Reference no: EM133035154

Institutional Conformance at Meridian Credit Union

Q1. Which of the following sustainability strategy is Meridian Credit Union employing at the time of the case?

a. Denial

b. Defense

c. Isolated

d. Embedded

e. Transformational

Q2. Part of what explains irresponsible behaviour in the financial services industry is the fact that consumers lack the financial literacy (i.e. mental competence to make sound financial decisions) to combat aggressive sales tactics. This lack of financial literacy is what kind of institutional force from the following ?

a. Cognitive

b. Normative

c. Regulatory

Q3. Meridian's corporate social responsibility initiatives increasingly resemble those of the big banks. This tendency to copy those in power is what kind institutional force from the following ?

a. Cognitive

b. Normative

c. Regulatory

Q4. The variable based index for compensation throughout Meridian's organization is based on 50% operating earnings (i.e. profit before expenses), 40% growth in products (deposits and loans), and 10% member (customer) satisfaction. An organization's incentive structure represents what kind of institutional force from the following ?

a. Cognitive

b. Normative

c. Regulatory

Q5. The Canadian government's rules on capital favour big banks over credit unions. What institutional force is this from the following ?

a. Cognitive

b. Normative

c. Regulatory

Q6. With Meridian's structural change that now allows members to hold equity in Meridian, the behaviour of management may reflect these exclusive interests rather than the broader interests of the membership base. This change in ownership structure represents what kind of institutional force?

1.Cognitive

2. Normative

3. Regulatory

Q7. The move to go national as a bank rather than a credit union was partly based on the following quotation from the CEO of Meridian: "The bank is the financial entity Canadians are most used to". The CEO's concern that consumers don't fully understand what a credit union is represents what institutional force from the following ?

a. Cognitive

b. Normative

c. Regulatory

Q8. With a national bank, Meridian is now serving non-member customers. This structural change, and its possible impact of how employees treat non-members compared with members, represents what kind of institutional force from the following ?

a. Cognitive

b. Normative

c. Regulatory