Reputational Damage Research Articles

FedGAT-DCNN: Advanced Credit Card Fraud Detection Using Federated Learning, Graph Attention Networks, and Dilated Convolutions

Credit card fraud detection is a critical issue for financial institutions due to significant financial losses and the erosion of customer trust. Fraud not only impacts the bottom line but also undermines the confidence customers place in financial services, leading to long-term reputational damage. Traditional machine learning methods struggle to improve detection accuracy with limited data, adapt to new fraud techniques, and detect complex fraud patterns. To address these challenges, we present FedGAT-DCNN, a model integrating a Graph Attention Network (GAT) and dilated convolutions within a federated learning framework. FedGAT-DCNN employs federated learning, allowing financial institutions to collaboratively train models using local datasets, enhancing accuracy and robustness while maintaining data privacy. Incorporating a GAT enables continuous model updates across institutions, quickly adapting to new fraud patterns. Dilated convolutions extend the model’s receptive field without extra computational overhead, improving detection of subtle and complex fraudulent activities. Experiments on the 2018CN and 2023EU datasets show that FedGAT-DCNN outperforms traditional models and other federated learning methods, achieving a ROC-AUC of 0.9712 on the 2018CN dataset and 0.9992 on the 2023EU dataset. These results highlight FedGAT-DCNN’s robustness, accuracy, and applicability in real-world fraud detection scenarios.

Strategic Defense Against Misinformation: Empirical Findings on Paracrisis Responses

ABSTRACT This study provides a comprehensive understanding of how companies address reputational risks posed by the increasing spread of online misinformation. Employing an empirical approach, the research draws on the results of an in-depth longitudinal multiple-case study conducted from 2019 to 2023. The data were collected through media monitoring, social media descriptive analysis, analysis of internal documents and interviews with managers and their colleagues who have experienced misinformation paracrises. The findings reveal the response strategies employed during misinformation paracrises and the factors influencing managers’ decisions regarding strategy selection and modification. Key aspects such as breaking points in paracrises, post-paracrisis actions, and the communication goals of companies in defending their reputations are highlighted. The study identifies several effective communication tactics for countering corporate rumors, including deliberate silence, legal actions, debunking, media outreach, humour, and employee management. Additionally, it introduces a decision tree as a practical tool for managers navigating these challenges. This research contributes empirical evidence and an insider perspective, thereby offering practical recommendations through the presentation of lived experiences drawn from five European companies.

The Unidroit Principles on International Commercial Contracts and sustainable development

Abstract A number of motivations currently drive multinational corporations to the inclusion, monitoring, and enforcement of contract requirements for sustainability. These can be either as a result of investor demand for environment, social, and governance policies; regulatory requirements for inclusion of such contract stipulations; or the increasing litigation for conduct leading to environmental harm, but they can also be a result of reputational risk linked to the failure of adoption of such policies. This article examines the role of contract law in enforcing such requirements, which have traditionally been viewed with suspicion due to their unilateral nature. The article poses the features of the International Institute for the Unification of Private Law’s Principles on International Commercial Contracts as a beneficial regime to further the goals of sustainability through the use of contextual interpretation enabled through the good faith principle, the recognition of the importance of trade usages, and the limitations placed on party autonomy. The article posits that a major shift in the ideological orientation of contract law through the imposition of limitations on the pacta sunt servanda principle in order to protect the public interest is not warranted. Rather, tools such as contractual interpretation and the establishment of contractual standards of sustainability are better placed to ensure enforcement and compliance with the widely established practice of inclusion of sustainability standards and codes of conduct.

Gendered Corruption: People's Reactions to Victims of Monetary Versus Sexual Extortion.

This research addresses the important issue of the connection between corruption and gender-based violence, an area that has gained increasing attention in recent years. It provides a new perspective by comparing the perception of victims of monetary corruption versus sexual corruption. Through an experimental study, we exposed participants to a fictitious scenario in which they witnessed an event of sex-based (vs. money-based) extortion. The results showed that the victims' decision to cave into the extortion (both money or sex-based) led to higher feelings of moral outrage and blame toward them, and a weaker moral perception. Moreover, victims were considered less moral and more prone to reputational damage when described as caving into sex-based (vs. money-based) extortion. Finally, a moderated mediation model showed that the reputational damage suffered by the woman also significantly mediated the relation between the decision to cave into the extortion and the helping intentions toward her, but only when the corruption involved sexual payment. These findings provide insights into the perception of victims of both money-based and sex-based extortion, highlighting the significant role of reputational damage and stigma in the context of sextortion.

Impacts of Cybercrimes on the Digital Economy

Cybercrime poses a significant threat to the global digital economy, with far-reaching consequences for businesses, governments, and individuals. This article examines the multifaceted impact of cybercrime, including substantial economic losses, reputational damage, operational disruptions, and increased security costs. It explores how cyber threats stifle innovation, compromise intellectual property, and erode consumer confidence in digital transactions. The paper also discusses the regulatory challenges and national security implications of cybercrime. With global cybercrime costs exceeding $1 trillion annually, the need for robust cybersecurity measures and international cooperation is paramount. The article concludes that addressing the cybercrime threat requires a collaborative approach involving businesses, governments, and individuals to enhance cybersecurity practices, promote cyber hygiene, and develop effective legal frameworks. By tackling these challenges, we can safeguard the digital economy and foster a more secure and resilient digital future.

Which Target is the Right Target? The Connection Between Terrorists’ Reputation Building and Target Selection

ABSTRACT Terrorist organizations do not attack random targets, but rather there is a strategic logic behind their target selection. Given that some common targets are associated with significant reputational costs, risks, and repercussions to terrorist organizations, what explains their targeting choices? Utilizing the Reputation of Terror Groups Dataset and including indicators from the Global Terrorism Database, we argue that targeting choices of terrorist organizations hinge on their reputational concerns with respect to their core constituents. Groups that invest in building a positive reputation in the eyes of their intended constituents are inclined toward concentrating a larger number of their attacks on hard targets, whereas groups that engage in reputationally-damaging actions that harm their constituents are more likely to go after civilian targets in larger numbers. Our results show that there is indeed a statistically significant and important relationship between reputation building and target selection by terrorist groups.

Priv-Share: A privacy-preserving framework for differential and trustless delegation of cyber threat intelligence using blockchain

The emergence of the Internet of Things (IoT), Industry 5.0 applications and associated services have caused a powerful transition in the cyber threat landscape. As a result, organisations require new ways to proactively manage the risks associated with their infrastructure. In response, a significant amount of research has focused on developing efficient Cyber Threat Intelligence (CTI) sharing. However, in many cases, CTI contains sensitive information that has the potential to leak valuable information or cause reputational damage to the sharing organisation. While a number of existing CTI sharing approaches have utilised blockchain to facilitate privacy, it can be highlighted that a comprehensive approach that enables dynamic trust-based decision-making, facilitates decentralised trust evaluation and provides CTI producers with highly granular sharing of CTI is lacking. Subsequently, in this paper, we propose a blockchain-based CTI sharing framework, called Priv-Share, as a promising solution towards this challenge. In particular, we highlight that the integration of differential sharing, trustless delegation, democratic group managers and incentives as part of Priv-Share ensures that it can satisfy these criteria. The results of an analytical evaluation of the proposed framework using both queuing and game theory demonstrate its ability to provide scalable CTI sharing in a trustless manner. Moreover, a quantitative evaluation of an Ethereum proof-of-concept prototype demonstrates that applying the proposed framework within real-world contexts is feasible.

Are self-conscious emotions about the self? Testing competing theories of shame and guilt across two disparate cultures.

The emotions of guilt and shame play major roles in forgiveness, social exclusion, face-saving ploys, suicide, and honor killings. Understanding these emotions is thus of vital importance. The outputs of guilt and shame are already well understood: Guilt motivates amends; shame motivates evasion. However, the elicitors and functions of these emotions are disputed. According to attributional theory, guilt and shame are intrapersonal emotions elicited when negative outcomes are attributed to controllable/unstable (guilt) or uncontrollable/stable (shame) aspects of the self. By contrast, functionalist theory claims that guilt and shame are interpersonal emotions for minimizing the imposition of harm on valued others (guilt) and the cost of reputational damage on the self (shame). Although there is confirmatory evidence consistent with both theories, evidence ostensibly supporting one theory has been argued to actually support the other. To solve this problem of data interpretation, here we report contrastive critical tests of the two theories performed on online participant pools in the United States and India in 2021 (N = 853). Results in both countries support functionalist theory over attributional theory, suggesting that the intrapersonal effects reported in the emotion literature are tributary or incidental to the interpersonal functions of guilt and shame. Functionalist theory presents a promising framework for understanding the interpersonal and intrapersonal aspects of guilt, shame, and other self-conscious emotions. (PsycInfo Database Record (c) 2024 APA, all rights reserved).

Wish You Weren’t Here: Tax Havens, Corruption, and the Reputation Damage of the MNE

Wish You Weren’t Here: Tax Havens, Corruption, and the Reputation Damage of the MNE

Tax disclosure strategies and reputational risks: An exploration based on the standard GRI 207

The Global Reporting Initiative (hereafter the GRI), a pioneer organization focusing on sustainability reporting standards, introduced a new standard dedicated to tax reporting in 2019 (GRI 207: Tax), supporting tax disclosure as a material CSR issue.Accordingly, we examine tax disclosure as framed by GRI 207. The literature on CSR reporting shows that companies increase CSR disclosures to mitigate negative attention to CSR issues. Based on this literature, we hypothesize that tax disclosure, framed by GRI 207, is positively associated with firms’ reputational risks (RRs). Our sample is composed of the 120 largest listed companies on the French financial market that are the most exposed to scrutiny. The data are collected for the year 2019.We use linear regressions to identify the determinants of tax disclosure strategies. As expected, greater RRs are associated with higher tax disclosure. According to the GRI 207 items on disclosure, three strategies are identified with reference to the CSR pyramid by Carroll (1991). We find that reputational risks, as measured as the presence of tax havens and financial controversies, are associated with distinct tax disclosure strategies. The issuance of a disclosure standard is not a guaranty of greater transparency.To our knowledge, our study is the first to examine tax disclosure strategies framed by the most recent standard of GRI 207 as part of CSR reporting. We provide several implications and directions for future research.

Mechanisms of interaction between banking institutions and aviation enterprises

It is shown that the main mechanisms of interaction between banks and aviation enterprises are: loans, leasing, collateral financing, risk hedging, project financing, financial consultations and services, factoring, guarantees and insurance. The global aerospace market has been proven to have significant growth potential due to an increase in global GDP, growth in global air traffic and record numbers of new aircraft orders. Innovation, efficiency gains and the development of new markets contribute to the sector's long-term positive outlook. It is shown that the aviation industry is subject to strict regulation at the national and international levels, including requirements for safety, ecology, product quality, data protection and many other aspects. Failure to comply with these requirements can result in serious legal consequences, financial loss and reputational damage. Long supply chains have been found to be an integral part of the aviation industry, ensuring the supply of components and materials for aircraft manufacturing. They have their own advantages and challenges that require effective management and coordination. The use of modern technologies, the development of partnership relations and strategic risk management contribute to increasing the efficiency and sustainability of these chains. It has been determined that the management of the risks of execution of key contracts is extremely important for aviation enterprises. Implementation of effective risk management strategies helps reduce the possibility of problems, ensure timely and high-quality fulfillment of obligations to customers, as well as maintain financial stability and competitiveness in the market. It has been proven that the interaction of banks and aviation companies brings numerous advantages to both parties. Aviation enterprises get access to the necessary financing, risk management and consulting services, which contributes to their development and increased efficiency. Banks, in turn, expand their customer base, increase profitability, develop new products and strengthen their reputation. Such cooperation is an important component of the success of both the aviation industry and the banking sector.

Corporate, Social Responsibility (CSR) in Nigeria: Investigating Discrepancy between Practices and Blind Spots

Corporate social responsibility (CSR) has been recognized as a significant contributor to the economy of developing countries. The study uncovers the potential causes of CSR discrepancies in Nigeria, a nation with divergent business prospects, evaluates their implications, and provides effective way-outs. CSR has achieved substantial interest worldwide as enterprises attempt to weigh profit-making services with social and environmental obligations. Yet, there is extensive interest in disagreements between organizations’ CSR obligations and their actual implementation. By synthesizing documented literature, the study reveals factors responsible for the discrepancy of CSR in Nigeria, such as ineffective stakeholder involvement, consumer attitude, inadequate resources, poor frameworks, and lack of consistent reporting. Furthermore, the implications imposed by CSR are examined, including missed chances for social impact, reputational damage, consumer perception, and workers' morale and commitment. Since CSR discrepancies are crucial to both enterprises and legislators, the study underscores addressing stakeholder engagement, clear frameworks for CSR implementation, transparency in reporting, and adequate resource allocation that can bring about sustainable development. The insights provided by this study can inform CSR policy development and effective corporate practices in Nigeria.

International Humanitarian Law and Business: Finding a Bridge

This article aims at analysing whether rules of international humanitarian law are applicable to business and if yes, to what extent. Additionally, the consequences for International Humanitarian Law (IHL) violations by companies are analysed. We highlight that enterprises, their personnel and property which are not directly linked to a conflict enjoy the protection under Geneva Conventions from deliberate or indiscriminate attacks, as well as from pillaging and violations of private property. However, keeping neutrality in armed conflicts is a difficult task for companies and there are different ways in which they can contribute to human rights violations and abuses as well as commit international crimes. In order to prevent such violations, companies should conduct hHRDD and comply with IHL rules. Non-compliance with them may lead to reputational and organisational risks for companies as well as bring companies to criminal and/or civil responsibility.

Bank Corporate Governance: Shield Against Fraud

An efficient corporate governance system in a bank is crucial for maintaining financial stability, boosting stakeholder confidence, promoting corporate accountability, and mitigating fraud risks. This paper investigates the role of bank corporate governance in safeguarding against fraud, reviwing 20 artciles published from 2017-2024. The study belives that fraud in banking institutions is a significant threat to the financial system, causing financial hardship and disrupting the banking system, indicating that opportunity such poor governance, weak control systems, poor organizational culture is the most contributing factor of these illegal and unethical behavior. The paper found that strong corporate governance significantly reduces the risk of fraud, with the board and audit committee playing a crucial role in ensuring accountability and boosting governance. To achieve bank corporate governance goals, it is necessary to utilize all available resources, including human and technological resources. The paper also found that corporate governance brings benefits such as increased transparency, accountability, reduced risk, enhanced decision-making, compliance, ethical conduct, and improved brand value, underlying that fraud risk incurs financial costs, reputational and regulatory risks, and decreased employee efficiency. The review concludes that bank corporate governance can act as shield against fraud, adding that ethical leadership, focusing on transparency and accountability, is essential for effective governance and deterring bank fraud. The study suggests investigating various types of fraud in the banking sector and their correlation with corporate governance, as well as conducting longitudinal studies to assess the long-term effects of robust corporate governance. Originality/contribution: The study asserts that effective governance is crucial for banks to become secure, stable, and robust. It emphasizes the importance of the board, audit committee, and moral leadership as crucial elements, and offers a how bank fraud is mitigated through good bank governance.

Risk Assessment of Banks and Financial Institutions When Interest Rate Hikes

This article delves into the multifaceted risks precipitated by a bank's decision to increase interest rates. It commences with an overarching overview contextualized within The Times, elucidating the significance of the subject matter. Subsequently, it delineates various extant risks, each accompanied by a succinct exposition and an outline of corresponding mitigation strategies. Following this introductory phase, the article conducts a meticulous analysis of these identified risks, methodically dissecting liquidity risk, reputation risk, market risk, and systemic risk. Each risk is meticulously defined, substantiated with historical precedents, and elucidated with comprehensive management methodologies. This paper underscores the myriad risks attendant to a bank's interest rate hike. This synthesis serves to underscore the overarching theme that such policy decisions not only reverberate through the financial ecosystem but also necessitate vigilant risk management protocols to safeguard against potential ramifications. Finally, the article concludes by summarizing the numerous risks posed by a bank's interest rate hike. It emphasizes the need for careful consideration and proactive risk management to mitigate potential consequences.

Optimizing risk management in oil and gas trading: A comprehensive analysis

The oil and gas trading sector is inherently volatile, influenced by geopolitical events, market dynamics, and regulatory changes. Effective risk management is crucial for mitigating these uncertainties and ensuring operational stability and profitability. This paper presents a comprehensive analysis of optimizing risk management in oil and gas trading, highlighting strategies, tools, and best practices to manage and mitigate risks. Risk management in oil and gas trading encompasses a broad spectrum of activities, including market risk, credit risk, operational risk, and compliance risk. To optimize risk management, firms must employ a multifaceted approach that integrates advanced analytics, robust risk assessment frameworks, and strategic decision-making processes. Key strategies include the use of financial instruments such as futures, options, and swaps to hedge against price volatility. These instruments enable traders to lock in prices and margins, thereby reducing exposure to market fluctuations. Advanced analytics and data-driven decision-making are essential components of effective risk management. By leveraging big data, machine learning, and artificial intelligence, traders can gain deeper insights into market trends, forecast price movements, and identify potential risks. Predictive analytics allows for proactive risk management, enabling firms to anticipate and respond to market changes swiftly. A comprehensive risk assessment framework is also critical. This involves regular monitoring and evaluation of risk exposure, stress testing, and scenario analysis. Such practices help identify vulnerabilities and ensure that risk mitigation measures are in place. Additionally, fostering a risk-aware culture within the organization is vital. This includes training and educating employees on risk management practices and encouraging transparent communication and reporting of risks. Compliance risk, driven by regulatory changes, is another significant aspect of risk management in oil and gas trading. Staying abreast of regulatory developments and ensuring compliance with international and local regulations is essential to avoid legal penalties and reputational damage. Implementing robust compliance programs and leveraging technology to monitor regulatory changes can help firms stay compliant. In conclusion, optimizing risk management in oil and gas trading requires a holistic approach that combines financial hedging, advanced analytics, comprehensive risk assessment, and compliance management. By adopting these strategies, firms can effectively mitigate risks, enhance decision-making, and achieve sustainable growth in a highly volatile industry. Keywords: Optimizing, Risk Management, Oil and Gas, Trading, Analysis.

Study of the Reaction of Stock Markets to the Cancel Culture Phenomenon in Relation to Russia

Suspension of business in Russia by most foreign corporations after the events of 24 February 2022 led to the fact that the social phenomenon of “cancel culture” is now also considered within the framework of global economy and finance. In recent years, the IT industry is appraised as one of the fastest-growing, and the study of its reaction to global events is highlyrelevant. Using the Event Study method, this study proves that there is no significant impact of the declaration of the Russia-Ukraine conflict on US stock market dynamics of IT companies with branches in Russia. The analysis of individual cases from the sample of companies shows that the companies’ decision to suspend or continue business in Russia depended only on the presence of a significant share of revenues in Russia, the degree of reputational and sanctions risks, and the specifics of corporate ESG policies. The model is limited by the sample and period of analysis. In order to verify model reliability, we applied the t-test that determined the significance of the results. The research is of practical relevance because internationally operating companies may use its data to evaluate risks and make strategic decisions.

Are the media drivers of R&D?

Research exploring how extra-legal institutional aspects might impact corporate investment policy in innovation is still in its early stages. This lack of research is even greater when it comes to studying the role of media attention in corporate innovation. This study extends prior literature by investigating the relationship between media visibility and research and development (R&D) investment in a continental European context. Using a sample of Spanish listed firms in the 2008–2022 period, results indicate that media attention has a positive effect on corporate innovation. The results provide support for arguments that the media reduce agency conflicts, facilitate fundraising, and increase the reputational risk of internal agents as well as the pressure to meet stakeholder demands and the chances of obtaining external help to develop new ideas and projects. Moreover, we show that media attention encourages innovation in companies who are more isolated from stakeholder demands, who face greater agency conflicts, or who suffer from financial difficulties.

Administrative penalties and corporate resilience

This study examines the intrinsic relationship between administrative penalties and corporate resilience through an empirical analysis of Chinese A-share listed companies. The findings reveal that administrative penalties have a detrimental effect on corporate resilience. However, factors such as financial status, internal control quality, and nature of property rights exhibit heterogeneity in their impact on corporate resilience in the face of administrative penalties. Furthermore, moderating variables, including corporate financing costs, corporate reputation, and operational risks, play significant roles in this process.

Ethical issues concerning UK veterinary surgeons practicing in equine sports medicine.

The ethics of equine sports medicine is a complex subject that is currently understudied. It combines veterinary ethics, sports ethics and associated regulation. Equine sports medicine may raise unique ethical issues and combines common ethical issues in ways distinct from other forms of veterinary medicine. The purpose of this research was to identify and describe ethical issues concerning United Kingdom (UK) veterinary surgeons arising within the practice of equine sports medicine. Survey. An online questionnaire was distributed to UK veterinary surgeons via veterinary organisations and veterinary social media. Responses to questions were collated and descriptive analysis performed. Open ended responses were analysed thematically. Ninety-seven respondents completed the questionnaire. The most commonly identified ethical challenges were the conflicts of interest and the pressures faced by the veterinary surgeon. The primary competing interest was balancing the horse's health and welfare with client wishes for the horse to continue in training and competition. Specific ethical challenges were identified; these related to competition integrity, medication control and prohibited substances, treatment evidence and acceptability, among others. As anticipated with the use of a questionnaire, the responses did not provide in-depth information about an individual veterinary surgeon's experiences, however, it did provide evidence of the extensive range of issues and concerns facing this group. There is also potential for response bias, whereby respondents may have provided answers they perceived were ethically desirable. This is the first empirical study that explores the ethical issues faced by equine sports medicine veterinary surgeons and has identified wide ranging concerns that demand further study. Areas which may pose reputational risk to equestrian sport, or the veterinary profession were identified. Governing bodies should consider how to improve support for veterinary surgeons facing ethical challenges, as for some, these cause moral distress and may impact retention within the profession.