Is Ethical Finance the Answer to the Ills of the UK Financial Market? A Post-Crisis Analysis

Aldohni, Abdul Karim

doi:10.1007/s10551-016-3269-5

Cited by 8 publications

(5 citation statements)

References 21 publications

(5 reference statements)

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“…It may thus be considered to be part of a more global phenomenon of ethical, collective, and sustainable entrepreneurship. Prosocial crowdfunding platforms, with their clear ethical agenda of social or environmental value as an ultimate objective, belong to the ethical finance movement (Scarlata, & Alemany, 2010;Cumming et al, 2016;Montgomery et al, 2012;Aldohni, 2018).…”

Section: Introductionmentioning

confidence: 99%

Business or Basic Needs? The Impact of Loan Purpose on Social Crowdfunding Platforms

2020

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Crowdfunding has created new opportunities for poor microentrepreneurs. One crucial question is the impact that the purpose of a loan-either business investment or basic necessities-may have on the success of a campaign. Investigating a prosocial crowdfunding platform, we find that loans taken out to meet basic needs are funded faster than business-related loans, especially for small amounts, which can be explained by the prosocial motivation of microlenders. Moreover, female microborrowers are funded faster than men, especially for basic needs loans. Our results therefore suggest an ethical blind spot, since prosocially motivated crowdlenders may unintentionally end up producing adverse effects, replicating gender role by supporting women to a lesser extent when they apply for business loans. This finding expands prosocial motivational theory in ethical finance.

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Section: Introductionmentioning

confidence: 99%

Business or Basic Needs? The Impact of Loan Purpose on Social Crowdfunding Platforms

2020

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“…We proxy the real sector of the economy (as real estate and consumer durables are the main the Financial Services Authority (FSA) decision to phase out LIBOR by December 2021 due to a series of unethical scandals involving the conventional benchmark rate (Aldohni, 2018). The adoption of the LIBOR methodology that is prone to manipulations signifies the lack of vision of the IIBR's proponents.…”

Section: H2mentioning

confidence: 99%

“…13 To test the robustness of H1c, we add another macroeconomic variable representing the real sec-11 It is no coincidence that the reporting of the IIBR discontinued from 18 August 2016. This was at the dawn of the Financial Services Authority (FSA) decision to phase out LIBOR by December 2021 due to a series of unethical scandals involving the conventional benchmark rate (Aldohni, 2018). The adoption of the LIBOR methodology that is prone to manipulations signifies the lack of vision of the IIBR's proponents.…”

Section: Datamentioning

confidence: 99%

On the Ethicality of Islamic Banks’ Business Model

Jatmiko

Iqbal

Ebrahim

2023

British J of Management

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This paper scrutinizes the ethicality of Islamic banks' (IBs') business model by employing the 'objectives of Islamic law' (Maqāsid al-Sharī'ah). This necessitates developing an ethical framework to construe two primary injunctions of Islamic finance, namely ribā and gharar. The former embodies financial decoupling (aggravating riskshifting) and unjust price gouging (provoking economic stagnation and financial exclusion), while the latter involves asymmetric information and excessive risk-taking behaviour (exacerbating financial fragility and thus systemic risk). We empirically and theoretically illustrate that these unethical issues are still prevalent in the IBs' modes of financing, despite the Sharī'ah-compliant endorsement of religious scholars (i.e. Sharī'ah supervisory boards). This affirms that ethicality is merely an impression management exercise of IBs instead of their true business identity. The way forward is to conceptualize IBs' modes of financing beyond just Sharī'ah compliance by scrutinizing their ethical impact on society at large. This would require updating centuries-old Islamic rulings (Fatāwā) on financial transactions and consulting finance academics and practitioners.

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“…The fields of economics, finance and political science have widely addressed the systemic nature of crisis and its broader effects (Pauchant et al, 1991;Pearson and Clair, 1998;Mascareño et al, 2016). Management and business studies have particularly investigated the economic context (Elsinger et al, 2006;Aldohni, 2018). A central issue is organizational resilience, described as the "ability of organizations to anticipate, avoid, and adjust to shocks in their environment" (Ortiz-de-Mandojana andBansal, 2016, p. 1615).…”

Section: Crisis Management and Systemic Crisismentioning

confidence: 99%

Viability amid systemic crisis: the CORER framework

Spena

Mele

Kaartemo

et al. 2022

JBIM

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Purpose The COVID-19 wave spread all over the global market, affecting all industries. This paper aims to develop the understanding of how service systems can enhance their viability when facing rapid systemic changes. Design/methodology/approach The authors use data from Reddit, and particularly the subreddit r/coronavirus, to identify posts that discuss the impact of coronavirus on business. The authors use an algorithm to scrape the data with business-related search terms and elaborate relevant posts. Findings The findings show key topics and related sentiments on the impact of COVID-19 on business. Service systems can enhance viability by identifying alternative paths for emerging opportunities (by being creative), seize opportunities offered by the changing environment (by being opportunistic), not compromise conditions for internal balance (by being resilient), focus attention on critical purposes (by being essential) and perform nonharmful actions (by being responsible). Originality/value This paper proposes a framework depicting five possible key enhancers of viability to face a systemic crisis. In brief, companies need to ensure that they are creative, opportunistic, resilient, essential and responsible.

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Is Ethical Finance the Answer to the Ills of the UK Financial Market? A Post-Crisis Analysis

Cited by 8 publications

References 21 publications

Business or Basic Needs? The Impact of Loan Purpose on Social Crowdfunding Platforms

Business or Basic Needs? The Impact of Loan Purpose on Social Crowdfunding Platforms

On the Ethicality of Islamic Banks’ Business Model

Viability amid systemic crisis: the CORER framework

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