Search results

The purpose of this paper is to compare the sustainability practices of Islamic and conventional banks, with the aim of evaluating whether their Corporate Social Responsibility (CSR) strategies converge or diverge in response to formal and informal institutions in an emerging country.

Drawing on institutional theory, this study contextualizes the competitive scenario through the National Business System (NBS) framework, and showcases the CSR strategies employed by large conventional and Islamic banks in Turkey. CSR patterns are examined from different angles such as motivations, strategy, actions and institutional results.

Within the same institutional environment, Islamic and non-Islamic banks combine convergent and divergent models to accommodate institutional realities in their CSR policies. Islamic banks exhibit an implicit commitment to CSR that is mostly based on informal institutions, whereas conventional banks use explicit CSR strategies as a means to fill the voids in formal institutions. In addition, philanthropy-oriented CSR prevails in Islamic banks, as opposed to the CSR actions associated with core business that are followed by conventional banks.

An increased focus on formal institutions and explicit CSR actions by Islamic banks may further contribute to social well-being in emerging countries.

This study contributes to the paucity of research, from an institutional perspective, related to CSR practices amongst Islamic and conventional banks in emerging countries.

Extreme events undermine progress toward social sustainability and require an immediate response from the private sector. The authors propose a two-dimensional framework (response time and the scope of activities to the various stakeholders) to benchmark firms’ effectiveness in mitigating the threats to social sustainability post-disaster. This framework allows establishing a taxonomy of corporate emergency responses. Within such a framework, the authors group 218 corporate actions from 111 companies operating in Spain during the COVID-19 pandemic into four corporate relief strategies: symbolic, selective, reactive, and supportive. The authors show how companies can use this framework as a guide to foster social sustainability in times of shock in an efficient way. Also, stakeholders can use this framework as a reference to distinguish corporate initiatives aiming to propel community resilience from corporate “covidwashing.”

Crises are often studied in international business (IB) research as the external “context” for business strategies, but firms can also be active participants in the unfolding of crises. The study of crises in IB could benefit greatly from studying the role of multinational enterprises (MNEs) as active participants, rather than as mere passive actors, responding to exogenous events. History shows that IB crises typically unfold partially as exogenous processes, and partly as the result of MNE strategies. A multilevel and longitudinal approach to studying crises in IB is clearly necessary. This chapter considers the extent to which smaller events that preceded the present crisis – since 1989 – point to systemic problems in global governance. It also defines five overlapping lenses through which future IB studies can further create relevant insights on how to deal with crises: historic, macro, meso, micro and exogenous. The chapter finally serves as an introduction to the whole Progress in International Business Research volume by indicating the relevance of all parts and chapters that follow.

Past work on the role of brands in the acceptance of organic products is partial and inconclusive. Research has failed to examine the consumer sense-making process underpinning fit assessment, despite the centrality of this assessment in the acceptance of line extensions. This study reconceptualizes the fit construct, showing the relationship of the fit dimensions (noncompensatory) and contributes to the literature with a deeper understanding of the role of a brand's association in the assessment process, which has been poorly examined in the past.

Grounded theory was used to unearth the process followed by consumers to assess the fit of organic line extensions. The study was based on 14 in-depth interviews.

The findings show that the dimensions of fit that consumers consider in assessing organic line extensions depend on the schema used in the assessment process. Moreover, it demonstrates that these dimensions have disparate structural relationships with one another, depending on consumers' previous commitment to organic products. Finally, the paper identifies three possible behavioral reactions by consumers toward organic line extensions.

The main limitation of this research concerns the settings in which it was developed. Therefore, and as stated by Strauss and Corbin (1990) the model applies to the situation analyzed and not to others. Future research could study if there are cultural differences in the assessment process of an organic line extension. Moreover, the contribution presented in this paper needs further empirical testing; specifically, the configuration of dimensions needed to accept an organic line extension and the relationship among dimensions.

This paper contributes to the literature by studying the impact of brand association on assessing an organic line extension and reconceptualizing the fit construct by showing the dimensions and the relationship between them that are not additive to the overall fit, as shown in past literature. Additionally, it provides a guide to brands wishing to launch an organic product using a line extension strategy and the potential implications for the parent brand that should be considered.

Multinational enterprises (MNEs) are increasingly seeking to demonstrate their commitment to sustainability and inclusiveness within the societies they operate in, often by highlighting the amount of tax they pay. The author proposes to summarize channels through which tax impacts the achievement of sustainable development goals (SDGs) and analyze them in relation to a single goal, SDG 10 (reduced inequalities) in a single region (the Central and Eastern Europe, CEE). The impact of tax is often ambivalent, but above all it is hard to quantify as there are many stakeholders involved and corporations still tend to disguise their internal information. The author analyzes MNEs’ operations in the CEE region to better understand how reporting standards influence the achievement of SDG 10, focusing on country-by-country reporting (CbCR) and non-financial reporting of European banks and other corporations who publish CbCR on a voluntary basis. The authors perform a quantitative analysis of CbCR data and a qualitative investigation of 201 non-financial reports by 30 MNEs. From the theoretical viewpoint, this research may help to construct a framework to evaluate the tax impact of a given company. Given that, this chapter also outlines why and how it can be beneficial for MNEs to publish voluntary reports it can also serve to motivate increased voluntary participation of MNEs in the transition to sustainability.

This study explored how board diversity affects environmental, social, and governance (ESG) performance in the Italian banking sector. Specifically, this study examined whether the presence of specific corporate governance (CG) characteristics (board diversity) in Italian Cooperative Credit banks is related to ESG dimensions.

The authors examined a sample of 247 Italian Cooperative Credit banks for the period 2017–2021 and developed an econometric model by applying unbalanced panel data with firm fixed effects and controls per year. To verify the research hypotheses, the authors analyzed board diversity in terms of board attributes variables (size, gender diversity, age, activity, independence and corporate social responsibility/sustainability committee (CSR) and measured ESG dimensions using the ESG score provided by Refinitiv.

The findings suggest that board size, independence and the existence of a CSR/sustainability committee positively affect banks' ESG performance, while no significant relationship between board average age and ESG performance was found. The study also explored how the critical mass of women on a board affects ESG performance by testing the positive impact of gender diversity on ESG dimensions only up to a certain threshold of female directors.

This study is highly relevant to managers and investors who consider ESG issues in their decision-making processes. The findings support regulators by offering insights into ways to improve ESG performance through the specific design and application of governance mechanisms.

From a practical perspective, this investigation has implications for both practitioners and regulators, suggesting that chief executive officers (CEOs) and managers should pay more attention to CG aspects to improve ESG performance and that policy-makers should give greater consideration to these aspects of CG in their efforts to enhance ESG performance.

This study offers an in-depth analysis of banks' ESG practices and attempts to bridge the gap in the literature on ESG in the Italian banking industry. This study is the first to investigate the relationship between CG variables and ESG dimensions in this context.

This study aims to investigate the impact of environmental performance, social responsibility and corporate governance (ESG) on bank performance (BP) in the Italian banking sector. It analyzes the relationships between 10 dimensions of ESG pillars and BP indicators during the period 2016–2020.

This study examines a sample of 105 Italian banks and develops three econometric models to verify the effect of ESG initiatives on BP indicators. The independent variables are the ESG dimensions collected from the Refinitiv database, whereas the explanatory variables are performance indicators measured through accounting and market variables.

The findings show that ESG policies negatively affect operational and market performance in the banking sector, suggesting that Italian banks have not fully embraced strong sustainability procedures. However, the relationships between ESG dimensions are mixed if measured individually. The results show a significant positive impact of emission and waste reductions on financial and operating performance, but regarding social aspects, it is proved that better product responsibility decreases accounting performance.

This study offers an in-depth examination of ESG practices in relation to current and future performance. In particular, the findings provide practitioners and academics with an actual set of predictors in the ESG area to improve BP.

To the best of the authors’ knowledge, this is the only study that has investigated the impact of ESG issues on BP in Italy. Few prior studies have used all dimensions of ESG policies at a disaggregated level to investigate their effect on various performance indicators.