Conceptualizing Islamic banking and finance: a comparison of its development and governance in Malaysia and Singapore

In response to the limited engagement with critical social science concerning the governance of Islamic banking and finance (IBF), this paper compares and conceptualizes the development and governance of IBF in Malaysia and Singapore. We argue that IBF governance in Malaysia and Singapore can be distinguished on the basis of ethnic politics, moral suasion, product demand, product innovation, and the character of state practices. Concerning the latter, we contend that the political economy of both countries can be characterized as broadly involving a ‘neoliberal-developmentalism’, but we nuance this by positing a transition in Malaysia from a ‘semi-developmentalism’ in the 1980s to what we call an ‘Islamic and internationalising ordoliberalism’ beginning in the 2000s. In turn, the governance of IBF in Singapore involves a combination of neoliberal developmentalism, which nonetheless also entails some form of Islamic ordoliberalism.     

Lessons from NPAs crisis in Indian banks

Nonperforming assets (NPAs) crisis in Indian public sector banks is one of the biggest challenges before the current government in 2017. The finance ministry, Government of India, and the central bank, the Reserve Bank of India, are worried about the surging NPAs in Indian public sector banks because of their huge macroeconomic impact and systemic risk to the financial system. If not paid timely attention, it can hamper the economic and financial stability of the nation. Rising NPAs in Indian public sector banks are a result of bank specific, macroeconomic, and political factors. In order to control the surging NPAs in Indian public sector banks, the government and the Reserve Bank of India have implemented new crisis management framework which however is not immune to several challenges. This paper looks at NPAs crisis from the lens of crisis management, stakeholder's engagement, government relations, and issue management. Harris and Fleisher ( 2016 ) identify crisis management, stakeholder engagement, government relations, and issues management as important organizational activities that constitute part of public affairs. This paper follows a tripartite structure where it first investigates the causes of NPAs in Indian public sector banks. Second, it examines the crisis management framework developed by the policy makers and highlights the key challenges. Third, in light of these challenges, it makes recommendations to tackle the NPAs crisis in Indian public sector banks.     

Stakeholder engagement as communication design practice

Stakeholder engagement competence is here framed as an ongoing matter of communication design—that is, professionals and organizations of all sorts are challenged to invent forms of engagement with organizational stakeholders making communication possible that may otherwise be difficult, impossible, or unimagined. An original framework for articulating logics of communication design that addresses extant shortcomings in understanding stakeholder engagement competence is introduced. The framework draws into relief how communication for stakeholder engagement is conceptualized and valued by professionals and organizations. The communication design practice framework provides a path for opening up the black box of stakeholder engagement to advance communication competence in professional practice and organizational communication. The framework is illustrated by reconstructing, from current corporate social responsibility practice, two competing communication design logics for constructing dialogue and stakeholder engagement. One logic, grounded in the shared value framework, reprises a common theme about business that points to constructing communication to maintain the primacy of shareholders in stakeholder networks and to seek profitability in social, environmental, and economic problems. The other logic introduces an alternative communication design logic grounded in commitments to collaborative governance and open innovation. This logic is for stakeholder networks to generate and manage multiple values that address matters of social, cultural, environmental, and economic concerns. We then consider some key implications for engagement practice and competency for inventing forms of dialogue and stakeholder engagement to create value in the new globalized, mediated context. Communication design practice opens new ways of thinking about stakeholder engagement that has implications for cultivating professional practice and improving organizational decision‐making about investing in communication resources and infrastructure. Copyright © 2015 John Wiley & Sons, Ltd.     

Civil Society,Moderate Islam,and Politics in Indonesia and Malaysia

What role do moderate Islamic organizations play in promoting democratization in Malaysia and Indonesia? What is the difference between large, grassroots organizations and newer more urban-based non-governmental organization (NGOs)? Is one type of organization more effective than the other? This paper looks at the changing dynamics of moderate or progressive Islamic organizations in Malaysia and Indonesia. It examines organizations such as the Liberal Islam Network in Indonesia and Sisters in Islam in Malaysia, as well as others, to try and understand the conflict between moderate or progressive Islamic groups and more conservative Islamic forces and to evaluate the role such moderate organizations play in advocating for greater protection of rights and liberties. The article finds that under moderately open conditions (like in Indonesia after 1998), Islamic NGOs do play an important and constructive role in promoting democracy.     

Regulatory lags,liberalization, and vulnerability to banking crises

This article explores the effect of delays in updating prudential regulation on the likelihood of a country experiencing banking crises, and it disentangles the impact of different aspects of regulation on crisis onset. I argue that delays in revision to banks' prudential regulation allow banks to adopt risky behavior, which increases a country's vulnerability to systemic banking crises. This effect, however, is conditional on the level of liberalization of the financial market. At lower levels of liberalization, banks have stronger incentives to escape the constraints of regulation and to take advantage of regulatory lags. At high levels of liberalization, the effect of regulatory lags is curbed, possibly by market discipline. Statistical analyses on a sample of developed and developing countries from 1974–2005 support this argument and help rule out the competing learning hypothesis. These results suggest that the effects of institutions can vary with the passage of time.     

Social process in grizzly bear management: lessons for collaborative governance and natural resource policy

In this study, we analyze a case of governance in natural resource management. Building on the limited body of literature on termination and using methods of problem orientation and social process mapping, we examine a stakeholder engagement process designed to address conflicts in grizzly bear management in Banff National Park, Alberta. Terminated in 2009 after several years of collaboration, this stakeholder engagement process explicitly used the policy sciences framework to cultivate dialogue, improve participants?? decision-making skills, and make consensus-based recommendations for grizzly bear management. Our analysis demonstrates the utility of undertaking social process mapping and problem orientation in order to understand a natural resource policy problem. We include recommendations to foster a social process that allows for clarification and advancement of the common interest in stakeholder groups, insights into how social process can contribute to policy termination, and reflections on the practical, collaborative use of the policy sciences to solve problems of governance. This analysis complements other articles on this case that examine stakeholder perspectives, initial outcomes, and decision process, collectively providing a thorough policy analysis.     

Global governance and communicative action: a study of democratic participation during planning for the Lyon–Turin rail link

Organisation–stakeholder engagement during planning of a high‐speed rail link between France and Italy is described and analysed in this paper. Conceptualising organisation–citizen engagement as a form of deliberative democracy, the study's theoretical framework draws upon literature from communication, social and political science. Following a review of governance for transnational organisation–stakeholder engagement, communication methods used by one transnational organisation, Lyon‐Turin Ferroviaire (LTF), to engage in ‘discursive legitimacy’ with affected parties, is studied. A qualitative case study approach examines whether LTF's engagement with stakeholders provides opportunities for democratic participation rather than creating a democratic deficit in the public sphere. Results point to a lack of mechanisms through which transnational policy makers can be held accountable‐leading in this case, to a legitimacy crisis for institutions involved, threatening their ability to justify the economic and transportation viability of the project. This article is of interest to academics in communication and social sciences, managers working in an international context and communication professionals. Copyright © 2014 John Wiley & Sons, Ltd.     

Beyond the Z-score: A novel measure of bank stability for effective policymaking

This article looks beyond Z-score and proposes a novel methodological framework to build an all-encompassing indicator of bank stability for individual banks using the optimisation-based ‘benefit-of-the-doubt (BoD)’ approach. Unlike other available approaches, this approach is totally data-driven and generates endogenous weights to aggregate sub-indicators of bank stability and dimensions. Further, the final outcomes are not limited to a scalar measure of bank stability. The unique optimal weights offer valuable policy-relevant insights and highlight the most precarious areas of stability, which demand the immediate attention of the bank's management and the industry regulators for both micro-and macro-level policymaking. Using the data of Indian public sector banks operating in the year 2018, the study illustrates the proposed framework to obtain a holistic indicator of bank stability, defined on 14 ratio sub-indicators and 5 broad dimensions (soundness, asset quality, profitability, management efficiency, and liquidity) of bank stability.     

The impact of online media on stakeholder engagement and the governance of corporations

Online tools such as social media provide new opportunities for citizens and stakeholder groups to be informed, identify common interests, express and share opinions and demands, organize, and coordinate interventions. Therefore, the Internet could be expected to increase stakeholder engagement in corporate affairs and facilitate good governance. In order to provide an overview of current findings on the impact of online media on governance and stakeholder engagement, we conduct a systematic literature review. Our analysis reveals five topical categories of inquiry. We analyze studies from the field of business participation and find a strong bias towards consumer engagement and marketing issues. Only few studies are found to critically explore the effect of online media on power and value distribution between corporations and stakeholders. We then turn to the more established field of political and civic participation in order to further analyze antecedents, forms, and outcomes of online engagement in civic affairs, and derive a framework for future research. Copyright © 2014 John Wiley & Sons, Ltd.     

Improving Legitimacy in Nanotechnology Policy Development Through Stakeholder and Community Engagement: Forging New Pathways

This paper reports on a multistakeholder engagement process conducted in an Australian policy setting that led to a new community engagement framework: Science and Technology Engagement Pathways (STEP). I describe the process in the context of a lack of awareness, experience, and culture of deliberative public engagement in Australia, particularly in relation to decision making concerning science, technology, and innovation. Increasing cautiousness in government and industry approaches to nanotechnology development, in Australia and elsewhere, creates an imperative and an opening for improved stakeholder and community engagement to improve the legitimacy and sustainability of decisions. In this context, STEP may stimulate movement toward deliberative engagement by raising awareness and commitment from diverse stakeholders and providing a structure for developments in engagement and public dialog. STEP potentially provides “rules of engagement” and “intervention pathways” for ongoing public engagement with science and technology developments and for critical “science in society” perspectives to inform policy.     

Muslim feminism: Citizenship in the shelter of corporatist Islam 1

It appears that Muslim feminists the world over are struggling against both Islamic patriarchy and authoritarian governments that are unwilling or unable to grant women social equality. Yet, Malaysia, a developing country in Southeast Asia, seems to be an exception. There, Islam is a patchwork of the most liberal as well as radical strands of Islam, a collage that is represented in cities by Muslim women in full purdah mingling with others in body‐conscious dresses and jeans. This contrast is reflected in the struggle between a small group of feminists called Sisters in Islam and resurgent ulamas over issues of marriage, domesticity, and public life. Feminist groups seek not only to express a female voice in Islam but also to renegotiate a wide range of issues pertaining to Islamic kinship codes, male‐female relations, and citizenship. This paper will argue that local feminism is shaped by the wider structure of state power as the national elite seeks to position itself in relation to global capital.     

The Limits and Possibilities of Volunteering: A Framework for Explaining the Scope of Volunteer Involvement in Public and Nonprofit Organizations

Despite popular rhetoric concerning the benefits of volunteerism for public and nonprofit organizations, the use and management of volunteers to assist in the delivery of services is uneven: some organizations rely heavily on volunteer labor for this purpose, while others circumscribe volunteer contributions or eschew volunteer involvement altogether. This article introduces eight dimensions of volunteer involvement—four involving organizational decisions and four regarding volunteers’ decisions—that make up the overall scope of volunteer involvement in an organization. Based on a review of the literature, the article presents a conceptual framework and several research propositions concerning how organizational characteristics, volunteer management, and environmental factors affect the overall scope of volunteer involvement in an organization.     

Unpacking a Wicked Problem: Enablers/Impediments to Regional Engagement

A case study approach is applied to review Local Government Authorities (LGA) regional engagement in the Australian context. We address the question ‘What are the key LGA enablers/impediments to regional engagement?’ by applying Leydesdorff's (2000) proposition that triple helix type network systems exhibit patterns of complex behaviour if the interaction factors that trigger enablers are reflexively declared. The three strands of the LGA triple helix network system are institutions, industry and government. In this case study the LGA's overall management of its regional stakeholder relationships resulted in impediments that limit strong regional engagement. Importantly, the findings inform practitioners, policy‐makers and research audiences of the nature of impediments and, by inference, the nature of enablers in LGA triple helix network systems.     

Corporate Sustainability and Financial Performance of Banks in Muslim Economies: The Role of Institutions

Sustainability performance (SP) provides firms with the opportunities that if strategically handled could improve the financial performance of these firms through reputation building. This research aims to investigate the impact of SP on the bank's performance in Muslim countries. This research further investigates the role of institutions in moderating the relationship between SP and the banks' financial performance. It is found that banks with higher SP tend to have better financial performance. Furthermore, the marginal results suggest that the impact of SP is greater for banks in countries with greater institutional quality. These findings are robust to different proxies of financial performance. It is imperative not only to report sustainability practices, but it is equally important to publicize these activities. The sustainable business models would create value for the banks if properly managed and communicated well. This can be made more effective with strong institutions in the country. Moreover, the results are suggesting that banks can enjoy more through contributing to society, doing their part in the equitable distribution of wealth, social justice, and economic wellbeing.     

Bank power in West Germany revised

This article examines the empirical and theoretical validity of the power of banks over industry in West Germany. An outline of the historical development, structure and institutions of credit in the Federal Republic is followed by discussion of the three alleged factors behind the banks' power: the functional linkage of bank and industrial capital; property rights and ‘personal influence’; the planning and economic guidance capacities of the banks. Finally, it is argued that the thesis of bank power in Germany, in the light of empirical evidence and theoretical reflection, should be somewhat more differentiated.     

Winners and losers: Conflict management through strategic policy engagement

In high-conflict policy debates, individuals often make strategic decisions about the ways in which they engage in efforts to influence the direction of the debate. Some individuals act to expand the scope of the conflict, whereas others would prefer to contain the scope of the conflict and maintain status quo. This study empirically examines the relationship between activities of political engagement and goals of conflict expansion or containment in a particular setting in which there are clear “winners” and “losers.” This research first explores the tactics an individual undertakes as either conflict expansion or containment. The patterns uncovered are then tested against sectoral affiliation, to draw conclusions about key factors that explain some variation in policy engagement. Findings confirm that there are predictable patterns to engagement decisions, paving the way for future testing in different policy arrangements.     

Corporate governance on stakeholder issues: shareholder activism as a guiding force

Publicly traded corporations are under increasing amounts of pressure from society at large to redirect resources toward maximizing the value that accrues to non‐shareholding stakeholders of the organization. Building on the management and public relations literature, this study proposes a shareholder–stakeholder engagement model on corporate social responsibility (CSR)—the totality of corporate actions to meet societal norms and expectations. The study argues that shareholder activist–corporate engagements on CSR issues can enhance the corporation's sensitivity to stakeholder issues through improvements in the stakeholder governance mechanisms—institutions that safeguard stakeholder interests and maximize stakeholder welfare—within the corporations. Social shareholder activists, a special type of stakeholders, can be a viable source of pressure in influencing corporations to improve weaknesses in stakeholder governance mechanisms. Copyright © 2014 John Wiley & Sons, Ltd.     

Lehman Brothers in the Dutch offshore financial centre: the role of shadow banking in increasing leverage and facilitating debt

Credit intermediation outside the regular banking system, or shadow banking, has increased immensely over the past decade. This paper situates this increase against the backdrop of the structural problem of overaccumulation, and thus the absence of profitable reinvestment opportunities in the production sphere, in addition to the scarcity of high-quality collaterals. Zooming in on Europe’s offshore world and Dutch conduit structures in particular, the paper illustrates, on the basis of the Amsterdam-based Lehman Brothers subsidiary (and others), how shadow banking enables regular banks to increase leverage and take on excessive debt. It will be argued that the continued expansion of debt at the systemic level, inter alia facilitated by shadow banking, heralds the prospect of a crisis far more dramatic than the one we are currently witnessing.     

Governing development: neoliberalism,microcredit, and rational economic woman

This paper addresses the emergence of microcredit programmes as a preferred strategy for poverty alleviation world-wide. Taking the paradigmatic case of Nepal, it engages a genealogical approach to trace how Nepalese planners' enduring concerns about rural development intersect in surprising (and gendered) ways with donors' present focus on deepening financial markets. In the resulting microcredit model, the onus for rural lending is devolved from commercial banks to subsidized 'rural development banks' and women borrowers become the target of an aggressive 'selfhelp' approach to development. As a governmental strategy, microcredit thus constitutes social citizenship and women's needs in a manner consistent with neoliberalism. Drawing on ethnographic research, the paper also considers the progressive and regressive possibilities in the articulation of such constructed subjectivities with local cultural ideologies and social processes. Such an investigation can in turn provide a foundation for articulating a more normative agenda for development studies – grounded in the perspectives of those in subordinate social locations.     

Corporate values of the 25 largest European banks: Exploring the ambiguous link with corporate scandals

Corporate value statements communicate what a firm aspires for and what drives their value creation. In addition, corporate values often also define which behaviors are acceptable and which are not. Ideally, corporate values are representations of a firm's informal corporate values and organizational culture. However, in practice, there is an inherent tension between the aspirations and actual values and ensuing behaviors of and within a firm—let alone the potentially different interpretations of abstract corporate value statements. In this paper, we set out to provide more clarity on what corporate values are, how they are inherently ambiguous, and how in practice they compare to firm involvement in scandals. For this purpose, we study the corporate values of the 25 largest European banks after the financial crisis. “Integrity” appeared to be the most common value among the 25 banks, followed by “customer focus.” Nonetheless, over the past 6 years, 15 out of the 25 studied banks were involved in one or more scandals. Scandals can be systematic or caused by rogue employees, and benefitting the firm or their customers—in the latter case, providing an interesting interpretation of the customer focus value. Additionally, we found that courage or its synonyms were barely mentioned among banks' corporate values, potentially providing an additional explanation for the fast size of the financial crisis. Finally, we found that banks that had inclusive social principles such as respect, solidarity, and equality did not face large-scale scandals.