IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v134y2016i3d10.1007_s10551-014-2434-y.html
   My bibliography  Save this article

A Study of Codes of Ethics for Mexican Microfinance Institutions

Author

Listed:
  • Lauren Kleynjans

    () (Solvay Brussels School of Economics and Management (SBS-EM), Université Libre de Bruxelles (U.L.B))

  • Marek Hudon

    () (Solvay Brussels School of Economics and Management (SBS-EM), Université Libre de Bruxelles (U.L.B))

Abstract

Abstract Most scholarly interest in codes of ethics or conduct has focused on traditional companies. Little is known about the codes of social enterprises or hybrid organizations such as microfinance institutions (MFIs). Our paper provides a comparative case study of the codes of a Mexican microfinance network and seven MFIs. Using the corporate integrity model, we analyze the content of MFIs’ codes compared to those of traditional organizations. We then examine to what extent some specific features of MFIs such as their mission, target group, and applied credit methodologies, are factors that determine the content of their code. We find that MFIs’ codes, like those of traditional companies, include traditional stakeholder principles. Nevertheless, they put greater emphasis on ‘socially-oriented’ principles or on terms such as ‘people’ and ‘common good’. MFIs’ codes differ with respect to the items they include and exclude and the size of the covered sections. We also find that these codes attempt to address prevailing concerns in microfinance but rarely tackle two critical debates, namely levels of interest rates and of profitability. We finally argue that it is difficult to move toward a global code, owing to regional disparities and the variety of organizational models and missions.

Suggested Citation

  • Lauren Kleynjans & Marek Hudon, 2016. "A Study of Codes of Ethics for Mexican Microfinance Institutions," Journal of Business Ethics, Springer, vol. 134(3), pages 397-412, March.
  • Handle: RePEc:kap:jbuset:v:134:y:2016:i:3:d:10.1007_s10551-014-2434-y
    DOI: 10.1007/s10551-014-2434-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-014-2434-y
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. George DeMartino, 2013. "Epistemic Aspects of Economic Practice and the Need for Professional Economic Ethics," Review of Social Economy, Taylor & Francis Journals, vol. 71(2), pages 166-186, June.
    2. Marion Allet & Marek Hudon, 2015. "Green Microfinance: Characteristics of Microfinance Institutions Involved in Environmental Management," Journal of Business Ethics, Springer, vol. 126(3), pages 395-414, February.
    3. Kaptein, Muel & Wempe, Johan, 2002. "The Balanced Company: A Theory of Corporate Integrity," OUP Catalogue, Oxford University Press, number 9780199255511.
    4. Marek Hudon, 2009. "Should Access to Credit be a Right?," Journal of Business Ethics, Springer, vol. 84(1), pages 17-28, January.
    5. Hudon, Marek & Traca, Daniel, 2011. "On the Efficiency Effects of Subsidies in Microfinance: An Empirical Inquiry," World Development, Elsevier, vol. 39(6), pages 966-973, June.
    6. Arnold, Denis G. & Audi, Robert & Zwolinski, Matt, 2010. "Recent Work in Ethical Theory and Its Implications for Business Ethics," Business Ethics Quarterly, Cambridge University Press, vol. 20(4), pages 559-581, October.
    7. Cynthia Stohl & Michael Stohl & Lucy Popova, 2009. "A New Generation of Corporate Codes of Ethics," Journal of Business Ethics, Springer, vol. 90(4), pages 607-622, December.
    8. Boudewijn de Bruin & Wilfred Dolfsma, 2013. "Oaths and Codes in Economics and Business—Introducing the Special Issue," Review of Social Economy, Taylor & Francis Journals, vol. 71(2), pages 135-139, June.
    9. Joanna Ledgerwood, 2013. "The New Microfinance Handbook : A Financial Market System Perspective," World Bank Publications, The World Bank, number 12272, September.
    10. Xavier Giné & Pamela Jakiela & Dean Karlan & Jonathan Morduch, 2010. "Microfinance Games," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 60-95, July.
    11. Charlotte Wagner, 2012. "From Boom to Bust: How Different Has Microfinance Been from Traditional Banking?," Development Policy Review, Overseas Development Institute, vol. 30(2), pages 187-210, March.
    12. Nelarine Cornelius & Mathew Todres & Shaheena Janjuha-Jivraj & Adrian Woods & James Wallace, 2008. "Corporate Social Responsibility and the Social Enterprise," Journal of Business Ethics, Springer, vol. 81(2), pages 355-370, August.
    13. Jonathan Morduch, 1999. "The Microfinance Promise," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, December.
    14. Robert Cull & Asli Demirgüç-Kunt & Jonathan Morduch, 2009. "Microfinance Meets the Market," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 167-192, Winter.
    15. Muel Kaptein & Mark Schwartz, 2008. "The Effectiveness of Business Codes: A Critical Examination of Existing Studies and the Development of an Integrated Research Model," Journal of Business Ethics, Springer, vol. 77(2), pages 111-127, January.
    16. Muel Kaptein, 2011. "Toward Effective Codes: Testing the Relationship with Unethical Behavior," Journal of Business Ethics, Springer, vol. 99(2), pages 233-251, March.
    17. Singh, Jang & Carasco, Emily & Svensson, Goran & Wood, Greg & Callaghan, Michael, 2005. "A comparative study of the contents of corporate codes of ethics in Australia, Canada and Sweden," Journal of World Business, Elsevier, vol. 40(1), pages 91-109, February.
    18. Richard Montgomery, 1996. "Disciplining or protecting the poor? Avoiding the social costs of peer pressure in micro-credit schemes," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(2), pages 289-305.
    19. Margaret Forster & Tim Loughran & Bill McDonald, 2009. "Commonality in Codes of Ethics," Journal of Business Ethics, Springer, vol. 90(2), pages 129-139, November.
    20. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos & Mar Molinero, Cecilio, 2007. "Microfinance institutions and efficiency," Omega, Elsevier, vol. 35(2), pages 131-142, April.
    21. Vincent Blok, 2013. "The Power of Speech Acts: Reflections on a Performative Concept of Ethical Oaths in Economics and Business," Review of Social Economy, Taylor & Francis Journals, vol. 71(2), pages 187-208, June.
    22. Hudon, Marek & Sandberg, Joakim, 2013. "The Ethical Crisis in Microfinance: Issues, Findings, and Implications," Business Ethics Quarterly, Cambridge University Press, vol. 23(4), pages 561-589, October.
    23. Agier, Isabelle & Szafarz, Ariane, 2013. "Microfinance and Gender: Is There a Glass Ceiling on Loan Size?," World Development, Elsevier, vol. 42(C), pages 165-181.
    24. Patrick Erwin, 2011. "Corporate Codes of Conduct: The Effects of Code Content and Quality on Ethical Performance," Journal of Business Ethics, Springer, vol. 99(4), pages 535-548, April.
    25. Lutz Preuss, 2012. "Responsibility in Paradise? The Adoption of CSR Tools by Companies Domiciled in Tax Havens," Journal of Business Ethics, Springer, vol. 110(1), pages 1-14, September.
    26. Sven Helin & Johan Sandström, 2007. "An Inquiry into the Study of Corporate Codes of Ethics," Journal of Business Ethics, Springer, vol. 75(3), pages 253-271, October.
    27. McCabe, Donald L. & Trevino, Linda Klebe & Butterfield, Kenneth D., 1996. "The Influence of Collegiate and Corporate Codes of Conduct on Ethics-Related Behavior in the Workplace," Business Ethics Quarterly, Cambridge University Press, vol. 6(4), pages 461-476, October.
    28. Tzu-Kuan Chiu, 2014. "Putting Responsible Finance to Work for Citi Microfinance," Journal of Business Ethics, Springer, vol. 119(2), pages 219-234, January.
    29. Lutz Preuss, 2010. "Codes of Conduct in Organisational Context: From Cascade to Lattice-Work of Codes," Journal of Business Ethics, Springer, vol. 94(4), pages 471-487, July.
    30. Catherine C Langlois & Bodo B Shlegemilch, 1990. "Do Corporate Codes of Ethics Reflect National Character? Evidence from Europe and the United States," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 21(4), pages 519-539, December.
    31. Copestake, James, 2007. "Mainstreaming Microfinance: Social Performance Management or Mission Drift?," World Development, Elsevier, vol. 35(10), pages 1721-1738, October.
    32. Betsy Stevens, 2008. "Corporate Ethical Codes: Effective Instruments For Influencing Behavior," Journal of Business Ethics, Springer, vol. 78(4), pages 601-609, April.
    33. Jang Singh, 2011. "Determinants of the Effectiveness of Corporate Codes of Ethics: An Empirical Study," Journal of Business Ethics, Springer, vol. 101(3), pages 385-395, July.
    34. Kolk, Ans & van Tulder, Rob, 2002. "The Effectiveness of Self-regulation:: Corporate Codes of Conduct and Child Labour," European Management Journal, Elsevier, vol. 20(3), pages 260-271, June.
    35. Mair, Johanna & Martí, Ignasi, 2006. "Social entrepreneurship research: A source of explanation, prediction, and delight," Journal of World Business, Elsevier, vol. 41(1), pages 36-44, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:ipn:esecon:v:12:y:2017:i:46:p:41-60 is not listed on IDEAS

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:134:y:2016:i:3:d:10.1007_s10551-014-2434-y. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.