Sustainability and outreach in microfinance institutions in India: an ethical analysis

Milind SATHYE; Benugopal Mukhopadhyay; Suneeta SATHYE

doi:10.1080/02255189.2014.936835

Sustainability and outreach in microfinance institutions in India: an ethical analysis

Milind SATHYE, Benugopal Mukhopadhyay, Suneeta SATHYE

Canberra Business School

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

4 Downloads (Pure)

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.

Original language	English
Pages (from-to)	358-375
Number of pages	18
Journal	Canadian Journal of Development Studies
Volume	35
Issue number	3
DOIs	https://doi.org/10.1080/02255189.2014.936835
Publication status	Published - 1 Jul 2014

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1080/02255189.2014.936835

Cite this

@article{86b4cd3028404714940f38d61fbf2200,

title = "Sustainability and outreach in microfinance institutions in India: an ethical analysis",

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.",

keywords = "Microfinance, ethical analysis, India, sustainability, institutions, Sustainability, Ethical analysis, Institutions",

author = "Milind SATHYE and Benugopal Mukhopadhyay and Suneeta SATHYE",

note = "Publisher Copyright: {\textcopyright} 2014 Canadian Association for the Study of International Development (CASID).",

year = "2014",

month = jul,

day = "1",

doi = "10.1080/02255189.2014.936835",

language = "English",

volume = "35",

pages = "358--375",

journal = "Canadian Journal of Development Studies",

issn = "0225-5189",

publisher = "Taylor & Francis",

number = "3",

}

TY - JOUR

T1 - Sustainability and outreach in microfinance institutions in India

T2 - an ethical analysis

AU - SATHYE, Milind

AU - Mukhopadhyay, Benugopal

AU - SATHYE, Suneeta

PY - 2014/7/1

Y1 - 2014/7/1

N2 - 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.

AB - 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.

KW - Microfinance

KW - ethical analysis

KW - India

KW - sustainability

KW - institutions

KW - Sustainability

KW - Ethical analysis

KW - Institutions

UR - http://www.scopus.com/inward/record.url?scp=84907908263&partnerID=8YFLogxK

U2 - 10.1080/02255189.2014.936835

DO - 10.1080/02255189.2014.936835

M3 - Article

SN - 0225-5189

VL - 35

SP - 358

EP - 375

JO - Canadian Journal of Development Studies

JF - Canadian Journal of Development Studies

IS - 3

ER -

Sustainability and outreach in microfinance institutions in India: an ethical analysis

Abstract

UN SDGs

Access to Document

Other files and links

Fingerprint

Cite this