Citation

Sathye M, Mukhopadhyay B, Sathye S. Canadian Journal of Development Studies 2014; 35(3): 358-375.

Copyright

(Copyright © 2014)

DOI

10.1080/02255189.2014.936835

PMID

unavailable

Abstract

We use an ethical analysis framework to explain the tensions that microfinance institutions (MFIs) face in following ethical practices when faced with the competing objectives of financial sustainability and social outreach. The extant view is that these institutions have to resort to unethical practices such as usury interest rates and forced loan collections to survive. After a case study of five MFIs, we find that this is not the case, and competing objectives can very well be achieved following ethical practices. This article is set against the background of suicides by microfinance borrowers in India. © 2014 Canadian Association for the Study of International Development (CASID).

Language: en

Keywords

India; Sustainability; ethics; investment; microfinance; Microfinance; financial system; Institutions; capital flow; Ethical analysis; interest rate; sustainability