAE provide information about their CSR activities. CSR information is moderately to highly prominent for the majority of the domestic banks, but the extent of the information presented is minimal (1–2 pages). Domestic/government-owned and conventional banks communicate their CSR more prominently and extensively than private and Islamic banks. Domestic/government-owned banks tend to follow the CSRC patterns observed in global banks.Originality/valueDespite the increasingly important role of the United Arab Emirates within the Middle East as well as on the global business arena, very little is known about whether and how companies in the country approach CSR. This is the first study focusing on CSRC within the entirety of a single business sector within the United Arab Emirates.

Drawing ethical mentation in Islamic banks; addressing operational lines heterogeneity with special reference to Al-Ghazali’s ethical philosophy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shinaj Valangattil Shamsudheen ◽  
Saiful Azhar Rosly ◽  
Syed Abdul Hamid Aljunid
Keyword(s):  
Decision Making ◽  
Special Reference ◽  
United Arab Emirates ◽  
Partial Least Square ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Ethical Philosophy ◽  
Divine Knowledge

Purpose This study aims to examine the decision-making behaviour of Islamic banking practitioners of the United Arab Emirates with special reference to the operational line heterogeneity by employing factors that are religious in nature such as intellect, satanic force and divine knowledge as encapsulated in al-Ghazali’s ethical philosophy. Design/methodology/approach A total of 337 samples were collected from the Islamic banking practitioners in the United Arab Emirates using a purposive sampling technique, and the empirical analysis was conducted with the measures of model fit and bootstrapping technique using Partial least square Structural equation modelling and multi-group analysis. Findings The empirical findings reveal that the dedicated use of intellect in making decisions related to ethical issues where desires and emotions tend to overwhelm reason and human choices. While divine knowledge is found ineffective guidance of the intellect, the element of satanic force is found significantly impacting decision-making. As the lack of religious consciousness is evident among respondents, higher exposure to operational risk is expected. These findings were found identical across the Islamic banking practitioners in different lines of operations. Research limitations/implications The span of the study is limited to a single country. Future studies are recommended to replicate the study to more markets where the share of Islamic finance is significant. Practical implications Findings of the study highly suggest respective authorities of Islamic financial institutions to intensify the capacity-building programs on the foundation of faith which includes Islamic thought and worldview, to enhance the corporate ethical decision-making. Moreover, equal importance should be given to all the banking practitioners regardless of line of business operations. Originality/value With undue emphasis is given to the juristic (fiqh) aspects of Shariah compliance in the Islamic banking and finance industry, less has been attempted to explore its ethical dimension (akhlaq) in the compliance parameters that leave a relatively large gap to address prevailing unethical practices in Islamic finance institutions. Findings from this study can be useful as a warning to the Islamic banking firms to enhance the sense of God-fearing and improve existing measures in the organisation in mitigating operational risks that may arise from people or system and consequently ensure the smooth governance of the Islamic banks.

The validity of the irrelevant theory in Middle East and North African markets: conventional banks versus Islamic banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Akram Ramadan Budagaga
Keyword(s):  
Middle East ◽  
Fixed Effects ◽  
Positive Impact ◽  
Islamic Banks ◽  
Dividend Yield ◽  
Mena Region ◽  
Content Type ◽  
Mena Countries ◽  
Growth Opportunity ◽  
Conventional Banks

Purpose The purpose of this paper is to test the validity of irrelevant theory empirically by exploring the relationship between cash dividends, profitability, leverage and investment policy with the value of banking institutions in the Middle East and North Africa (MENA) markets. Design/methodology/approach The paper adopts Ohlson’s (1995) valuation model. The author estimates models by using static panel (random and fixed effects) techniques and the dynamic technique, namely, the GMM estimation. The empirical study covers a sample of 122 conventional and 37 Islamic banks listed on stock markets in 12 MENA countries over the period 1999–2018. Findings The empirical results show that dividend yield has no significant association with the value of conventional banks, whereas profitability, growth opportunity and leverage have a significant positive impact on the value of conventional banks. In contrast, the results for a sample of Islamic banks indicate that the dividend yield, profitability and leverage have a significant positive effect on the value of Islamic banks, whereas growth opportunity has no significant effect on the value of Islamic banks. Therefore, these results support, to a greater extent, the validity of the dividend irrelevance theory of Modigliani and Miller for conventional banks but would not be accepted for Islamic banks in the MENA region. Research limitations/implications This study is restricted to a sample of one type of financial firms, banking firms listed in the MENA countries. In addition, the study has dealt with one type of dividend (the cash dividend). Practical implications Highlighting the difference between conventional and Islamic banks is crucial to understanding dividend policy behavior and to providing investors information to be integrated in their valuation setting to make informed corporate decisions. Originality/value To the best of the author’s knowledge, the present study is the first of its kind that it draws a comparative analysis by testing empirically the validity of the Irrelevant Theory to banks in the MENA region covering a long time period in the recent past.

Tribes will play politics in Middle East monarchies

2018 ◽  
Keyword(s):  
Middle East ◽  
Political Parties ◽  
United Arab Emirates ◽  
North Africa ◽  
Civil Conflict ◽  
Content Type ◽  
Political Role ◽  
Electoral Reforms ◽  
State Relations ◽  
Modern Nation State

Significance Tribe-state relations have experienced various levels of tension and cooperation in the monarchies of the Middle East and North Africa: Jordan, Morocco, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). Throughout the region, there is much discussion of a claimed tribal resurgence. In reality, however, tribes have always had a significant political role, co-existing with the modern nation-state. Impacts Potential electoral reforms to de-emphasise traditional tribal boundaries or legalise political parties could disempower tribes. Slow and cumbersome bureaucracies will encourage people to trade on tribal affiliations in order to circumvent procedures. Where central governments become weaker, especially in cases of civil conflict, tribes may step in to fill the political power vacuum.

The impact of corporate governance mechanisms on earnings management in Islamic banks in the Middle East region

2016 ◽  
Vol 7 (4) ◽  
pp. 318-348 ◽  
Author(s):  
Hounaida Mersni ◽  
Hakim Ben Othman
Keyword(s):  
Corporate Governance ◽  
Middle East ◽  
Earnings Management ◽  
Audit Committee ◽  
Islamic Banks ◽  
Governance Mechanisms ◽  
Loan Loss ◽  
Content Type ◽  
Corporate Governance Mechanisms ◽  
The Impact

Purpose The purpose of this paper is to examine whether corporate governance mechanisms affect the reporting of loan loss provisions by managers in Islamic banks in the Middle East region. Design/methodology/approach This empirical study uses balanced panel data from 20 Islamic banks, from seven Middle East countries for the period 2007 to 2011. The regression model is estimated using random effects specifications. Findings The empirical results show that discretionary loan loss provisions (DLLP) are negatively related to board size and the existence of an audit committee. Results also report a positive relationship between sharia board size and DLLP. This indicates that small sharia supervisory boards are more effective than larger ones, which could be due to the higher costs and negative effects of large groups on decision-making. Results also highlight that the existence of scholars with accounting knowledge sitting on the sharia board reduces discretionary behavior. Additional results provide evidence that an external sharia audit committee is also found to reduce discretion in Islamic banks. The conclusions are found to be robust to endogeneity issues and potentially omitted variables. Practical implications The findings are potentially useful for regulators and shareholders. Regulators could use the findings to focus on corporate governance mechanisms that restrain earnings management practices in Islamic banks and implement regulations to strengthen them. Additionally, this study gives shareholders further insight which enables them to better monitor the actions of managers and thus increase their control over their investments. Originality/value This study provides two contributions to the literature on Islamic banking. First, to the authors’ knowledge, this study is only the second piece of research focused on the impact of corporate governance on earnings management in Islamic banks. Second, the authors have examined the effect of some new corporate governance mechanisms that have not been studied previously in the research literature.

Do hotel companies communicate their environmental policies and practices more than independent hotels in Dubai, UAE?

2014 ◽  
Vol 6 (4) ◽  
pp. 362-380 ◽  
Author(s):  
Nina Rosalind Jenkins ◽  
Ioanna Karanikola
Keyword(s):  
United Arab Emirates ◽  
Environmental Sustainability ◽  
Small And Medium Enterprises ◽  
Corporate Image ◽  
Environmental Reporting ◽  
Environmental Practices ◽  
Content Type ◽  
Corporate Websites ◽  
Independent Hotels ◽  
The Impact

Purpose – This paper aims to ascertain how hotels in Dubai, United Arab Emirates (UAE), engage in environmental sustainability and what benefits and negativities can be incurred from such activity, and to determine the extent to which hotels use their own corporate websites to disseminate information pertaining to their environmental sustainability. Design/methodology/approach – The concept of corporate social responsibility (CSR) in business has infiltrated since the latter half of the twentieth century. The hotel industry claims to engage in environmental sustainability due to the impact hotels have on the environment and considering the benefits that can arise from being environmentally friendly, such as positive corporate image and awareness of company’s stakeholders regarding company’s policies, practices and initiatives. A literature review regarding the current, most commonly used environmental practices and policies of hotels was conducted and content analysis was carried out in websites of companies and independent hotels in Dubai, UAE. Findings – Key findings showed that the environmental practices and policies which were the cheapest and easiest to implement were the most commonly used among hotels, and that hotel companies provided more corporate online environmental information than independent hotels. Overall, currently, hotels in Dubai do not effectively use online environmental reporting to their stakeholders, which should be an area of improvement by 2020. Research limitations/implications – Further research should be conducted in small and medium enterprises to identify benefits and challenges of and create awareness of the importance of online environmental reporting preparing for Expo2020. Originality/value – The analysis presented aims to highlight the importance of online environmental reporting by hotels and to compare and contrast ways of communicating CSR activities between hotel companies and independent hotels in Dubai, UAE.

Securitised Middle East COVID-19 responses raise risks

2020 ◽  
Keyword(s):  
Middle East ◽  
United Arab Emirates ◽  
State Control ◽  
Healthcare Provision ◽  
Security Forces ◽  
Content Type ◽  
Privacy Concerns ◽  
State Legitimacy ◽  
Political Crises ◽  
Strong State

Significance The pandemic has compounded existing economic and political crises in Beirut and Baghdad, with the securitisation of the response straining military and state legitimacy. Conversely, despite some privacy concerns, stringent measures in the United Arab Emirates (UAE) were broadly welcomed in a context of strong state control and ample healthcare provision. Impacts Years of under-investment in public health in some countries mean medical shortages may drive new anti-government demonstrations. Where security forces are mistrusted, their involvement in the pandemic response could undermine health outcomes. COVID-19 might draw global attention away from the Middle East, changing local security and defence configurations.

Lammtara Pictures: creating a cultural entertainment organization – the way forwards

2015 ◽  
Vol 5 (3) ◽  
pp. 1-15
Author(s):  
Melodena Stephens Balakrishnan
Keyword(s):  
Middle East ◽  
Learning Outcomes ◽  
United Arab Emirates ◽  
North Africa ◽  
Subject Area ◽  
Master's Level ◽  
Content Type ◽  
Link Type ◽  
The Way

Subject area Entrepreneurship and strategy. Study level/applicability Undergraduate and graduates. Case overview This is a case that can be used to teach advanced undergraduate classes or lower-level master's level classes in the areas of strategy, leadership and entrepreneurship. The case will appeal to SMEs, policymakers in the area of entrepreneurship funding, incubators and other funding firms associated with entrepreneurs. Expected learning outcomes As the case is specific to the United Arab Emirates (UAE) – it can be used to study UAE or the Middle East North Africa region. Ideally, students should be encouraged to read up on the region/country prior to studies. They should also understand the need and state of entrepreneurship in the region. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Corporate governance of Islamic banks

2014 ◽  
Vol 7 (3) ◽  
pp. 346-362 ◽  
Author(s):  
Rihab Grassa ◽  
Hamadi Matoussi
Keyword(s):  
Corporate Governance ◽  
Southeast Asia ◽  
United Arab Emirates ◽  
Future Development ◽  
Governance Structure ◽  
Islamic Banks ◽  
Governance System ◽  
Content Type ◽  
Gcc Countries ◽  
The Future

Purpose – This paper aims to understand the current governance practices and governance structure of Islamic banks (IBs) in Gulf Cooperation Council (GCC) and Southeast Asia countries with the purpose of providing relevant information in guiding the future development of the governance system for IBs. As well, the paper discusses and compares the state of the governance system in GCC countries (Kuwait, Bahrain, United Arab Emirates, Qatar and Saudi Arabia) and Southeast Asia countries (Malaysia and Indonesia). Design/methodology/approach – The study utilizes descriptive analysis approach in extracting and analyzing data collected for 83 IBs observed for the period 2002-2011. The authors test for differences in means and medians of corporate governance attributes between a sample of IBs in GCC countries and another one for Southeast Asia countries. They use selected variables of corporate governance of different governance structures, namely, the ownership structure, the board of directors, the Shariah board and the CEO attributes. Findings – The paper findings argue that there are significant differences and divergence of corporate governance structure of IBs in GCC countries and those in Southeast Asia countries. This position acknowledges that there are shortcomings to the existing governance framework for IBs which needs further improvement and standardization. Practical implications – The paper is a very useful source of information that may provide relevant guidelines in guiding the future development of corporate governance of IBs. As well, the paper provides relevant guidelines for improving regulations and laws covering the governance of IBs. Originality/value – This paper provides fresh data and recent information on the actual corporate governance system in IBs in GCC and Southeast Asia countries. As well, the paper discusses a significant shortage in corporate governance literature of Islamic finance.

Marketing strategies in communicating CSR in the Muslim market of the United Arab Emirates: insights from the banking sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Effrosyni Georgiadou ◽  
Catherine Nickerson
Keyword(s):  
United Arab Emirates ◽  
Banking Sector ◽  
Qualitative Content Analysis ◽  
Marketing Strategies ◽  
Business Practices ◽  
Content Type ◽  
Corporate Websites ◽  
Growing Economy ◽  
Conventional Banks ◽  
Responsible Business Practices

Purpose This paper aims to explore the online corporate social responsibility (CSR) communication by domestic and global banks operating in the United Arab Emirates. Design/methodology/approach Through a qualitative content analysis, the study examines the strategies banks use to market their CSR initiatives on their corporate websites. CSR marketing strategies are classified with reference to Kotler and Lee’s (2005) categorization. Findings The analysis indicates that overall, all CSR marketing strategies, as proposed by Kotler and Lee (2005), are used by the domestic UAE banks with the most frequently used being cause-promotion, philanthropy and socially responsible business practices. Government owned and conventional banks display patterns congruent to the communications observed in the global sample. Islamic banks have a less diversified approach relying mostly on philanthropy with only one Islamic bank using four of the six strategies. Originality/value The present study provides insight into how CSR is communicated within one of the largest industries in the fast-growing economy of the UAE. The observations reported here could help corporate communication practitioners and managers in domestic corporations that contribute to the Islamic economy to understand how to benchmark better and to communicate more effectively about their CSR.

CSR communication on corporate websites compared across continents

2016 ◽  
Vol 34 (4) ◽  
pp. 501-528 ◽  
Author(s):  
Katharina Hetze ◽  
Herbert Winistörfer
Keyword(s):  
Banking Sector ◽  
Corporate Communications ◽  
Content Type ◽  
Corporate Website ◽  
Csr Communication ◽  
Related Information ◽  
Corporate Websites ◽  
Global Banking ◽  
Comprehensive Picture ◽  
Year 2000

Purpose – The purpose of this paper is to evaluate how the 106 largest banks in the world use their corporate websites for corporate social responsibility (CSR) communication, identifying CSR communication patterns by continent. Design/methodology/approach – An analysis of the location of CSR information on the banks’ corporate websites, a longitudinal analysis of the publication of CSR reports by the banks from 2000 to 2012, and a content analysis of the most current CSR reports in the recent period of study were undertaken. Findings – Three-quarters of the banks communicate on CSR issues on their corporate website – either located in the section “About Us” or under a separate “CSR” heading which is directly accessible on the front homepage. Company reports published on the website are the most important vehicle for CSR communication. Their publication increased from six for the publication year 2000 to a peak of 63 reports for the year 2011. The reports’ titles are most commonly linked to the concepts of “responsibility” or “sustainability” and refer to ten main stakeholders and topics. In a comparison between continents there is a difference in the use of titles: European banks prefer the title “Sustainability Report”, while Asian and American banks in particular prefer the title “CSR Report”. Research limitations/implications – The paper focuses on corporate communications, and therefore does not address perspectives on CSR communication from other disciplines. Within CSR communication, sources of CSR-related information other than the corporate websites have not been considered. Originality/value – This paper gives the first comprehensive picture of the trend in CSR communication on corporate websites in the global banking sector.

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