http://www.bigcitysmallfootprints.com/2009/04/ethical-questions-about-microfinance/ The London Guide To Sustainable Life Sat, 04 Feb 2012 14:46:28 +0000 http://wordpress.org/?v=2.5.1 http://www.bigcitysmallfootprints.com/2009/04/ethical-questions-about-microfinance/#comment-237 Ashley Alfred Thu, 10 Sep 2009 07:41:03 +0000 http://www.bigcitysmallfootprints.com/?p=165#comment-237 The lack of ethical standards in the microfinance industry is striking in view of the very elaborate financial standards that have come to govern it. There is a variety of reasons to explain this phenomenon. The first reason has its base in the history of the industry: as long as financial services were offered by non-profit organizations, which in turn were supported by non-profit investors, the civil society character of the industry ensured reasonably fair treatment of customers. The second reason has been the drive to involve private sector capital in order to meet industry targets. This course was pursued with such vigor that many players turned a blind eye to poor treatment of customers. The lack of ethical standards in the microfinance industry is striking in view of the very elaborate financial standards that have come to govern it. There is a variety of reasons to explain this phenomenon. The first reason has its base in the history of the industry: as long as financial services were offered by non-profit organizations, which in turn were supported by non-profit investors, the civil society character of the industry ensured reasonably fair treatment of customers. The second reason has been the drive to involve private sector capital in order to meet industry targets. This course was pursued with such vigor that many players turned a blind eye to poor treatment of customers.

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