Emerald | International Journal of Emerging Markets

Societal Marketing: Integration of European Experiences into Business Practices in Belarus

Olga Andrianova — 2012-04-06 00:00:00.0

Abstract

Purpose - This paper aims to analyse whether the concept of Societal Marketing being practiced in developed countries can be directly applied to countries in transition such as Belarus and what adjustments would be beneficial to achieve this. This document takes a comprehensive view of the complex linkages between the implementation of Corporate Social Responsibility (CSR) principles by examining elements of societal marketing in the European Union (EU) countries and in Belarus.Design/methodology/approach - Data is provided by the websites of European best practice companies and data from the Global Compact that identifies socially-responsible companies in EU and Belarus. The results for Belarus are combined with the insights from capacity building activities on societal marketing organised by the Local Network Global Compact (LNGC) Belarus for private and public enterprises.Findings - The research presents two groups of companies in Belarus: Start Up-companies see their CSR activities as philanthropic actions and On the way-companies integrate elements of societal marketing such as vision and stakeholder management into their practices. The European societal marketing experience can act as a mechanism for further integrating CSR principles into business practices in Belarus. This depends on the aptitude of the companies for social innovation, the level of stakeholder involvement and the governmental support for CSR policy creation. Research limitations/implications - The scope of the research should be broadened out to other industries and tested with a larger sample, including small-and medium sized firms. It is also necessary to analyse other key drivers of the CSR in Belarus, which can impact on further use of societal marketing components. Practical implications - This research has implications for practitioners, specifically the groups of stakeholders involved in CSR programmes in Belarus. The results suggest how stakeholders can apply societal marketing and differentiate themselves from competitors in EU and in Belarus. Originality/value - The paper proposes a framework on societal marketing that considers the factors that influence CSR development and provides recommendations for businesses operating in Belarus on how to achieve a competitive advantage in a country in transition.

Building a Bridge between Corporate Reputation and Corporate Social Responsibility in the Ukrainian Print Media

Gennadiy Chernov, Katerina Tsetsura — 2012-04-06 00:00:00.0

Abstract

Purpose - This study explores how corporate reputation (CR) and corporate social responsibility (CSR) are discussed in the print media in Ukraine. The paper also provides insights into how the implementation of these concepts contribute to the promotion of the market economy principles in Ukraine. Design/methodology/approach - This study employed an interpretive discourse analysis with elements of framing analysis of 102 articles on CR and CSR published in the major Ukrainian print media between 2007 and 2010 both in Russian and Ukrainian languages. The analyses revealed four major themes in discussing a growing importance of CR and CSR for Ukrainian businesses.Findings - The interpretive analysis demonstrated that the government of Ukraine and businesses try to establish standards for CR and CSR. It also showed that the current economic crisis contributed to the media coverage of how CR and CSR are defined. The framing analysis showed some publications in Ukrainian tend to report on CR and CSR in positive light, suggesting that the media should promote these concepts in the economic life.Research limitations/implications - Future studies might employ methodologies that offer more active participation such as in-depth interviewing of journalists who cover issues of CR and CSR.Practical implications - The study results will be important to those transnational and local corporations which want to successfully implement their corporate social responsibility programs to further propel their corporate reputation among citizens of Ukraine.Originality/value - The current study is the first effort to analyze the media accounts of the implementation of CR and CSR in the economic and social fabric of Ukraine in the wake of the Orange revolution.

Dynamic Risk- Return relation with Human capital: A study on Indian markets

Shijin Santhakumar, Arun Kumar Gopalaswamy, Debashis Acharya — 2012-04-06 00:00:00.0

Abstract

Purpose - The present study attempts to test a discrete time asset pricing model where nonmarketable asset (human capital), along with other factors predicting stock returns explain risk return relationship. The study aims at adding to the literature on risk return relationship with human capital by investigating the hypothesis that human capital is significant factor affecting stock prices.Design/methodology/approach - The dynamic inter-linkages of factors representing financial and human component of wealth in predicting stock returns is tested in the Indian market for the period of 1996:04 to 2005:06. The procedures employed include Granger Causality tests, impulse response functions and seemingly unrelated regression estimates.Findings - Empirical findings validate the model that including human capital as a proxy for aggregate wealth in the economy can better predict stock prices than the standard empirical capital asset pricing model. There is a granger cause relationship between security prices and labor income and it is further concluded that labor and dividend are significant factors affecting security prices.Originality/value - This is one of the first papers to study the human capital aspect in predicting stock returns in Indian market. In addition the study provides important insights into the causal relationship of human capital and market return in explaining risk return relationship.

Behavior and Properties of India’s Volatility Index

kumar s s s — 2012-04-06 00:00:00.0

Abstract

Purpose - This paper examines the statistical properties of volatility index of India, India Vix (Ivix), its relationship with Indian stock market, its predictive power for forecasting future variance. Further it examines the volatility transmission between India and developed markets.Design/methodology/approach - The study uses quantile regression and VAR techniques to examine the empirical issues.Findings - The results of the study show that Ivix returns are negatively related to stock market returns and the leverage effect is only significant around the middle of the joint distribution. The asymmetric response of Ivix is also not observed in the left tail and is significant again around the centre of the distribution. Monthly volatility forecasts obtained from Ivix contains important information about future market volatility. Finally, overnight volatility movements from the US market have significant effect on Indian market’s volatility and transmission in opposite direction was not observed.Practical implications - If Ivix is included in a stock portfolio when the market moves up Ivix may not fall significantly consequently the portfolio returns are not negatively effected. But, when market declines sharply i.e., for large losses, Ivix may not move up significantly in the opposite direction thereby not providing the much needed insurance to the portfolio returns. But for normal/average market declines volatility derivatives on Ivix may be useful as portfolio insurance tools.Originality/value - The paper is novel in employing quantile regression methodology to examine the empirical relationships of a volatility index. Volatility spillovers between emerging and developed markets are studied using volatility indices that are ex ante.

Interest Rate?Unemployment Rate and China’s Exchange Rate Regime

Tze-Wei Fu, Monli Lin — 2012-04-06 00:00:00.0

Abstract

Purpose - .This paper discusses the change in China’s exchange rate regime during the 2001-2009 period when both the pegged and floating exchange rates were adopted in the country, offering a rare opportunity to address the issue. The effects of China’s interest rate differential (IRD) and unemployment rate on the exchange rate are also discussed in this paper.Design/methodology/approach - Given the economic variables are non-stationary, this paper adopts the cointegration analysis to evaluate the long-term equilibrium in China’s economy, with the Unit root test, cointegrating test and a vector error correction model also used to scrutinize China’ exchange rate regime for different time periods Findings - The time series data---including the exchange rate, IRD and unemployment rate--- are used in the unit root test and Johansen test to verify the long-term equilibrium between real exchange rate and unemployment rate in specific periods of time. Since the findings indicate no correlation between the exchange rate and IRD, it is possible to predict the value of Chinese Yuan based on China’s unemployment rate, but not IRD. The China government slows down the appreciation of its currency when the lagged unemployment rate is high.Practical implications - The findings are helpful for scholars and practicers to understand China's exchange rate policy.Originality/value - The paper provides a fresh perspective on the long-term equilibrium among China’s exchange rate, IRD and unemployment by dividing the sample period into several parts according to the exchange rate policy. The findings indicate that the unemployment rate plays an important role in China’s exchange rate regime.

COMPETITIVE ADVANTAGE OF GERMAN RENEWABLE ENERGY FIRMS IN INDIA AND CHINA? – AN EMPIRICAL STUDY BASED ON PORTER’S DIAMOND

Corinna Doegl, Dirk Holtbrügge, Tassilo Schuster — 2012-04-06 00:00:00.0

Abstract

Purpose - This article analyzes the competitive advantage of German renewable energy firms in India and China. Therefore we modify Porter's diamond model and specify it for the renewable energy industry.Design/methodology/approach - Based on Porter’s diamond model of competitiveness we examine the demand for renewable energies in India and China and the ability of German firms to meet this demand. Findings - While the overall demand for renewable energies in India and China is significant, the study reveals remarkable differences in the fields of biomass, solar and wind energy. Our findings are meant to address managers in the renewable energy industry and to aid policy makers in environmental support and action. Research limitations/implications - A major theoretical contribution of the study is the application of Porter’s diamond model to the renewable energy industry as well as the identification and operationalization of the relevant causal and proxy variables.Practical implications - This study provides a detailed analysis of the factors on which the competitive advantage of German renewable energy technologies in India and China is based on. This helps managers of renewable energy firms to focus on those areas where they have particular strengths and to introduce measures to overcome potential weaknesses.Originality/value - We used a modified version of Porter’s diamond model and specified it for the renewable energy industry. We then tested the model empirically in Germany and both emerging countries on the basis of secondary data.