Fairtrade Towns as Unconventional Networks of Ethical Activism

The 2008 financial crisis exposed the dark side of the financial sector in the UK. It brought attention to the contaminated culture of the business, which accommodated the systemic malpractices that largely contributed to the financial turmoil of 2008. In the wake of the crisis there seems to be a wide consensus that this contaminated culture can no longer be accepted and needs to change. This article examines the ills of the UK financial market, more specifically the cultural contamination problem, which was uncovered by the 2008 financial crisis, in order to explore its genesis and the suitable solutions for it. In this regard, the article analyses the ethical finance sector from theoretical and practical perspectives in order to assess its role in addressing the cultural contamination problem of the UK financial market.     

The suffering company: Consumer compassion towards companies exposed to negative events

When a company commits misconduct, it will usually suffer; for example, in the form of a short‐term decline in sales, a medium‐term loss of reputation, or a long‐term drop in its bottom line. But when a company is involved in a negative event for which it is fully responsible, for example, public customer agitations due to false expectations, some consumers might feel compassion for the company. In turn, they might aim to help the company overcome its period of suffering; for example, by making supportive recommendations. Drawing upon deservingness theory and previous findings on these issues, the authors propose a causal model suggesting antecedents of compassion and subsequent helping behaviors towards the company. A main finding is that the emergence of helping behaviors as a result of consumers’ compassion depends largely on company reputation. Self‐efficacy is a further focal construct influencing the intensity of felt compassion and helping behaviors depending on company reputation, suggesting that consumers apply emotion regulation strategies in such incidents.     

Brand love: Emotionality and development of its elements across the relationship lifecycle

Brand love is the most emotionally intense connection between consumers and their brands. Referring to their interpersonal counterpart, it is assumed that consumer–brand relationships change their nature over time. However, most studies in this field do not take into consideration this dynamic characteristic. As part of a dynamic perspective of emotionality within consumer–brand relationships, this study is the first to integrate traditional relationship lifecycle concepts and interpersonal love theories. Addressing the developmental path of brand love dimensions over the course of a relationship, the analysis shows that the emotional bond with a brand as represented by brand love and its subdimensions do not follow a prototypical trajectory as assumed by traditional lifecycle concepts. Instead of forming an inverse U‐shape, the respective dimensions show divergent paths rather resembling the development of their interpersonal correspondent. Comparing hedonic and utilitarian brand concepts, it is shown that brand love can arise for hedonic brands and, just as well, for brands perceived as predominantly utilitarian. Moreover, the results advocate the singularity of brand love among relational constructs, thereby paving the way for a distinct theoretical approach centering on the lifecycle of love. Theoretical and managerial implications are discussed.     

Firms' use of accounting discretion to influence their credit ratings

This paper examines whether firms that deviate from an empirically modeled (“expected”) credit rating engage in earnings management activities, as measured by abnormal accruals and real activities earnings management. We find evidence that firms use income-increasing (-decreasing) earnings management activities when they are below (above) their expected ratings. We then test whether such actions are successful in helping these firms move toward their expected credit ratings. The results suggest that firms below or above their expected credit ratings may be able to move toward expected ratings through the use of directional earnings management.     

Actions speak louder than modes: antecedents and implications of parent implementation capabilities on business unit performance

Firm boundaries and strategic execution affect the firm's ability to generate rents, grow, and survive. Boundaries are determined through governance mode choices, such as whether to make or buy a particular good or activity. While significant work has addressed the performance implications of this fit, less attention has been directed toward strategic execution, or implementation. In particular, the impact of corporate parents has been understudied. We suggest that parent‐level implementation capabilities of operating expertise gained through related experience and coordination from collocation combine with governance mode choices to jointly affect performance. By employing theories of organizational economics and testing predictions in casual dining chains, this paper unpacks the relationship between implementation, governance mode choice, and performance. Our findings suggest that parent capabilities may be more important than mode choice fit and that parent benefits are contingent upon mode choice and type of performance. Copyright © 2011 John Wiley & Sons, Ltd.     

Ethical dilemma at work: the viewpoint of bank marketers in Nigeria

The study sought to investigate the major factors that constitute ethical dilemmas for bank marketers in the workplace. The conclusive research design was adopted, and the population of the study consisted of part-time postgraduate students in the faculty of management sciences at the University of Benin who are bank marketers. Research data were analysed using structural equation modelling. Results indicate that sales target and deceptive marketing significantly influence the ethical dilemma faced by bank marketers in Nigeria. The results also showed that respondents’ perception is related to education but not related to sex, marital status and age.