scholarly journals Customer CSR expectations in the banking industry

2014 ◽  
Vol 32 (3) ◽  
pp. 223-244 ◽  
Author(s):  
Andrea Pérez ◽  
Ignacio Rodríguez del Bosque
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Industry ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Content Type ◽  
High Expectations ◽  
Savings Banks ◽  
Corporate Social ◽  
Corporate Crisis

Purpose – The purpose of this paper is to examine customer corporate social responsibility (CSR) expectations in the crisis context of the Spanish banking industry. The paper also takes into consideration the role that corporate governance structure plays in customer CSR expectations. Design/methodology/approach – Analysing 648 customers of savings banks and 476 customers of commercial banks, several univariate statistics and two cluster analyses are implemented. Findings – The authors identify significantly consistent patterns in the CSR expectations of savings banks and commercial banks customers. The customers of both types of banking companies have similar high expectations concerning the CSR oriented to customers, shareholders and supervising boards, employees, the community and legal and ethical CSR. Also customers of both types of banking companies can be consistently classified as customer oriented, legally (customer)-oriented and CSR-oriented customers depending on their CSR expectations. Practical implications – These results have interesting implications for managers because it allows them to develop optimal CSR based on their customers’ expectations. In this regard, it is observed that the CSR expectations of savings banks and commercial banks customers are quite homogeneous in such a way that the traditional differentiation in the CSR implemented by savings banks and commercial banks may be no longer justified. Originality/value – Previous scholars who have analysed customer CSR expectations have not studied them in a crisis context. This paper contributes to literature by proposing new managerial strategies for companies facing a product or corporate crisis. Scholars studying customer CSR expectations in the banking industry have not considered the role of corporate governance structure either. This paper provides detailed information about the CSR expectations of savings banks customers and commercial banks customers.

Corporate governance failure at Ricoh India: rebuilding lost trust

2018 ◽  
Vol 8 (4) ◽  
pp. 1-20
Author(s):  
Sonu Goyal ◽  
Sanjay Dhamija
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Multinational Corporations ◽  
Audit Committee ◽  
Governance Structure ◽  
Special Focus ◽  
Corporate Governance Structure ◽  
Content Type ◽  
External Auditors ◽  
The Board Of Directors

Subject area The case “Corporate Governance Failure at Ricoh India: Rebuilding Lost Trust” discusses the series of events post disclosure of falsification of the accounts and violation of accounting principles, leading to a loss of INR 11.23bn for the company, eroding over 75 per cent of its market cap (Financial Express, 2016). The case provides an opportunity for students to understand the key components of corporate governance structure and consequences of poor corporate governance. The case highlights the responsibility of the board of directors, audit committee and external auditors and discusses the changes required in the corporate governance structure necessary to ensure that such incidents do not take place. The case also delves into the classic dilemma of degree of control that needs to be exercised by the parent over its subsidiaries and freedom of independence given to the subsidiary board, which is a constant challenge all multinationals face. Such a dilemma often leads to the challenge of creating appropriate corporate governance structures for numerous subsidiaries. Study level/applicability The case is intended for MBA courses on corporate governance, business ethics and also for the strategic management courses in the context of multinational corporations. The case can be used to develop an understanding of the essential of corporate governance with special focus on the role of the board of directors, audit committee and external auditors. The case highlights the consequences and cost of poor corporate governance. The case can also be used for highlighting governance challenges in the parent subsidiary relationship for multinational corporations. The case can be used for executive training purposes on corporate governance and leadership with special focus on business ethics. Case overview This case presents the challenges faced by the newly appointed Chairman Noboru Akahane of Ricoh India. In July 2016, Ricoh India, the Indian arm of Japanese firm Ricoh, admitted that the company’s accounts had been falsified and accounting principles violated, leading to a loss of INR 11.23 bn for the financial year 2016. The minority shareholders were agitating against the board of directors of Ricoh India and were also holding the parent company responsible for not safeguarding their interest. Over a period of 18 months, Ricoh India had been in the eye of a storm that involved delayed reporting of financials, auditor red flags regarding accounting irregularities, a forensic audit, suspension of top officials and a police complaint lodged by Ricoh India against its own officials. Akahane needed to ensure continuity of Ricoh India’s business and also act quickly and decisively to manage the crisis and ensure that these incidents did not recur in the future. Expected learning outcomes The case provides an opportunity for students to understand the key components of corporate governance structure and consequences of poor corporate governance. More specifically, the case addresses the following objectives: provide an overview of corporate governance structure; highlight the role of board of directors, audit committee and external auditors; appreciate the rationale behind mandatory auditor rotation; appreciate the consequences of poor corporate structure; explore the interrelationship between sustainability reporting and transparency in financial disclosures of a corporation; understand management and governance of subsidiaries by multinational companies; and understand the response to a crisis situation. 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. Subject code CSS 11: Strategy.

The role of national culture in the impact of board gender diversity on firm performance: evidence from a multi-country study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Navaz Naghavi ◽  
Saeed Pahlevan Sharif ◽  
Hafezali Bin Iqbal Hussain
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Data Set ◽  
Content Type ◽  
Board Gender Diversity ◽  
The Impact

PurposeThis study seeks to add more insights to the debate on “whether”, “how”, and “under which condition” women representation on the board contributes to firm performance. More specifically, the current study aims to investigate if the effect of board gender diversity on firm performance is dependent on macro factors of national cultures.Design/methodology/approachThe authors used the generalized method of moments regression and a data set consists of 2,550 company year observations over 10 years.FindingsThe results indicated that cultural variables interact with board diversity to influence firm performance. Having women on the board in countries with high power distance, individualist, masculine and low-uncertainty avoidance culture influences the firm performance negatively.Originality/valueThe findings indicate that the effects of corporate governance structure on firm performance depends on culture-specific factors, providing support for the argument that institutional norms that are governed by cultural norms affect the effectiveness of corporate governance structure.

Applications of business governance and the Unified BPM Cycle in public credit recovery activities

2019 ◽  
Vol 26 (1) ◽  
pp. 312-330
Author(s):  
Abimael Rondon Do Nascimento ◽  
Roquemar de Lima Baldam ◽  
Lourenço Costa ◽  
Thalmo de Paiva Coelho Junior
Keyword(s):  
Corporate Governance ◽  
Single Case ◽  
Governance Structure ◽  
Credit Recovery ◽  
Future Research ◽  
Corporate Governance Structure ◽  
Content Type ◽  
Public Credit ◽  
Operational Activities

Purpose The performance of the state machine has been the subject of research and innovative practices, which seek to explore its sources of knowledge and improve its internal processes. Business governance and business process management (BPM) occupy a prominent position in these studies. The purpose of this paper is to analyze the full implementation of the Unified BPM Cycle in operational activities to recover federal public credit, from the implementation of the corporate governance structure to the audit of the processes implemented. Design/methodology/approach The case was developed in a federal public advocacy body and used a predominantly qualitative multi-method approach. The phases were organized using the research project matrix, and the predominant research procedure was action research. The information was obtained through questionnaires, observation and focus groups. Findings A corporate governance structure was designed for the activities surveyed. Papers and responsibilities were defined. Processes were prioritized, improved and documented, and as a result of the implemented control, personal and organizational results gained greater visibility. Research limitations/implications Because this is a single case study, it would be advisable to apply the method used in similar organizations to enrich the analysis presented in this study and compare the results. Practical implications This paper contributes to the consolidation of the knowledge about the practical application of the researched subjects and foments the applied research to the public management. Originality/value This paper describes an empirical case study about the integrated application of activity governance and the Unified BPM Cycle in operational activities and studies all phases of implementation, providing a broader perspective of their impact on these activities. The road map used can serve as a reference for future research in the area of public credit recovery.

Embedding corporate governance and corporate social responsibility in emerging countries

2016 ◽  
Vol 58 (3) ◽  
pp. 299-316 ◽  
Author(s):  
Shigufta Hena Uzma
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Governance Structure ◽  
Emerging Countries ◽  
Corporate Disclosure ◽  
Content Type ◽  
Legal Enforcement ◽  
The Government ◽  
Corporate Social

Purpose This paper aims to examine how the governance structure incorporates corporate social responsibility (CSR) into corporate behaviour in the perspective of the external environment within emerging countries. Design/methodology/approach The paper reviews the various CSR legislations enacted in the global context and in particular reference to the Indian Companies Act 2013. Findings The embedded relationship between CSR and corporate governance (CG) is an outcome of extensive dimensions such as ownership structure, stakeholder approach and other external environmental factors such as the government regulations and legislation, legal enforcement and corporate disclosure culture. Originality/value The enactment of the Companies Act 2013 in India has infused a new direction for the corporations in implementing CSR and CG practices. This paper throws light on the coverage of the Companies Act 2013 and various challenges faced by the companies in the applicability of the CSR and CG framework in the Indian context.

A “Big Bath” in China: accounting and corporate governance

2011 ◽  
Vol 1 (1) ◽  
pp. 1-6
Author(s):  
Mingchuan Ren
Keyword(s):  
Corporate Governance ◽  
Governance Structure ◽  
Subject Area ◽  
Performance Criteria ◽  
Corporate Governance Structure ◽  
Content Type ◽  
Accounting Practice ◽  
Creative Accounting ◽  
The Government ◽  
One Year

Subject area Accounting, corporate governance, business ethics. Study level/applicability MBA and EMBA. Case overview China has largely changed its accounting practice in line with international norms. But its corporate governance structure continued to be administratively driven. Many Chinese-listed companies, especially big ones, are transformed from state-owned enterprises, with the government as their largest shareholder. It is no exception to Company C. Then what is the common pattern of accounting behaviour in China? An insight could be drawn by analysing this case. Expected learning outcomes Highlight two issues in point, namely accounting issue and governance issue. Chinese companies are now allowed to choose their accounting policies, while their top decisions are subject to government policies. Identify Company C's creative accounting by discussing China's accounting reform. In this regard, China has been relatively robust in terms of dropping its own practice and adopting western one. Discuss the corporate governance issues unveiled. What are company's performance criteria? Are they clearly established and enforced? And what about government's decision to change CEO twice in less than one year? What are the impacts on CEO's behaviour? Supplementary materials Teaching note.

Corporate social responsibility, governance and stakeholders: a bank in the upbeat of the crisis

2016 ◽  
Vol 12 (4) ◽  
pp. 388-412 ◽  
Author(s):  
Frank Jan de Graaf
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Governance Structure ◽  
Governance System ◽  
Content Type ◽  
Social Responsibilities ◽  
The Social ◽  
Corporate Social ◽  
A Company

Purpose Using the global financial crisis as a critical event and based on institutional theory and stakeholder theory, this paper aims to explore the relationship between corporate governance and corporate social responsibility (CSR). The question is how stakeholders can influence corporate responses to societal change by using their position in the governance structure. Design/methodology/approach The analysis is based on a historical analysis of data collected mainly between 2002 and 2004. The historical perspective enables an understanding of the response of the company to environmental changes. Findings The approach enables researchers to relate the normative component of CSR to specific governance mechanisms. These governance mechanisms are specified in direct and indirect influence pathways. Historical data shed light on how, in the upbeat of the crisis, stakeholders have influenced the principles and policies of the ING Group, a Dutch financial company. Research limitations/implications The paper suggests that stakeholders influence principles – normative assumptions that guide corporate decisions – mainly in dialogue-based meetings (direct influence pathways). Companies are made accountable in indirect influence pathways such as regulations. The author also demonstrates that a historical approach enables an understanding of long-term historical developments and the linking of corporate policies to the normative assumptions of stakeholders. Practical implications If stakeholders wish to assess the social responsibility of a company, then they should assess the governance structure in relation to the principles and policies. The power structure within a company and that within the institutional framework in which the company operates (the governance system) strongly influences how a company executes its social responsibilities. Social implications The paper demonstrates how stakeholders can use the governance structure to influence a bank. If society – or a specific group in society – wants banks to play a different role, this paper points to what could be the levers of change in the governance system and the governance structure. Originality/value Insights into the complex relationship between corporate governance and the processes in which the social responsibilities of a company are developed.

Corporate governance dynamics and wealth effects: evidence from large loss acquisitions and large gain acquisitions in the USA

2019 ◽  
Vol 19 (2) ◽  
pp. 353-371 ◽  
Author(s):  
Seung Hee Choi ◽  
Samuel H. Szewczyk ◽  
Maneesh Chhabria
Keyword(s):  
Corporate Governance ◽  
Governance Structure ◽  
Wealth Effects ◽  
Strategic Decisions ◽  
Corporate Governance Structure ◽  
Large Loss ◽  
Content Type ◽  
Large Gain ◽  
The Usa ◽  
Strategic Acquisition

PurposeWhen major reallocations of the firm’s assets are strategically necessary, the corporation’s decision system is perhaps put to its severest test. This paper aims to argue that a relevant balance in the corporate governance structure is highly important to assure those strategic decisions taken are successful and economically beneficial to shareholders’ wealth.Design/methodology/approachThis study examines US firms making major acquisitions resulting in large losses or large gains and identify weaknesses and strengths in their respective governance structures.FindingsFirms making large loss acquisitions demonstrate a balance in the corporate governance structure that heavily favors the CEO. Firms making large gain acquisitions present a more efficient balance in the configuration their corporate governance dynamics. Finally, the authors present evidence that making a major acquisition triggers rebalancing of the corporate governance dynamics to increase the effectiveness of monitoring the implementation of the acquisition. The authors find firms making large loss acquisitions make more extensive changes in the professional expertise on their boards.Originality/valueThis study provides a broad understanding of the role of corporate governance by examining overall governance dynamics and offers how one corporate governance structure does not fit all firms, at all times, in all circumstances. Instead, timely imbalances within the configurations of corporate governance dynamics over the major strategic acquisition process can be consistent with the goal of increasing shareholders’ wealth.

Corporate governance structure and strategic change: evidence from major acquisitions

2018 ◽  
Vol 44 (2) ◽  
pp. 222-240 ◽  
Author(s):  
Seung Hee Choi ◽  
Samuel H. Szewczyk
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Strategic Change ◽  
Governance Structure ◽  
Necessary Condition ◽  
Corporate Governance Structure ◽  
Content Type ◽  
Compensation Committee ◽  
Strategic Risk ◽  
External Monitoring

Purpose When major reallocations of the firm’s assets are necessary, a balance in the corporate governance structure favoring the CEO can be a necessary condition for planning and initiating major strategic moves. The purpose of this paper is to examine firms making major acquisitions to identify corporate governance elements that are particular to undertaking major strategic initiatives. Design/methodology/approach The authors test the proposition that firms making major strategic acquisitions will exhibit a corporate governance structure that is different in a number of its governance elements from firms making other acquisition decisions. The authors categorize the elements of corporate governance structures into CEO characteristics, internal monitoring, external monitoring and CEO compensation. Findings The authors find the propensity of acquiring firms to make major strategic acquisitions is abetted by the CEO’s attributes and compensation, by the structure of the audit committee and compensation committee, and by the firm’s prior financial performance. Originality/value The analysis of firms making major acquisitions presents the corporate governance dynamics of an environment that is conducive to strategic risk taking.

Corporate governance, resources, FDI commitment and firm performance

2014 ◽  
Vol 8 (3) ◽  
pp. 313-332 ◽  
Author(s):  
Ming-Tien Tsai ◽  
Wen-Hui Tung
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Stock Exchange ◽  
Chief Executive ◽  
Governance Structure ◽  
High Tech ◽  
Corporate Governance Structure ◽  
Ceo Duality ◽  
Content Type ◽  
Mean Values

Purpose – This study aims to explore the effects of corporate governance structure and resources on foreign direct investment (FDI) commitment and firm performance. Design/methodology/approach – The data are collected from high-tech firms listed by the Taiwan Stock Exchange. All selected 137 firms have complete FDI and other required data during 2007-2009. The mean values of the variables during the three-year period were used for analysis. Findings – The results indicate that both chief executive officer (CEO) duality and government shareholding affect a firm’s FDI; and the higher the management shareholding ratio, the lower the return on equity. Moreover, a large ownership of substantial shareholders can enhance a firm’s performance; and higher institutional ownership can lead to higher firm performance. Research limitations/implications – This study analyses the limited data from 137 high-tech firms in Taiwan during the three-year period of 2007-2009. Further analyses of other industries, countries and time periods are needed to generalize the conclusions. Practical implications – A firm with CEO duality should increase the ratio of government holding to mitigate the influence of CEO on FDI decisions. When a firm’s performance is poor, the ratio of managerial holdings should be reduced; conversely, the firm could attract more holdings from domestic securities and funds to improve performance. Originality/value – This study provides guidelines for shareholders to analyze governance structure and formulate their investment strategies. Corporate policymakers may use these as the principles for designing a corporate governance structure that could engender optimal firm performance.

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