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Green banking practices and customer satisfaction-way to green sustainability
Tóm tắt: Nghiên cứu này tập trung xác định vai trò của Quyền riêng tư trong mối quan quan hệ giữa Ngân hàng xanh và Sự hài lòng của khách hàng tại các Ngân hàng thương mại trên địa bàn TP. Đà Nẵng. Các phương pháp được sử dụng trong nghiên cứu bao gồm nghiên cứu định tính thông qua việc thảo luận với các chuyên gia để bổ sung hoặc hiệu chỉnh thang đo, mô hình nghiên cứu cho phù hợp hơn với bối cảnh nghiên cứu; và nghiên cứu định lượng thông qua khảo sát từ 522 các cá nhân có phát sinh giao dịch với các Ngân hàng thương mại trên địa bàn TP. Đà Nẵng, các phương pháp thống kê, đánh giá độ tin cậy Cronbach’s alpha, phân tích nhân tố EFA, mô hình đo lường và mô hình cấu trúc PLS-SEM được sử dụng để phân tích. Kết quả cho thấy, (1) Ngân hàng xanh (bao gồm các nhân tố Số hóa ngân hàng (SH); Hạ tầng xanh (HT); Khoản vay xanh (VA); Dịch vụ xanh (DV)) tác động tích cực đến Quyền riêng tư (RT) và Sự hài lòng khách hàng (HL); (2) Quyền riêng tư (RT) đóng vai trò trung gian trong mối quan hệ của Ngân hàng xanh (bao gồm các nhân tố Số hóa ngân hàng (SH); Hạ tầng xanh (HT); Khoản vay xanh (VA); Dịch vụ xanh (DV)) tác động đến Sự hài lòng khách hàng (HL).
Từ khóa: Ngân hàng thương mại, Ngân hàng xanh, Quyền riêng tư, Bảo mật, Sự hài lòng.
Abstract: This study focuses on identifying the role of Privacy in the relationship between Green Banking and Customer Satisfaction at Commercial Banks in Da Nang City. The research methods employed include qualitative research through expert discussions to supplement or adjust the measurement scales and research model to better suit the research context; and quantitative research through a survey of 522 individuals who have conducted transactions with commercial banks in Da Nang City. Statistical methods, including Cronbach’s alpha reliability testing, Exploratory Factor Analysis (EFA), measurement model, and structural model analysis using PLS-SEM, were utilized for data analysis. The results indicate that: (1) Green Banking (comprising the factors of Bank Digitalization (SH), Green Infrastructure (HT), Green Loans (VA), and Green Services (DV)) positively influences both Privacy (RT) and Customer Satisfaction (HL); (2) Privacy (RT) plays a mediating role in the relationship between Green Banking (including SH, HT, VA, and DV) and Customer Satisfaction (HL).
Keywords: Commercial bank, Green Banking, Privacy, Security, Satisfaction.
Purpose
Drawing upon stakeholder and signaling theory, this paper aims to examine the mediating role of customer perceived ethicality in green banking’s impact on trust and loyalty.
Design/methodology/approach
Using a quantitative research design, data were collected from 343 banking customers. The partial least square structural equation modeling was used to test the proposed model.
Findings
The findings revealed that green banking practices significantly enhance green trust and green loyalty. This positive relationship is mediated through customer perceived ethicality.
Practical implications
Banking industry can gain trust and build loyalty by emphasizing green banking practices and effectively managing customer perceived ethicality. The findings of this paper offer valuable insights for banking managers and policymakers seeking to strengthen trust and promote long-term loyalty.
Originality/value
This study is novel as it demonstrates the mediating role of customer perceived ethicality on the relationship between green banking practices, green trust and green loyalty, which prior studies ignored.
The growing concerns about global climate change have thrust green banking and green finance into the forefront of discussions. The research suggests that green banking plays a pivotal role in advancing environmental sustainability. This study focuses on examining the profound impact of green banking practices on the environmental performance of banks, with a specific focus on both private and public sector banks operating in India through a survey involving 500 bank employees the study employed partial least squares structural equation modelling (PLS-SEM). The findings highlight various aspects of green banking, encompassing employee-related practices, operational procedures, customer engagement, and policy adherence, and significantly contribute to the promotion of green finance, resulting in substantial positive effects. Moreover, the study underscores the substantial and positive influence of banks’ green financing on their environmental performance. Interestingly, the operational features of green banking practices emerged as having a notable impact on banks’ environmental performance, whereas aspects related to employees, policies, and customers did not directly and significantly influence environmental performance. The results of the study carry significant policy implications, especially for India’s banking sector, in the pursuit of environmental sustainability.
Digital banking is linked with several
cybersecurity threats, such as the risk of hackers.
Against this background, this study aims to
explore behavioural insights into cybersecurity
practices among digital banking consumers in
South Africa. The researcher gathered data from
338 South African banking consumers. A
structured questionnaire was used to survey
these consumers, and the obtained data were
analysed using structural equation modelling
(SEM). The results revealed that subjective
norms, self-efficacy, and attitude significantly
influence the cybersecurity intention behaviour
of digital banking consumers. The implications
of the study's findings need to be more readily
generalisable due to the sociocultural
differences across different provinces and
populations. Future research should include a
more diverse sample to validate these findings
further.
Unlocking corporate social responsibility and environmental performance:
Mediating role of green strategy, innovation, and leadership
With the emergence of technological innovations, digital finance with a blend of new models and the development of inclusive financial innovation shows great significance for business firms to emphasize innovative and competitive product market competition. Thus, financial digitalization and business environment directives help improve the financial performance of business enterprises. This study assesses the role of product market competitiveness on firm performance through the mediating role of digital financial innovation. The annual data of 90 companies from 2014 to 2020 is taken from the Pakistan stock exchange market. The empirical results are estimated using three paths by the Structural Equation Model (SEM) regression approach. The study identifies that product market competitiveness positively contributed to determining the firm performance. Besides, digital financial innovation serves as the mediator in the study, which partially positively determines firm performance. It shows that firm financial innovation fails to account fully for firm performance. This study does not include several other factors determining firm performance. The research results deliver a useful empirical and theoretical contribution to digitalization and product innovation. The findings help to uncover the antecedents of financial innovation and firm performance. This research model can assist researchers in designing robust strategies to appraise the impact on firm performance. Investigators may advance valuable insights by integrating this methodology. Concerning originality, these results indicate that digitalized innovation positively influences firm performance by offering innovative products and digitalization. The outcomes contribute to the literature on digital innovation, and the study recommends that business organizations should pay particular attention to improving financial innovation and digitization in business firms.
In the era disruptive technology the emergence of artificial intelligence has fundamentally improved banking operations. The execution of artificial intelligence is no longer discretionary for financial institutions and now it is considered an essential tool to meet customer expectations. Although artificial intelligence enabled digital banking is faster efficient and effective however user acceptance of digital banking driven by artificial intelligence is in its initial stages. Therefore , current study develops and integrated research framework with expectation confirmation model and examines digital banking user satisfaction and acceptance of AI enabled digital banking. Data were collected from digital banking user through structured questionnaire. Overall, 320 respondents were approached and requested to participate in digital banking survey. In return 251 valid responses were received and analyzed with structural equation modeling. Findings of the structural model indicate that satisfaction is jointly determined by expectation confirmation , perceived performance, trendiness, visual attractiveness, problem solving, customiza-tion, communication quality and revealed substantial variance Rˆ2 51.1% in digital banking user satisfaction. Therefore, satisfaction and corporate reputation have shown considerable variance Rˆ2 48.3 in user acceptance of AI enabled digital banking. Moreover, the research framework has revealed substantial predictive power Qˆ2 0.449 to predict digital banking user satisfaction and Qˆ2 0.493 user acceptance of artificial intelligence enabled digital banking. Concerning with hypotheses relationships exogenous factors have shown positive and significant impact user satisfaction except trendiness and customization. Practically, this research has suggested that policy makers should pay attention in improving user expectation confirmation, perceived performance, visual attractiveness, communication quality and corporate reputation which in turn enhance satisfaction and boost digital banking user's confidence to accept artificial intelligence enabled digital banking. This study is original as it integrates expectation confirmation model with the antecedents of artificial intelligence and examines user behavior towards acceptance of artificial intelligence enabled digital banking.
In This era of globalization going green is the popular trend in the banking sector. In this fast changing environment green Banking plays an important role in the banking sector as green banking initiative has provoked banking institutions to introduce digital & Technology impelled services. Retaining customers & customer satisfaction in a bank is more difficult nowadays. The perception of customers and their satisfaction is an important factor that has to be taken into consideration before investing and implementing such Green services as they use this services.This study aims to find out the impact of Green Banking Initiatives on customer satisfaction. Green banking refers to making the banking transactions electronically/ digitally and to avoid paperwork in transactions. Green banking, a eco-friendly banking operation, ascertains high retention of customers for a bank. Green banking practices in the private sector banks provide a comfortable access to the customers. A study was conducted in the Banks to investigate the impact of green banking Initiatives and overall services of these banks on customers' satisfaction. The total 377 respondents have been considered for the stud.
Purpose
The authors aim to study a conceptual model based on behavioural theories (UTAUT-3 model) to evaluate the adoption, usage and recommendation for neobanking services in India.
Design/methodology/approach
The authors propose this model based on the UTAUT-3 integrated with perceived risk constructs. Hypotheses were developed to determine the relationships and empirically validated using the PLSs-SEM method. Using the survey method, 680 Delhi NCR respondents participated in the survey.
Findings
Empirical results suggested that behavioural intention (BI) to usage, adoption and recommendation affects neobanking adoption positively. The research observed that performance expectancy (PE), effort expectancy (EE), perceived privacy risk (PYR) and perceived performance risk (PPR) are the essential constructs influencing the adoption of neobanking services.
Research limitations/implications
Limited by geographic and Covid-19 constraints, a cross-sectional study was conducted. It highlights the BI of neobanking users tested using the UTAUT-3 model during the Covid-19 period.
Originality/value
The study's outcome offers valuable insights into Indian Neobanking services that researchers have not studied earlier. These insights will help bank managers, risk professionals, IT Developers, regulators, financial intermediaries and Fintech companies planning to invest or develop similar neobanking services. Additionally, this research provides significant insight into how perceived risk determinants may impact adoption independently for the neobanking service.
In this ever-growing competitive banking industry, understanding the effect of electronic banking service quality on customers’ satisfaction and loyalty is the secret to being competitive and successful in the sector. In Ethiopia, measuring service quality in the banking sector is a new paradigm. The primary purpose of this research was to examine the effect of electronic banking (e-Banking) service quality on customer satisfaction in Ethiopia’s emerging banking industry. Data were obtained using a closed-ended structured questionnaire from a total of 385 participants selected using a convenience sampling technique. Frequencies, percentage distributions, group modes, standard deviations, Chi-square correlations, and multinomial logistic regression were employed to analyze the quantitative data. The results confirmed a significant effect of the variables responsiveness, reliability, security and privacy, speed, and convenience on customer satisfaction. Similarly, customer satisfaction with the electronic banking service quality has a significant effect on customer loyalty. System availability, easiness to use, and service charge, on the other hand, have no statistically significant impact on customer satisfaction. Hence, based on the findings of this study, it is recommended that banks should focus on the factors related to responsiveness, reliability, system availability, and speed to maximize customer satisfaction and loyalty. The adoption of electronic banking service that offers a meaningful guarantee takes care of problems promptly, provides services precisely as promised, is always available and quick delivery enables customers to be better satisfied and thus create committed and loyal customers.
Artificial intelligence (AI) technologies are increasingly integral to our world, as they serve as the foundation for new value propositions and distinctive customer experiences. AI is crucial for offering better customer experiences, which strengthen the consumer–brand relationship and brand differentiation. Based on the stimulus–organism–response model, this study examined the influence of AI on brand preference for retail banks in Hong Kong. Structural equation modeling was used to analyze 300 responses collected from a questionnaire survey of Generation Z subjects. The findings indicate that AI marketing efforts affected brand experience, brand preference, and repurchase intention. Among AI marketing efforts, information, accessibility and customization exerted influences on brand experience, while interaction had no significant impact on it. Brand experience also mediated the relationship between AI marketing efforts and brand preference. The study will help retail banks to design AI marketing activities and formulate better marketing and branding strategies for customer acquisition and retention.
The present paper aims to demonstrate the combined impact of memory, selling price, and exhibited stock on a retailer’s decision to maximizing the profit. Exhibited stock endorses demand and low selling prices are also helpful for creating demand. The proposed mathematical model considers demand as a linear function of selling price and displayed inventory. This work utilized fractional calculus to design a memory-based decision-making environment. Following the analytical theory, an algorithm was designed, and by using the Mathematica software, we produced the numerical optimization results. Firstly, the work shows that memory negatively influences the retailer’s goal of maximum profit, which is the most important consequence of the numerical result. Secondly, raising the selling price will maximize the profit though the selling price, and demand will be negatively correlated. Finally, compared to the selling price, the influence of the visible stock is slightly lessened. The theoretical and numerical results ultimately imply that there can be no shortage and memory restrictions, leading to the highest average profit. The recommended approach may be used in retailing scenarios for small start-up businesses when a warehouse is required for continuous supply, but a showroom is not a top concern.
Every sector of the global economy is faced with environmental problems and their resulting consequences to their day-to-day operations. Due to the rising threat of global climate change, the green banking (GB) concept has been given significant attention in recent green finance literature. Therefore, the main purpose of this study was to identify the impact of GB practices on banks’ environmental performance and sources of green financing of private commercial banks (PCBs) in Bangladesh. Using a survey method, the primary data were obtained from a cross-sectional sample of 322 banking employees of PCBs in Bangladesh. In order to identify the key relationships existing between the study variables, structural equation modelling (SEM) approach was employed. The empirical findings indicated that banks’ employees, daily-operations, and policy-related GB practices have significant positive effects on green financing, contrary to banks’ customer-related GB practice, which was not statistically significant. Additionally, banks’ green project financing exhibited a strong and positive influence on banks’ environmental performance. Moreover, banks’ daily operation and policy-related practices of GB were observed to have significant impacts on banks’ environmental performances, in contrast to banks’ employee and customer-related GB practices. Therefore, major policy implications and directions for future research in the concerned area are discussed.
The banking system has evolved with time. Earlier, the banks maintained the storage and counting of coins, but the storage was not safe. Then started the concept of lending with interest. The banking system has completely revolutionised the system, and made it easier to transact online. In this study, the main aim is to understand the banking services and how it impacts the level of satisfaction. To conduct the study, a questionnaire was circulated, containing two sections. The first section contains a set of 16 questions containing demographic- and services-related question. Section 2 contains 24 questions, showing a Likert scale to measure the level of satisfaction of the customers. One hundred ten customers of State Bank of India, SBI Branch Gurgaon and Haryana responded to the questionnaire. Different tools such as factor analysis and reliability tests were conducted to find out the relationship between customer behaviour and banking services.
Banking institutions are in a strategic position to implement the ‘Go Green’ strategy and can encourage other firms for the same. This qualitative study analyses the extent of green banking efforts within Delhi NCR and compares them with other organizations. Semi-structured in-depth interviews of 40 different bankers (including managing directors to branch managers) from 10 different public and private Indian banks were undertaken. Both primary and secondary data were collected. Qualitative exploratory research resulted in the following facts, (a) Bank’s eco-friendly practices are confined to being paperless, (b) Banks rarely enquire about the carbon footprint of the projects, (c) Banks recognize the requirements of government guidelines, (d) Systematic documentation of activities under corporate social responsibility (CSR) is lacking, (e) Insufficient awareness of green initiatives has been found amongst bank employees, (f) Green banking components such as bank size, reputation, age, profitability, and investors’ reaction, are motivating elements for banks’ green performance.
Green banking is an emerging concept in Pakistan’s economy. The purpose of this paper is to identify the progress of green banking practices in the banking sector. It tries to examine the individual’s perception and response to the green practices as adopted by the banks. This research is exploratory in nature and attempts to find the association between green banking awareness and customers. Structural Equation Model (SEM) is used as a measurement model and 400 responses were obtained using convenience sampling technique. The result of the study shows that customers are receptive of the change brought on by the banks’ green initiative and are willing to adopt them. Education appears to have a significant positive impact on green banking awareness in the selected sample. The model determines that the green banking awareness is dependent on age, gender, occupation of the individual and is influenced by traits of sustainable banking practices.
The environmental concern is on rise in all types of business; however, banking assumes a special niche due to its ability to influence the economic growth and development of the country. The present study proposes conceptual model of Green banking initiatives and studies the impact of three Green banking initiatives, viz. green products development, green corporate social responsibility and green internal process on two possible outcomes, viz. Green brand image and Green trust. The study is qualitative in nature comprising of semistructured in-depth interviews conducted with 36 middle- to senior-level managers of twelve public and private Indian banks. Banking sector can play a crucial role in greening the banking system by enhancing the availability of finance and serve the needs of a “green economy”. The findings of the study revealed that 63% of the total respondents were of view that their bank indulges in development of several green banking products and services, 53% of the bankers said that their bank incorporates green internal processes in their daily activities, and 78% respondents said that their bank undertakes several green corporate social responsibility initiatives. This investigation further highlights that more than 60% respondents believed that Green banking initiatives have positive role in restoring customer trust through enhanced Green brand image. With dearth of studies on green banking in India, the present qualitative study contributes to the body of knowledge and paves way for future research in green banking for sustainable development.
Banking industries are blamed to be among the major factors that affect global climate change both directly and indirectly. The green banking concept has emerged in the last decade to trigger the adverse impact the banks put on a healthy environment. However, research regarding the adoption of green banking practices in developing economies, especially in Pakistan, is scarce. While environment friendly businesses are promoted by the government including in the banking industry. Green banking practices not only adopted by the business operations but also to practice it at policy-making level. It also encourages green project financing to ascertain environmental efficiency. Based on SRI theory, this study investigates the relationship between green banking practices and their direct and indirect impact on environmental performance. Structural equation modelling approach has been adopted to test the relationships of variables of the study. The impact of the green practices has been recognized much greater and influential in promoting green environment regarding policy-making and investments in green projects. Results reveal that there is a significant influence of policy, daily operations, and investments on the adoption of green banking practices. Interested parties can adopt the study proposed framework to access and identify the factors which can promote justified level of green banking practices in the country. Moreover, this study may help in providing rich updated literature in green banking to speed up future research in the same area.
Going green has become a massive trend within the global banking industry. The concept of green banking has motivated banking institutions to introduce paperless, technology driven services while minimizing environmental impact and to perform their role as a corporate citizen on sustainable development. It is important for banks to understand the demand side of green initiatives since the ultimate success or failures of such investments are influenced by perceived satisfaction of the end-user of them: the customer. An impact will be created by customer satisfaction on features of green banking initiatives, on overall customer satisfaction on green banking. Purpose of this study is to propose a conceptual model which perfectly depicts features of green banking initiatives and their relationship with overall customer satisfaction on green banking. Security and Trust Features, Convenience and Ease of use Features , Value Creation Features and Environmental and Social concern features of green banking initiatives have been incorporated into the model as independent variables. Overall customer satisfaction on green banking is supposed to be influenced by these variables.
Purpose-This study explores the quality of sustainability reporting (QSR) and the impact of regulatory guidelines, social performance and a standardised reporting framework (using the Global Reporting Initiative [GRI] guidelines) on QSR in the context of banks in Bangladesh.
Design/methodology/approach-Using a sample of 315 banking firm-year observations over 13 years (2002-2014), a content analysis technique is used to develop the 11-item QSR index. Regression analysis is used to test the research hypotheses.
Findings-Initially, QSR evolved symbolically in Bangladesh's banks but, over our investigation period, with QSR indicators gradually improving, the trends became substantive. The influences on QSR were sustainable banking practice regulatory guidelines, social performance and use of the GRI guidelines. However, until banks improve reporting information, such as external verification and trends over time, QSR cannot be regarded as fully substantive.
Research limitations/implications-This study advances QSR research and debate among academic researchers. With regulatory agencies and stakeholders increasingly using sustainability reporting information for decision making, the information's reliability is vital. Originality/value-This study is the first on QSR in the banking industry context, with previous research mostly investigating the quantity of sustainability reporting. The current study also synthesises QSR with sustainability regulation and social performance factors which have rarely been used in the sustainability literature. To gain a holistic understanding of QSR, existing QSR measures are advanced by combining external reporting efforts with banks' internalisation initiatives.
Keywords: Sustainability reporting quality, Green washing, Authentic effort, Banking industry, Bangladesh.
Paper type: Research paper
Banks offer loans to support many projects; however, some of these projects may not give adequate consideration to the environment. Little is known regarding the extent to which banking customers experience guilt when discovering that their bank supports projects that disregard the environment. An experiment with 313 participants was conducted, and the results showed that customers do experience guilt when discovering that their bank supports projects that do not give adequate consideration to the environment. This study found that guilt drives perceived consumer effectiveness and negative word‐of‐mouth regarding banking projects that neglect environmental considerations but not attitudes towards green banking. Negative word of mouth, but not the attitude towards green banking, mediates the effect of perceived consumer effectiveness on the intention to use green banking services. Negative word‐of‐mouth, rather than attitudes towards green banking and its perceived consumer effectiveness, drives the intention to use green banking services. These findings imply that banks need to encourage their customers to perceive that they are eco‐friendly to avoid a significant loss of customers.
Recent literature describes “greenhushing” as the deliberate managerial undercommunicating of corporate social responsibility (CSR) efforts for fear of negative customer opinions and responses. Based on social psychological theory of tourism motivation and cognitive dissonance theory, this research tries to seek evidence that justifies such a practice from the customers’ perspective. In study 1, focus groups reveal that hotels’ CSR communication and awareness creation for environmental issues are desired by consumers. In study 2, an online experiment uncovers that one-way and particularly two-way CSR communication lead to more favorable attitudes toward hotels’ CSR communication and lower intentions to behave unethically, compared with greenhushing. Perceived consumer effectiveness mediates the relationship between type of CSR communication and attitudes toward hotels’ CSR communication as well as intentions to behave unethically. Pro-environmental identity moderates the relationship. Taken together, our research provides little justification for greenhushing in a hospitality context from the customers’ perspective.
COVID‐19 pandemic has affected over 100 countries in a matter of weeks. People's response towards social distancing in the emerging pandemic is uncertain. In this study, we evaluated the influence of information (formal and informal) sources on situational awareness of the public for adopting health‐protective behaviors such as social distancing. For this purpose, a questionnaire‐based survey was conducted. The hypothesis proposed suggests that adoption of social distancing practices is an outcome of situational awareness which is achieved by the information sources. Results suggest that information sources formal (p=0.001) and informal (p=0.007) were found to be significantly related to perceived understanding. Findings also indicate that social distancing is significantly influenced by situational awareness p=0.000. It can, therefore, be concluded that increase situational awareness in times of public health crisis using formal information sources can significantly increase the adoption of protective health behavior and in turn contain the spread of infectious diseases.
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Promoting corporate social responsibility (CSR) and co-creation has become a crucial relationship marketing strategy for the banks. This research empirically investigates how banks’ CSR activities generate positive customer responses in the form of co-creation, customer–company identification (CCI), and loyalty. This research sheds light on the influence of CSR on customer behavior by analyzing the underlying psychological processes through the sequential mediation of co-creation and CCI. Working with a sample of 280 banking customers in Pakistan, partial least square based structural equation modeling (PLS-SEM) is employed to test the conceptual model. CSR is a multidimensional formative construct that affects customer loyalty both directly and indirectly. Sequential partial mediations of co-creation and CCI are found between CSR activities and customer loyalty. Lastly, CCI has a direct and significant impact on co-creation and customer loyalty. Banks must include CSR in their long-term marketing plans to improve overall customer behavior because banks’ CSR activities result in customer identification and co-creation. Similarly, banks should welcome the customers’ participation in service design and use their knowledge and skills to improve overall service culture.
Abstract This paper provides an overview of green banking as an emerging area of creating competitive advantages and new business opportunities for private sector banks and expanding the mandate of central banks and supervisors to protect the financial system and manage risks of individual financial institutions. Climate change is expected to accelerate and is no longer considered only as an environmental threat because it affects all economic sectors. Furthermore, climate-related risks are causing physical and transitional risks for the financial sector. To mitigate the negative impacts, central banks, supervisors and policymakers started undertaking various green banking initiatives, although the approach taken so far is slightly different between developed and developing countries. In parallel, both private and public financial institutions, individually and collectively, are trying to address the issues on the horizon especially from a risk management perspective. Particularly, private sector banks have developed climate strategies and rolled out diverse green financial instruments to seize the business opportunities. This paper uses the theory of change conceptual framework at the sectoral, institutional and combined level as a tool to identify barriers in green banking and analyze activities that are needed to mitigate those barriers and to reach desired results and impacts.
In the recent times, societies have become more concerned with natural environment and increasingly conscious about eco-friendly products or green products and about their own safety and welfare which has led to the emergence of green practices, and it is in this scenario, that the concept of green marketing has gained worldwide significance. The ideas of green marketing such as designing of green products, implementing a green supply chain, packaging, pricing and advertising are beneficial to society and to the environment as a whole. Environmental or green marketing is perceived to be a tool towards sustainable development as pollution levels are getting worse day by day, which will eventually lead to the perpetual deterioration of human life. Green marketing is a strategy that addresses the concern of promoting and preserving the natural environment which can benefit the firms as well as the consumers. The last decade has witnessed a dramatic increase in environmental degradation. This increase in ecological damage has had a profound effect on consumer behavior, due to which the green product market is expanding at a remarkable rate. The need of the hour is to promote and propagate new decisions and innovations which can lead to green marketing environment and also create a new marketing condition for the potential buyers.
The Business Roundtable, a large group of top CEOs, recently issued a statement defining the purpose of the corporation in stakeholder terms, a direct and intended reversal from an earlier statement that defined the duty of directors as serving the interests of stockholders. In this editorial, we briefly describe the major twists and turns in the stockholders-versus-stakeholders debate that make this statement so significant to management theory and practice. We then describe the implications of the statement for scholars and practicing managers. We end with a description of three specific research topics that require more research in light of this statement: firm boundaries, the nature of value creation systems, and theory regarding the destruction of stakeholder value.
The efficient functioning of capital markets ensures that information on companies’ sustainable development endeavors is fully and instantly incorporated into stock prices, which facilitates them in raising capital requirements at a lower cost. It, however, is impaired when market participants are inclined to behavioral biases. The Adaptive Market Hypothesis predicts that such behavioral biases are evolutionary. In that sense, market participants are capable of learning their behavioral mistakes and adapting to market conditions over time. Based on this perspective, this paper aims to explore how learning occurs within individual investors to reduce their herd bias. The data was collected by distributing a web-based self-administrated questionnaire to a sample of 1000 individual investors of the Colombo Stock Exchange, who were randomly selected during a period from March to August 2018. A total of 189 responses were received, which were analyzed using the structural equation modelling technique to test the hypotheses of the theoretical model. The results show that learning takes place when investors cognitively evaluate past trading experiences, which is induced by their desire for learning, and, consequently, reduces their herd bias. However, as the model predicts, strengthening this cognitive reflection from the relationship with the investment advisor and social learning among investors through their peer-relationships appear to be absent due to uncertain market conditions prevailed during the study period and dominance of unsophisticated investors in the market. From these findings, this paper concludes that the cognitive reflection of past experiences and the nature of the trading environment determine the extent of learning within individual investors.
The research paper aims to analyze the impact of green banking practices on bank’s environmental performance in Nepal. The casual relational research design has been adopted in the study. The simple and stepwise multiple regression analysis have been performed to accomplish the objective of the research. The research paper follows cross-sectional qualitative research with descriptive outcome. The Chronbach’s Alpha has been used to analyze the reliability of instruments and data. The 189 samples have been collected from the banks using convenience sampling method. The SPSS software has been used to tabulate and analyze the data. The research paper concluded the energy efficient equipment and green policy posed the significant impact on bank’s environmental performance; green loan and green project as not. Similarly, the environmental training contributed mild to bank’s environmental performance. The findings of the paper suggested the role of banks and government in encouraging environmentally sustainable technologies as highly important for increasing bank’s reputation and awareness among customers.
Going green has become a massive trend within the global banking industry. The concept of green banking has motivated banking institutions to introduce paperless, technology driven services while minimizing environmental impact and to perform their role as a corporate citizen on sustainable development. It is important for banks to understand the demand side of green initiatives since the ultimate success or failures of such investments are influenced by perceived satisfaction of the end-user of them: the customer. An impact will be created by customer satisfaction on features of green banking initiatives, on overall customer satisfaction on green banking. Purpose of this study is to propose a conceptual model which perfectly depicts features of green banking initiatives and their relationship with overall customer satisfaction on green banking. Security and Trust Features, Convenience and Ease of use Features , Value Creation Features and Environmental and Social concern features of green banking initiatives have been incorporated into the model as independent variables. Overall customer satisfaction on green banking is supposed to be influenced by these variables.
There are far reaching repercussions of human industrial activities resulting in the extinction and endangering of many life forms. Upon realisation of this alarmingly increasing threat on its own survival, the human industrial activities have started to transform itself which has led to discussions on newer concepts like green management. Hence, this paper attempts to provide a basic overview of the concept of green management at the introductory level and discuss different types of green management strategies adopted by organisations. The paper attempts to contribute to the emerging field of green management and the stakeholders of sustainable development.
Purpose
This paper provides a comprehensive, yet concise, overview of the considerations and metrics required for PLS-SEM analysis and result reporting. Preliminary considerations are summarized first, including reasons for choosing PLS-SEM, recommended sample size in selected contexts, distributional assumptions, use of secondary data, statistical power, and the need for goodness-of-fit testing. Next, the metrics, as well as the rules of thumb, that should be applied to assess the PLS-SEM results are covered. Besides covering established PLS-SEM evaluation criteria, the overview includes new guidelines for applying (1) PLSpredict, a novel approach for assessing a model’s out-of-sample prediction, (2) metrics for model comparisons, and (3) several complementary methods for checking the results’ robustness.
Design/methodology/approach
This paper provides an overview of previously and recently proposed metrics, as well as rules of thumb, for evaluating the results of research, based on the application of PLS-SEM.
Findings
Most of the previously applied metrics for evaluating PLS-SEM results are still relevant, but scholars need to be knowledgeable about recently proposed metrics (e.g., model comparison criteria) and methods (e.g., endogeneity assessment, latent class analyses, PLSpredict) and when and how to apply them.
Research limitations/implications
Methodological developments associated with PLS-SEM are rapidly emerging. The metrics reported in this paper are useful for current applications, but scholars need to continuously seek the latest developments in the PLS-SEM method.
Originality/value
In light of more recent research and methodological developments in the PLS-SEM domain, guidelines for the method’s use need to be continuously extended and updated. This paper is the most current and comprehensive summary of the PLS-SEM method and the metrics applied to assess its solutions.
This paper has been designed to investigate the current scenarios of Green Banking practices in Indian sub-continent and to disclose how central bank’s direct regulatory policy strengthens mandatory Green Banking practice and reporting in a country. This study is mainly a descriptive one based on review of different published literature. Relevant information has been collected from different off-line and online sources. Present scenario of Green Banking practices and central bank Green Banking policies in Indian sub-continent (India, Bangladesh and Pakistan) are disclosed first and then how central bank regulatory policies can create a competitive advantage to accelerate Green Banking practice in a country are disclosed. After critical evaluation of collected information, we find that if the central bank formulates Green Banking policies and enforces mandatory Green Banking practices and reporting for financial institutions rather than voluntary practices, a significant and distinguished progress in Green Banking practices and reporting may take place to ensure sustainable banking practice in a country.
The purpose of this study was to examine the relationship between the dimensions of E-Banking service quality and customer satisfaction to determine which dimension can potentially have the strongest influence on customer satisfaction. Data were gathered using a survey instrument, which was distributed among bank clients in the Lebanese banking sector. The data were statistically analyzed using structural equation modeling with SPSS and Amos (20). The findings show that reliability, efficiency, and ease of use; responsiveness and communication; and security and privacy all have a significant impact on customer satisfaction, with reliability being the dimension with the strongest impact. E-Banking has become one of the essential banking services that can, if properly implemented, increase customer satisfaction, and give banks a competitive advantage. Knowing the relative importance of service quality dimensions can help the banking industry focus on what satisfies customers the most.
The main purpose of the study is to analyze the corporate social responsibility (CSR) activities carried out by Indian commercial banks. The study is based on the secondary data taken from the annual reports of the banks for the year 2009-10 to 2011-12. Variables used in the study are: rural branch expansion, priority sector lending, environment protection, community welfare, women welfare, new initiative related to CSR, financial literacy, education and farmers' welfare. The analysis shows that though the Indian banks are making efforts in the CSR areas but still there is a requirement of more emphasis on CSR. There are some banks which are not even meeting the regulatory requirements. The public sector banks have overall highest contribution in CSR activities. Private sector banks and foreign banks are still lagging in this area. The study has a scope of further research where the CSR performance of banks can be related to financial performance of the banks.
Cultural systems vary widely across the world. Partly this is due to different cultures' occupying different ecological and environmental niches. But partly it is due to similar circumstances giving rise to multiple stable equilibriums, each with a distinct cultural form. Using insights and examples from various fields, this article illustrates the way that multiple equilibriums can emerge and the forces that push a culture toward one equilibrium point or another. Considerations of game theory principles, mutual interdependence, historical circumstance, dependence on initial conditions, and crucial choice points are highlighted in discussing the ways humans create and re-create their culture. Cultural traits develop within physical, social, intracultural, and intercultural niches, and implications of this for how culture might be studied and the benefits of combining an "equilibrium" perspective and a "meaning" perspective are discussed.
We examine the influence of regulatory guidance and other factors on the green banking disclosure practices of Bangladeshi commercial banks in the period from 2007-2014. We find that the green banking guidelines issued by the central bank of Bangladesh in 2011 positively affected the level of green banking disclosure. We also report that green banking disclosure practices in the banking sector have converged over time and have become a routine process. In addition, we find that corporate governance mechanisms (e.g., board size and institutional ownership) positively affect the level of green banking disclosure. However, our study finds no relationship between the presence of independent directors on the board and green banking disclosure. These results have important implications for the government and other policy-makers.
Supervisory Technology (SupTech) combines artificial intelligence (AI) with machine learning (ML) for the specific purpose of supervision of the financial markets. SupTech offers transformative solutions for the regulation, monitoring and surveillance of financial markets. This article presents a literature review examining the role of SupTech in enhancing market surveillance. Using the PSALSAR framework, we conduct a Systematic Literature Review (SLR) of 55 articles published between 1999 and 2022. The review highlights the potential of SupTech to navigate the complexities of the financial landscape, and its versatile applications for financial supervisors and regulators, stock exchanges, intermediaries, and investors. Our findings indicate that SupTech models can effectively detect instances of market manipulations, insider trading, and fraud. These models also showcase exceptional potential to forecast crises in markets, economies, corporations, and in the banking sector. They are useful in empowering policymakers and regulators to make informed decisions. The study provides a strong foundation for future research and policy development to explore and deploy the potential of SupTech, paving the way for greater transparency, efficiency, and resilience in financial markets.
Purpose
The study aims to examine the green finance customers' post-usage continuance behavior based on an extended social support theory (SST). Remarkably, this study explores five indirect predictors of green finance continuance behavior (GFCB) (i.e. environmental consciousness (EC), green bank marketing initiatives (GBMI), informational supports, emotional supports (EST) and psychological reactance) and a mediator (i.e. customer satisfaction).
Design/methodology/approach
In this study data were collected from 362 respondents from Bangladesh using a purposive sampling method with a structured self-administrative questionnaire and analyzed by partial least square structural equation and modeling using SMART PLS 3.0 software.
Findings
The results depict that the five predictors, i.e. information supports ( ß = 0.367, t-statistics = 2.463, p < 0.001), EST ( ß = 0.206, t-statistics = 2.315, p < 0.000), EC ( ß = 0.324, t-statistics = 3.484, p < 0.000), GBMI ( ß = 0.288, t-statistics = 2.028, p < 0.000), psychological reactance ( ß = 0.126, t-statistics = 0.969, p < 0.052) influence GFCB while satisfaction is predicted by four predictors except psychological reactance ( ß = 0.126, t-statistics = 0.969, p < 0.052). In addition, customer satisfaction ( ß = 0.638, t-statistics = 6.317, p < 0.005) also has an impact on continuance behavior. Besides, the study understood that four predictors indirectly influence GFCB through satisfaction except psychological reactance (( ß = 0.080, t-statistics = 964, z = 0.958 p < 0.338). Finally, the coefficient of determinations (R2) indicates that the five predictors explained 65.3% of changes in satisfaction, whereas 72.8% of changes are described by the five predictors and customer satisfactions.
Practical implications
Finally, this study highlights the social and managerial implications for the implementers of the green finance industry. It is recommended to emphasize green finance practice as it plays a crucial role in promoting environmental protection, ensuring social equity and driving economic growth. The green banking service providers, industry analysts, green consumers and respective government authorities can generalize green finance activities as an essential aspect of sustainable development to equalize the economic growth with a view to protecting environmental collapse and promoting renewable energy, energy efficiency, sustainable agriculture and other environmentally friendly activities.
Originality/value
The study will enormously contribute to the existing literature validating the proposed holistic framework applying SST along with EC, GBMI and psychological reactance in green finance continuance behavior.
Purpose
The service industry has been facing many challenges connected to sustainable practices and how they affect final consumers. This paper aims to explore the impact of value co-creation (VCC) on customer-based brand equity and satisfaction, the latter being considered in terms of overall and green customer satisfaction. Moreover, considering the influence that a consumer’s age has on their behaviour, this paper analyses the moderating role of generational cohorts (Centennials vs. Millennials) on the direct interactions between the examined variables.
Design/methodology/approach
The empirical study was conducted in hotel companies, which place a strong emphasis on customer service and as such provide valuable implications for the industry. The data were collected from 263 hotel guests in Ukraine in 2018 using a structured closed-response face-to-face survey. Partial least squares structural equation modelling was used to test the hypothesised relationships. Multi-group analysis was conducted to examine the moderating role of the generational cohort.
Findings
The results show that customer perception of VCC positively influences brand equity. The findings also indicate that brand equity mediates the relationship between VCC, overall customer satisfaction and green customer satisfaction. In addition, it is demonstrated that generational cohorts moderate the relationships between VCC and overall customer satisfaction.
Practical implications
This study suggests that service companies should create more opportunities for VCC activities, not only to increase their customers’ participation in green practices but also to enhance brand equity and satisfaction to gain more competitive advantages.
Originality/value
The contribution of this study lies in considering value co-creation as a novel driver of brand equity, overall customer satisfaction and green customer satisfaction through the lens of sustainability in service-based companies. Examining the moderating role of the generational cohort provides significant insights into the impact of value co-creation through different groups of customers.
This study examined customers' green reviews on TripAdvisor and identified environmentally friendly themes and concepts. The differences among the 10 countries in terms of the volume of green reviews and customers' green satisfaction ratings were also analysed. Using Leximancer analysis and multivariate analysis of a big dataset, we adopted a mixed research method to analyse 121,780 reviews posted on TripAdvisor for 87 green hotels from the top 10 tourism countries. The Leximancer analysis found that the most important themes mentioned in customers' green reviews are room, daily, hotel, staff, front, food, coffee, amazing, experience, and trip. The results also showed that highest satisfaction ratings were ranked in Italy, the USA, and Turkey, respectively, while the lowest ratings were from Germany and France. The results provide critical recommendations for hoteliers to truly comprehend what green practices are noticed and appreciated by their customers. ARTICLE HISTORY
This article presents the findings of a survey among 18 central banks from the Asia-Pacific region regarding their views on approaches to scale up sustainable finance and develop policies to address climate and environmental risks. It also reviews recent developments in selected Asia-Pacific countries to illustrate actions monetary and financial authorities have already taken to address climate and environmental risk, and in scaling up sustainable finance. The survey results show that this is a topic of increasing importance and relevance to monetary authorities in the region. The vast majority of survey respondents believe that they should be playing a key role in promoting green finance and sustainable funding options, either through amending the regulatory framework, encouraging green loans and products or by introducing climate change considerations in their monetary and financial policy operations.
With the rise in concern for the environment, Green Banking has received a lot of attention in recent times. This study aims to identify different dimensions of researches on Green Banking. Furthermore, an attempt is made to study the growth and geographical spread of researches on Green Banking. Relevant research outlets and keywords are analyzed in order to understand the trends in Green Banking research. The study identified 6 different dimensions namely Conceptual aspect, Legal aspect, Model aspect, Stakeholder aspect, Green Performance of Banks and Financial aspect. Results highlight that Green Banking is yet to be properly explored as only 178 articles were found in different portals. Academic interests in Green Banking have been on a rise since 2011 and have attained maximum attention in the year 2015. The Average Growth Rate of research articles published on Green Banking is 25.44%. Asia has the highest number of countries participating in research on Green Banking and has the highest number of research articles on Green Banking. Theoretical studies on Green Banking are comparatively more than the Empirical ones. Analyzing research outlets revealed that mainstream Finance journals are yet to be more active in publishing articles on Green Banking. Keyword analysis identified three key interests of researchers which are Green Banking, Sustainable Development, and Environment. Lastly scope for future research on Green Banking is identified and stated. This study provides useful insights into the nature and trend of research on Green Banking and can act as a reference point for researchers, policymakers, investors, and regulators.
The purpose of this study was to explore the effect of service quality (SQ) and customer satisfaction (CS) on consumer loyalty (CL) in internet banking in the case of the KSA. The basis of this study was set upon the e-SERVQUAL model and its dimensions: include efficacy, consistency, privacy, fulfilment, and website design. The study was aimed to recognize the elements influencing service quality (SQ) along with the concept and significance of SQ in online banking in particular. The study was based on the quantitative research design and the participants for this study were the bank customers who are using internet services. The sample size of this study was kept to 150 participants. A close-ended 5 point Likert scale questionnaire was formulated in order to assess the phenomenon of the research. In addition, the SPSS software along with Smart PLS was utilized to examine the data collected from 150 customers of the banks. The SEM and correlation test were applied for assessing the association between SQ and CL along with CS and CL. The findings of this study indicated that there is a significant positive impact of service quality and customer satisfaction on the customer loyalty of internet banking users in KSA. Hence, the banking industry of KSA has been recommended to pay specific heed to all the dimensions of e-SQ and customer satisfaction.
