Sustainable Finance and Financial Crime

Introduction
Structure of the Volume
Part I: Sustainable Finance, Cooperation, and Ethical Leadership
Part II: Sustainable Finance, Corporate Governance, and the Challenge of Preventing Financial Crime
Part III: Sustainable Finance and the Challenge of Combating Financial Crime
Conclusion
Contents
List of Figures
List of Tables
Part I: Sustainable Finance, Cooperation, and Ethical Leadership
The Role of Impact Finance in Targeting Social Justice
1 Introduction
2 Social Justice and Impact Measurement
2.1 Social Justice and Sustainable Development Goals
2.2 SDGs 16 and Relative KPIs
3 Impact Finance for Social Justice
3.1 The Main Features of Impact Finance
3.2 The Typical Financial Structures of Impact Finance
4 A Map of Impact Finance Experiments on Social Justice
5 Conclusion
References
Links
The Impact of Financial Institutions on Sustainable Value Creation in Companies´ Business Models
1 Introduction
2 The Link Between Financial Institutions´ Business Models and Companies´ Business Models in the Process of Sustainable Value ...
3 Companies´ Motives and Attitudes Toward Cooperation with Financial Institutions
4 Research Material and Method
5 Results
6 Conclusion
References
Sustainable Finance: Banks, Sustainability, and Corporate Financial Performance
1 Introduction
2 The History of Sustainable Banking
2.1 Early Developments Including Credit Unions and Cooperatives
2.2 Ethical Banks and Impact Investment
2.3 Assessment of Sustainability Risks in Lending
2.4 (Socially) Responsible Investment
2.5 Banks and Climate Risks, Including Fossil Fuel Financing and Divestment
2.6 Sustainability-Related Banking Supervision and Regulation
3 Sustainable Banking, Green Credit Policies, and Environmental Credit Risk Management Practices: An Overview
4 Examples of Sustainable Financial Products and Services
4.1 Green Mortgages
4.2 Credit Cards
4.3 Green Securitization
4.4 Green Bonds
4.5 Sustainability Bonds
4.6 Sustainability-Linked Bonds
4.7 Catastrophe Bonds
5 The Connection Between ESG Performance and Financial Performance in the Banking Industry
6 ESG Risks: Open Issues and Future Challenges
7 Conclusions
References
International Informal Capital Flows and Sustainable Finance: China´s Regulatory Approach
1 Introduction
2 Illicit Financial Flows
2.1 Definition of Illicit Financial Flows
2.2 Measurement of Illicit Financial Flows
3 Theory and Practice of Money Laundering Involving China
3.1 International Money Laundering
3.1.1 Placement of Money Offshore
3.1.2 Layering of Funds Through Offshore Jurisdictions
3.1.3 Integration of Funds into China or Offshore
3.2 Misinvoicing or False Trade Invoicing
3.3 Round-Tripping
4 Regulation of Illicit Flows by China
4.1 Foreign Exchange Control Regulation in China
4.2 Anti-money Laundering Regulation in China
5 Conclusion
References
The Environmental Performance of Firms and the Probability of Environmental Events
1 Introduction
2 Literature Review and Research Hypotheses
2.1 ESG Performance and Risk
2.2 Environmental Performance and Risk
2.3 ESG Performance and Adverse Events
2.4 Research Hypotheses
2.4.1 Environmental Performance and Corporate Environmental Events
2.4.2 Environmental Strengths and Concerns
2.4.3 Compensation Effect
3 Methodology
3.1 Data
3.2 Model Specification
4 Impact of Environmental Performance on the Probability of Corporate Environmental Events
4.1 Aggregate Environmental Performance
4.2 Environmental Strengths and Concerns
4.3 Environmental Performance Levels and Categories
5 Conclusion
A. Appendix: Construction of the Environmental Events Database
References
Ethical Leadership as a Prerequisite for Sustainable Development, Sustainable Finance, and ESG Reporting
1 Introduction
2 Contextualizing Sustainable Development
3 Disentangling Sustainability and ESG
4 Sustainable Investment
5 Legislative Interest in Sustainable Finance
6 Ethical and Resilient Leadership
7 Methodology and Findings
7.1 Company Profiles Included in the Ethisphere´s 2021 List
7.2 Findings: Econometric Analysis
8 Conclusion
References
Ethical Leadership and Ethical Organizational Culture: Two Pillars for Fighting Against Corruption in the Organizations
1 Introduction
2 Antinomic Concepts of Ethics and Corruption
3 The Role of the Leader as a Guarantee of the Success of Ethics in the Company
4 The Establishment by the Ethical Leader of the Ethical Organizational Culture
5 Discussion and Conclusion
References
The Development of Sustainable Finance and the Axiological Strategies Against Corruption in Organizations: Enhancing Virtues o...
1 Introduction
2 The Basic Conditioning Factors of Corruption in the Organizational Culture: The Plurality of Moral Tones
2.1 The Moral Tone of Globalized Markets
2.2 The Moral Tone of National Culture
2.3 The Moral Tone of the Political and Legal Environment
2.4 The Plurality of Moral Tones and the Need for Ethical Reflection
3 The Corporate Moral/Ethical Discourse and the Axiological Choice of Prevention Strategies Against Corruption
4 Aristotelian Ethics and the Search for the Ethical Aim in the Organizational Culture: Virtue-Oriented Strategies for Prevent...
4.1 How Could Virtuous Life Allow People to Improve Their Emotional, Attitudinal, and Behavioral Self-Control, When Facing Cor...
4.2 Could Deliberation and Prudence Enhance the Golden Mean Between Extremes, When Facing Corruption?
5 Kantian Ethics and Moral Normativity in the Organizational Culture: Duty-Oriented Strategies for Preventing Bribery
5.1 Could Moral Law and Duties Allow Decision-Makers to Avoid Corruption, Regardless of Circumstances?
5.2 Are Moral Imperatives Helpful, When Facing Corrupt Behaviors?
6 Sustainable Finance and the Axiological Choice
7 Conclusion
References
Part II: Sustainable Finance, Corporate Governance, and the Challenge of Preventing Financial Crime
Corruption and Transactional Crime: Building up Effective Accountable Inclusive and Transparent Institutions as Ground for Sus...
1 Introduction
2 What Is Corruption?
3 Causes of Corruption
3.1 Demand Side
3.2 Supply Side
4 Consequences of Corruption
4.1 Grease the Wheels Hypothesis
4.2 Sand the Wheels Hypothesis
4.3 The Econometric Approach
5 Corruption and Institutions
6 Corruption and Culture
7 Corruption and Trust
8 Sustainable Finance and ESG Disclosure
8.1 Culture
8.2 Political System
8.3 Corruption
8.4 Labor System
9 Conclusion
References
Rationalization of Corruption: A Discursive Legitimation Approach
1 Introduction
2 Literature Review
2.1 Motivations to Engage in Corruption
2.2 A Discursive Legitimation Perspective
3 Methods
3.1 Research Strategy
3.2 Data Collection
3.3 Data Analysis
4 Empirical Analysis: Discursive Legitimation Strategies of Algerian Entrepreneurs
4.1 Moralization
4.2 Rationalization
4.3 Normalization
4.4 Mythopoesis
4.5 Authorization
5 Discussion and Conclusion
References
Financial Crime in OTC Markets
1 Introduction
2 Money Markets and LIBOR Manipulation
3 Foreign Exchange Markets and Fix Manipulation
4 Government Bonds, Derivatives, and Spoofing
5 The Illusion of Sustainability and Immunity from Financial Crime
6 Concluding Remarks
References
Does Fiscal Pressure Influence Shadow Economy? A Panel Data Analysis for the OECD Countries
1 Introduction
2 Methodology and Data
2.1 Description of Variables
2.2 Sample Description
2.3 Method
3 Results
3.1 Summary Statistics of the Variables
3.2 Correlation Statistics
3.3 Empirical Results
4 Discussion
5 Conclusion
References
A Bidirectional Causality Between Shadow Economy and Economic and Sustainable Development
1 Introduction
2 Methodology and Data
2.1 Model and Data
2.2 Panel Unit Root and Granger Causality
3 Results and Discussions
3.1 Main Results
3.2 Robustness Check
4 Conclusion
Appendix 1. List of Countries
Appendix 2. Description of Variables
Appendix 3. Summary Statistics
Appendix 4. Matrix Correlations
References
Sustainable Finance and the Role of Corporate Governance in Preventing Economic Crimes
1 Introduction
2 Conceptual Background: Corporate Governance and Economic Crime
3 Case Study Analyses
3.1 Case 1: The Abraaj Scandal
3.1.1 What Happened?
3.1.2 What Went Wrong?
3.1.3 What Lessons Can Be Drawn?
3.2 Case 2: The Boohoo Scandal
3.2.1 What Happened?
3.2.2 What Went Wrong?
3.2.3 What Lessons Can Be Drawn?
4 Discussion and Conclusion
4.1 The Need for a Sustainable Corporate Governance
4.2 Promoting Sustainable Corporate Governance
References
Part III: Sustainable Finance and the Challenge of Combating Financial Crime
The Financial Fraud of the German Fintech Company WireCard: Structural Causes and Failures of the Supervisory Authorities
1 Introduction
2 The Rise and Fall of a German FinTech-Star
3 From Initial Doubts to Massive Suspicion
4 National Pride and Failures of the Supervisory Authorities
4.1 The Role of Financial Oversight
4.2 The Role of the Accountants
4.3 The Role of Fund Managers and Market Analysts
5 Conclusion: The Sustainability of Sustainable Finance
References
Reducing Financial Crime Convenience for Sustainable Finance. A Case Study of Danske Bank in Estonia
1 Introduction
2 Danske Bank
3 Money Laundering
4 Financial Motive
5 Organizational Opportunity
6 Deviance Willingness
7 Criminal Market
8 Next Bank Scandal
9 Convenience Reduction
Referencess
How the Battle Against Cybercrime Strengthens Sustainable Finance
1 Introduction
2 The Impact of Cybercriminal Activities
2.1 Ransomware
2.2 Cryptojacking
2.3 Data Breaches
2.4 Malware
2.5 Distributed Denial of Service
2.6 Social Engineering
2.7 Supply Chain Attacks
2.8 Disinformation
2.9 Deepfakes
3 The Impact of Cybercriminal Infrastructure
3.1 Blockchain
3.2 Encryption
3.3 The Dark Web
3.4 The Onion Router Browser
3.5 The Retail Environment of Cybercrime
4 How to Reduce the Impact
4.1 The Environment
4.2 Corporate Governance
4.3 Society
5 Conclusion
References
Terrorism Financing, the United Kingdom, and the Financial Action Task Force: A Series of Omissions or Missed Opportunities?
1 Introduction
2 The Evolution of Terrorism Financing: Emerging Typologies
3 UK Counter-Financing Strategy
4 CTF and Technology
5 Conclusion
List of References
Legislation
United States
United Kingdom
Cases
US
UK
References