How does microfinance fit with our developing definition?

[Erica Witthaus]

This is "doing well by doing good" with an international flair. Some may recognize the name Muhammad Yunus, winner of 2006 Nobel Peace prize. For those who do not, he is the founder of Grameen Bank, and one of the key innovators of the concept of microfinance. To learn more about Dr. Yunus' work click here.

The concept of microfinance and its social benefits are being clearly demonstrated. This success noted by folks whose names you will certainly recognize: Pierre Omidyar & Bill Gates following, either as investors or donors to the movement.

The question I would like to pose is, are we willing to entertain that social responsibility includes the global community and isn't always centered on the environment?

Thoughts?

[Debbie Hopen]

Last year, I did quite a bit of research on the Grameen Bank and the other businesses it has generated. Generally, the news is good and the opportunity for micro-financing to create sustainable outcomes for members of the global community who fall outside traditional approaches is excellent.

There is no doubt in my mind that efforts of this nature fit within the scope of social responsibility. The April 2009 issue of The Journal for Quality and Participation points out that ISO 26000, the standard on social responsibility that currently is under development, includes community involvement and development as one of seven core areas. “Community involvement and development
addresses issues related to two interrelated areas of concern. The first is an organization’s involvement in the community, which concerns the relationships between the organization and other
organizations and institutions in the communities where they operate. The second is development,
the process by which economic, social, cultural, political, and environmental dimensions of the society improve thus promoting higher levels of well-being.”

[Suzanne]

Ah, now this is a great question. I believe that SR is much broader than the environment. It's about efficiencies and accountability in an organization. It's about being ethical, about caring what your customers say they want and need. It's about a work environment where people feel they're safe and fairly treated, about knowing something about your suppliers and their ethics and workplace environment. I'm aware of Dr. Yunus' work, and amazed by what he has been able to accomplish and the impact of that. It sounds so "easy" and yet we tend to think everything that might have that kind of impact is hard. Thanks for posing the question--what do others think?