Corporate frauds in India – perceptions and emerging issues

2015 ◽  
Vol 22 (1) ◽  
pp. 79-103 ◽  
Author(s):  
P. K. Gupta ◽  
Sanjeev Gupta
Keyword(s):  
Case Studies ◽  
Financial Institutions ◽  
Research Work ◽  
Corporate Image ◽  
Primary Data ◽  
Due Diligence ◽  
Prevention Policy ◽  
Fraud Prevention ◽  
Content Type ◽  
Emerging Issues

Purpose – The purpose of this paper is to examine the nature and perception of corporate frauds in India and their consequences in the business and economic systems, and it highlights the emerging issues so that existing legal and regulatory obligations can be redefined and structured. Design/methodology/approach – An exploratory research was conducted through a combined mode of literature review; case studies; structured questionnaires from 346 sample companies; and 43 interviews with the corporate professionals, management, investors, government offices and authorities having wide experience. Findings – It was found that the regulatory system is weak, and there is dire need to redefine the role of auditors. Coordination among different regulatory authorities is poor, and after every scam, there is a blame game. Reporting of fraud and publication of fraud prevention policy are missing. Banks and financial institutions are ineffective on due diligence, and there is a lack of professionalism on the board and other executive levels in companies. Research limitations/implications – This study assumes that fraud could be mitigated by proactive and conscious action by auditors, and corporate executives are willing to avoid perpetrating financial fraud despite pressures from investors, government securities regulators and exogenous market fluctuations. The authors relied on the honesty of the respondents during the sample collection and recorded semi-structured interviews. A minimum level of five years’ work experience relative to preventing, detecting or investigating fraud has been considered a valid determinant in selecting the purposive sample. Practical implications – The study suggests mandatory publication of fraud prevention policy; constitution of special purpose corporate offence wing; recognition to companies for improved corporate governance; true adoption of International Financial Reporting Standards; due diligence by banks and financial institutions; compulsory appointment of professionals by shareholders and fixation of responsibility on independent professionals; intellectualisation of audit committee; and more powers to the regulators, especially Securities and Exchange Board of India. Social implications – Prevention of corporate frauds reduces anxiety, improves corporate image and builds up confidence of the investors, which is essential for resource channelling in financial markets. Originality/value – The research work is based on a thorough analysis of regulatory framework and fraud case studies and primary data collected from companies, banks and other government and developmental institutions.

Factors affecting employee performance of PT.Kiyokuni Indonesia

2017 ◽  
Vol 59 (4) ◽  
pp. 602-614 ◽  
Author(s):  
Suharno Pawirosumarto ◽  
Purwanto Katijan Sarjana ◽  
Muzaffar Muchtar
Keyword(s):  
Leadership Style ◽  
Significant Influence ◽  
Employee Performance ◽  
Linear Regression Analysis ◽  
Research Work ◽  
Employee Motivation ◽  
Multiple Linear Regression Analysis ◽  
Primary Data ◽  
Content Type ◽  
Factors Affecting

PurposeThis study aims to examine, analyze and explain the influence of leadership style, motivation and discipline to employee performance simultaneously and partially at PT. Kiyokuni Indonesia. Design/methodology/approachThe primary data used in this study come from questionnaire on respondents’ motivation, discipline, leadership style and employee performance. From 451 people as the population, 82 respondents who met the criteria as a sample were chosen by using the Slovin formula. The analytical method used is multiple linear regression analysis using SPSS Version 22. FindingsThe results of this study indicate that there is a positive and significant influence simultaneously between leadership style, employee motivation and discipline on employee performance. The results also show that there is a positive and significant influence partially between leadership style, employee motivation and discipline on employee performance. Discipline is the variable of the most powerful influence on employee performance, so it needs special attention. Originality/valueThe respondents of this research work for a company which generates products through the work of hands (manual work) and aims to promote the products in the international market.

Lawyers’ predicaments in complying with the anti-money laundering law in Malaysia

2019 ◽  
Vol 26 (2) ◽  
pp. 583-596 ◽  
Author(s):  
Saslina Kamaruddin ◽  
Zaiton Hamin
Keyword(s):  
Qualitative Research ◽  
Central Bank ◽  
Empirical Evidence ◽  
Case Studies ◽  
Money Laundering ◽  
Design Methodology ◽  
Primary Data ◽  
Content Type ◽  
Klang Valley ◽  
Source Of Information

Purpose The purpose of this paper is to provide some empirical findings on the predicaments of lawyers’ anti-money laundering (AML) compliance in Malaysia and the rationales for such predicaments. Design/methodology/approach This paper adopts a qualitative research in which the primary data are obtained from seven case studies involving legal firms within the Klang Valley, Selangor, Malaysia, which is triangulated with the data from the Central Bank and the Malaysian Bar Council. Findings The authors contend that despite the vulnerability of their profession to money laundering, the level of awareness of the AML obligations amongst Malaysian legal practitioners is rather minimal. Also, the imposition of obligations upon them in policing their clients and regulating money laundering is not only onerous but also contrary to the ethics of their profession. Originality/value This paper fills the gap in providing the empirical evidence on lawyers’ compliance to their statutory AML obligations in Malaysia. Also, this paper could be a useful source of information for practitioners, academicians and students. It could also be a beneficial guide for policymakers for any possible future amendments to the law.

Zakah as tool for social cause marketing and corporate charity: a conceptual study

2019 ◽  
Vol 10 (1) ◽  
pp. 191-207 ◽  
Author(s):  
Shafiu Ibrahim Abdullahi
Keyword(s):  
Social Marketing ◽  
Corporate Image ◽  
Primary Data ◽  
Mathematical Economics ◽  
Content Type ◽  
Cause Marketing ◽  
Secondary Sources ◽  
Social Cause ◽  
Marketing Tool

Purpose This paper explores the role of Zakah in social cause marketing. Academic literature on Islamic economics, finance and management mostly deals with the links that exists between Zakah and consumption, neglecting important and strategic links with social cause marketing. This paper emanated from need to outline social cause and the charitable role of Zakah in promoting Halal businesses, poverty alleviation and sustainable development. Most works in the field of Zakah did not foresee the role of marketing. This is a misjudgement, as this work showed that Zakah yields large and measurable social gains to help the society and a firm. Design/methodology/approach Secondary sources were used in writing this paper. Available literature in the form of journals, books, manuals and reports was referred to. As a conceptual work, the paper does not test hypothesis or pretends to provide empirical evidences. It uses mathematical economics in arriving at some of the conclusions. Findings were derived through deductions and critical discourses, not through crunching of primary data. Findings The paper shows how Zakah, Halal consumption and corporate social responsibility are connected and highlights the role of Zakah as a social marketing tool. It shows how Zakah affects consumption through marginal propensity of Zakah recipients who spend Zakah money on basic needs. Research limitations/implications The paper looks at the broad aspects of Zakah and social marketing. How to make Zakah a pillar of Islamic firms’ social cause programs shall be the focus of future academic works in this area. Originality/value The paper is unique in drawing attention of Islamic firms to the effectiveness of Zakah in building a corporate image. It draws the attention of firms, activists, academics and governments to functions of Zakah that have not been studied in depth.

scholarly journals Humanitarian supply chain strategies – a review of how actors mitigate supply chain risks

2017 ◽  
Vol 7 (2) ◽  
pp. 82-101 ◽  
Author(s):  
Marianne Jahre
Keyword(s):  
Supply Chain ◽  
Case Studies ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Primary Data ◽  
Main Concern ◽  
Supply Chain Risk Management ◽  
Content Type ◽  
Trade Offs ◽  
Supply Chain Risks

Purpose The purpose of this paper is to link humanitarian logistics (HL) and supply chain risk management (SCRM) to provide an understanding of risk mitigation strategies that humanitarian organisations use, or could use, to improve their logistics preparedness. Design/methodology/approach Based on systematic reviews of RMS in SCRM and supply chain strategies (SCS) in HL literature, a framework is developed and used to review published case studies in HL. Findings The study finds that humanitarian actors use a number of the strategies proposed in the framework, particularly those related to strategic stocks, postponement, and collaboration. Strategies related to sourcing and procurement, however, especially those on supplier relationships, seem to be lacking in both research and practice. Research limitations/implications The study is based on secondary data and could be further developed through case studies based on primary data. Future studies should explore the generalisability of the findings. Practical implications Practitioners can use the framework to identify potential new SCS and how strategies can be combined. Findings can help them to understand the abnormal risks of main concern, how they may impact normal risks, and provide ideas on how to tackle trade-offs between different risks. Social implications The results can support improvements in humanitarian supply chains, which will provide affected people with rapid, cost-efficient, and better-adapted responses. Originality/value The paper connects SCRM and HL to develop a framework and suggests propositions on how humanitarian actors can mitigate supply chain risks. Questioning the focus on strategic stock it suggests complementary or alternative strategies for improving logistics preparedness.

Determinants of trade credit supply among the Ghanaian construction sector

2014 ◽  
Vol 4 (4) ◽  
pp. 368-383
Author(s):  
De-Graft Owusu-Manu ◽  
Gary D. Holt ◽  
David J. Edwards ◽  
Edward Badu
Keyword(s):  
Trade Credit ◽  
Principal Component ◽  
Cash Flows ◽  
Corporate Image ◽  
Primary Data ◽  
Principal Component Factor Analysis ◽  
Key Factors ◽  
Decision Criteria ◽  
Content Type ◽  
Asset Portfolio

Purpose – Trade credit (TC) provides access to capital for construction contractors globally and is an important source of finance in both developed and developing countries. The purpose of this paper is to explore key factors underpinning construction suppliers’ decisions to provide TC to Ghanaian construction firms. Design/methodology/approach – Primary data from a structured survey of 75 construction suppliers are analysed. Principal component (factor) analysis explores complex structures among suppliers’ decision-making variables. Findings – Underlying constructs of decision criteria exist among seven key factors: financial profile of the contractor; parties’ profit margins; asset portfolio and project particulars; TC quantum and repayment terms; age and experience of the contractor; contractor corporate image; and parties’ cash flows. Originality/value – This is a new decision criteria framework for suppliers and contractors, who utilise TC.

Fincen requires financial institutions to obtain beneficial ownership information for legal entity customers

2016 ◽  
Vol 17 (4) ◽  
pp. 34-44
Author(s):  
Ignacio Sandoval ◽  
Charles Horn ◽  
Melissa Hall
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Due Diligence ◽  
Legal Entity ◽  
Content Type ◽  
Financial Crimes ◽  
The Us ◽  
Beneficial Ownership ◽  
To Come ◽  
Customer Due Diligence

Purpose To provide an overview of the legal entity customer due diligence rule recently adopted by the Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of the Treasury. Design/methodology/approach This paper provides an overview of the requirements of the legal entity customer due diligence rule as well as some observations regarding the scope of the rule, its interplay with other regulatory requirements, and some of the rule’s ambiguities. Findings While the preamble to the new rule suggests that FinCEN was attempting to accommodate industry concerns, the literal terms of the rule may have the opposite effect. Practical implications Although financial institutions will have until May 2018 to come into compliance with the rule’s requirements, they should begin developing the infrastructure to support compliance with the rule as soon as possible. Originality/value Practical insights into issues that financial institutions may encounter when implementing the rule’s requirements from experienced financial services lawyers.

Politically exposed entities: how to tailor PEP requirements to PEP owned legal entities

2019 ◽  
Vol 22 (2) ◽  
pp. 359-372 ◽  
Author(s):  
Daniele Canestri
Keyword(s):  
Financial Institutions ◽  
Risk Mitigation ◽  
Point Of View ◽  
International Standards ◽  
Due Diligence ◽  
Content Type ◽  
Private And Public ◽  
Political Office ◽  
Private Banking ◽  
Legal Entities

Purpose This paper aims to address the money laundering risk posed by politically exposed person’s (PEP’s) controlled legal entities. International standards and national legislation require enhanced due diligence of political office holders but no specific requirements exist on entities controlled by PEPs. While regulators expect the stringent AML risk mitigation regarding this type of entities, financial institutions have no guidelines to follow. This gap produces inconsistent due diligence measures applied to entities with significant PEPs’ connection. Design/methodology/approach The paper uses comparative analysis to identify discrepancies between legal requirements and their interpretation. Moreover, an empirical approach results in a standardised solution to address these discrepancies. Findings The paper defines the concept of politically exposed entities and the applicable due diligence framework. Anticipating legislative measures, it proposes to introduce this concept via best practices of financial institutions and private banking initiatives such as the Wolfsberg Group. Research limitations/implications The research addresses the topic from a legal point of view. However, the implementation of proposed ideas depends on decisions which are political by nature and are not within the scope of this paper. Practical implications The paper aims at stimulating a debate in both the private and public sector to form a consistent approach to AML due diligence of legal entities associated to PEPs. Originality/value This paper responds to an identified need to study how legal entities connected to PEPs should be defined and monitored.

The case of a management institute in India: recrafting the vision and mission

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abhinava S. Singh ◽  
Mayur Dashrathlal Shah
Keyword(s):  
Strategic Management ◽  
Strategic Change ◽  
Mission Statements ◽  
Primary Data ◽  
Internal Environment ◽  
Environment Analysis ◽  
Content Type ◽  
Academic Level ◽  
Emergent Strategy ◽  
Emerging Issues

Theoretical basis The fundamental concepts in strategic management including vision, mission and setting objectives, external and internal environment analysis, SWOT, stakeholders in strategic management, deliberate and emergent strategy and strategic leaders have been addressed through the case. Research methodology The case was developed using primary data gathered from observations, interviews and the experiences of the authors at Chimanbhai Patel Institute of Management and Research (CPIMR) and published sources. Case overview/synopsis This case is about CPIMR, a management institute in Ahmedabad, India, which was required to recraft their vision and mission statements in light of the compliance requirements of the All India Council for Technical Education and the other challenges including new skills requirement especially because of Industry 4.0 changes and competition in the business education market. The case examines the external and internal environment challenges faced by the institute director and the emerging issues: how should CPIMR recraft the vision and mission? What could go wrong? How to make them actionable? How to disseminate them? The case would help the participants to understand the process of external and internal environment analysis, formulation of the vision and mission statements, their key purpose of informing stakeholders and setting objectives. The case also encourages the participants to put themselves in the position of the director for undertaking the process of recrafting the vision and mission statements of the management institute in the event of a strategic change. While the case setting is that of a management institute, it might also be useful for discussion in other organization settings. Complexity academic level Course: Strategic Management Level: Post Graduate Level.

A criminologically informed examination of looting behaviour during natural disaster incidents

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charles Gaherity ◽  
Philip Birch
Keyword(s):  
Case Studies ◽  
Crime Prevention ◽  
Natural Disaster ◽  
Methodological Approach ◽  
Community Safety ◽  
Prevention Measures ◽  
Prevention Policy ◽  
Policy And Practice ◽  
Content Type ◽  
Practical Implications

Purpose The purpose of this study is to examine looting behaviour during natural disaster incidents. As a consequence, this study considers looting in the context of two case studies: a Tsunami and a Bushfire. The study offers an exploration into the types of and motivations for looting, as well as reflecting on prevention measures. Design/methodology/approach The methodological approach of a rapid evidence assessment (REA) is used to examine looting behaviour within the context of two natural disaster incidents, drawing on a thematic analysis, as outlined by Braun and Clarke (2006) to support the presentation of findings. Findings The findings of the REA yield three themes. The first theme, Theme 1, focuses on the types of offenders – looters, while Theme 2 focuses on the motivations for offending behaviour – looting. The final theme, Theme 3, presents crime prevention responses: looters and looting. Each theme is further illustrated through a number of sub-themes, and while the two case studies centre on two distinct natural disaster incidents, there are similarities that exist between them offering insights for why looting occurs and consequently how to respond to looting. Research limitations/implications Previous research has recognised how incidents such as bushfires enable and create opportunity for looting behaviour. Yet, arguably, little has been achieved in successfully preventing such behaviour. This study offers evidence for why looting occurs during natural disaster incidents and considers the prevention measures that can lead to a reduction in this offending into the future. The need for more detailed and primary research into looting during natural disaster incidents is a research implication engendered by the current study. Practical implications This study considers crime prevention approaches in the form of situational crime prevention and social development crime prevention that have direct relevance on crime prevention policy and practice. The practical implications are worthy of attention from law enforcement agencies and other first/emergency responders. Social implications This study seeks to offer evidence for policy and practice initiatives that can increase public safety and reduce further threats to community safety during natural disaster incidents. Originality/value After the terrorist attacks of 9/11, a concerted effort for swifter and more effective responses to emergency management incidents has occurred. However, the focus of such responses has typically overlooked looting during natural disaster incidents. This study goes some way in addressing that gap in the literature and connects the current scientific knowledge to prevention strategies, informing future policy and practice responses to addressing looting during such incidents. This study provides a stimuli for further research into looters, looting and natural disaster incidents.

Interaction effects of professional commitment, customer risk, independent pressure and money laundering risk judgment among bank analysts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zuraidah Mohd-Sanusi ◽  
Yusarina Mat-Isa ◽  
Ahmad Haziq Ahmad-Bakhtiar ◽  
Yusri Huzaimi Mat-Jusoh ◽  
Tarjo Tarjo
Keyword(s):  
Money Laundering ◽  
Interaction Effects ◽  
Situational Factors ◽  
Primary Data ◽  
Professional Commitment ◽  
Due Diligence ◽  
Content Type ◽  
Risk Judgment ◽  
Banking Institutions ◽  
Customer Due Diligence

Purpose This study aims to examine the direct and indirect effects of professional commitment, customer risk and independence pressure on money laundering risk judgment among bank analysts. Design/methodology/approach This study uses a within-subjects experimental research design and collects primary data via a questionnaire distributed to bank analysts in banking institutions in Malaysia. Findings Results show that professional commitment, customer risk and independence pressure significantly influence money laundering risk judgment (i.e. customer due diligence and money laundering reporting). The results also show significant interaction effects between customer risk and independence pressure in influencing money laundering risk judgment. Practical implications Professional commitment and situational factors are crucial in putting pressure on bank analysts responsible for performing a thorough check and due diligence to minimize money laundering risk to the bank. Social implications As money laundering is lifeblood of crimes, understanding the factors influencing money laundering risk judgment would assist the affected institutions to manage the risk better and contribute towards the fight against crimes. Originality/value This study focuses on money laundering risk judgment. It contributes to understanding the competency of the gatekeepers, such as bank analysts, in practicing professional commitment and dealing with situational factors.

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