Comments on: Microfinance Corporate Governance: Is It Special? (Part One) http://cfi-blog.org/2014/02/21/microfinance-corporate-governance-is-it-special-part-one/ Fri, 04 Jul 2014 09:45:43 +0000 hourly 1 http://wordpress.com/ By: Joshua Goldstein http://cfi-blog.org/2014/02/21/microfinance-corporate-governance-is-it-special-part-one/#comment-35980 Mon, 24 Feb 2014 21:09:19 +0000 http://cfi-blog.org/?p=14052#comment-35980 Bob, a valuable contribution. Thank you. The way that the focus of an MFI can shift away from its original social mission when it becomes regulated, is an ongoing concern, to be sure. Perhaps having a “social audit” committee, as John Hatch says that the Finca Board has instituted, can make a positive difference in this regard.

]]> By: Karla Brom http://cfi-blog.org/2014/02/21/microfinance-corporate-governance-is-it-special-part-one/#comment-35766 Sun, 23 Feb 2014 01:41:19 +0000 http://cfi-blog.org/?p=14052#comment-35766 I am looking forward to part 2 of this blog. Of course every sector has its specific challenges and issues. There may be some parallels in the governance challenges of a private enterprise going public, a state owned enterprise privatizing, etc. Also look at credit unions and cooperatives and how they have handled the governance issues specific to their ownership structure.

It is absolutely necessary to take into account the specifics of the microfinance sector and indeed of individual institutions. I just worry that by saying that microfinance is “different” we might ignore valuable lessons already learned in other sectors.

]]> By: Alex Counts http://cfi-blog.org/2014/02/21/microfinance-corporate-governance-is-it-special-part-one/#comment-35590 Fri, 21 Feb 2014 15:21:49 +0000 http://cfi-blog.org/?p=14052#comment-35590 This is a helpful blog — I look forward to part two. Corporate governance of double bottom line or triple bottom line organizations are inherently complex and different in some important ways from traditional businesses or non-profits. Microfinance has some special wrinkles. One is due to the legacy and potential of moments when MFIs can not just break even but earn high profits (which can lead to major controversy, as it did in India, that harmed an entire sector/ecosystem). Another is due to the legacy and potential of MFIs to involve clients in ownership and governance, like Grameen Bank did from its outset — a feature that has helped ward off government efforts to take the bank over during the last three years.

]]>