Social Responsibility, Business Strategy and Development: The Case of Grameen-Danone Foods Limited

The aim of this paper is to study the phenomenon of Social Business Enterprises (SBEs) and gain an understanding of their nature, operations, objectives and implications by using Grameen Danone Foods Limited (GDFL) as an illustration. Within this context, some questions that this paper seeks to explore are: is the concept of Social Businesses just another ‘fashionable business marketing fad’ that will fade and wither with time, or does it offer a real workable solution to cure the ills of global poverty? The paper seeks to investigate, with Grameen Danone’s case, if, how and to what extent such social businesses help towards social and economic uplift of the poor by simultaneously being both suppliers and consumers of their services. The case of GDFL is evaluated critically and compared analytically with similar social businesses in the dairy business sector, in order to gauge its impact on local communities, especially on the target market – malnourished children. Finally, project sustainability is discussed along with consequences of a possible commercial scale-up in operations

Banking the unbanked: the Mzansi intervention in South Africa:

Purpose This paper aims to understand household’s latent behaviour decision making in accessing financial services. In this analysis we look at the determinants of the choice of the pre-entry Mzansi account by consumers in South Africa. Design/methodology/approach We use 102 variables, grouped in the following categories: basic literacy, understanding financial terms, targets for financial advice, desired financial education and financial perception. Employing a computationally efficient variable selection algorithm we study which variables can satisfactorily explain the choice of a Mzansi account. Findings The Mzansi intervention is appealing to individuals with basic but insufficient financial education. Aspirations seem to be very influential in revealing the choice of financial services and to this end Mzansi is perceived as a pre-entry account not meeting the aspirations of individuals aiming to climb up the financial services ladder. We find that Mzansi holders view the account mainly as a vehicle for receiving payments, but on the other hand are debt-averse and inclined to save. Hence although there is at present no concrete evidence that the Mzansi intervention increases access to finance via diversification (i.e. by recruiting customers into higher level accounts and services) our analysis shows that this is very likely to be the case. Originality/value The issue of demand side constraints on access to finance have been largely ignored in the theoretical and empirical literature. This paper undertakes some preliminary steps in addressing this gap

Financial Services to the Unbanked: The Case of the Mzansi Intervention in South Africa

The Mzansi intervention is a major initiative designed to provide banking services to the unbanked South African population. This study investigates the underlying variables that define the choice of a Mzansi account from a consumer perspective. Unlike previous studies, we do not assume that demand for financial services is a given but instead that it is underlain by perceptions and attitudes. Financial attitudes and perceptions are found to exert significant effects on financial choices. In particular, aspirations and forward-looking values are instrumental in facilitating access to finance

Corporate dividend policy in practice: the views of Nigerian financial managers

Purpose – The purpose of this study is to provide an additional insight into the dividend puzzle by investigating the field practice of dividend policy in an emerging market such as Nigeria. It also aims to contribute to the literature on industry-related dividend effect by examining whether managerial views on dividend policy differ between financial and non-financial firms. Design/methodology/approach – The study employs semi-structured interviews with the financial managers of 21 Nigerian listed firms. The interviewees were divided into two broad groups of financial versus non-financial firms based on the industry classification of the firms. Findings – The findings suggest that, despite differences in institutional environment, the dividend setting process in Nigerian companies is similar in many extents to those in the US and other developed markets. Nigerian companies exhibit dividend conservatism and typically focus on current earnings, stability of earnings and availability of cash when determining their current dividend levels. However, unlike in prior studies, the interviewees suggest that their companies do not have a target payout ratio; instead, they target the dividend per share when determining the disbursement level. Nevertheless, views regarding these issues vary significantly between financial and non-financial firms. Originality/value – This paper adds to the extant literature that has examined the behavioural aspects of dividend policy using interviews, especially in the context of less-developed markets such as Nigeria. The study also updates and extends prior evidence on an industry-related effect on managerial views on dividend policy

Culture of Sustainability and Marketing Orientation of Indian Agribusiness in implementing CSR Programs—Insights from Emerging Market

The debate regarding the suitability of market orientation or culture of sustainability for corporate social responsibility (CSR) implementation and economic sustainability deserve much more scholarly attention as globalization and competition in emerging markets increases. Using qualitative content analysis of interviews with 28 senior managers of large agribusiness firms in India, this empirical article explores how market orientation or culture of sustainability affects CSR implementation, or vice versa? The findings of the study identify factors such as the nature of a firm’s business, sensitivity, commitment towards sustainable development, and pressure on profitability that prompt firms to adopt sustainability dominant, market dominant, and sustainability−market mixed corporate culture. Culture of sustainability dominant firms are likely to implement CSR more smoothly and effectively compared to firms that are driven by market orientation. Moreover, firms committed to substantial and consistent CSR are likely to induce culture of sustainability in firms. Finally, the study offers a framework that provides insights into how CSR program implementation and a culture of sustainability are complementary and could strengthen the economic sustainability of firms in emerging markets

Gender diversity on Boards and Forward-looking Information Disclosure: Evidence from Jordan

Purpose The study provides empirical evidence of the relationship between female representation on the board and Forward-looking information (FLI) disclosures. Design/methodology/approach The study uses the content analysis to analyse the narrative evidence from the annual financial reports of non-financial Jordanian companies listed on the Amman stock exchange (ASE). The final sample consists of 1206 firm-years observations during the period 2008-2013. Findings The study provides evidence that gender diversity on boards positively affect the level of FLI disclosures. Further to this, the study reveals that family firms disclose more information than non-family firms. Practical implications Results of this study could be beneficial for a number of users of financial information such as, regulators, investors, auditors and lenders. The users might consider the findings of this study when they are using the company’s financial information. Consequently, users of this information could be better assisted to make right decisions. Originality/value This study contributes to the literature by identifying the role of gender on the level of FLI disclosure, particularly on family and non-family, a relatively little researched area

Female directors and earnings management: Evidence from UK companies

Since the gender diversity of boards and the reporting of earnings are two of the most debated issues in the corporate world, the paper examines how the presence of women directors on the corporate board influences earnings management practices. We found that firms with a higher number of female and independent female directors are adopting restrained earnings management practices in the UK. We further made a distinction between high- and low-debt firms, and the outcomes reveal that female directors have a positive effect on the earnings management in low debt firms. The paper contributes to the debate on gender diversity on boards, and its impact on the use of accounting discretion in financial reporting

Regulating for development: the case of microfinance

The regulatory concerns of microfinance sector lies in the special nature of these institutions which caters the needs of those who have been marginalised from the formal financial sector. The paper underlines the importance of an appropriate regulatory framework to support sustainable delivery of diversified microfinance services such as savings and insurance. The paper explores the rationale for regulation in the microfinance sector, and followed by a review of major regulatory approaches and its impact on the microfinance sector. The sector-specific regulations along with prudential reforms may facilitate and environment, which allows microfinance institutions to mobilise savings and to reduce the problems in enforcing normal banking regulations. The paper also emphasises the need to incorporate the country specificities in the regulatory approach to encapsulate the specificities of macroeconomic environment and different stages of development. © 2005 Board of Trustees of the University of Illinois. All rights reserved

Corporate Governance of Banks in Developing Economies: Concepts and Issues

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What’s Wrong and Right with Microfinance

Recent events in south Asia have led to an unexpected reversal in the narrative of microfinance, long presented as a development success. Despite charges of poor treatment of clients, exaggeration of the impact on the poorest as well as the risks of credit bubbles, the sector can play a non-negligible role in reaching financial services to low-income households. In regulating the sector, there is need for caution in setting interest rate ceilings on micro-loans and for greater openness to micro-savings products