Vol 1 Issue 1

Marian Journal of Professional Management, Volume 1 Issue 1

Marian Journal of Professional Management, Volume 1 Issue 1 editorial Board

Marian Journal of Professional Management, Volume 1 Issue 1 message

Adopting “Theory of Karma” in developing Ethical Sales Behaviour
among Medical Sales Representatives in the Pharmaceutical Industry.


Arun G
Research Scholar (Management), SCSVMV University, Enathur PO, Kanchipuram, Tamil


Dr.C.G. Manoj Krishnan,
Member – CII Education Sub Committee (South) & Associate Professor-HR Area, TKM
Institute of Management, Karuvelil PO, Kollam, Kerala. Email:



This article portrays on the implementation of “Theory of Karma” in fostering ethical sales behavior among the salespersons. Trustworthiness, Sincerity, Honesty, self-control, positive thing and positive attitude are the prerequisites of a star salesperson, which can be easily adopted through believing in the concept of “Theory of Karma”. This article gives an idea about how the Theory of Karma can be adopted in fostering good ethical selling behavior.

Keywords: Ethical Selling Behaviour, Unethical Selling Behaviour, Karma

I. Introduction

According to the theory of Karma, all the action we do in our life has a Consequence. If we do good action we have a Positive Consequence and if we do negative action, we will be affected with negative Consequence. Some consequences will happen immediately, were some happens after a long period or some happen in our next birth. The effects of all Karmic actions we do in our life can be accumulated. The “Theory of Karma” also portrays the concept of Rebirth. The “Theory of Karma” speaks about the factual occurrence which is going to happen because of our previous actions. Theory of Karma helps to create an Ethical Orientation to employees i.e., Medical Sales Representatives. In a worldwide survey conducted by the Ethics Resource Center, US; It has been found that 9% of the employees working in an organization violates its ethical standards and policies due to high work pressure exerted from the companies (Ethics Resource Center 2014). Ethical Selling is all about meeting the moral obligations to the stakeholders throughout the selling process. Ethical Selling Behaviour is mandatory to create Customer Trust and Customer Value. A Good Leadership is really important to impart and implement ethical environment in an organization which helps to take an ethical decision by all the employees working in an organization (Schwepker, 2015). When we implement Ethical Sales Behaviour in an Organization, we should think about the different needs of all the stakeholders including Consumers, Colleagues, and Managers (Chonko, Tanner, and Weeks 1996).


1) To investigate about the application of “Theory of Karma” for practicing Ethical Selling Behaviour.
2) To investigate about the ethical and unethical behavior among salespersons.


This article is on the basis of literature review comprising Theory of Karma, Ethical and Unethical selling Behaviour among the salespersons. Reviewed literature for identifying ethical and unethical selling behavior traits.


A. Factors fostering Unethical Selling Practices.

Some of the Unethical Selling practices followed by the salespersons are as follows,

  • Biased information was given by the salesperson to the customers for degrading competitors and their products.
  • Persuading a Customer by saying lies about the product or service provided.
  • Hyper Exaggeration about the products/service with an intention to persuade the customer.
  • Confusing the customer by using ambiguous language and technical jargons.
  • Selling a product or service which is not suitable to the needs and wants of the customers.

B. Factors Fostering Ethical Sales Behaviour

The ethical behavior of sales representatives to emphatically impacts on customer satisfaction and customer delight that creates customer trust which will boost the confidence of the salesperson in their sales execution. Salespersons of organizations embrace the significant duty regarding organization’s deals and benefit. Subsequently, they are under strain to advance their execution which, now and again, causes to depend on some dishonorable and unethical strategies for more sales. Despite the fact that this behavior is ethically unsuitable, from the authoritative viewpoint, salespersons are in certainty the organization’s delegates which having the most contact with clients. The client’s apparent picture of the organization and from that point their propensity to keep up or stop the connection with the organization will be framed relying upon how the salespersons collaborate with customers/clients. It is the responsibility of the salesperson to clarify if there is any misunderstanding, it is mandatory to keep Customers’ information confidential (Cornelia Denisa, 2014). If we want to make our Salesperson more ethical, it is important to create an ethical culture inside the organization. For creating an ethical Organization with good ethical organization climate, the following factors should be considered seriously.

  • Create a supervisory style that creates and promotes ethical selling behavior among the salespersons.
  • There should be adequate punishment for breach of the ethical code of conducts.
  • Ethical Behavioural expectations should be clearly communicated to employees/sales force.
  • Train the sales force and managers to positively socialize with the customers and other stakeholders of the organization (Ferrell, Johnston & Ferrell, 2007).

In spite of the fact that Sales Managers, for the most part, are not prone to permit a salesperson to play out an unethical act (exaggeration of facts and figures, false guarantees, pressurizing the customer) to achieve Target, contingent upon the kind of activity, a few managers might to permit salespersons to act unethically so as to accomplish the sales Target (Schwepker & Good, 2007). The involvement of top management is highly appreciated in creating a good ethical climate in an organization. For building a high reputation and corporate brand image, for getting repeat business, for creating positive Word of Mouth publicity about our offerings and the company, earning respect from customers & other stakeholders etc; practicing ethical sales behavior has become the order of the day (DeConinck, 2005).

Ethical Sales behavior will create Customer Trust tears the salesperson. For practicing ethical sales behavior, it is
really good that the supervisor has good transformational leadership quality. If the manager is practicing Transformational leadership, the sales executive can tackle any ethical dilemmas with a lot of confidence (Schwepker and Good 2010).

C. Theory of Karma

Whatever action we do, great or awful brings us great or awful responses. For each move you make, you will confront a response later on, which could be a scarcely any seconds away or 20 years away or your next incarnation. In the event that you take great activities, you will confront great responses. This may come as great wellbeing, riches or birth on higher planets and so on. In the event that you take terrible activities, you will confront awful responses later on. That means if we do good we will confront good consequences and if we do bad things in our life we will confront bad consequences. Good Karma includes honesty, empathy, nonviolence, spirituality, self-control over the mind, positive thinking, positive attitude, trustworthiness, simplicity etc. Bad Karma includes anger, negative thinking, negative attitude, greediness, ego etc.


For imparting ethical selling behavior in an organization, it is important to understand the salesperson about the
importance of trustworthiness, sincerity, honesty, positive attitude, empathy and self-control over the mind is very much important. The theory of good karma speaks about “if we do good things, we will get good consequences and vice versa”. In sales also, if we want to create a long lasting relationship with the customers, it is important to do good things which satisfy and delight the customers. That means we had to practice Good Karma. The knowledge of Good Karma will help the salespersons to think positive in every awful situation.
The salespersons are supposed to follow the good karma principles like

  • Be Honest and Sincere to customers, because the customer is the king.
  • The salesperson is successful when he/she creates a big trustworthiness in the mind of the customers.
  • Believe in the concept of “Doing goods to self, others and to the society”.
  • Salespersons should never lie in an awful situation even when they have performance/target pressure.
  • The salesperson should have a positive attitude towards what are all thing he does which is concerned with the customers.


In this extremely competitive and globalized world, it is really good to adopt philosophies of good karma in building responsible and ethical salespersons. If we adopt good karma in our organization and among our salespersons, it will surely bring positive consequences. If we do good things, there will be positive consequences; which is highly applicable in sales management. If we adopt the theory of Karma into our system; it will bring you reputation, repeat business, creating loyal customers, improving customer value etc. we believe that this article is going to be the first step for initiating research between ethical sales behaviour and Theory of Karma.


1. Cornelia Densia. 2014. “Ethical Behavior in Sales and its Effect on Customers.” Valahian Journal of Economic Studies, 5(19), 17-26
2. Chonko, Lawrence B., John F. Tanner Jr, and William A. Weeks. 1996. “Ethics in Salesperson Decision Making: A Synthesis of Research Approaches and an Extension of the Scenario Method.” Journal of Personal Selling & Sales Management 16 (1): 35–52.
3. Cooper, R. W., & Frank, G. L.(1991). Ethics in the Life Insurance Industry: The issues, helps and hindrances. Journal of the American Society of CLU & CHFC, 45, 54-66.
4. DeConinck, J. B. (2005). The influence of ethical control systems and moral intensity on sales managers’ ethical perceptions and behavioral intentions. Marketing Management Journal, 15(2), 123– 131.
5. Dubinsky, A., & Yammarino, F. (1985). Job-Related Responses of Insurance Agents: A Multi-Firm Investigation. The Journal Of Risk And Insurance, 52(3), 501. http://dx.doi.org/10.2307/252783
6. Ethics Resource Center. 2014. 2013 National Business Ethics Survey. Arlington, VA: Ethics Resource Center. Accessed June 17, 2017. http://www.ethics.org/nbes/keyfindings/on.
7. Ferrell, O., Johnston, M., & Ferrell, L. (2007). A Framework For Personal Selling and Sales Management Ethical Decision Making. Journal Of Personal Selling & Sales Management,
27(4), 291-299. http://dx.doi.org/10.2753/pss0885-3134270401
8. Schwepker, C. (2015). Influencing the salesforce through perceived ethical leadership: the role of salesforce socialization and person-organization fit on salesperson ethics and performance. Journal of Personal Selling & Sales Management, 35(4), 292-313. http://dx.doi.org/10.1080/08853134.2015.1106769
9. Schwepker, C., & Good, D. (2007). Sales Management’s Influence on Employment and Training in Developing an Ethical Sales Force.Journal Of Personal Selling & Sales Management, 27(4), 325-339. http://dx.doi.org/10.2753/pss0885-3134270404.
10. Schwepker, C., & Good, D. (2010). Transformational Leadership and its Impact on Sales Force Moral Judgment. Journal Of Personal Selling & Sales Management, 30(4), 299-317.
11. https://www.business.qld.gov.au/starting-business/licensingobligations/legalobligations/ethical-selling



Mr. Shinil Sebastian
Asst. Professor
Marian International Institute of Management Kuttikkanam.



This paper adds to the literature of overconfidence bias in behavioural finance by analysing the market returns and volume and the presence of overconfidence. As literature suggests past market returns is the major antecedent for the overconfidence among the investor and this leads to higher volume in the market. This study is trying to analyse the impact of overconfidence among the investors because of market returns on volume of the stock market. We used daily data of NSE NIFTY index closing price and market volume in this study to test this phenomenon and followed the method used by Statman, Thorley and Vorkink (2006) and used VAR models and impulse response function to test this asymmetry in the financial market. Our finding shows that past returns are not the driving force for the future or present volume in the market but past volume in the market is highly correlated with present and future volume. We found very little evidence on past returns drive the market volume as found by Zaiane and Abaoub(2009) in their study.

Keywords: Stock market, Overconfidence, Market return, and VAR.


Analyzing the investors’ behaviors is one of the main research areas in the field of finance in recent times. The behavior of investors is influenced by several inherent and market factors. The decision of investors is depending on several behavioral biases. The behavioural theorists found many biases in behavioural finance. One of the major behavioural biases is overconfidence. It is defined as the tendency of investors to overestimate the precision of their private knowledge. The overconfidence behavior is much-talked literature in the finance theories. The theory is that overconfident investors are confident about their precision of knowledge and their private information. The main reasons behind the overconfidence of traders are past return from market and portfolio. Statman et al. (2006) identified gain from portfolio makes the investors overconfident which lead to an increase in trading volume of the overall market. Barber and Gervais(2001)found in their studies by analyzing individual investors, successful past trades makes the investor become overconfident.

There are several studies related to overconfidence and its impact on trading behaviour and the reasons for this particular bias. Overconfidence behaviors lead to excessive volatility in the market because of the overestimation of their abilities, private information, biased self-attributions (Sheikh & Riaz, 2012). Many researchers find that overconfidence is associated with high levels of trading volume in financial assets (Grinblatt and Keloharju, 2006; Statman et al, 2006; Glaser and Weber, 2007). The influence of persistent overconfidence in financial markets has been overwhelming. Empirical studies find that investors persistently overestimate the average rate of return to their assets and underestimate the risk associated with the return.
In this study, we investigate the presence of overconfidence in the Indian market and check whether the past return of market will affect the trading volume in the future. The paper is organized as follows. Section 2 briefly reviews the literature; section 3 provides the details of the data set used and describes the methodology; section 5 presents the main findings and test results. Section5 concludes the study.


A large number of studies have been made on the overconfidence bias in the behavioural finance area, But most of the studies tested the presence of overconfidence by analyzing individual investors transaction taken from large brokerage or exchanges. But very few studies only made based on market data. Benos (1998)reported that overconfident traders in the market lead to higher transactions volume, larger depth, more volatile and more informative prices, Overconfident traders place larger order this increases the volatility in the market.

Biases et al (2000) studied the psychological traits and trading strategies and found that overconfident investors place large unprofitable trades. Chuang & Lee, 2007) reported that overconfident investor overreacts to private information, past market gains increase the overconfidence and trade aggressively, excessive trading of overconfident investors leads to excessive volatility in the market. Chang (2012) examined the relation between investor overconfidence and the idiosyncratic volatility of stock returns and documented that fluctuations in the investor overconfidence can affect the idiosyncratic volatility of stocks. Galacer and Weber (2007) Studied 3000 online investors behavior through a questionnaire to measure overconfidence by miscalibration methods, find that investors who think that they are above average in terms of investment skills or past performance trade more. Zaiane and Abaoub(2009) analyzed the investors’ overconfidence and trading volume, they reported that high trading volume is because of overconfidence and if investors could make high returns from his previous trades this will encourage him to more trade continuously or volume in the market.Odean(1998) introduces the concept of overconfidence as investors’ tendency to overestimate the precision of their knowledge about the value of security and trade more in the stock market. Zaiane and Abaoub(2007)studied the impact of the event of overconfidence on the trading volume and its role in the effect of the excess volume on the Tunisian stock market and find that little evidence of the overconfidence hypothesis when shares traded as a proxy of trading volume. Most of the studies related to overconfidence behavior in the finance literature show that overconfidence in the market is because of past market return and returns made from his previous trades. So this study is trying to analyze the past positive performance of the NIFTY index and its relation to the volume in the market. Many studies used volume or Turnover of the market as a proxy for overconfidence.


The data used in this study is the NIFTY index daily closing price and turnover of the market for the period from January 2004 to January 2014. Nifty is a leading index for a large number of companies on NSE. This index is a well-diversified stock index for 22 sectors in Indian economy. The volume of the transaction has grown up tremendously in the recent period. This exchange is the largest in India in terms of daily turnover and number of trades and it is one of the most liquid stock exchanges in the world. Graphical representation of data is given in figure 1 and 2.

Figure: 1 Volume of trade Figure:2 Closing price of NSE NIFTY.

To test the presence of overconfidence in the stock market we used the method suggested by Statesman et al (2006). As they suggested the positive portfolio and market return makes the investors become overconfident and this will increase market turnover. They applied the VAR model to assess this phenomenon in their studies. In this present pepper to measure this asymmetry, we applied to the time series regression model. Most of the studies are made based on the monthly turn over and return from market or portfolio. But our study is using daily turnover and closing price of the index because the behavior of investor may change very frequently as the return he makes in his past trades.

We use VAR and associated impulse response functions to study the interaction of volume and return time-series for the market data.


where Y, is a n x 1 vector of period t observations of endogenous variables, for example, turnover and return, Xt is a vector of period t observations of the exogenous (i.e., control) variables, and e, is a n x 1 residual vector. The regression coefficients, Ak and B1, estimate the time-series relationships between the endogenous and exogenous variables, where K is the number of lagged endogenous observations and L is the number of lagged exogenous observations. The VAR methodology allows for a covariance structure to exist in the residual vector, et, that captures the contemporaneous correlation between endogenous variables.1
Estimating the following equations performs the VAR model in the present study:


Finally, the Impulse Response Function (IRF) has been employed to investigate the time paths of return in response to a one-unit shock to the trading volume and vice versa. The plot of the IRF shows the effect of a one standard deviation shock to one of the innovations on current and future values of the endogenous variables. Plotting the impulse response function can trace the effects of shocks to returns or trading volume on the time paths of the trading volume or return sequences.


Augmented Dickey-Fuller test was employed to test the stationarity of return and trading volume series of NIFTY and its results are presented in Table-1. The table result reveals that both the data series are stationary at first-order level. Hence the VAR model in first difference is performed to examine the lead-lag relationship between return and trading volume of Indian stock market.VAR estimation is as follows

descriptive statistics Unite root test

Table 3: Vector Autoregression

Vector Autoregression Estimates

Note: Figures in Parenthesis [ ] represents t value. * – indicates significance at one percent level. The lag length was determined based on Schwarz information criteria.

The results of the VAR conclude that trading volume is in high correlation with its previous value. Thus yesterday’s trading volume has an impact on today’s trading volume. This indicates that investor overconfidence keeps the trading volume at a higher level despite the fact that this rise in trading volume over has no impact on returns. Further the results indicate no evidence of the correlation between returns and turnover for the study period. This indicates that the previous day’s return does not determine the current trading volume. The results also confirm that Indian stock market investors have imperfect knowledge of the market and perfect market hypothesis does not hold.
The impulse response function is only possible in VAR. This analysis graphically presents the behavior of the endogenous variable regarding a shock from the behavior of other endogenous variables. Following IRF graphs have been taken to predict future 12 days behavior of turnover and return.

Response to Cholesky One S.D. Innovations ± 2 S.E.

Response to Cholesky One S.D. Innovations ± 2 S.E.

The graph of IRF indicates that future returns are almost unaffected by the change in trading volume in India. The line is mostly flat and indicates that returns do not show much movement in response to change in 1 standard deviation of trading volume. Further, the graph indicates the shock of returns (impulse) on trading volume (Response). The graph indicates that the shock of return not affected the trading volume. This indicates that investors do not react to shocks in returns but their overconfidence, translated in terms of turnover will keep volumes in positive territory.


This paper was trying to identify the overconfidence bias presence in the Indian equity market and its impact on the volume of transaction in the market by analyzing the led lag relationship between return and volume. Market volume is considered as the proxy for the overconfidence. Most of the studies show that past market returns make the investor overconfident and have consequences, they trade more in the stock market subsequently. In our study based on time series VAR model on market return and volume, we found the little evidence on this phenomenon past returns are not the force for the future volume, but the last volume in the market is a driving force of the present and future volume. Our result is consistent with other research findings in the case of overconfidence is a key determinant for future trading volume. Odean (1999, Benos(1998), Wang (1998), Gervais and Odean (2001) and Statman et al (2006).But we find little evidence on past returns of market leads the present and future trading volume in the market. This little variation in the result may be because of the daily data of market return and volume.


Barber, Brad M., and Terrance Odean, 2001. Boys will be boys: Gender, overconfidence, and common stock investment. The Quarterly Journal of Economics 116, 261- 292.
Barber, Brad M., and Terrance Odean, 2002. Online investors: Do the slow die first? Review of Financial Studies 15, 455-487
Benos, A. (1998). Aggressiveness and survival of overconÞdent traders. Journal of Financial Markets, 1, 353-383 Deaves, R et al(2005), The Dynamics of Overconfidence: Evidence from Stock Market Forecasters .working paper
Grinblatt , M., & Keloharju, M. (2009). Sensation seeking, overconfidence, and trading activity. The Journal of Finance, 64(2), 54-578.
GRINBLATT, M., & KELOHARJU, M. (2001). What makes investors trade?. THE JOURNAL OF FINANCE, ( 2). Odean, Terrance, 1998. Volume, volatility, price, and profit when all traders are above average. Journal of Finance 53,1887-1934.
Odean, Terrance, 1998. Volume, volatility, price, and profit when all traders are above average. Journal of Finance 53,1887-1934.
Odean, Terrance, 1999. Do investors trade too much? American Economics Review 89, 1279- 1298.
Prosad, J., Kapoor, S., & Sengupta, J. (2013). Impact of overconfidence and the disposition effect on trading volume: An empirical investigation of the Indian equity market. International Journal of Research in Management & Technology, 3(4),
Sheikh, 1. F., & Riaz, K. (2012). Overconfidence bias, trading volume and returns volatility: Evidence from Pakistan. World Applied Sciences Journal, 18(12), 1737-1748.
Statman, M., Thorley, S., & Vorkink, K. (2006). Investor overconfidence and trading volume . Review of Financial Studies, 19(4), 1531-1565
Wang, F.A. 1998, Strategic Trading, Asymmetric Information, and Heterogeneous prior Beliefs, Journal of Financial markets,1,321-352 Zaiane, S., & Abaoub, E. (2009). Investor overconfidence and trading volume: The case of an emergent market. International Review of Business Research Papers, 5(2), 213- 222.

Relational Analysis of Organizational Citizenship Behavior with Work Outcomes Among the Private Security Personnel

Dhruv Shankar Dutta
Doctoral Research Scholar,Department of Management Studies,
Pondicherry University,
Email id: dhruvdutta29@gmail.com,
Mobile No.: +91-94883048

S. Riasudeen
Department of Management Studies,
Email id: riasudeen.dms@pondiuni.edu.in,
Mobile No.:+91-9444170944



This study looks at how different representative attitudinal variables impact organizational citizenship behavior. These attitudinal variables incorporate job satisfaction, relationship with supervisor, fairness perceptions, organizational commitment, job stress and stress outside the workplace. The information was drawn from 102 private security personnel deployed in an educational institute in India. The results discovered backing for three theories expressing that there is a positive relationship between the relationship with supervisor, organizational commitment, job stress, and organizational citizenship behavior. The results were unable to not find support for three hypotheses affirming the relationship between job satisfaction, fairness perceptions, stress outside the workplace, and organizational citizenship behavior.

Keywords: OCB, Job Satisfaction, Organizational Commitment, Interactional Justice, Job Stress.


Previous research has explored the relationship between employee attitudinal variables and organizational citizenship behavior. Organizational citizenship behavior can be defined as “individual behavior that is discretionary, not directly or explicitly recognized by the formal reward system, and that in the aggregate promotes the effective functioning of the organization” (Organ 1988). It is basically the actions employees take that are above and beyond what is expected of them, and which do not give them any explicit reward. Research has shown that organizational citizenship behavior helps maximize the organizational performance of companies (Podsakoff et al., 2000). Since this is the goal of every organization, it benefits managers to understand how various variables affect organizational citizenship behavior. This understanding can help managers assess what kind of environment to provide their employees, and also what motivates and satisfies them. Although the relationships between many employee attitudinal variables and organizational citizenship behavior have been previously researched (Erturk, 2007), for the current research project we have selected a unique combination of the previously studied employee attitudinal variables. These include job satisfaction, relationship with supervisor, fairness perceptions, organizational commitment, job stress, and stress outside the workplace.

Literature Review:

Katz and Kahn (1978) said that effective organizations provoke three different patterns of behavior from members: 1. Organizations must attract and hold people. 2. They must ensure that members show “dependable” levels of performance (in -role behavior). 3. They must propose “innovative and spontaneous behavior beyond the rolerequirements for accomplishing organizational functions (extra -role behavior).” The last category comprises cooperative activities with fellow members, actions protective of the system, self -training for additional contributions. These actions should promote a favorable climate for the organization in the external environment. Organ &Near(1983) agreed on third of three behavior type that is classified by Katz as “organizational citizenship behavior”. OCB is defined as extra-role behavior that is discretionary behavior, not directly related to the individual’s job description and not recognized by the formal reward system, but behavior that helps the organization and/or its members. An example would be that, when an employee fined another employee in trouble or needing help, the employee extends the help without being asked or directed to help. The worker often leaves his own job to help but does not expect any material reward (Organ, 1988). A recent study explores the existing relationship between antecedents that contribute to job satisfaction or dissatisfaction, and also the consequences of job satisfaction or dissatisfaction (Ghazzawi, 2008). Ghazzawi bases his paper on prior research in hopes of further explaining the effect job satisfaction has on people in the workplace. One of the consequences of job satisfaction or dissatisfaction that Ghazzawi examines is organizational citizenship behavior. Based on his analytic review of studies performed by Organ and Ryan (1995), the results show that organizational citizenship behavior is a consequence of job satisfaction. A study defines transformational leadership as, a persuasive vision for the future of an organization. It offers a model steady with that vision, nurturing the recognition of the group goals and providing individualized support, intellectual stimulation, and high-performance outlooks. The study also looks at the leader-member exchange and how it relates to task performance and organizational citizenship behaviors. Leader-member exchange theory involves the reciprocal social exchanges that occur between leader and follower. While research has already shown the effects of transformational leadership on organizational citizenship behavior and task performance, a recent study investigated the specific mechanisms that explain those effects. The mechanism that they suggest explains the effects of transformational leaders is rooted in core job characteristics (Colquitt & Piccolo, 2006). Organizational justice refers to the role of fairness as it relates to the workplace. It involves the ways employees decide if they are being treated fairly at their jobs, and the way this decision affects their work behavior (Moorman, 1991). There are two commonly researched forms of organizational justice: distributive justice and procedural justice. Distributive justice describes the fairness of the outcomes an employee gets and procedural justice describes how fair the procedures are that determine the outcomes they get. Procedural justice consists of two factors: formal procedures and interactional justice. Formal procedures involve whether an organization uses fair procedures, like for example, whether the organization tries to be consistent with their procedures. The second component of procedural justice is interactional justice. This embodies the idea that perceptions of procedural justice can stem from an organization’s procedures and the way they carry those procedures out (Moorman, 1991). The previous study defines organizational commitment as the psychological attachment felt by the person for the organization that reflects the degree to which the individual internalizes or adopts characteristics or perspectives of the organization (O’Reilly III & Chatman, 1986). A study investigated the relationship between job stress, work-family conflict, and organizational citizenship behavior. In their study, they anticipate that when an employee participates in extra-role behavior above and beyond what is expected of them, this will lead to more stress (Bolino& Turnley, 2005).
The study also examined how non-work roles, such as family, affect the employee’s life. Work-family conflict can be defined as a type of role conflict where demands at work interfere with family demands (Greenhaus& Beutell, 1985).


The six hypotheses have been drawn from the literature review of previous research studies.
They are as bellows:
H1: Employee satisfaction with the organization is positively and significantly related to organizational citizenship behavior.
H2: Employee’s positive relationship with the supervisor is positively related to organizational citizenship behavior.
H3: An employee’s fairness perceptions (interactional justice) are positively and significantly related to organizational citizenship behavior.
H4: Employee’s organizational commitment is positively and significantly related to organizational citizenship behavior.
H5: Employee’s job stress is positively and significantly related to organizational citizenship behavior.
H6: Stress outside the workplace is positively and significantly related to organizational Citizenship Behaviors.


Sample and Procedure

Data have been collected from 102 private security personnel working in the educational institute for hypotheses testing. The survey was administered to the security personnel using a structured questionnaire. The study has been carried out in the Indian context.


The responses have been measured with five points Likert scale, items ranging from 1- “Strongly Disagree” to 2- “Strongly Agree”. The factors have been evaluated with following adapted scales: Job satisfaction measures have been taken from Scarpello and Campbell (1983). Relationship with Supervisor: For the current study used questions that were part of the consulting firm’s regular set of questions, and not part of a validated scale. For the purpose of analyzing the results, we used only one of the consulting firm’s regular set of questions in the regression analysis that captures the desired measure. Organizational Justice: Items that show employee perceptions of procedural fairness and distributive fairness have been used from Moorman’s (1991) measure of organizational justice.
Organizational Commitment: Items have been taken from O’Reilly and Chatman’s (1986) measure of organizational commitment. Job Stress and Stress outside the Workplace: Items that measure stress have been adapted from Motowidlo et al. (1986). Organizational Citizenship Behavior: Items that measure organizational citizenship behavior has been adapted from Podsakoff, MacKenzie, Moorman, and Fetter (1990).


Table 1 presents correlations for job satisfaction, relationship with supervisor, interactional justice, stress at home, job stress, organizational commitment, and organizational citizenship behavior. The results show that job satisfaction is significantly correlated with organizational citizenship behavior in a positive direction, relationship with the supervisor is significantly correlated with organizational citizenship behavior in a positive direction, interactional justice is significantly correlated with organizational citizenship behavior in a positive direction, and organizational commitment is significantly correlated with organizational citizenship behavior in a positive direction. The results show that stress at home is not significantly correlated with organizational citizenship behavior, and that job stress is not significantly correlated with organizational citizenship behavior.

Table 1: Pearson Correlation Coefficients

Table 1: Pearson Correlation Coefficients

Table 2 presents regression results. Results show that there is no positive and significant relationship between job satisfaction and organizational citizenship behavior, and therefore do not support Hypothesis 1.

Table 2: Result of Regression Coefficient

The findings are shown in Table 2 also show that there is a positive relationship between the employee’s relationship with their supervisor and organizational citizenship behavior, which supports Hypothesis 2. The findings show that there is a positive and significant relationship between interactional justice and organizational citizenship behavior.
Therefore, hypothesis 3 is accepted. It means that an employee’s fairness perceptions (as measured by interactional justice) give positive motivation for organizational citizenship behavior. Further, the findings show that there is a positive relationship between organizational commitment and organizational citizenship behavior, which supports Hypothesis 4. Hypothesis 5 is being supported by the value in table 2, i.e., there is a positive relationship between job stress and organizational citizenship behavior. Lastly, the results show that there is a negative but nonsignificant relationship between stress from outside the workplace(e.g. stress at home) and organizational citizenship behavior.
Therefore, Hypothesis 6 is rejected. The motivation of the current study is to extend the current literature on organizational citizenship behavior by reviewing employee attitudinal dynamics as they relate to the employees who work as private security personnel and mostly staying away from family. Our study also explores a new variable that could impact organizational citizenship behavior: stress outside the workplace. In the most recent Annual Job Satisfaction Survey documented on the website Salary.com, the results show that job security has become one of the most influential reasons why people are choosing to stay in their current jobs. Stress outside the workplace is positively related to organizational citizenship behavior and Stress outside the workplace is negatively related to organizational citizenship behavior, were not found to be significantly related to organizational citizenship behavior. This shows that while an employee’s job stress is positively related to organizational citizenship behavior, there does not appear to be a significant relationship between non-work stressors and organizational citizenship behavior.
These findings have implications for both managers and researchers. In a study of organizational citizenship behavior, Smith, Organ, and Near (1983) showed that many critical behaviors in organizations rely on acts of cooperation, altruism, and spontaneous unrewarded help from employees. This shows how organizational citizenship behavior plays a critical role in the functioning of an organization, which explains why managers must be concerned with ways to maximize and understand what creates organizational citizenship behavior.
By testing previously tested employee attitudinal dynamics the current research has confirmed the fact that an employee’s positive relationship with their supervisor is positively related to organizational citizenship behavior. It will be to the benefit of the organization if its supervisors are aware of this body of literature that supports their hard work to create strong positive relationships with their employees. As supervisors work harder to create good relationships with their subordinates, they can expect to see more organizational citizenship behavior.
One limitation involves the fact that we did not measure organizational citizenship behavior from both the supervisor and employee perspective. Instead, we got our data from the employee responses to the survey. Another limitation is that this study only included data from one type of job nature.
In spite of those limitations, our study adds to the current body of literature on organizational citizenship behavior by reexamining employee attitudinal dynamics as they relate to the employees with stringed work nature of security guards. Our study also explores a new variable, in combination with the previously studied variables that could impact organizational citizenship behavior: stress outside the workplace. Future research could study this variable in more detail by creating a more detailed survey that addresses stress outside the workplace, and submitting the survey in a different setting. Future research could also test for a relationship between stress outside the workplace and extra role behavior by itself, rather than in combination with the previously researched variables. Research has shown that organizational citizenship behavior plays a big role in contributing to organizational functioning and performance. Research has also shown that because extra role behavior can make an organization a more attractive place in which to work, it can enhance an organization’s ability to attract and retain good employees (Podsakoff et al., 2000). Therefore, research on what variables impact organizational citizenship behavior, and how they impact such behavior, is valuable to managers and employees of every organization.


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A Study on Credit Deposit Ratio in Lakshadweep


Geo Thomas
Lead District Manager, Syndicate Bank,
U.T. of Lakshadweep



CD Ratio or credit deposit ratio is a major indicator in credit deployment in an area. It shows out of every Rs.100 deposit how much has been lent. RBI has advised banks to achieve a credit deposit ratio of 60 % in respect of their rural and semi-urban branches separately on all India basis. It says in the districts having CD ratio of less than 40, special committees should be set up to monitor and where CD ratio is less than 20 needs to be treated on a special footing. A low CD ratio indicates that the credit intake is low. The lending is not taking off either because the banks are reluctant to lend or the there is less demand for loans due to many reasons. The CD ratio in Lakshadweep as on 31.03.2011 and 31.03.2012 stands at 8.17 and 9.72 respectively. The ratio is at 19 as on 31.03.2014 which is considered the lowest in the country as the country’s average is at 76. This paper intends to study the low CD ratio in Lakshadweep and the reasons behind it.

Keywords: UTLBC, Credit Deposit ratio, Lakshadweep, NABARD, PLCP


Lakshadweep is an archipelago comprising of 36 small and tiny islands is the tiniest Union territory of India. These Islands lie about 220 to 440 kilometers away from the coastal city of Kochi and the total area of this UT is 32 Sq.km. These islands are scattered in the Arabian Sea and for administrative set up it is as one district. Of the 36 islands only 11 are inhabited and Kavaratti is the state capital (Headquarters). Bitra and Bangaram islands are less populated and other nine islands are significantly populated. As per the Census 2011, the population was 64,473 and Bitra being the smallest with 271 persons only. The entire Islanders have been classified as the scheduled tribe and they follow Islam. The UT of Lakshadweep is high in population and strategically very important to the country for security reasons. Entry for non-islanders into the islands and their stay are regulated. Nonislanders including Indian nationals are not allowed to purchase or own property in Islands. The Island economy is mainly depending on coconut cultivation, fishing, and tourism. A significant amount of subsidy is given by the Govt. of India to this Union Territory.
The banking facilities in Islands were started with the coming of SyndicateBank in the 1970s. There are a total of 13 branches and 14 ATMs of different banks in Lakshadweep. SyndicateBank is having branches in 9 Islands with ATMs in all these islands and an ATM is installed for people in Bitra where the population is only 271. State Bank of India has two branches in Kavaratti and Minicoy. Uco Bank started operations in 2011 got presence only in Kavaratti. YES Bank is the only private sector bank in Lakshadweep with a presence in Kavaratti from 2015.
SyndicateBank is the lead bank and they run a currency chest in all 9 islands where they have branches. The territory is 100 % financially included.
Credit Deposit Ratio (CD Ratio)
As per the Lead Bank Scheme introduced by RBI in 1969, banks and Stage Governments may work together for inclusive growth. The scheme insists conduct of SLBC (State Level Bankers Committee) / UTLBC regularly at quarterly intervals chaired by Chairman and Managing Director (CMD)of the convenor bank and co-chaired by Additional Chief Secretary. The committee critically examines the credit-deposit ratio. The CD ratio is a product of the ratio of a number of credit accounts to deposit accounts and the ratio of credit amount per account to deposit amount per account. The CD ratio in Lakshadweep is the lowest in the country.

Table:1(Rs. In billion)

Table:1(Rs. In billion)

(Source: Quarterly statistics on Deposits and Credit of Scheduled Commercial Banks March 2011&2012, RBI)

The CD ratio of the Banks as on 31.03.2013 is as follows:

Table:2 (Rs. In billion)

Table:2 (Rs. In billion)

(Source: Agenda for ULTBC meeting)

The average CD ratio was below 10 and the same was discussed in every Union Territory Level Banker’s Committee
(UTLBC). There has been a presumption that major portion of Banks deposit consists of Govt. Deposits and if arrive at the CD ratio after excluding the same would make difference.
The Lakshadweep Administrations plan expenditure for the year 2013-14 was Rs.437.17 crore and in the non-plan side, the expenditure was Rs.584.85 crore. The total budget for UT of Lakshadweep was Rs.1022 crore for 2013-14. Hence it was suggested in the 50th UTLBC meeting to work out the CD ratio after taking into account only public deposits. The suggestion has been implemented and the CD ratio was worked out by considering the public deposits only as on 31.03.2014 but the figure rose to 19.64 only. So it is evident that the Govt. Deposits are not diluting the matter but the fact is credit off take is low in terms of size.

Areas wise assessment
The lending of Banks mainly classified into priority sector lending and nonpriority sector lending. Priority sector mainly includes:

  • Agriculture
  • Micro and Small Enterprises
  • Education
  • Housing
  • Export Credit
  • Others

A close examination in the lending to these areas in Islands will give a better picture.


The target to agriculture credit flow is an important item and critically reviewed in SLBCs. The only agrarian activity in Islands is coconut and they are organic. It is a coconut Mono Crop Territory. The entire Laskshadweep has become an organic farming region as no pesticides are used and also no special care is given to the coconut tree. The trees are not planted as the same is evident from the way they are arranged which is not scientific. However, the productivity of coconuts is very high in Lakshadweep. Once in year only coconuts are converted to copra and sold. Since the only agrarian activity does not require much financial expeses, credit disbursement to this area is less. The budget for the Agriculture Department of Lakshadweep for the financial year 2013- 14 was 9.80 crores. Assistance to the farmers for purchasing oil extraction machines, coconut climbing device are given at 50 % subsidy. A new scheme i.e. protective cultivation on the terrace is implemented during this year 2014-15 with 50 % subsidy. The coconut oil produced here is organic and the UT has obtained the organic certification but the same is not utilized properly.
Kissan credit card (KCC) scheme is for the comprehensive credit requirements of farmers and prime vehicle for agricultural credit. In 2011 Banks have been advised issue KCC to all eligible farmers and the State Governments were asked to take this task on a Campaign mode. Due to this compulsion in two months, i.e. April & May 2011 the banking system in India issued 10.42 crore KCCs. Banks in Lakshadweep was also not spared and the same is evident in the credit flow figures given below. However, the position as on 31.12.2014 is at 747 loan accounts with the total amount of Rs.3.10 crore. The amount borrowed per account is less than Rs.50,000.00 shows agriculture is not depending on credit. Ground level credit flow under crop loan for the last 3 years is given below :

Table 3 in lakhs :

Table 3 in lakhs :

(Source: Potential Linked Credit Plan for 2015-16, NABARD)

The fishery is one of the promising sectors for the economic development of Lakshadweep. The sea around Lakshadweep is rich in fishery resources with the shark, tuna, seer fish, billfish, sailfish etc. Tuna fish is abundantly available. As per the statistics of Lakshadweep Administration, the active fishermen population of the Island is only 3395 while another 6600 fishermen work on a part-time basis. The following financial assistance is given by the Government through the fisheries department:
50 % subsidy for construction/ acquisition of bigger multi-day fishing vessel with a maximum ceiling of Rs.25.00 lakhs
For construction/renovation of smaller open type fishing boats/ vessels and crafts are provided 40 % subsidy for hull and 50% subsidy for the engine.
25 % subsidy on supply of inboard and outboard engines
Supply of life jackets on free of cost and GPS on subsidy
30% subsidy to SHGs and Panchayaths for production of value-added fish products
50 % subsidy for supply of insulated fish boxes/ice boxes.
However, fishing and allied activities are not being done in a big commercial way. The exploitation of tuna fish is only 10 % of the potential. There are only 3 ice plants in Islands and 5 cold storages. Transportation and power are the two factors affecting exports. The fisherman folk catches mainly tuna fish as the same is the most preferred item for Islanders. There is no mother ship concept and the catch being brought to the shores for sale. Due to the low level of activity with high-level financial assistance from Governments makes credit unattractive for the sector.

Table No: 4 (Rs. In lakhs)

(Source: Potential Linked Credit Plan for 2015-16, NABARD)

MSME Sector

The UT of Lakshadweep has been declared as a “no industry district” of the country in view of the fragile ecology of the Islands. However, one Industries department is working in Lakshadweep and it provides a subsidy for machineries purchased by local entrepreneurs. Industries which do not require much land, a large quantity of water, power and without pollution can only be considered. The Islanders have to depend upon the mainland for raw material, machinery, and other inputs. Unreliable transportation is another bottleneck coupled with marketing problems. The inland market is limited and transportation cost of materials and finished goods make them non-competitive in the mainland markets. The business activities of islanders are mainly retail shops, the sale of building materials (seasonal), hotel, furniture making, workshop etc. and credit is made available for the same. Low achievement motivation among the youth leads to lack of entrepreneurship which is a major constraint for the development of MSME Sector. Though there have been training programmes for skill development less inclination to take up enhanced economic activities, in part due to a feeling of contentment with things as they are.
However, there is an increase in entrepreneurial activities, especially in retail trade due to saturation in Government jobs.
Khadi Village Industries Board (KVIB) provides loans under PMEGP scheme which offers 35 % subsidy for the Islanders.

Table No. 05(Rs. In lakhs)

(Source: Potential Linked Credit Plan for 2015-16, NABARD)


The overall literacy rate in Islands is 92.28 % as per 2011 census. There are schools in all inhabited Islands and education is free. There are total 64 educational institutions up to plus two level other than one NavodayaVidyalaya and a Kendriya Vidyalaya. Two University Centres, One ITI and one B.Ed college are there. The entire expenses towards education are borne by the UTL Administration. For higher education in the mainland, the government reimburses the fee. In the year 2011-12, Lakshadweep Administration sponsored 703 students for degree/professional course and 118 students for P.G. level in mainland institutions by spending Rs.5.47 crore. The scholarship distributed in Islands for the same period was Rs.1.57 crore. The students who study in places other than their natives are given conveyance for a journey to their natives once in a year. Hence, the parents need not to worry about the future of their kids and their studies. Since this is the scenario, education loans do not give scope for denial complaints as the same does not have very less demand. The educational loans as on 31.12.2014 for all the Bank’swere at 30 accounts with only Rs.72.87 lakhs.


Loans for house construction purpose are less mainly due to no clear title. Since the families are joint families and land is not divided among family members the person wants to avail a housing loan may not have clear title to the land. Undivided land and joint properties without prior documents discourage banks to entertain mortgage business. House construction is a very costly affair as the materials are to be brought from the mainland. In each season after the monsoon, the rate for building materials goes up thus make the dream home more costly and leave many buildings halfway done. The Islanders do not follow proper savings habits which make to meet the margin requirements. The formalities to be compiled while availing a housing loan forces a large section to avail personal loans for house construction purpose. Only Government employees approach banks for housing loans as majority business people do not file income tax returns which prove their income.

There are no export units run by individuals in Lakshadweep.

There are 298 women run Self Help Groups (SHGs) formed under the Department of Women and Child Development. Out of them, only 12 are linked to banks but their outstanding amount of loan as on 31.12.2014 was Rs.2.44 lakhs only. This shows that even though they exist they are not active.

Non priority sector

Nonpriority sector advance includes personal loans, vehicle loans, loans for consumer durables etc. The total population is Muslims and they belong to Scheduled Tribe. Since it is Union Territory all the government employees enjoy the salary and privileges of Central Govt. Employees. The total population is Islands as per 2011 census was 64,000 and number of Govt. Employees are 8000 which means around 12% of the population is govt. Employees which is very high compared to 3.33% of Kerala or any other State. The scope for vehicle loans is limited to bikes and small passenger cars. There are no vehicle dealers in Lakshadweep and vehicles are to be bought from the mainland. Majority of the four wheelers are second-hand vehicles. For purchase of vehicle people do not prefer bank loans as first they have to go to the mainland for getting a quotation. Then after getting a loan again go to the mainland to make the payment and bring in the vehicle. Since vehicles are brought through barge or country vessels they have to be insured if purchased under a bank loan which increases the cost.

Other factors

Tourism is another main area which can be exploited and where a lot of developments can be made with finance. However, limits have been placed on a number of tourists in order to prevent environmental damage and to preserve the ecology of the Islands. Entry to the Islands is regulated through entry permit and foreigners are permitted to visit only Agathi, Kadmath, and Bangaram. There is only one air base in Agathi and only one flight operates for Lakshadweep. This very limited transportation and limited accommodation results in a very modest level of tourism. The limited level of tourism does not encourage the natives to do business based on it, which ultimately result in less amount of credit to the area. Medical facilities in Islands are limited however the same is free. A nominal charge is only collected for some facilities like X-ray or E.C.G. In case of emergency the patients are evacuated to mainland hospitals at a subsidized rate and for Govt. Employees all their expenses are reimbursable. However, this is an area where the Islanders mainly spend their savings. The savings option of Islanders is limited to Banks and Post Office. Those who are in Govt. Employment considers GPF as their best savings option and contribute more than the minimum requirement. It is very interesting that in case of an emergency they withdraw from this money which is being kept for their life after retirement. Investment options like shares, mutual funds are less known to Islanders.
It is evident that there is parallel banking system in Islands as one can easily borrow money from friends or relatives in case of emergency and they do not charge interest. This does not force them to approach the banks in case of any unexpected situations. Social and religious factors restrict a portion of the Islanders to open current accounts in order to avoid accruing interest on their savings and the same factors inhibit them from availing loans. Commercial vehicles for transpiration like taxis and auto rickshaws are available but limited availability of petrol is a major hindrance. A two-wheeler gets 10 liters and three wheelers/four wheelers get 20 litres of petrol per month. Hence, they have to operate within this limit. Also, non-availability of experienced mechanics make their repairs very difficult.


The main reasons for low CD ratio are Low credit absorption capacity due to due to locational disadvantages and lack of infrastructure. The main economic activities are limited to agriculture, fishing, and tourism. High level of Government subsidy in agriculture and fishing makes bank credits less important. Agriculture is not mainly depended for income. Non-availability of marketing facilities prevents farmers to utilize coconut and it’s by products Underutilization of fishery does not necessitate bank credit for development. Tourism is not exploited up to its potential. Governments pampering in the form of subsidies made people less motivated to take up entrepreneurial challenges. No export units for coconut products/ fish items. No demand for education loans due to free/ subsidized education. Borrowings from friends or relatives are easy in an emergency. 12.Perceived delay and procedural cumbersomeness in getting bank credit. Suggestions to improve CD Ratio Promote schemes which encourage coconut utilization through neera tapping, vinegar & jaggery production, virgin coconut oil. Lakshadweep Development Corporation (LDCL) can act as an intermediary in finding a market and a tie-up with the Coconut Development Board of Kerala will help in production and promotion. Proper utilization of fisheries wealth can give immense growth to Islands and more credit can be deployed in this area. Modern techniques for increasing fish catch like deep sea fishing, mother and collector vessel, more number of ice plants may be implemented. The growth of tourism is vital to the overall growth and development of the territory. Tourism has vast potential to provide employment and income directly and indirectly. Increased level of activity in tourism needs more investment to create an infrastructure which obviously Banks can help. Reduction in the level of subsidies up to a certain extent will increase competitive spirit in people and make them enable to take a direction of their lives. This will result in more entrepreneurial activities where Banks can do a lot. Increased level of financial literacy can create more savings habits, channelizing the resources in more investment avenues, proper awareness about credit facilities and overall economic development.



Anju Lis Kurian
UGC Post Doctoral Fellow
School of International Relations & Politics
MG University, Kottayam


C. Vinodan
Assistant Professor,
School of International Relations and Politics,
Mahatma Gandhi University, P.D Hills, Kottayam, Kerala, India


Climate change is defined as the change in global or regional climate patterns, which is attributed to natural variability or as a result of human activity. Anthropogenic activities since the Industrial Revolution is the major driver of climate change. However, land use changes and other natural factors have also their own contributions to climate change, especially in recent decades. It should be noted that the magnitude and quickness of the projected changes in climate are unprecedented with an array of economic, social, and environmental risks (Bathke et al., 2014). The relation between climate change and agriculture are multifaceted and complex as their kinship is of particular significance due to the imbalance between world demographics and world food production rates. The alterations in temperature, rainfall, and severe weather events are anticipated to reduce crop yields irrespective of the geographic realm (Gornall et al., 2010). India is also not an exception in climate change wallops with adverse effects mainly on agriculture. LARRDIS (2013) states that country is witnessing increased frequency of extreme events such as floods and droughts which in turn will hit India’s food security and water security. The spook of climate change currently blossoming is an amalgamation of various anthropogenic interventions over the last decades. Policymakers around the world are convinced and galvanized into action to mitigate the challenges as climate change impacts are attributed to economic and human malignancies (Verbruggen, 2011; Arroyo- Curráset al., 2015). Enormous quantities of finance and investments are needed to cop up with the emerging challenges of climate change, especially in developing countries. Generally, the flow of fund from developed to developing nations to reduce emissions and initiate climate change mitigation efforts are termed climate finance. Climate finance is considered as the cradle of global climate change negotiations. As per the provisions of the United Nations Framework Convention on Climate Change (UNFCCC), developed countries are bound to lead global emissions reductions by providing “new and additional financial resources” to developing countries for addressing climate change up shots. Moreover, the developed countries will also provide financial resources, including technology transfer to developing countries to meet the costs of climate change mitigating steps (Williams, 2015). The 2009 Copenhagen Accord set a goal for high-income countries to gather together US$ 100 billion a year by 2020 ‘to address the needs of developing countries’ through the constitution of financial mechanisms like the Green Climate Fund (GCF) and the Technology Mechanism and Fast-Start Finance (TMFSF) (UNFCCC 2009). However, the scarcity of climate finance to developing countries is a major challenge to the success of international climate-change negotiations (Fenton et al., 2014). The global climate finance landscape is at crossroads as the conditions are significantly changing with new commitments. Various consortiums/international NGOs and individuals are investing in India to combat climate change by the execution of the funds under various projects across the country.
In India, institutional systems around climate finance are generally followed the national policy responses to climate change which is highly complex and fragmented with an array of institutions, actors, and channels of climate finance, both public and private, and domestic and international (Fig 1). India is responding positively towards policies pertaining to climate change vis a vis with the National Action Plan on Climate Change and has voluntarily committed to reducing the emissions intensity

In 2015, the governments espoused three major agreements such as a new set of 17 sustainable development goals (SDGs), the Paris Agreement on climate change and the ‘financing for development’ package. Substantial capital is needed to finance a low carbon and more climate resilient economy and society which is a great challenge and sealed with a new international agreement on how to tackle climate change including a long-term financial structure for concerted climate action Deluge of funding mechanisms for supporting climate change mitigation and adaptation already exist under the UNFCCC and the Kyoto Protocol like Global Environment Facility (GEF), Special Climate Change Fund (SCCF), Least Developed Countries Fund (LDCF) and Adaptation Fund (AF). However, the global climate finance architecture continues to be eclipsed by bilateral aid agencies and international development institutions. Over the past decade, India has successfully accessed climate finance from several sources like the Clean Technology Fund, the Global Environmental Facility, bilateral donors like Germany and Japan, and private
sector finance channeled through the Clean Development Mechanism (CDM) (Varma,2014).

Carbon market and eco-colonialism

The establishment of Carbon Market and related efforts are at crossroads, as the ground realities are entirely different from the objective of the strategies for conservation. Now, the majority of the conservation advocates are projecting Utopian concepts as idyllic and sacrosanct which are totally against the socio-economic realities. This jeopardizes the credibility of international conservation efforts and even engendered a new terminology – environmental colonization or eco colonization. The nexus between international donors and local organizations/governments makes the situation more perplexed. Eyeing on foreign funds several organizations and individuals are betraying local communities and numerous such examples are available especially in developing countries like India(UNDP, 2014).
Environmental colonialism refers to the diverse ways in which the conservation agendas pave the way for restriction and eviction of indigenous people from their homeland. The advocates of environmental colonialism are opposing development and livelihood in both the literal and the figurative sense by interlinking everything with climate change and global warming. Nelson (2003) clearly outlines the sorrow and misery of the Africans in the last half-century due to “environmental colonialism”. The results of various conservation efforts in Africa have a devastating impact on local populations, as they are displaced and indigent via the creation of national parks and to serve other conservation objectives.
The same type of invasion in the name of the environment is progressing alarmingly in India too where the people are totally unaware of the impacts. The major outcomes of eco-colonialism/eco colonization are ‘conservation refugees’ who thrown out from their homeland in the name of conserving the environment. In short, the formation or enlargement of protected areas as per the international commitments and climate finance has the fortuitous consequence of displacing people who are scattered as ‘conservation refugees’. Thus it can be concluded that conservation agendas are ‘brainchild’ of a globalized economy. It should be noted that each donor-backed concessional trust fund has different objectives, features, and funding capabilities, and each source of external concessional finance helps to meet their aims of supporting recipient countries climate goals in different ways which are normally against the national and local interests.


The climate finance in India has been delivered unevenly across sectors, themes, and regions, which has affected the overall effectiveness of the climate change response in the country. Several externally financed projects have resulted in evictions which are against the national and local interests. More practical conservation agendas are framed before receiving climate funding from international organizations/sources to address climate change in a pragmatic manner.


Arroyo-Currás, T., Bauer, N., Kriegler, E., Schwanitz, V.J., Luderer, G., Aboumahboub, T., Giannousakis, A., Hilaire, J. 2015. Carbon leakage in a fragmented climate regime: The dynamic response of global energy markets. Technological Forecasting & SocialChange. 90:192-203.
Bathke, D.J., Oglesby, R.J., Rowe, C.M., Wilhite, D.A. 2014. Understanding and Assessing Climate Change: Implications for Nebraska. School of Natural Resources, Institute of Agriculture and Natural Resources, University of Nebraska– Lincoln.
Fenton, A., Wright, H., Afionis, S., Paavola, J. and Huq, S. 2014. Debt relief and financing climate change action. Nature Clim. Change. 4(8):650-653.
Gornall, J., Betts, R., Burke, E. 2010. Implications of climate change for agricultural productivity in the early twenty-first century. Philos. Trans. R. Soc. Lond. BBiol. Sci. 365:2973-2989.
LARRDIS. 2013. Climate change- India’s perspective . Reference Note. No. 25/RN/Ref./August/ 2013. Parliament Library and Reference, Research, Documentation And Information Service (LARRDIS). Lok Sabha Secretariat. New Delhi.
UNDP. 2014. Developing an effective multiple use management frameworks for conserving biodiversity in the mountain landscapes of the High Ranges, Western Ghats, India. A project submitted Kerala government jointly prepared by the Global Environment Facility (GCF) and the United Nations Development Programme (UNDP).
Varma, A. 2014. India’s climate finance readiness: policymaker’s summary. Ricardo-AEA.
Verbruggen, A. 2011. Preparing the design of robust climate policy architectures. Int. Environ. Agreements. 11(4):275-295.
Williams, M. 2015. Gender and climate change financing: Coming out of the margin. Routledge.



Pooja S. Bhat
Ph.D. Scholar (Agribusiness Management)
Department of Agricultural and Rural Management
Tamil Nadu Agricultural University, Coimbatore – 641003
Tamil Nadu
Mobile Number: 8903426594, 9591008821



Spiritual marketing has turned out to be a unique concept as it affects the consumption behavior of the masses. Patanjali is an Indian brand of Ayurvedic, herbal and wellness products that have capitalized on this changing consumer behavior and has captured more markets by its savvy marketing and smart pricing thereby making it the fastest growing FMCG company in India. It has been included in a “Wish You Were Listed” report by CLSA which estimates it to be bigger by revenue than Jyothy Laboratories and Emami. Patanjali was worth Rs 3000 cr in the FY15 as per the CLSA report. Patanjali, or as Forbes has labeled it – India’s Body Shop, has taken over the markets with a storm threatening the existing market leaders like Colgate, Unilever, Nestle, and Glaxo Smith Kline. Patanjali operates via 3 business segments, viz., foods (30 types) (foods, supplements, digestives, dairy, juices, etc), FMCG (cosmetics (45 types) (shampoo, soaps, face wash), home care (detergent cakes, powder, liquid, etc) and Ayurvedic products (healthcare products for blood pressure, skin diseases, joint pain, etc). The company manufactures 444 products and goes with the slogan “Prakriti ka Ashirwad”. Best product quality, competitive prices, usage of pure raw materials, innovation, minimum profits, use of natural ingredients, Ayurveda and the finest distribution chain are the major factors responsible for Patanjali’s success in the FMCG market. The advertising costs are low because of the high brand recall of celebrity brand ambassador Baba Ramdev whose popular TV show and public appearances have gained him mass media awareness. It is also built on the brand strength, firstly of Yoga and its proponent, Baba Ramdev, and of Ayurveda. The case study throws light on the approaches that Patanjali has made use of to acquire the numero uno position in the FMCG market along with its SWOT analysis and achievements.

Keywords: Spiritual marketing, FMCG market, Swadeshi brand.


Spiritual marketing has turned out to be a unique concept with an increasing number of health-conscious people as it affects the consumption behavior of the masses. Patanjali is an Indian brand of Ayurvedic, herbal and wellness products that have capitalized on this changing consumer behavior and has captured more market share by its savvy marketing and smart pricing thereby making it the fastest growing FMCG company in India. Founded in 2006 along with the yoga institution, Patanjali Yogpeethby Acharya Balkrishna, and Baba Ramdev, Patanjali Ayurved is an Indian FMCG Company that imports herbs from the Himalayas of Nepal. Patanjali has a manufacturing unit in Nepal, working under the brand name of Nepal Gramudhyog. It has been included in a “Wish You Were Listed” report by CLSA which estimates it to be bigger by revenue than Jyothy Laboratories and Emami. Patanjali was worth Rs 3000 cr in the FY15 as per the CLSA reportand generated revenue of 5000 Crore for the fiscal year 2015-16. While Ramdev focused on yoga, Balkrishna developed Ayurveda medicines. PAL has its headquarters and manufacturing unit at the 100-acre Patanjali Food and Herbal Park at Haridwar, Uttarakhand, employing 6,500 people.
Patanjali, or as Forbes has labeled it –India’s Body Shop, has taken over the markets with a storm threatening the existing market leaders like Colgate, Unilever, Nestle, and GlaxoSmithKline. Patanjali operates via 3 business segments, viz., foods (30 types) (foods, supplements, jams, biscuits, noodles, oats, pulses, digestives, dairy, juices, beverages etc), FMCG personal care products(cosmetics (45 types) (shampoo, soaps, face wash), home care (cleaning agents, detergent cakes, powder, liquid, etc) and Ayurvedic products (healthcare products and medicines for blood pressure, skin diseases, joint pain, etc).The company manufactures 800 products and goes with the slogan “Prakriti ka Ashirwad”.

PAL has a three-tier distribution system consisting of clinics, wellness centers, and non-medicine outlets to retail their products. The company also runs an ecommerce portal that sells a wide range of products from hair cleansers to “hing peda” increasing their penetration even further. It has distribution agreements with retail chains Reliance Retail and the Future Group and a product development arrangement with the Defence Research Development Organisation (DRDO) for food and health supplements. They have 4000 distributors, 10,000 stores and 100 mega marts.
The company is in talks to raise around Rs. 1000 crore in project loans so as to set up four new manufacturing plants. In India, 1000’s of stores are now selling Patanjali products, and these stores are exclusively selling Patanjali, making the local retailer quake. The penetration levels will only rise further as the margins in the product are good too.

Best product quality, competitive prices, usage of pure raw materials, innovation, minimum profits, use of natural ingredients, Ayurveda, clear holding pattern, a well-developed supply chain, a sagacious product-development process, and the finest distribution chain are the major factors responsible for Patanjali’s success in the FMCG segment. Other factors attributing for Patanjali’s success include conducting more than 1 lakh free yoga classes every day, having a database of camps visitors, participating in Aastha television shows from the year 2002 and having a partnership with prominent TV channels and worldwide, cashing in on cow products like ghee, honey and toothpaste, support for Narendra Modi during the 2014 Lok Sabha elections, local sourcing, minimum marketing expenses thereby reaping high profits. The advertising costs are low because of the high brand recall of celebrity brand ambassador Baba Ramdev whose popular TV show and public appearances have gained him mass media awareness by constantly pushing Indian people to start using Indian brands. It is also built on the brand strength, firstly of Yoga and its proponent, Baba Ramdev, and of Ayurveda. Patanjali Ad campaigns have always focused on surpassing information to people that “revenue of Patanjali is for charity and not for brand owners”. Apart from the simple packaging, that gives it a ‘natural’ look, Patanjali has also been benefited from a huge, readymade advertisement campaign—word-of-mouth publicity at camps by yoga students and trainers. Besides, the “Swadeshi” tag and the price advantage (products are priced at 10-40 percent below their rivals) endeared the Patanjali brand name to Ramdev’s admirers thereby not failing the consumer in the value proposition. The products themselves have an aura of purity about them for the Indian consumer as they are claimed to be “100 percent natural” and chemical free. The suggestion of medicinal content also helps promote them.
What works for Patanjali is the fact that the promoter of the brand, Baba Ramdev, also its brand ambassador stands for good health and spirituality. His health messages find resonance in his products and that’s where his appeal lies. Patanjali has roped in actor Hema Malini to promote its biscuits. Also, the visibility of the mainstream television channels has increased. As per BARC, the brand is one of the three most advertised brands on TV in the previous few months. Although Indians have been veering towards natural and organic products for some years and with consumers increasingly seeking a healthy living, the rise of Patanjali has given a push to the back-to-basics herbal segment. Clearly, there is a fit between what Ramdev stands for, what his products offer and what consumers are looking for.

Products where Patanjali is present and beating competition are

  • Dabur Honey: Patanjali Ayurved is providing people with the option to buy quality honey at around 30 percent lesser price than Dabur.
  • Colgate: Patanjali Ayurved is preaching how Colgate cheated people in its initial days and how Ayurveda is the best way to treat gums and teeth.
  • Patanjali Noodles: Patanjali Noodles rose to fame while Maggi was away from the market and has done quite a big damage to Maggi, which was once the king of the Noodle’s market.

The reasons for Patanjali’s accelerated growth in a 4P framework are:

  • Product: the Differentiated product that appeals to the Indian belief in Ayurveda/natural remedies/hand’ medicine.
  • Price: Discounted compared to the competition. Low-cost pack sizes – health juice sachets start at Rs 5, making their product accessible to many.
  • Place: Distribution through Ayurvedic pharmacies which further strengthens their health proposition. They have a franchise based distribution strategy. The recently announced tie-up with Future Group will definitely further enlarge Patanjali’s retail footprint and make it easily available to shoppers. Tie-ups with online retailers such as bigbasket.com not only give them access to a growing middle-class base but would also reduce their cost of distribution and display.
  • Positioning: Strong positioning of Ayurveda and health consistently reinforced by its ‘brand ambassador”. Three value disciplines to frame value propositions are product leadership discipline, operational excellence discipline, and customer familiarity discipline



1. Brand name
2. Strong TQM
3. Excellent marketing strategy
4. Innovative personality
5. Cheap price cum charming products


1. Lack of management graduates and think tanks.
2. Not much advertising.
3. Restrictions over distributions.

4. Packaging is poor as compared to other companies, for example, packages of soaps are dull in color.


1. Natural/ herbal care market alone in India is worth Rs. 9,000 crores, of which 20-25 percent is ayurvedic.
2. Increasing yoga followers.
3. Tie-ups with retail chains like Big Bazar, Bigbasket.com.
4. Large space for Patanjali to explore more in each segment.


• HUL and its own Ayurveda brand AYISH which they are re-branding
• Himalaya worth 600 crores already into skin care, Ayurveda segment whose products are very popular.
• Challenges from Dabur India and Emami who are planning for making new strategies for playing in these segments.


1. Giant FMCG in a short period of 5 Years.
2. Accomplished “Make In India Concept”
3. Highest turnover cum profit (250 crores in 2007 and 5000 crores in 2015)
4. Maximum outlets in minimum time (150 outlets in 2007 and 15000 exclusive+1,00,000 stores in 2015)
5. Biggest Swadeshi Movement
6. A tough competitor in the market for other MNCs and Indian companies


Demystifying the Brand Patanjali – A Case on growth strategies of Patanjali Ayurved Ltd. Brijesh Singh & R.K. Gopal

http://economictimes.indiatimes.com/news/company/corporate-trends/ramdevspatanjali-ayurved-becomes-a-magnetfor-fmcg-executives-draws-talentfrom-firms likehimalaya/articleshow/50968424.cmshttp://economictimes.indiatimes.com/topic/Patanjali-Ayurved-Ltdhttp://www.businessstandard.com/article/companies/competition-from-patanjali-prompts-fmcgsto-hit-backhttp://www.forbes.com/sites/saritharai/2015/10/15/an-indian-yoga-gurus-consumerproducts-brand-patanjali-is-makingglobal-and-domestic-rivals-sweat


Does Foreign Rate Volatility Spillovers to India Markets?


Sudarshan Bhattacharjee 
Department of Economics, University of Mumbai, Mumbai-400098.
Phone: +91-9819429398


Rinu Jose
β Assistant Professor, Department of Economics, Kuriakose Elias College, Mannanam-686 561.
Email: rinujose185@gmail.com
Phone: +91-9048476869.



Globalisation and free flow of capital from one market to another makes the cross border markets increasingly integrated to each other, which may cause shocks originated in one market to get transmitted to other markets. The study empirically examines volatility spillover from foreign markets to Indian markets by employing GARCH model. The study uses daily data from 12th January 2012 to 7th October 2016. The variables chosen in the study are 3 month LIBOR rate, 91- days Treasury rate and Bombay Stock Exchange’s benchmark equity index SENSEX. The result shows that Indian stock markets are not affected by the volatility of short term foreign rates. It is also observed that LIBOR impacts the short term government bond market of India. . LIBOR rate has been going down due to low inflation in the developed world. Indian stock market is not found to be impacted by the volatility in LIBOR may be because there are still restrictions in foreign investments in Indian markets.

Keywords: volatility spillover, GARCH model, foreign rates.

1. Introduction

Globalisation and free flow of capital from one market to another makes the cross-border markets increasingly integrated to each other. Hence event in one market gets transmitted to another market. The increasing integration has also led to comovement of asset prices across borders.
Such integration may cause shocks originated in one market to get transmitted to other markets. Thus, the reflection of economic news and events of one country gets visible in the financial market of other counties in such integrated market. India has undertaken various measures to liberalize the economy since the early 90s when the country almost faced a balance of payment crisis. India has also adapted to capital account convertibility in a cautious and phased manner that helped free movement of capital. This makes the country exposed to foreign shocks. Morana (2008) opined that movements in economic variables have an impact on financial markets. If there is an evidence of financial market integration then asset return should be less affected by diversifiable risk and more by systemic risk. The Capital Issues (Control) Act, 1947 was done away within 1992 which enabled the economic factors to determine the prices of shares in Indian stock markets. Also, foreign institutional investors were allowed to invest upto USD 5 billion in 2008 versus mere USD1 billion in 1998 in government securities in India. The ceiling for corporate debt market was also raised to USD15 billion in 2009. (UNCTAD 2012). All these have made Indian market vulnerable to shocks of other markets. The study of volatility spillover has got importance because this helps the investors to understand the responsiveness of various financial segments of India to a shock generated in other markets. This will help them to position their investment bets accordingly. London Interbank offered rate (LIBOR) is considered

2. Objectives

The present study focuses its attention on the issue of volatility transmission from the foreign rates to various financial products of India. The study chooses a period that coincides with the winding up of quantitative easing in the US and also debt crisis in Europe. Both the events substantially added uncertainty thus causing volatility in the financial markets. There was a massive outflow of capital from India’s stock and bond market due to the uncertainty in Europe and USA. Also, it is observed that during these periods the interest rates in the US and Europe went rock bottom whereas India’s interest rate remained high due to higher inflation.
Given this backdrop it is imperative to analyse if there is any evidence of volatility spillover from foreign markets to Indian markets.

3. Literature Review

Various studies have examined volatility transmission across international stock markets. Pan and Hsueh (1998) examined the nature of transmission of stock returns and volatility between the U.S. and Japanese futures markets. They used daily opening and closing futures prices on the S&P 500 and Nikkei 225 index from January 3rd, 1989 to December 30th, 1993. Employing the two-step univariate GARCH approach, the results show that there are unidirectional contemporaneous return and volatility spillovers from the U.S. to Japan Mukherjee and Mishra, (2008) investigated return and volatility spillover among Indian stock market with 12 other developed and emerging Asian countries by applying the Multivariate GARCH model. The study used both daily opening and closing prices from November 1997 to April 2008. The results show that Hong Kong, Korea, Singapore, and Thailand are found to be the four Asian markets from where there is a significant flow of information in India. Similarly, among others, stock markets in Pakistan and Sri Lanka are found to be strongly influenced by movements in the Indian market.

Employing bivariate VAR model, Savva (2008) investigated the price, volatility spillovers, and correlations between the US and the major European stock markets. The study used daily prices S&P 500 (USA), FTSE-100 (UK), DAX-30 (Germany), CAC-40 (France), MIBTEL-30 (Italy) and IBEX-35 (Spain) from August 3rd, 1990 to April 12th, 2005. The estimated results show there is a strong co-integration relationship between US and European stock markets. As far as the volatility spillover effects are concerned, the study revealed effects not only from US to Europe but also from Europe to US.

4. Methodology

The present study uses a Generalised Autoregressive Conditional Heteroscedasticity (GARCH) model to examine the volatility spillover from LIBOR to SENSEX and short-term treasury bill rates. The Autoregressive Conditional Heteroscedasticity (ARCH) model was developed by Engle (1982). In an ARCH model, the conditional variance of the error term depends on the lag of the squared residual terms.

σ2 t = α0 + α1u2 t−1

The equation in (1) is called the ARCH (1) model as the conditional variance σ2t is expressed as a function of one period previous squared lagged residual. The ARCH (1) model can be extended to ARCH (q) by adding q period lagged squared residuals terms. Bollerslev (1986) generalized the ARCH model into a GARCH framework by adding the lagged term of the conditional variance in the equation (1). Thus,

σ2 t = α0 + α1u2 t−1+ βσ2 t−1

In equation (2) the term σ2 t−1 is the one period lagged term of the conditional variance term. Equation (2) is a GARCH (1, 1) model. The volatility spillover from 3-month LIBOR to SENSEX and 91-days treasury yield is captured by equation (3) as given below.
In equation (3) the term α2 is the coefficient for spillover from 3-month LIBOR to SENSEX or 91-days treasury yield. The squared residuals are obtained by regressing from an autoregressive process of SENSEX and 91- days treasury yield separately.

5. Database

The present study used daily data from 12th January 2012 to 7th October 2016. The variables chosen in the study are 3-month LIBOR rate, 91-days Treasury rate, and Bombay Stock Exchange’s benchmark equity index SENSEX. While 3-Month LIBOR is the foreign rate and the study tries to analyze the evidence of volatility spillover from LIBOR to SENSEX (the benchmark equity index) and 91-days Treasury bill rate (short-term government bond yield). All the data are obtained from investing.com website.

6. Results and Analysis

We have built an autoregressive model of order 1 BSE SENSEX to obtain the residuals from the model to test for ARCH effect.

σ2 t = α0 + α1u2 t−1+ βσ2 t−1 + α2u2 t−1

The AR(1) process shows that the first lag of BSE SENSEX is significantly explaining the present movement in SENSEX.

The model result is given in table 1 below.

Table1: Autoregressive Model of SENSEX

Table1: Autoregressive Model of SENSEX

In table 2 the ARCH LM test is performed to see if there is ARCH effect in the residual obtained from the regression model given in table1. The model finds evidence of ARCH effect for two lags. That indicates evidence of volatility clustering in the series. This suggests that we can proceed with a GARCH model and introduce the volatility spillover term from 3-month LIBOR to BSE SENSEX in theGARCH model.

Table2: LM Test for ARCH effect for SENSEX

Table3: Fitted GARCH Model for volatility spillover from LIBOR to SENSEX Table3: Fitted GARCH Model for volatility spillover from LIBOR to SENSEX

In table 3 we see that the coefficient for 3- Month LIBOR is not significant in the GARCH model indicating no spillover from foreign rates to the Indian equity market. The model in table 3 is a GARCH (1, 1) model. Both the ARCH term and the GARCH term are found to be significant in the model thus indicating that the previous period’s conditional variance and also previous period’s squared residual has a significant impact on present conditional variance. Having found no volatility spillover from 3- month LIBOR to BSE SENSEX we proceed to analyze if there is any evidence of volatility spillover from 3- month LIBOR to 91-days Treasury bill rates i.e. the short-term yield on government bonds. In table 4 the AR (1) regression model for 91-days treasury yield is built and it shows that the AR(1) term is significant in the model.

Table4: Autoregressive Model of 91-days Treasury Yield

proceed to analyse if there is any evidence of volatility spillover from 3- month LIBOR to 91-days treasury bill rates i.e. the short-term yield on government bonds. In table 4 the AR (1) regression model for 91-days treasury yield is built and it shows that the AR(1) term is significant in the model. Table4: Autoregressive Model of 91-days Treasury Yield

Table5: LM Test for ARCH effect for 91- days Treasury Yield

LM test for autoregressive conditional heteroskedasticity (ARCH)

LM test for autoregressive conditional heteroskedasticity (ARCH)

Table 5 shows that the residual obtained from the AR(1) model of 91-days treasury yield shows ARCH effect i.e. evidence of volatility clustering. This indicates that that period of low return is followed by low return and high return is followed by high return. We have built a GARCH (1,1) model to analyze the volatility spillover from 3-Month LIBOR to 91-days treasury yield.

The GARCH model is reported in table 6 as given below.

Table6: Fitted GARCH Model for volatility spillover from LIBOR to SENSEX

Table6: Fitted GARCH Model for volatility spillover from LIBOR to SENSEX

In table 6 above we can see that both the ARCH and GARCH lags are significant in the model. We also find strong evidence of volatility spillover running from 3-Month LIBOR rate to short-term treasury yield of India. This indicates that the Indian short-term bond market is responsive to the volatility of foreign rates.


It is seen that Indian stock markets are not affected by the volatility of short-term foreign rates. And it is also observed that LIBOR impacts the short-term government bond market of India. However, there is a difference between LIBOR and Indian bond market. Indian bond market has generated better yield due to high interest rate in the market as a result of high inflation expectations. However, LIBOR rate has been going down due to low inflation in the developed world. Indian stock market is not found to be impacted by the volaitily in LIBOR may be because there are still restrictions in foreign investments in Indian markets. However, these restrictions are sometimes good as this protects the country from unwanted foreign volatility.

8. Conclusion

Stock Market is considered as the backbone of the financial system of an economy. The stock market is witnessing heightened activities and is increasingly gaining importance in the era of globalization. This study investigates volatility spillover from foreign markets to Indian markets by employing GARCH model. The result shows that Indian stock markets are not affected by the volatility of short-term foreign rates. Indian stock market is not found to be impacted by the volaitily in LIBOR may be because there are still restrictions in foreign investments in Indian markets. Sometimes these restrictions on foreign investments are good as this safeguards the country from undesirable foreign volatility.


Ming-Shiun Pan, & L. Hsueh. (1998). Transmission of Stock Returns and Volatility between the U.S and Japan:
Evidence from the Stock Index Futures Markets. Asia-Pacific Financial Markets 5(3), 211–225. http://hdl.handle.net/10.1023/A:1010000606092
Mukherjee, & R.K Mishra. (2010). Stock Market Integration and Volatility Spillover: India and its Major Asian Counterparts, Research in International Business and Finance.24(2), 235.
Savva, C.S., Osborn, D.R., & Gill, L. (2004). Volatility, spillover effects, and correlations in U.S. and major European markets, Working Paper, University of Manchester Sakthivel P., Bodkhe Naresh, Kamaiah B, (2012). Correlation and Volatility Transmission across International Stock Markets: A Bivariate GARCH Analysis. International Journal of Economics and Finance 4(3).
Yun Wang, Abeyratna Gunasekarage and David M. Power. (2005). Return and Volatility Spillovers from Developed to Emerging Capital Markets: The Case of South Asia, Contemporary Studies in Economic and Financial Analysis,(86)(1),139- 166.


HR Campaigns through Social Media: Problem of Losing Direction


Titto Varghese & Karthika Ramakrishnan
Assistant Professors
Christ College, Vizhinjam, Trivandrum
9447186620; 9400466548
tittohere@gmail.com; karthikaramakrishnan935@gmail.com


Human relations and human resource management are very important for the smooth functioning of a system where more than one person is employed. Firms and organizations take utmost care in managing their personnel using all possible means. Today, with the advent of new media technologies, firms turn to the Social Media platforms for easy communication. People turn to Social Media for different gratification purposes. The HR departments of many firms have their own Facebook pages. Personnel from such HR departments try hard to address the grievances of their staff through these pages. But, social media always have a tendency to lose direction once the initial interest in a particular cause is lost or once the goal is accomplished. This paper is an attempt to compare different social media HR campaigns to analyze whether they are strictly following the founders’ intention. We compare the online campaigns of Anna Hazare and Irom Sharmila on one side and the online campaigns for justice for Soumya and Jisha who were brutally killed in Kerala on the other side. These two sets of online HR campaigns are compared to the Facebook pages of HR departments of two leading IT firms.

The method of data collection was a Content Analysis of the four Facebook pages of “India Against Corruption”, “FREE IROM SHARMILA… REPEAL AFSPA”, “Justice for Jisha”, “Justice for Soumya”, “Infosys HR” and “Accenture HR Academy”. The study is conducted using the posts and comments on these pages for a period of 1 month in 2016. The study revealed that people began to show more interest in the case of Jisha after the Soumya incident. But a close look at these online movements reveals that they are driven off the course after some time. It is found that though Social Media play crucial role in many Human Rights & Human Resource Movements, they lose direction on different occasions and due to different reasons.

Keywords: Social Media, Human Resource Management, Online Movements, Public Interest
Theory, Resource Mobilization Theory


Human relations and human resource management are very important for the smooth functioning of a system where more than one person is employed. Firms and organizations take utmost care in managing their personnel using all possible means. Human relations (HR) is seen and understood as a study of human problems arising from organizational and interpersonal relations. It could again be regarded as a study or programme designed to develop better interpersonal and intergroup adjustments (http://www.meriamwebster. com/dictionary/human%20relations).
Organizations use different techniques in maintaining healthy relationship among the personnel. Direct and face-to-face interactions, Man-to-Man interactions either in person or through telephone etc are generally used methods of human relations management (Arndt, 2011). Even then, face-to-face communication was found to be the richest
medium followed by telephone, email, written addressed documents and unaddressed documents like memos and
letters (Arndt, 2011). Though Arndt (2011) suggested that face-to-face interaction is the best means of human resource management, today, with the advent of new media technologies, firms turn to the Social Media platforms for easy communication. People turn to Social Media for different gratification purposes. One of the major advantages we can see in social media campaigns is the speed with which we get feedback. Group norms, peer attitudes and the social climate of an organization also have an impact on the selection of media channels for HR purposes (DeSanctis & Fulk, 1999). An active participatory culture is enabled by the communities on social networking sites because they permit communication between groups that are otherwise unable to communicate (Watson, 2002). The HR departments of many firms have their own Facebook pages. Personnel from such HR departments try hard to address the grievances of their staff through these pages (Arndt, 2011). Online activism is a form of HR campaigns done through internet. They are purposeful, organized groups striving to work toward a common goal. These groups might be attempting to create change, to resist change, or to provide a political voice to the voiceless(Little, 2014).


Researchers and Communication Psychologists have done a great deal of basic research on human relations management issues and HR campaigns online. The following section is an outlook on how different researchers viewed the fact behind social media campaigns and offline human relations campaigns.


HR campaigns are campaigns done to mobilize people to work for a common cause which is of human interest (Green, D P & Gerber, A S, 2015). This could be done both in the real and virtual world. Digital or online HR campaigns are defined as campaigns using electronic communication technologies such as social media, especially Facebook or Twitter to enable “faster communication by citizen movements and the delivery of local information to a larger audience” (Frank et al, 2013). In other words, a digital activism the campaign is “an organized public effort, making collective claims on a target authority, in which civic initiators or supporters use digital media for cause-related fundraising, community building, lobbying, and organizing” (Frank et al, 2013). Online HR campaigns can be classified into three: awareness/advocacy; organization/mobilization; action / reaction (Vegh, 2003).


Social media campaigns always have a tendency to lose direction once the initial interest in a particular cause is lost or once the goal is accomplished (Gusfield, 2008). This happens because of many reasons. In order to analyze these reasons, we need to focus first on the major sociopsychological reasons for the formation of an online campaign. These campaigns are either an emotional movement in which people follow a charismatic leader; or a purposive, rational or utilitarian association for the pursuit of common interests (Heberle, 2008).

1. Bandwagon Effect:

First of the reasons for losing direction is the fact that there is always a chance of transition from one nature to another for these campaigns depending on the way in which the campaign unfolds. Many movements which started as a “community of believers in a cause may develop into a bandwagon, attracting socially or politically ambitious opportunists”, observes Heberle (2008).
This could again be connected to the Bandwagon Effect. It is a phenomenon where the rate of the following of new ideas and trends increases as the number of followers are already higher. It is characterized by the “probability of adoption increasing with respect to the proportion of the population who have already done so” (Colman, 2003). As people get new topics for discussion the older ones will be discarded. This trend goes up as more and more people start thinking about and posting comments on the new topic.

2. Communication Gap:

Another issue is the lack of constant communication and interaction among the members of the group (Watson, 2002). If members of the online campaign community are not in a position to interact with each other at least on the online platforms, the campaign may lose its direction as the cohesion among the group members is less. Watson (2002) warns that “without ongoing communication among its participants, a community dissolves”.

3. Quantity over Quality:

A third issue is the over concern for the number of followers. Some people use follower counts or like to measure the effectiveness of the campaign, but this is misleading; it’s better to have a small number of passionate followers than a large number of despondent ones (DeMers, 2015). In the process of making more followers or getting more likes for the posts, what is discarded is the quality of the campaign.

4. Loss of Consistency:

In an online campaign we cannot expect all followers to work the whole day and sleep the whole night. Some may be using the platform during the late hours of the night where the admins of the online campaigns may not be available for reply. DeMers (2015) says that “it isn’t enough to post a link to an article and be done with it. If someone asks you a question, you need to be there to answer it”. If nobody answers the followers’ queries or acknowledges their contributions they will easily feel being neglected and will go somewhere else where they can feel appreciated.


The problem of Self Promotion: Many of the HR campaigns online failed because of the posts and comments encouraging self-promotion (O’Brien, 2015). Whenever the members of the community feel that the campaign is used for other selfish interests they tend to leave the group.

6. Vocabulary Issue:

Words used must be parliamentary and must respect everyone in the group (Wong, 2015). Members of a campaign may be interested in working for that particular cause. But that doesn’t mean that they all are alike in all interests and likes. Usage of proper words is a must for the campaign to be lengthy.


The researchers have come to the conclusion that there is a chance of social media campaigns losing its direction and focus after an initial stage of interest. When a new issue is raised people will automatically turn their attention to that topic even when the older issue is of prime importance. This is what happens in today’s world too. The social media campaigns of Anna Hazare has been a huge hit because of the popularity of the topic of concern – corruption. Hazare could achieve what he wanted in a few days’ time. At the same time, the online campaign and the very lengthy offline protest of Irom Sharmila couldn’t attract many to the movement because of the unfamiliarity of the issue. Even after 15 years of fasting, Irom Sharmila couldn’t get the much needed justice. The online communities for these two movements are still functioning. But the intensity of the issue and frequency of posts regarding offline action are much lower compared to that of 2011 when Anna was on hunger strike for 13 days. Then the issue was in limelight. But later, after Arvind Kejriwal and Kiran Bedi left the fray, the momentum was lost. Regarding Irom Sharmila’s case, the offline and online campaigns were not that pressure building ones like that of Anna Hazare. The presence of lakhs and crores of people from all over the country was an added advantage to Hazare’s campaign. Irom’s was a campaign where the topic was not of a universal appeal like that of corruption. Even then, during the days in which Hazare was on hunger strike, Irom Sharmila’ case also got a momentum online. People from other parts of the country also noticed her battle with determination. But today, these two campaigns also lost their vigour. In Kerala, there were other two major campaigns were started for supporting Jisha and Soumya – who were brutally raped and killed. In fact there are more than 40 groups or communities in Facebook pleading for Justice to Soumya and Jisha. The characteristics of the campaigns are found to be almost similar in a detailed analysis. Same is the case with the Facebook pages of the HR departments of Infosys and Accenture. The pages are also with posts and comments no way related to the HR field. There is a noticeable deviation from the original intention of the group. McGee (2012) warns us of the precautions to be taken so that social media campaigns may not lose focus. Social media campaigns have the chance of losing its focus if the campaign has been started with a vague idea (McGee, 2012). This paper tries to see these warning signs social media give us in the case of online HR campaigns.


The methodology followed here is a simple content analysis based on thematic classification of posts, pictures and
comments. Six Facebook pages are analyzed in detail to know what are being posted on the walls of these pages. The
pages we studied were “India Against Corruption”, “FREE IROM SHARMILA…!!! REPEAL AFSPA…!!!”, “Justice for Jisha”, “Justice for Soumya”, “Infosys HR” and “Accenture HR Academy”. The study is conducted using the posts and comments on these pages for a period of 1 month in 2012 and a period of 1 month in 2016.


A. Group Development Theory:

Bruce Tuckman (1977) suggested five stages of group development and the last of them was adjourning stage. He was of the opinion that if a group has fulfilled its goals and objectives, it will move into the adjourning stage. This may happen rather quickly for a project-specific team. On the other hand, permanent groups can function for a long time without moving into the adjourning stage (Tuckman, 1977). This is a basic norm for all kinds of groups – whether online or offline. When people fall away, adopt a new movement, the movement successfully brings about the change it sought, or people no longer take the issue seriously, the movement falls into the decline stage (Blumer, 1969; Tilly, 1978). This stage is typical of any social media HR campaigns too.

B. Emergent Norm Theory:

This theory asserts that people perceive and respond to the crowd situation with their individual set of norms, which may change as the crowd experience evolves. For Turner and Killian (1993), the process begins when individuals suddenly find themselves in a new situation, or when an existing situation suddenly becomes strange or unfamiliar.

C. Resource Mobilization Theory:

Resource mobilization is the process of getting resource from resource provider, using different mechanisms, to implement the organization‘s work for achieving the pre-determined organizational goals (McCarthy & Zaid, 2001). It emphasizes the ability of a movement’s members to acquire resources and to mobilize people towards accomplishing the movement’s goals (Kendall, 2005).

D. Public Interest Theory:

Public interest theory is a purely economic theory. But a version of the study suggests that people in a group have a tendency to operate inefficiently and in favor of individual’s concern while ignoring the importance of the society as a whole(Pigou, 1932).


HR Campaigns through Social Media: Problem of Losing Direction

From the table, it is clear that 20% to 40% of the total posts in all groups are completely irrelevant. Another 1% to 24% of the posts are just personal posts and 4.5% to 15.5% are simply jokes. In the case of the first software company, almost 65% of the posts are related to job search or holiday plans. But in the case of the second software firm only 20% of the posts are related to job search or picnic interests. Almost 80% of the posts are related to politics, jokes, personal issues or completely irrelevant issues. In the case of the IAC movement, just 48% of the posts are on the topic, criticising political parties. But even in that group the percentage of irrelevant and personal posts amount to almost 43%. In the Repeal AFSPA group, around 63% of the posts are criticising political parties and 30% of the posts are personal or other irrelevant materials. In the justice movements, the first one has almost 65% on the topic and 35% deviating from the issue. In the second justice movement, the ration is almost 50:50. The data reveal that there is at least a sizeable percentage of deviation from the topic of discussion in almost all groups. Though we cannot say that this deviation is statistically significant, the percentage of the deviation is found to be a bit higher in all groups. The first software firm may be an exception where there is only a 22% deviation seen, if we consider the posts related to jokes as a means of HR activity. If not, the deviation rate is high at 32%. Some researchers have found a tendency of movements to remain in existence even beyond the realization of their group goals (Messinger 1955; Sills 1957). This may be a reason by which some groups are having a higher cohesiveness and commitment compared to other groups. But many of the campaigns here are found to have a deviation. This phenomenon could be explained on the basis of the above-mentioned theories. Whenever people feel that they are fed up with something they may try for a new one.
Again, once they feel that the task is accomplished they may adjourn the campaign group and focus on other issues
(Tuckman, 1977). This is also a matter of commitment and seriousness with which we take up a campaign (Cantril, 1941). If people are seriously involved into what they do they may not deviate from the focal point. The HR campaigns through social media are no exception to this general norm. Even in the case of political movements, people lose their interest after an initial punch (Heberle, 1951). Online Political Citizens (OPCs) are seven times more likely than average citizens to serve as opinion leaders among their friends, relatives and colleagues (http://www.ipdi.org). This position of the opinion leaders acts as a status symbol for the Netizens (Internet Citizens) and they try to be formally involved in all possible online campaigns. But researchers have found that the viral campaigns are great for sparking initial interest and conversation, but they are not as effective in the long term—people begin to think that clicking “like” on something is enough of a contribution, or that posting information about a current hot topic on their Facebook page or Twitter feed means that they have made a difference (Shepherd, 2010). This might be the reason behind the failure of many social media campaigns or the deviation from the original intention. Social Media is found to be one of the best methods of HR campaigns of this century (https://www.linkedin.com). Social media communities are a way of making money through its fund raising potentials (Richman, 2002). Many of the participants of online campaigns get into the campaign with a monetary interest too. Once they achieve their target or once they realize that their goal cannot be accomplished being in that group they turn their attention to better fields. Researchers have found that college students were using social media for political activity the most (Nielsen, 2006). But these students were later found to be passive in their offline campaigns. They shifted their attention to new issues as their initial interest was lost. Nam (2010) says that acts of political mobilization, such as fundraising, volunteering, protesting require the most continued interest, resources and knowledge (Nam, 2010). All these findings support the findings of this study in analysing the deviation rate that happens in the case of Social Media HR Campaigns.


The impersonal nature of communication by computer may actually undermine the human contact that always has been crucial to social movements. But, internet “allows people who agree with each other to talk to each other and gives them the impression of being part of a much larger network than is necessarily the case” (Harris, 2003). Famous activist Ralph Nader has stated that “the Internet doesn’t do a very good job of motivating action” (Lasar, 2009). He is of the opinion that citizens may “like” an activist group on Facebook, visit a website, or comment on a blog, but fail to engage in political activism beyond the Internet, such as volunteering or canvassing. Here in the case of these online campaigns, the basic communication happened not faceto- face but on a virtual platform. That too may be regarded as one of the reasons why these campaigns ended up in deviating from the original intention. Cass Sunstein (2007) explains that “the same medium, that lets people access a large number of news sources, enables them to pinpoint the ones they agree with and ignore the rest”. It could be seen as mere “Clicktivism” that reduces activism to a mere mouse-click, yielding numbers with little or no real engagement or commitment to the cause (Janssen, 2013). In short, we can conclude that the problems of lack of face-to-face interaction, lack of commitment, shift of interest and other such factors play a crucial role in making people deviated from their original concerns when they conduct a social media HR campaign.


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