Abstract
The purpose of this article is to present and discuss some of the best practices of financial industry, in three emerging economies: Colombia, Ecuador, and Peru. The main thesis is that, notwithstanding the importance of certain specific deficiencies, such as an inadequate regulatory context or the lack of financial education among the population, the main factor that explains the low banking levels in emerging and developing economies, affecting mostly lower-income segments, is the use of inefficient financial service distribution models. In connection with this thesis, we will try to show that traditional financial institutions, both in developing countries and in the advanced economies have a special social responsibility to help create an efficient financial system that makes saving and borrowing instruments available to the greatest possible number of citizens.
Similar content being viewed by others
References
Adams D., D. Graham D., J. D. von Pischke: 1984, Undermining Rural Development with Cheap Credit. Westview Press, Boulder, CO.
Arch G.: 2005, Microfinance and Development: Risk and Return from a Policy Outcome Perspective, Journal of Banking Regulation, 6(3) 227–245
Argandoña A.: 1995, The Treatment of Ethical Problems in Financial Institutions and Markets. In: A. Argandoña (eds), The Ethical Dimension of Financial Institutions and Markets. pp. 1–26. Springer, Berlin
Argandoña, A.: 2006, From Ethical Responsibility to Corporate Social Responsibility. Presented at the 6th International Symposium on Catholic Social Thought and Management Education “The Good Company. Catholic Social Thought and Corporate Social Responsibility in Dialogue”, Rome, 5–7 October
Banco Interamericano de Desarrollo: 2005, Desencadenar el crédito. Como ampliar y estabilizar la banca. Informe 2005. Progreso económico y social en América Latina (BID, Washington, DC)
Beck, T., A. Demirguc-Kunt and M. S. Martinez-Peira: 2005, Reaching Out: Access to and Use of Banking Services Across Countries. World Bank, Development Research Group, Finance Team, Washington, DC, Policy Research Working Paper No. 3754
Brau J. C., G. M. Woller: 2004, ‹Microfinance: A Comprehensive Review of the Existing Literature. Journal of Entrepreneurial Finance and Business Ventures 9(1), 1–26
CGAP – Consultative Group to Assist the Poor, The World Bank: 2006a, Good Practice Guidelines for Funders of Microfinance, 2nd Edition (CGAP, Washington, DC)
CGAP – Consultative Group to Assist the Poor, The World Bank: 2006b, Using Technology to Build Inclusive Financial Systems. Focus Note No. 32, January
De la Cuesta-González M., M. J. Muñoz-Torres, M. A. Fernández-Izquierdo: 2006, Analysis of Social Performance in the Spanish Financial Industry Through Public Data. A Proposal. Journal of Business Ethics, 69(3) 289–304.
Dunford C.: 2000, ‹In Search of ‹Sound Practices’ for Microfinance’, Journal of Microfinance 2, 6–12.
Espinosa R.: 2006, Las microfinanzas en Ecuador. Superintendencia de Bancos y Seguros del Ecuador, Quito
Fomin – Fondo Multilateral de Inversiones: 2006, Remittances to Latin America and the Caribbean (Banco Interamericano de Desarrollo, Washington, DC), May
Francis G., J. Holloway 2007, What Have We Learned? Themes from the Literature on Best-Practice Benchmarking. International Journal of Marketing Reviews 9(3), 171–189
Garrido C. 2005, Desarrollo económico y procesos de financiamiento en México. Siglo XXI, Mexico, D.F
Ghatak M., T. W. Guinnane 1999, The Economics of Lending with Joint Liability: Theory and Practice. Journal of Development Economics 60(1), 195–228
Gilman, S. C.: 2005, Ethics Codes and Codes of Conduct as Tools for Promoting an Ethical and Professional Public Service: Comparative Successes and Lessons. Prepared for the PREM, World Bank, Washington DC, Winter
Global Development Research Center: 1995, Microfinance Institutions Analysis: Summary of Findings. www.gdrc.org/icm/inspire/maximiz.html
Goggin N. 2006, Ideology, Mission or Just a Technique?. Finance and Common Good 25, 30–36
González-Vega, C.: 1998, Microfinance: Broader Achievements and New Challenges. Rural Finance Program, Department of Agricultural, Environmental and Development Economics, The Ohio State University, Economics and Sociology Occasional Paper No. 2518, October
Hardy, D. C., P. Holden and V. Prokopenko: 2002, Microfinance Institutions and Public Policy. IMF Working Paper WP/02/159, Washington, DC
Hinojosa, R.: 2003, Transnational Migration, Remittances and Development in North America: Globalization Lessons from the Oaxaca-California Transnational Village/Community Modeling Project. NAID Center UCLA. Los Angeles, CA, October
Kirkpatrick C., S. M. Maimbo 2002, The Implications of the Evolving Microfinance Agenda for Regulatory and Supervisory Policy. Development Policy Review 20(3), 293–304.
Lacalle-Calderon M., S. Rico-Garrido 2006, Microcredits: An Opportunity for Labor Inclusion. Finance and Common Good 25, 94–100
Leseure M. J., J. Bauer, K. Birdi, A. Neely, D. Denyer 2004, Adoption of Promising Practices: A Systematic Review of the Evidence. International Journal of Management Reviews 5(6), 169–190
Lopez C., E. Rhyne 2003, The Service Company Model: A New Strategy for Commercial Banks in Microfinance ACCION InShigt 6, 1–14
Margolis J., J. Walsh 2003, Misery Loves Companies: Rethinking Social Initiatives By Business. Administrative Science Quarterly 48(2), 268–305
Marulanda, B. and M. Paredes: 2006, Acceso a servicios financieros en Colombia y políticas para promoverlos a través de instituciones formales. Diagnóstico (USAID Services Group, Bogota)
Mayoux, L.: 2003, ‹Women’s Empowerment and Participation in Micro-Finance: Evidence, Issues and Ways Forward’, in L. Mayoux (ed.), Sustainable Learning for Women’s Empowerment: Ways Forward in Microfinance. www.oneworldaction.org
Mayoux, L.: 2005, Women’s Empowerment Through Sustainable Microfinance: Rethinking ‹Best Practice’. September. www.genfinance.net
Murdoch J. 1999, The Microfinance Promise Journal of Economic Literature 37(4), 1569–1614
Murdoch J. 2000, The Microfinance Schism. World Development 28(4), 617–629
Orozco M.: 2004, Transnationalism and Development: Trends and Opportunities in Latin America. Inter-American Dialogue, Washington, D.C
Orozco M. 2006, International Flows of Remittances: Cost, Competition and Financial Access in Latin America and the Caribbean – Toward an Industry Scorecard. Inter-American Dialogue, Washington, D.C
Prior, F.: 2007a, Soluciones al problema del bajo acceso a los servicios financieros en Colombia, Ecuador y Perú: Revisión de mejores prácticas en la prestación de servicios financieros (IESE Business School, Barcelona)
Prior F. 2007b, La bancarización de las remesas y la creación de sistemas financieros más inclusivos en los países andinos. IESE Business School, Barcelona.
Prior F. 2007c, Análisis de niveles de bancarización y revisión de la prestación de servicios financieros en los países del Magreb. IESE Business School, Barcelona.
Prior, F. and A. Argandoña: 2007, Credit Accessibility and Corporate Social Responsibility in Financial Institutions: The Case of Microfinance. Presented at the EBEN Research Conference 2007, “Finance and Society in Ethical Perspective”, Bergamo, 21–23 June
Schreiner M. 1999, Aspects of Outreach: A Framework for the Discussion of the Social Benefits of Microfinance. Microfinance Risk Management and Center for Social Development, Washington University, St. Louis, MO
Schreiner, M.: 2003, Scoring: The Next Breakthrough in Microcredit? CGAP Occasional Paper No. 7, January
Solo T. M., A. Manroth 2003, Access to Financial Services in Colombia. The ‹unbanked’ in Bogotá’, World Bank, Washington, DC
Wolfram Cox, J. R., L. Mann, D. Samson 1997, Benchmarking as a Mixed Metaphor: Disentangling Assumptions of Competition and Collaboration. Journal of Management Studies, 34(2), 285–314
World Bank: 2005, World Development Indicators, 2005. www.worldbank.org
World Bank: 2006, Getting Credit, 2006. www.worldbank.org
Yarrow D., P. Hanson, A. Robson 2004, Made in the 21st Century: How Far have We Come on the Journey to Excellence?. Total Quality Management, 15, 829–839
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Prior, F., Argandoña, A. Best Practices in Credit Accessibility and Corporate Social Responsibility in Financial Institutions. J Bus Ethics 87 (Suppl 1), 251–265 (2009). https://doi.org/10.1007/s10551-008-9799-8
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-008-9799-8