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Commercial Microfinance and Social Responsibility: A Critique

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  • Nair, Tara

Abstract

Working within the logic of maximising investor returns, the strategic focus of Indian microfinance institutions seems to have shifted from serving the poor borrowers to chasing profits. The commercial transformation of MFIs has been accompanied by changes in the structure of ownership, management and nature of their stakeholder commitment. This essay discusses some of the critical inadequacies in the approaches advocated and currently practised by the commercial MFIs in order to restore the sector’s focus on poor borrowers.

Suggested Citation

  • Nair, Tara, 2010. "Commercial Microfinance and Social Responsibility: A Critique," MPRA Paper 24412, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:24412
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    File URL: https://mpra.ub.uni-muenchen.de/24412/1/MPRA_paper_24412.pdf
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    References listed on IDEAS

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    1. S. Narayan, 2009. "India," Chapters,in: The Political Economy of Trade Reform in Emerging Markets, chapter 7 Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    commercial microfinance; social responsibility; India;

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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