Reputation Risk from a Stakeholder Management Perspective

A. Aderibigbe, E. Fragouli — Mon, 13 Jul 2020 00:00:00 +0800

Stakeholders face many different risks that arise from any business activity. The stakeholder management approach is the process by which is organised, monitored and improved relationships with business stakeholders. It involves systematically identifying stakeholders; analysing their needs, expectations; planning and implementing various tasks to engage with them. Most definitions of stakeholder management tend to focus around the idea of how could stakeholders be managed in order to get them to do what is equired. The emphasis is placed on creating a stakeholder management plan that maps the level of interest and influence of stakeholders and list various levels of engagement for the different groups. This paper applies a case study methodology presenting the Wal-Mart case and the Malden Mills case to reflect the implications of stakeholder management in companies. The findings indicate the positive but also the negative implications which result when various stakeholders are neglected, and, conversely, the benefits when stakeholders are effectively engaged in corporate activities. It concludes that effective stakeholder management contributes to risk management and reputation management, as well as, to corporate social responsibility.

Applicability of Reliability Model for Improving the Performance of Islamic Financial Institutions in Financing Decision by Mousharakah and Moudarabah Contracts

Abdelkader Derbali — Mon, 24 Aug 2020 00:00:00 +0800

To offer alternatives to improve the performance of Islamic financial institutions (IFIs), we try in this paper to examine the applicability of the reliability model, as a tool to help decision. We opted for the investment by Mousharakah contracts and Moudarabah contracts because of their resemblance to venture capital, where the reliability model was mentioned. To do this, we developed a documentary research which allowed us, on the one hand, to dissect the notions of decision and performance and to confirm a possible nexus among the two, and on the other hand, to justify the use of this model. Then, we set up the theoretical framework of the model for a potential application to our case study. Then, and after confirming this relationship, we were interested in the case of investment by the Mousharakah and Moudarabah contracts, given their similarity to other financing methods, namely venture capital, where the reliability model was mentioned as a decision support tool. All in all, we can find that this approach will probably create an investigative implement to aid investment choice and decision for IFIs in the future. The developed model constitutes an analytical decision-making aid tool for Islamic financial institutions in the future for Traders and investors.

Risk and Financial Management

Reputation Risk from a Stakeholder Management Perspective

Applicability of Reliability Model for Improving the Performance of Islamic Financial Institutions in Financing Decision by Mousharakah and Moudarabah Contracts