This paper attempts to utilize microfinance as a tool for strategic Corporate Social Responsibility (CSR) to be used by Consumer Credit Financial Service companies.
Microfinance is similar to Consumer Credit Financial Service companies in that its economic function is used to smooth consumption, it does not require collateral, and it entails high transaction cost, etc. Thus, Consumer Credit Financial Service companies’ know-how can be used to Microfinance Institutions effectively.
The concept “CSR” does not have definite definition, and its ultimate goal is not defined, either. I want to define “CSR” as a tool for making advantage in market competition, and ultimately, as a strategy for profit making.
As CSR is defined as a strategy for profit making, microfinance can be used as one of the effective tools to reach this goal. I am going to explain how microfinance is related to Consumer Credit Financial Service, then how microfinance can be used to promote CSR by Consumer Credit Financial Service companies.
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