CONTEMPORARY ECONOMY JOURNAL

5-23

Authors: Andreea Elena DREGHICIU

In the economical environment, accounting is the main information provider. Thesse information reflect an actual image only when the accounting principles, the actual regulations are kept and last but not least through the instrument of evaluation, respectively the one of reevaluation. The evaluation has always been an activity which had the capacity of significantly influencing the decisions which are made based on the information provided, no matter if it is about the traditional model based on historical cost and prudence principle, or if it about the concept of fair value brought by globalization and harmonization process. Concerning the accounting policies associated with registering the evaluation and respectively the reevaluation results, the entities have the possibilities of opting yearly for installment transfer of the reserves from reevaluation on the reported result, or making this transfer only in the moment when the immobilization is out of use, for which the reserves from reevaluation are registered. There are also situations when the entities may choose for returning at historical cost from the fair value. The purpose of this scientific approach is the one of practically and theoretically presenting both the implications which different options of the entities have, in the treatment of the reserves from reevaluation, and the return at historical price from fair value upon the information given for publishing.

40-53

Authors: Victoria POSTOLACHE, Andrei CURAC

In the contemporary economy it counts not only the production and circulation processes, but also management problems. Thus, internal control system formation acquired a great importance, whose presence in the financial sector is seen as a necessary attribute of belonging to a civilized community. Control is a class complex with multiple applications in the financial sector. In this context, the purpose of this research is to determine not only the importance control for banks, but also to achieve a qualified internal control in licensed banks.

67-82

Authors: Silvia-Elena ISACHI

The central objective of this paper is to analyse the determinants of investments, as they have been described by the economic theory specific to the field of foreign direct investments. We consider that the matter of foreign direct investments and of their determinants as one of great importance both for the Romanian economy, and for the economy of other countries. It requires elaborate and multilateral approaches, not just on the side of the investors, but also on the side of the public entities that aim to stimulate these flows. The evolution of the foreign direct investments differs from one period to another due to several factors resulting from the evolution of the economic and social systems. The multinational companies have different aptitudes in the mater of making foreign direct investments, even in countries that are equivalent in terms of attractiveness for foreign direct investments. Besides to the traditional factors pertaining to the level of the market, population size and incomes, general economic performance of the economy, there also are other factors that may influence, under specific circumstances, the size of the foreign direct investments.

88-96

Authors: Victoria IORDACHI, Angela TIMUŞ

The primary objective of fiscal administration is to encourage, facilitate and maintain a high degree of voluntary compliance by taxpayers which will allow concentrating resources on identifying and dealing with those taxpayers who fail to fully comply with their tax obligations. At the same time, for fiscal authorities tax systems based on turnover imply a high risk of evasion because taxpayers can easily submit false data. Particularly, in case of cash transactions, the problem of detecting cases of under-declaring becomes a real challenge. In foreign practice, promotion of measures to combat tax evasion is part of a wider program to support the business environment through reduction of tax burden and encouragement of payment compliance, as well as to ensure a competitive business environment, which will be undistorted by unfair competition. To accomplish this purpose, in developed countries, tax administrations have for years been appealing for technological advances implemented in private sector. At the same time, in developing countries, the opportunities that technology offers are more elusive. This article relates some of practices used by fiscal authorities to encourage tax declaring, especially by small business and self-employed, as well as measures that are based on civic consciousness.

112-125

Authors: Ion MOROZNIUC, Liliana MOROZNIUC

In this publication the author describes a brief history of the business and analyzing the situation in the SME segment of Moldavian business, identify problems and propose some solutions. The economic development of society largely depends of economic successes of the business units on and the entities’ development depend on of business environment existing in the country (favorable or unfavorable).

134-185

Authors: Nicoleta PAVEL

Changes after 1989 in the economic, social and political developments have imposed rapid and regulatory environment, including the accounting firms. The existence of a variety of economic and financial operations carried out by companies imposed their rules in accounting terms, achieving a process of assimilation to the provisions of IFRS in Romanian accounting standards. This made possible the gradual assimilation of understanding and practice of the skilled companies of accounting rules increasingly complex and even switching to the application of IFRS as accounting basis. To analyze the impact of transition to IFRS application as accounting basis on the value of assets and equity comparing the information submitted by companies according to IFRS with those determined for the same period according to accounting regulations applicable prior to the transition to IFRS (regulations complying with European directives ). The results of research conducted on the information contained in the financial statements prepared by fifteen companies, considered representative, have highlighted the fact that the transition to the application of IFRS as the basis of accounting did not significantly affect the total value of assets of these, but caused some reclassifications between different categories assets and some value adjustments. However, analysis of equity resulting from the application of IFRS has revealed that restatements made were not significantly affected equity in their entirety, with changes in their structure. The graphs shown in Annex highlight comparatively assets and equity according to IFRS and Order no. 3055/2009, as amended and supplemented.

196-204

Authors: Osama AARAR

Research investigated gaps in achievements between Jewish and Arab pupils in Israel. Research questions were: Were there significant differences in grades attained by Jewish and Arab pupils in Israel in PISA 2009 tests? Was there a correlation between the socio-economic index measured by the PISA program, and grades attained in PISA 2009 tests? Was there a correlation between the mean grades in the PISA 2009 tests and the overall organizational status of Jewish in comparison to Arab schools? Quantitative data were collected with questionnaires for pupils and principals developed by the PISA program. Data-analysis indicated significant positive correlations of the pupils’ grades with the combined socio-economic index of the school pupils, and with the school climate. Positive correlations were found with the quality of educational resources and extent of school independence in allocation of resources. Pupils’ achievements in the Jewish sector in reading were significantly higher than pupils’ achievements in the Arab sector. Achievements of pupils from socio-economic strata above the median were higher than those of pupils from socio-economic strata below the median. The research contributes knowledge regarding factors leading to gaps in learning achievements, between different sectors. Intensive activity is needed to reduce these gaps.

219-227

Authors: Cătălin GRĂDINARU, Sorin-George TOMA

A key success factor in services marketing is the manner in the extended marketing mix is applied. Services, defined as activities offered on the marketplace, are difficult to evaluate from a qualitative point of view, contain only a few tangible components and cannot be stored. Due to specifics related to services such as intangibility, heterogeneity, production-consumption inseparability and perishability, distinctions had to be made so that they would distinguish themselves from products. Thus, the notion of traditional marketing mix (place, price, product, promotion) was adapted for services and specialists introduced the notion of extended marketing mix by adding three new components: people, physical evidence and process. The aim of our paper is to highlight the specifics and analyze the components of the extended marketing mix within the Catalonian business El Celler de Can Roca, the world’s best restaurant in 2015, according to the Michelin Guide. The paper’s research methodology is literature review.

239-243

Authors: Carmen RĂDUȚ, Marius SPINCIU

Financial Management Software is a financial consolidation and reporting application built with advanced Web technology and designed to be used and maintained by the finance team. It provides financial managers the ability to rapidly consolidate and report financial results, meet global regulatory requirements, reduce the cost of compliance and deliver confidence in the numbers. Your organization can improve its consolidation process and reporting as well as reduce inconsistent data and regulatory compliance risk. Accounting means to assign the correct numbers to the correct accounts in the correct time period. Consolidation means to combine the accounts of several entities according to accounting rules.In this case an extremely important is to ensure security. Application security is the security within an application. Security prevents two types of errors: intentional and accidental.

5-20

Authors: Marinela-Daniela MANEA

Whereas prior to 1990 the co-operative movement held an important position in the national economy, later on, going from centralized economy to market economy, this sector saw a continuous decline, and consumers’ co-operatives – the subject matter of our study – were forced, in line with their resources, to adapt to new tendencies as they emerged. And, since development of a large co-operative movement requires a support system capable to transfer knowledge of a great number of people, in addition to capital resources to favour cooperation, the undertaking of our paper aims at the very methods to maintain Romanian co-operative societies, process which has been ignored over the past two decades both by the lawmakers and entities directly concerned.

33-63

Authors: Andreea-Daniela GANGONE, Mihaela ASANDEI

Sustainable development is the most pressing concern of contemporary organizations, as it requires profound changes in their business strategies and practices. The need to ensure business sustainability triggered a broadening of the concept of marketing, its task being to meet the needs of current and future generations of consumers by creating and offering products and services in a sustainable way. We used content analysis of retailers’ web sites, completed with information from Retailer Scorecard 2016 Report, to assess the extent to which representative retailers implement sustainable marketing practices in Romania. The major contributions of this study are: the creation of a conceptual model for evaluating the results of sustainable marketing in an organization, starting from the dimensions of sustainable development; a ranking of major retailers in Romania based on the performance of their sustainable marketing activities; the identification of key strategic directions of sustainable marketing, which guide marketing activities of major retailers in Romania, allowing the analysis of strategic groups of retailers.

78-84

Authors: Cristina Aurora BUNEA-BONTAȘ

In January 2016 the International Accounting Standard Board (IASB) issued the International Financial Reporting Standard (IFRS) 16 Leases, this being the final step in accomplishing the goal of bringing most leases on-balance sheet for lessees. Whereas, under the provisions of International Accounting Standard (IAS) 17 Leases, a lessee had to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet), the new accounting model requires the lessee to recognise almost all lease contracts on the balance sheet (with optional exemptions for certain short-term leases and leases of low-value assets). The aim of this paper is to discuss some of the major differences between IFRS 16 and IAS 17 and to point out the effects of the new accounting model on a company’s financial statements.

97-104

Authors: Inga BULAT

In the last years it is becoming increasingly actual the recognition of corporate governance involvement and the risk management in public entities, the importance of approaching this issue is evidenced by the current situation faced by internal auditors. The entity is a body constantly changing which evolves in complexity, besides traditional exposure to the hazard, thus adding operational, financial, strategic, legal, human, and fraud risks. The complex nature of the risk can be attributed to several factors. Internal auditors have an important role in the risk assessment, processes, systems, and addressing or providing recommendations is the result of everything that happens and what can it lead to. Planning the internal audit activity implies a broader evaluation of operational risks and the environment in which it works. The topic approached in this article refers to the risk assessment and internal audit work plan in order to assist an entity in achieving its objectives by implementing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

112-118

Authors: Cristina UNGUR

One of the main concerns of economists is economic growth. In this paper we show that insurance is an instrument for influence economic growth. Also, we analyze the impact of social and economic factors on insurance sector development. Thereby, this paper shows that insurance and economy are two correlated dimension. The development of national insurance markets, especially life insurance sector, allows us to promote financial stability, to improve welfare, to develop business and innovation. At the same time, insurance helps government to improve the social security and to strengthen national budget. Al of this effects leads to GDP growth. The results of this paper could be useful for governments, especially in emerging countries, to improve economic growth by stimulative policies for the development of insurance industry.

125-135

Authors: Sorina - Cristina MARIN

The present paper entitled “The Integrity Management in the Public Institutions from Romania" aims mainly to a major a documentary research concerning the general aspects of the ethics policy and of the prevention of corruption in public institutions, an important condition to strengthen the administrative capacity of human resource and, last but not least, good governance practice. The exercise of authority by public servants or by the entire staff of the public administration in Romania, through the accountability and efficiency of public services, ensuring efficiency and effectiveness, transparency, performance, as ethical standards and integrity, can become tangible targets to strengthen the climate of trust and mutual respect between the citizens and public institutions of the state. Only an administration where it is desirable the practice of such standards is one that are concerned about its own quality and the growth of the degree of responsibility toward the citizens.

152-161

Authors: Constanța POPESCU, Roxana SURCEL (GEORGESCU)

Recruitment and integration at work are not enough if the organization "does not project a long-term development design for each of the employees", combining personal goals with those of the organization. Throughout his career, the employee undergoes several stages of development and professionalization. Starting from the professional development analysis in their own company, organizations face problems regarding the development and evolution of the employee’s career. It is not wrong to make the statement that the responsibility is shared between the individual, as the main responsible person for their development, and the organization, which through individual careers’ progress helps optimize organizational life, performance and sustainable development. The objective of the focus group research as investigation method was to outline the perception of the teaching staff in pre-university education in Dambovita on the “professionalization” model of the teaching career. The sample of the teaching staff in pre-university education, high school, on which the focus group research was conducted, was made up 9 teachers with different expertise, seniority and qualification levels in education so as to ensure representativity and lead to pertinent conclusions with regards to skills which teachers in pre-university education should have in order to practice the teaching profession.

176-181

Authors: Marius SPINCIU, Carmen RĂDUȚ

Business Intelligence is a unique platform that enables entities to uncover new insights and make faster, more informed business decisions by offering agile visual analytics and self-service discovery together with best-in-class enterprise analytics. Instant mobile, highly interactive dashboards, powerful operational reporting, just-in-time alerts, content and metadata search, strategy management, native access to Big Data sources, sophisticated in-memory computing, and streamlined systems management combine to make Business Intelligence a comprehensive solution that reduces the total cost of ownership and increases return on investment for the entire organization. This paper presents an analysis in Business Intelligence Software for three such solutions and the score obtained, showing at the same time product details, including modules, tools, options, plans, prices, and more (cloud).

5-12

Authors: Gabriela PICIU

Article includes a brief overview of the situation of the energy sector in the context of sustainable development and the need capitalization of renewable energy sources. Sustainability Romanian energy sector is of major importance, given that one of the basic pillars of economic policy, included in the Europe 2020 Strategy is to increase resource efficiency and energy security's rate. Europe 2020 strategy were assumed lines of action for sustainable development of the energy sector: increasing the share of renewable energy, improving energy efficiency, reducing emissions of greenhouse gases. Also, the article proposes solutions to the proper management of renewable energy sources and reduces anomalies renewable market in Romania. Harnessing renewable energy sources utmost interest to all countries, especially in Europe, as a country's energy policy must permanently ensure a balance between security of supply, competitiveness and economic viability and the environment.

31-36

Authors: Doina MUREȘANU

Defined as "the set of tacit norms and laws existing in a given society in relation to what is considered acceptable and tolerable in the employment relationship", the social management contract (SMC) has recently proved to be an interesting tool for an contextualized study of the relationship that the employee develops with his employer. This paper is based on the research results obtained by the author during her doctoral thesis at the Université du Québec à Montréal (Canada). In this thesis, we propose to study how the former social contract of Romania (that before the fall of communism) impregnates the current social contract in this country. To compare it with the new social contract, we analyzed the features of the old Romanian social contract. This analysis, which makes the object of this paper, was carried out in a constructivist approach, based on 39 interviews conducted in two companies of the automobile industry of the region of Sibiu, Romania. We have thus identified three main categories of characteristics of the old social contract (which we characterized as "paternalistic"): protection / security, hierarchy and community spirit. We will detail each of these characteristics in this paper. The theoretical and practical contributions of our study on the SMC before 1989 and its limitations will also be mentioned in the communication.

47-52

Authors: Silvia Elena ISACHI

This research paper is developed from the perspective of the sustainability of the economic process, the main purpose of analyzing the relationship between social performance and financial performance of companies, and especially the multinational companies. Multinational companies are those in that practice corporate social responsibility is most strongly developed, given their size, financial resources at their disposal, and exposure to various business environments, with different requirements and standards. The intensification global competition puts also pressure to the performance of companies and on a global market increasingly competitive, companies, whether multinational or domestic, attempted business solutions to identify optimal approaches through the prism of profit or integrated approach. Therefore, a number of increasingly more investors become interested not only in the financial performance of companies, but also how companies fulfill their social responsibilities, leading inevitably to changing the orientation pure financial to take consider other issues.

63-70

Authors: Silviu-Marius ŞEITAN

The small and medium enterprises hold an important proportion of the business environment, which is why the association of the evolution of these economic entities with the conditions of macroeconomic performance is imperative for the efficiency of the socioeconomic development. Within this context, the small and medium enterprises should be considered as the main source of revenue to the state budget and, at the same time, as the main market for the labour force, these two perspectives showing their essential role in influencing the demand and consumption. Given the way in which these macroeconomic objectives are targeted, particularly by the system of macroeconomic policies, it appears necessary to analyse the interrelationships between the business environment and the macroeconomic administration – context within which the strategic objective of establishing the proper conditions for the evolution of the small and medium enterprises becomes of utmost importance.

87-108

Authors: Ion MOROZNIUC

NBM policies must work towards achieving its inflation targeting strategy based on classical monetary policy instruments - a major long-term priority related to creating the necessary conditions of lending. In this context, the priority related to the granting of rights of creditors, efficient mechanisms to restructure nonperforming loans, improving the business climate, raising confidence in monetary policy, stepping up cooperation between the monetary authority and business. However, the primary objective of the central bank remains the strengthening of the financial stability, optimally capitalized domestic banks, to act promptly of any risk to remediate weaknesses exposed by the crisis.

126-149

Authors: Carmen IORDACHE, Iuliana CIOCHINĂ

Within the South-West Oltenia region, Vâlcea county is the county with the highest degree of tourism development, but its potential is unlimited due to its natural resources and the multitude of tourist attractions existing on its territory. Although it occupies the fifth place in terms of functional accommodation capacity and the fourth place in the country in terms of number of overnight stays, the tourism sector records a discrepancy between its potential and the level of exploitation. The present paper aims to analyze the position of the Vâlcea tourism on a regional and national level, it is essential that this activity be analyzed from a scientific point of view, by means of the indicators of tourism activity.

157-163

Authors: Vadim LOPOTENCO

In a market economy, monetary policy is a strategic tool of the state in balancing the market and influence on economic processes and therefore, the monetary policy has an impact on all economic sectors, including banking. We investigate the impact of monetary policy on systemic risk of Moldovan banks. We will try to find the correlation between interest rates for an extended period of time and increase bank risk. This result allows us to propose measures to prevent and reduce systemic risk, such as macroeconomic and institutional controls, including the intensity of surveillance activities, securitization and bank competition. The results will allow us to analyze the neutrality of monetary policy to financial stability of the banking sector in the Republic of Moldova.

5-25

Authors: Rodica PERCIUN, Viorica POPA

This paper aims to provide a complete picture of EU experience in the field of microfinance. This sector has been actively developing in EU in recent years, after the increased attention and interest from the public authorities. Thus, the purpose of this research is to describe the microfinance model characteristic for EU justifies the correlation between microfinance and small and medium-sized enterprises (SMEs). The paper defines microcredit and presents its current status in the EU. Following this, the author summarizes the main microfinance institutions in selected CEE countries. In the final section, the author shares his professional recommendations and puts forward a directive on the hallmarks of good micro financing.

38-50

Authors: Nicolae GRĂDINARU

The mortgage lender may petition the court for enforceability the mortgage securities by selling the mortgaged movable asset. At the request for the approval there will be attached documents proving the existence mortgages and of the mortgage securities along with proof of drawing up the mortgage. The court will consider the existence of debt, and of the mortgage legally executed and will approve the sale, summoning the interested parties. Application for a declaration of enforceability of the mortgage securities by selling the mortgaged movable asset interrupt the prescription right to obtain enforcement. The mortgage lender can sell mortgaged movable property in the state in which they are, or after taking commercially reasonable measures to their recovery. The lender may sell the mortgaged movable property by public auction or by private treaty through one or more contracts, in bulk or separately in any time or place, on reasonable commercial terms. The creditor may take for itself the mortgaged asset to settle the claim, unless the law provides otherwise, the settler consents and those mentioned, do not oppose. The consent of the settlor to take over the property by the creditor in the account of the claim must be expressed in writing and be subsequently non-performance. The lender who wants to take over the mortgaged asset to settle his claim, will score in the archive, a notice of taking in the account of the claim and notify the persons referred to, this offer.

75-83

Authors: Daniel-Petru VÂRTEIU

European funds are an important source of financing both the private and public institutions that make capital investments of national interest. After accessing some European projects, auditing is mandatory and is performed by auditors authorized by the Chamber of Financial Auditors of Romania. The reference framework which underpins the auditing of European projects is ISRS 4400 "Missions on agreed upon procedures regarding financial information" and The Code of Ethics emitted by the International Federation of Accountants. The Code of Ethics presents the fundamental ethical principles that a professional must comply when offering his services and these are: integrity, objectivity, professional competence, confidentiality, professional behavior.

105-116

Authors: Camelia ISTRATE, Narcisa-Liliana LEICIU

Education is a productive investment from economic and moral point of view. In many developing countries education is funded and provided mainly by the state, the expansion of education depending on the size of fiscal resources. The funding reform of education, of tuition, represents a component of education reform in general, on one hand, and the reform of financial systems and me chanisms of funding, on the other hand. In this regard, education funding reform implies a coherent and consistent approach to human capital formation needs and to direct financial implications of beneficiaries and users of education, detaching the following aspects:the individual invests in himself, in his education and in his training, he decides if he uses or not the knowledge, the compentences and the abilities obtained through education; the individual can not be forced to be educated or trained in a particular way, or forced to use what he learned. Because individuals and their families often don’t have money to finance their education or have difficultions in obtaining loans from banks, the educational institutions, of education, are currently funded, mainly, by the state.

133-162

Authors: Irina NASALCIUC

Nowadays, humanity is in a position to choose carefully every step it makes in order to ensure economic development without compromising the welfare of future generations who will need a social and ecological climate as favorable it could be. On the other hand, the conventional energy production is achieved taking the risks of the Earth overheating and its aggregate economic consequences, actually this climatic changes already appear in a more and more aggressive way, including on global economies. Over the past few years international organizations such as OECD, the IMF, the IEA, the World Bank are focusing their attention on the fossil fuel subsidies impacts over the energy production and consumption, quantifying the economic and social impacts of fossil fuel reform. The reason this study had to be done is the disadvantageous position of renewable energy industry compared with the fossil fuel’s industry situation which lies actually in the adopted subsidy strategy and the lack of measures for internalizing externalities on the sector, which are considered by IMF also a type of fossil fuel subsidy. So, this study presents an updated overlook on the fossil fuel externality problem, revises the identified literature linked to the”externality” notion, outlines the identified trends and polices of internalizing the fossil fuels externalities, and tries to review the estimations of the potential costs of the global warming as a consequence of too high social costs of the fossil fuel installed technologies. In this purpose there are on their way of implementation different systemic methods of research, including scientific abstraction, deduction, analysis and synthesis and quantitative analysis in order to outline the current situation of fossil fuel externality problem and its potential impact over the economic welfare.

5-17

Authors: Gica Gherghina CULIŢĂ

Taxation was and continues to be the chapter to which the European Union can’t find any solution and real measures for sustaining the integration process. Fiscality’s level, very different to the 28 fellow states, can’t reconcile the various requests from the fellow states. In this piece of work we will analyze the European Union fiscality level based on the recent data given at the European level. The economical worldwide crisis seems endless for the majority of the European Union states, for this reason, we propose to analyze how the fiscal changes from the past years in Romania contributed to economic recovery and what are the perspectives in this domain.

32-35

Authors: Elena PĂDUREAN

By the establishment of the Euro monetary area, with two large pillars, the European Central Bank and the single currency, for the first time in history “a central European producer of symbol-currency appears, which not only delivers the state from the budget limitations imposed by the former regime (European Monetary System), but also opens for it and its partisans new ways for enrichment, at the expense of the other citizens. This is the true purpose of ECB and this is the intention of its creators” [Hulsmann].

50-69

Authors: Cornelia Serena PAȘCA

There is vast literature regarding the grounds of remittance. The best known and most often quoted article on the theme belongs to Lucas and Stark, who divided the grounds pursuant to which people remit money, into altruistic and personal grounds. At microeconomic level, the main beneficiaries of remittance are the remitters themselves and their close ones and, at macroeconomic level, the benefits are substantiated in the increase of domestic consumption, poverty decrease, recovery from macroeconomic shock or imbalance, support of the payment balance. The behavior of migrants who remit money to their country of origin is influenced by factors such as gender, age, educational level, civil status, family position, period of stay in the foreign country and the opportunities therein. The are about 3 million Romanians working abroad and remittance represents an economic advantage for the country, as it stimulates consumption and investments and improves society’s welfare. Remittance stands for an essential source of external funding for developing countries. During 2003 – 2013, Romanians abroad sent home over 54 billion Euro and the peak of the amounts sent by Romanian workers was reached in 2008 (7,765 billion Euro). Following economic crisis, remittance was drastically decreased by almost a half during the following year.

91-109

Authors: Dorina CLICHICI

The article is a continuation of the research initiated by the author on corporate governance challenges for the stability of the banking system and destabilizing effects of weak corporate governance structures within banking institutions in the Republic of Moldova. The article has the purpose to identify weaknesses in corporate governance arrangements in the current banking system and presents the main recommendations for eliminating these deficiencies. In order to achieve this goal was performed an analysis of the legislation that regulates the banking system and of the corporate governance code currently in place. Despite some progress on implementing recommendations of the International Monetary Fund and the reported satisfactory performance of banks, the following deficiencies of corporate governance in the banking system were identified: opaque shareholders’ structures and the issue of ultimate beneficial owners disclosure; deficient quality of bank boards; the current corporate governance code does not consider essential elements recommended by the Basel Committee; the lack of a consistent concept on corporate governance in the banking system in Moldova aligned with Basel Committee's recommendations.

128-136

Authors: Simona-Silvana MĂRGINEAN

Loyalty programs are designed to change the way customers interact with companies in terms of purchasing value, retention and repetition. The monetary perspective lays at the foundation of every loyalty system, designated to measure the transactional side of the client’s loyalty. However, the serious decline in retention rates and low customer commitment due to lack of relevance and value pushes today’s loyalty marketing into anachronism. Our approach to loyalty programs will analyze the emotional side of customer loyalty, in today’s Internet driven social platforms environment, which is set to generate a switch in paradigm. Customer loyalty models need to focus on brand values and interaction, on meaningful brand experiences worth sharing. Loyalty metrics should focus on creating and inspiring more valuable customers, willing to share their seamless experiences with others. We will analyze the impact of transactional operated loyalty programs against loyalty programs built upon customer expectations, inin order to identify meaningful loyalty models generating brand attachment in tomorrow’s economic environment. Our focus will be on assimilating the loyalty performance model into a new transparent loyalty paradigm, built upon brand values, customer insight, innovative contribution to brand growth and ethics, as opposed to bargain hunting, promotions and retention metrics.