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A 2010 MBA graduate explored her options for full-time employment. She found Ethical Business Company (EBC) and was instantly intrigued. Not only did the company consult…
A 2010 MBA graduate explored her options for full-time employment. She found Ethical Business Company (EBC) and was instantly intrigued. Not only did the company consult on many of the ethical issues that were important to her, but it also had a flat organizational structure. Although it was a riskier choice than going with a larger and more established firm, she was excited about being able to use her skills in direct interaction with clients and senior executives, rather than having them hidden beneath multiple layers of hierarchy. But after three weeks at EBC, she wonders if a flat structure is right for all companies and all employees or if there are certain companies and people who fit better in the hierarchy more than others.
Recently, the Indian Congress asked a distinguished committee of experts to analyze and make policy recommendations about India's Cooperative Financial Institutions…
Recently, the Indian Congress asked a distinguished committee of experts to analyze and make policy recommendations about India's Cooperative Financial Institutions (CFIs), which included organizations such as credit unions and cooperative banks. One committee member, Mohan R. Narayan, a leading economist at a prestigious Indian university, was enthusiastic about the job; it was an opportunity to help millions of rural poor and to have a positive effect on the country. Some poor farmers, deeply in debts to money-lenders, had been reported to resort to committing suicide when they faced with draught or other catastrophes and saw little reason to continue living. Well-functioning CFIs would certainly help restore hope and boost income for the rural poor. But he knew the system had a long history of overregulation, financial laxity, and corruption. Creating an actionable and clear strategy would be no easy task. The case, written at the invitation of the World Bank to study the challenges of building inclusive financial system in emerging countries, invites students to discuss 1) The roles and responsibilities of financial institutions in poverty-reduction and economic development, 2) the benefits and risks of using public versus private institutions to aid development, and more specifically, 3) the economics of credit cooperatives—in particular how they function in an emerging market setting.
The case chronicles the development of Lumni, Inc., an international start-up offering innovative mechanisms for financing higher education. It focuses on: the details of…
The case chronicles the development of Lumni, Inc., an international start-up offering innovative mechanisms for financing higher education. It focuses on: the details of decision making required to transform an idea into a viable business; building partnerships; the challenge associated with raising venture capital; and the challenges of creating a new market where human capital can be traded to finance higher education.
This chapter suggests that there are at least five main challenges to the development of stakeholder theory as it currently stands. We need more research on understanding…
This chapter suggests that there are at least five main challenges to the development of stakeholder theory as it currently stands. We need more research on understanding what counts as the total performance of a business; accounting for stakeholders rather than accounting only for investors; explaining real stakeholder behavior; formulating smart public policy given stakeholder theory; and rethinking the basics of ethical theory. The chapter explains the issues involved in each challenge and suggests ways to meet the challenge. It is a preliminary report of research in progress as well as a blueprint for how others may join the conversation to develop a more useful stakeholder theory.
The special importance of microfinance institutions (MFIs) in the context of emerging economies is well acknowledged. The success of MFIs is country, culture and…
The special importance of microfinance institutions (MFIs) in the context of emerging economies is well acknowledged. The success of MFIs is country, culture and context-specific. This study aims to capture the organizational sustainability viewpoint of MFIs through the experiences and insights of the managers engaged in running MFIs in an emerging market.
The study follows a qualitative approach and collects primary data through insightful interactions with the senior managers of various Indian MFIs, followed by thematic analysis to identify the factors impacting the sustainability of MFIs. It is supplemented by an extensive systematic literature review to enrich the findings. The identified factors are then analyzed through the lens of a balanced scorecard (BSC) approach to developing a framework in assessing the performance of MFIs operating in similar to this study’s context.
The authors observe that the majority of the studies on MFI sustainability are financial outcome centric. This study adds value by exploring a holistic and organization-centric approach drawing support from stakeholder theory, which emphasizes that the shareholders, employees and customers are equally important for the sustainability of the MFIs.
While the identified sustainability factors would help the practitioners focus upon the factors of improvement, the BSC framework would facilitate the conduct of performance review and taking related decisions thereon for the sustainability of MFIs.
To the best of the authors’ knowledge, this study is the first of its kind to attempt to assess the MFI organizations striving for sustainability through the lens of BSC framework.