How positive service experiences contribute to service captivity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Constantino Stavros ◽  
Kate Westberg ◽  
Roslyn Russell ◽  
Marcus Banks
Keyword(s):  
Financial Services ◽  
Financial Vulnerability ◽  
Socially Responsible ◽  
Content Type ◽  
Welfare Policies ◽  
Regulatory Frameworks ◽  
Alternative Financial Services ◽  
Service Experiences ◽  
Service Relationship ◽  
Practical Implications

Purpose Service captivity is described as the experience of constrained choice whereby a consumer has no power and feels unable to exit a service relationship. This study aims to explore how positive service experiences can contribute to service captivity in the alternative financial services (AFS) sector for consumers experiencing financial vulnerability. Design/methodology/approach A total of 31 interviews were undertaken with Australian consumers of payday loans and/or consumer leases. Findings The authors reveal a typology of consumers based on their financial vulnerability and their experience with AFS providers. Then they present three themes relating to how the marketing practices of these providers create a positive service experience, and, in doing so, can contribute to service captivity for consumers experiencing financial vulnerability. Research limitations/implications The benefits derived from positive service experiences, including accessible solutions, self-esteem, and a sense of control over their financial situation, contribute to the service captivity of some consumers, rendering alternative avenues less attractive. Practical implications AFS providers must ensure a socially responsible approach to their marketing practices to minimize potentially harmful outcomes for consumers. However, a systems-level approach is needed to tackle the wider issue of financial precarity. Policymakers need to address the marketplace gaps, regulatory frameworks and social welfare policies that contribute to both vulnerability and captivity. Originality/value This research extends the understanding of service captivity by demonstrating how positive service experiences can perpetuate this situation. Further, specific solutions are proposed at each level of the service system to address service captivity in the AFS sector.

The SEC turns up the heat on private equity expense allocations

2016 ◽  
Vol 17 (2) ◽  
pp. 35-38
Author(s):  
Samuel Lieberman ◽  
John T. Araneo
Keyword(s):  
Financial Services ◽  
Private Equity ◽  
Equity Fund ◽  
Content Type ◽  
Private Equity Fund ◽  
Fund Managers ◽  
Compliance Programs ◽  
Raising Awareness ◽  
The Us ◽  
Practical Implications

Purpose To discuss the US Securities and Exchange Commission’s (“SEC’s”) increasing focus on disclosure and conflict-of-interest problems arising from how private equity fund (“PE Fund”) managers allocate expenses between management and fund investors. Design/methodology/approach This article summarizes the background of this focus on expense allocations and, drawing from the recent SEC enforcement actions focused on this issue, and identifies the types of both expenses and disclosures that have caught SEC attention. Findings After spending the first two or three years post Dodd-Frank raising awareness of these issues, the SEC has begun to impose large fines over expense-allocation conflicts and disclosure issues. Practical implications It is imperative for PE Fund managers to retain counsel to review their fund offering documents, expense allocation practices, and compliance programs to ensure consistency with the SEC’s recent decisions on these issues. Originality/value Practical guidance from experienced financial services lawyers.

The impact of corporate social responsibility on financial distress: evidence from developing economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Farooq ◽  
Amna Noor
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Distress ◽  
Z Score ◽  
Socially Responsible ◽  
Content Type ◽  
Financial Firms ◽  
Responsible Behavior ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to explore the role of corporate social responsibility (CSR) on the likelihood of financial distress for a sample of 139 Pakistan Stock Exchange (PSX) listed firms throughout 2008–2019. Design/methodology/approach The dynamic generalized method of moments (GMM) estimator is used to examine the impact of CSR on financial distress. The investment in CSR is measured through a multidimensional financial approach which comprises the sum of the contribution made by the company in the form of charitable donation, employees’ welfare and research and development, while the Altman Z-score is used as an indicator of financial distress. The higher the Z-score, the lower will be the probability of financial distress. Findings The authors find a significant positive impact of CSR on financial distress in GMM model. This finding is consistent with the shareholder view and over-investment hypothesis of CSR as management makes an investment in CSR to get personal benefits, which resultantly leads the firm toward financial distress state. Further, this positive relationship remains present for firms having strong involvement in foreign business through exports. Research limitations/implications Like other studies, the present study is not free from limitations. First, financial firms are skipped from the sample, although literature witnesses a lot of studies highlight the financial firms’ commitment to achieving CSR goals. Second, financial distress occurs in different stages, and this study fails to establish a linkage between CSR engagement at different stages of financial distress. In the future, researchers can make valuable addition by covering these missing links in present studies. Practical implications Findings suggest several practical implications. For policymakers, they should encourage firms to adopt more socially responsible behavior as it not only prevents them from distress but also comes with better investment behavior, minimize bankruptcies and make economies more strong and stable. Second, results suggest corporate managers emphasize socially responsible behavior as its benefits are beyond the “societal benefits” as it lessens financial distress through lower cost of debt, lesser financial constraints and reduced cost of information asymmetry, and it minimizes the cost of capital. Lastly, investors make risk premium assessments related to future earnings by determining the likelihood of financial distress in the future. Originality/value The study extends the body of existing literature on CSR and the likelihood of financial distress in Pakistan, which is according to the best knowledge of the authors, not yet studied before. The results suggest that policymakers may pay special attention to the quality of CSR while predicting corporate financial distress.

Do women on corporate boardrooms influence remuneration patterns and socially responsible practices? Malaysian evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sitara Karim
Keyword(s):  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Executive Directors ◽  
Women Directors ◽  
Socially Responsible ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Board Gender Diversity ◽  
The Relationship ◽  
Practical Implications

PurposeThe prime objective of this study is to investigate the moderating influence of executive and independent female directors on the relationship between remuneration packages (CEO and executive director) and socially responsible practices (marketplace, environment, community, workplace and money spent on CSR) of 483 Malaysian listed firms during 2006–2017.Design/methodology/approachThe dynamic estimator, namely, system generalized method of moments (GMM) given by Blundell and Bond (1998) has been employed on the dataset to control dynamic endogeneity, unobserved heterogeneity and simultaneity problems.FindingsFindings indicate that there is a significant relationship between remuneration patterns of CEOs and executive directors and socially responsible activities. In the same way, executive board gender diversity significantly, whereas independent board gender diversity insignificantly moderates the remuneration and CSR nexus.Practical implicationsThis study is particularly significant for regulatory bodies of Malaysia, e.g. Securities Commission Malaysia, Bursa Malaysia, policy makers, investors and managers. For academia, this study fetches support from agency theory, stakeholder theory and upper echelons theory and presents integrated theoretical approach to be considered for future research.Originality/valueThis paper is unique in providing empirical evidence on the moderating effect of both executive and independent women directors on the relationship between remuneration patterns of CEOs and executive directors and independent CSR activities for the first time. Moreover, this study has sourced several theoretical and practical implications. And, the study employs dynamic estimator for precise and concrete results.

scholarly journals Responsible talent management: towards guiding principles

2020 ◽  
Vol 7 (2) ◽  
pp. 221-236
Author(s):  
Stephen Swailes
Keyword(s):  
Business Ethics ◽  
Empirical Research ◽  
Design Methodology ◽  
Talent Management ◽  
Socially Responsible ◽  
Content Type ◽  
The Core ◽  
Management Project ◽  
Conceptual Paper ◽  
Practical Implications

PurposeThis article addresses three concerns about the operationalization and possible effects of exclusive talent management; the core assumptions that underpin and shape talent practices, the problem of fair talent identification and potentially adverse employee reactions.Design/methodology/approachThis is a conceptual paper that integrates empirical research on talent and talent management with ideas from business ethics.FindingsOrganizations should not simply assume that they meet the underlying assumptions of talent management. Where the assumptions can reasonably be shown to be valid, then a framework based on a set of principles is suggested to guide organizational approaches towards responsible talent management.Practical implicationsThe article provides talent practitioners with a set of principles, or at least some substantive suggestions, to be considered in the design of socially responsible talent management programmes and in programme evaluation.Social implicationsThe article provides guidance for organizations wishing to improve the care of their workforce in relation to strategies of employee differentiation based on performance and potential.Originality/valueDespite the burgeoning literature on talent management, the topic has not received much attention from an ethical and socially responsible viewpoint. This article adds to that literature and suggests further research particularly concerning the existence of real talent differences on which the entire talent management project is based.

Beyond placement, layering and integration – the perception of trade-based money laundering risk in UK financial services

2019 ◽  
Vol 22 (4) ◽  
pp. 614-625 ◽  
Author(s):  
Mario Menz
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Design Methodology ◽  
Banking Sector ◽  
Trade Finance ◽  
Content Type ◽  
Proceeds Of Crime ◽  
The Uk ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this study was to investigate the perception of trade-based money laundering in Letters of Credit (“L/C”) transactions among trade finance practitioners in the UK banking sector and to compare it to the perception of the same risk by the Financial Conduct Authority (“FCA”), the regulator of the UK’s banking sector. Design/methodology A survey was used to carry out research among financial services professionals engaged in trade finance in the UK. Findings This paper contributes to the existing literature in a number of ways. First, it investigates the perception of trade-based money laundering risk from the perspective of financial services professionals, which has not previously been done. Second, it argues that the perception of trade-based money laundering in financial services is overly focussed on placement, layering and integration, and that the full extent of the offence under the Proceeds of Crime Act 2002 is less well known. It further found that financial services firms need to improve their understanding of the nature of trade-based money laundering under UK law. Practical implications This study argues that the financial services sector’s perception of trade-based money laundering risk in trade finance is underdeveloped and makes suggestions on how to improve it. Originality/value It provided unique insight into the perception of trade-based money laundering risk among financial services professionals.

scholarly journals Exploring the ZMET methodology in services marketing

2019 ◽  
Vol 34 (1) ◽  
pp. 48-58 ◽  
Author(s):  
Charles Hancock ◽  
Carley Foster
Keyword(s):  
Services Marketing ◽  
Student Experiences ◽  
Service Research ◽  
Process Step ◽  
Content Type ◽  
Qualitative Approaches ◽  
Limited Application ◽  
Zaltman Metaphor Elicitation Technique ◽  
Service Experiences ◽  
Practical Implications

Purpose This paper aims to explore how the Zaltman metaphor elicitation technique (ZMET) can be adopted in services marketing to provide deeper customer experience insights. Design/methodology/approach This paper explores how ZMET interviews, which use images selected by the participant to facilitate discussion, can be used by researchers. This paper draws upon a study of 24 student experiences at a UK university. Findings Adopting this qualitative method for services marketing can counter depth deficit when compared to other qualitative approaches, because it is participant led. However, the method requires competent interview skills and time for the interview and analysis. We find that ZMET has not been widely adopted in academia because of its commercial licenced use. The paper illustrates how to use the ZMET process step-by-step. Research limitations/implications Findings are limited to student experiences. Further research is necessary to understand how researchers could use ZMET in other areas of services marketing. Practical implications This paper provides guidance to researchers on how to use ZMET as a methodological tool. ZMET facilitates a deeper understanding of service experiences through using participant chosen images and thus enabling researchers to uncover subconscious hidden perceptions that other methods may not find. Originality/value ZMET has been used commercially to gain market insights but has had limited application in service research. Existing studies fail to provide details of how ZMET can be used to access the consumer subconscious. This paper makes a methodological contribution by providing step-by-step guidance on how to apply ZMET to services marketing.

Combatting the financing of terrorism in Austria, Germany, Liechtenstein and Switzerland

2019 ◽  
Vol 22 (4) ◽  
pp. 782-795
Author(s):  
Fabian Maximilian Johannes Teichmann
Keyword(s):  
Content Analysis ◽  
Law Enforcement ◽  
Financial Services ◽  
Quantitative Methods ◽  
Qualitative Content Analysis ◽  
Research Process ◽  
Criminal Prosecution ◽  
Content Type ◽  
Qualitative And Quantitative Methods ◽  
Practical Implications

Purpose Whilst the existing literature focuses on developing prevention mechanisms for banks, this paper aims to show how feasible it still is in Austria, Germany, Liechtenstein and Switzerland to finance terrorism without getting detected. Design/methodology/approach A three-step research process, including both qualitative and quantitative methods, was applied. The empirical findings are based upon qualitative content analysis of 15 informal interviews with illegal financial services providers and 15 formal interviews with compliance experts and law enforcement officers. Findings During those interviews, concrete and specific methods of financing terrorism and limiting the risks of facing a criminal prosecution were discussed. The interviews were analyzed based upon a qualitative content analysis. To assess the risk, which criminals, a quantitative survey among 181 compliance officers was conducted to determine what leads to investigations. Research limitations/implications The findings are limited to the 30 interviewees’ and 181 survey participants’ perspective. Practical implications The practical implications include suggestions for providing law enforcement and intelligence agencies with new tools, such as remote online searches of electronic devices. Originality/value Whilst the empirical findings are based upon Austria, Germany, Liechtenstein and Switzerland, the results could be applied on European level.

Enhancing brand value using corporate social responsibility initiatives

2020 ◽  
Vol 23 (4) ◽  
pp. 575-602
Author(s):  
Ahmed Suhail Ajina ◽  
Sanjit Roy ◽  
Bang Nguyen ◽  
Arnold Japutra ◽  
Ali Homaid Al-Hajla
Keyword(s):  
Saudi Arabia ◽  
Social Responsibility ◽  
Financial Services ◽  
Financial Service ◽  
Brand Value ◽  
Socially Responsible ◽  
Content Type ◽  
Services Sector ◽  
Financial Services Sector ◽  
Corporate Social

Purpose This study aims to investigate employees’ perceptions of socially responsible financial services brands in Saudi Arabia. The study also identifies the motives and challenges for Islamic banks for higher involvement in social responsibility initiatives to enhance their brand values. Design/methodology/approach An inductive approach was used in this study to identify the motives and challenges related to corporate social responsibility (CSR) activities. The research design uses a qualitative approach where in-depth interviews were carried out among the employees in the financial services sector in Saudi Arabia. Findings Findings provide insights about how CSR initiatives for financial services brands in a developing and Islamic country are perceived. Results show that the focus of CSR activities is on the attribute of CSR, the magnitude of CSR and attitude towards CSR. Results show two main motives to engage in CSR activities, which are instrumental and ethical motives. The main challenges are related to the government, business, charitable organisations and customers and society. Practical implications Implications exist for how CSR is perceived in a new context and in the financial services industry. Understanding the current perception of CSR from a financial service brand perspective helps policymakers to develop appropriate platforms for financial service providers to become more socially involved. Originality/value The major contribution of this study lies in investigating the CSR perception among the key stakeholder (i.e. the employees) from a brand management perspective in the Saudi Arabian financial services sector. Further, this study shows the main motives and challenges, which local financial service brands face to become socially responsible. The categories of attributes, magnitude and attitudes can be used to enhance brand value in one of the economically advanced countries in the Arabic world, Saudi Arabia. In the first category “attribute”, the perception of socially responsible banks are highlighted, while the elements of CSR, including its dimensions, are emphasised in the second category “magnitude”. The third category “attitude” shows two themes, including stakeholders’ issues and business-related issues.

SEC publishes final rules amending the rules of practice for administrative proceedings

2016 ◽  
Vol 17 (4) ◽  
pp. 54-60
Author(s):  
Joan McKown ◽  
Henry Klehm III ◽  
Harold Gordon ◽  
David Woodcock ◽  
Daniel Bradley
Keyword(s):  
Financial Services ◽  
Content Type ◽  
The Us ◽  
Administrative Proceeding ◽  
Affirmative Defenses ◽  
Administrative Proceedings ◽  
The Right ◽  
Hearsay Evidence ◽  
Practical Impact ◽  
Practical Implications

Purpose To explain and evaluate amendments to the rules of practice governing the US Securities and Exchange Commission’s (SEC’s) Administrative Proceedings that were adopted by the Commission on July 13, 2016. Design/methodology/approach Describes SEC’s increased pursuit of enforcement actions in APs, criticisms of the AP process, and corrective legislation. Describes the July 2016 amendments covering expansion of the prehearing period, allowance of depositions, timing for completion of document production in discovery phase, required disclosure of affirmative defenses, permitted dispositive motions, and admissibility of hearsay evidence. Assesses the practical impact of the amendments. Makes recommendations concerning advanced preparation for APs, depositions and witness-interview strategies, particular care concerning statements in Wells submission, availability of investigative record to defense counsel, admissibility of hearsay evidence, and defenses based on reliance on counsel. Findings The amended rules are a step in the right direction but do not fully correct the numerous and severe imbalances that exist in the Commission’s administrative enforcement process with respect to the availability of various discovery mechanisms, the timeline for trying a case, and more. Practical implications Every entity or individual that is involved in an SEC enforcement investigation, or that may become a respondent in an SEC Administrative Proceeding, should take certain practical steps such as those recommended in this article to minimize the structural disadvantages it will face and to maximize the benefits conferred by these latest amendments to the rules of practice. Originality/value Practical background and guidance from experienced enforcement, litigation, securities and financial services lawyers.

How important are different socially responsible marketing practices? An exploratory study of gender, race, and income differences

2014 ◽  
Vol 31 (1) ◽  
pp. 2-12 ◽  
Author(s):  
Anthony Patino ◽  
Velitchka D. Kaltcheva ◽  
Dennis Pitta ◽  
Ven Sriram ◽  
Robert D. Winsor
Keyword(s):  
Latent Class ◽  
Socially Responsible ◽  
Content Type ◽  
Income Differences ◽  
Promotional Efforts ◽  
The Usa ◽  
Survey Results ◽  
Level Of Importance ◽  
Practical Implications ◽  
Marketing Messages

Purpose – The purpose of this paper is to examine the importance consumers place on various types of socially responsible marketing practices, and whether the level of importance varies by gender, race, and consumers' income. Design/methodology/approach – A survey was designed that asked subjects their attitudes toward the various social marketing practices that were uncovered through an analysis of recent literature from ABI-Inform, Fordham University's Center for Positive Marketing and focus groups. The survey was administered to 232 subjects and included information regarding race, gender, and income. Survey results were analyzed using latent class analysis (LCA). The results of the LCA were used to develop a correspondence analysis map. Findings – The results confirm the importance of key demographic factors (income, gender, and race) in understanding consumers' perceptions of socially responsible marketing. Research limitations/implications – One limitation is that the sample was collected in Baltimore, Maryland and not entirely representative of the population of the USA. Another limitation is that consumers’ perceptions of socially responsible marketing are only captured at one point in time rather than showing the evolution of a belief. Practical implications – Marketers need to target their messages carefully if they are promoting socially responsible marketing as a differentiating factor. Understanding how each demographic group responds to these socially responsible marketing messages can assist managers in their promotional efforts. Originality/value – Limited research has been completed that segments the market with regards to socially responsible marketing options. The research explores these segments by surveying active consumers.

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