Learning from Poverty: Why Business Schools Should Address Poverty, and How They Can Go About It.

In the past few years, business schools have begun to address poverty issues in their teaching, learning and curricula. While this is a positive development, the arguments for reconfiguring educational programs to address such matters remain undeveloped, with much of the impetus for such endeavors rooted in calls for social responsibility in the United Nations Millennium Development Goals, the Social Compact, the Principles for Responsible Management Education and benchmarks such as ISO 26000. This article seeks to clarify the pedagogical grounds for integrating poverty issues in management education by examining the intellectual and personal development benefits of doing so. By critically examining four modes of business involvement in poverty reduction, the article shows how such initiatives can be used as intellectual lenses through which to view the complex and often paradoxical interconnections between socioeconomic and environmental systems. It is thus concluded that a consideration of poverty issues is not a marginal matter, but is key to grasping the 21st century complexities of global business and management

Measuring Social Performance in Social Enterprises: A Global Study of Microfinance Institutions

Authors' accepted manuscriptSocial enterprises in the microfinance industry need to adhere to both financial and social demands. Critics argue that there is a mission drift away from the social mission, and this has motivated the introduction of social rating agencies to strengthen the business ethics of microfinance institutions (MFIs). Using a global dataset of 204 socially rated MFIs from 58 countries, we assess the factors that drive the social performance ratings of MFIs. Overall our results show that social ratings of MFIs are significantly related to financial performance, greater outreach especially in rural areas, well-defined social objectives, staff commitment, service quality and an enhanced customer service. We observe that various rating agencies attach different importance to each of the social indicators. The public policy implication is that social rating agencies need to become more transparent, to reduce the information asymmetries between heterogenous socially motivated investors and the focal MFI.acceptedVersio

The effectiveness of the microcredit programme in Bangladesh

Since 1978, ASA has worked with poor vulnerable people to improve their socioeconomic status through delivering microcredit programmes in Bangladesh. This study aims at examining the effectiveness of the ASA microcredit programmes. It finds that ASA plays an important role in increasing the socioeconomic status of its beneficiaries and that there is a significant positive effect of the duration of involvement with ASA. Further, the effectiveness of the microcredit programme decreases with lack of sufficient amount of loans and training provision