Learning from Poverty: Why Business Schools Should Address Poverty, and How They Can Go About It.

In the past few years, business schools have begun to address poverty issues in their teaching, learning and curricula. While this is a positive development, the arguments for reconfiguring educational programs to address such matters remain undeveloped, with much of the impetus for such endeavors rooted in calls for social responsibility in the United Nations Millennium Development Goals, the Social Compact, the Principles for Responsible Management Education and benchmarks such as ISO 26000. This article seeks to clarify the pedagogical grounds for integrating poverty issues in management education by examining the intellectual and personal development benefits of doing so. By critically examining four modes of business involvement in poverty reduction, the article shows how such initiatives can be used as intellectual lenses through which to view the complex and often paradoxical interconnections between socioeconomic and environmental systems. It is thus concluded that a consideration of poverty issues is not a marginal matter, but is key to grasping the 21st century complexities of global business and management

The effectiveness of the microcredit programme in Bangladesh

Since 1978, ASA has worked with poor vulnerable people to improve their socioeconomic status through delivering microcredit programmes in Bangladesh. This study aims at examining the effectiveness of the ASA microcredit programmes. It finds that ASA plays an important role in increasing the socioeconomic status of its beneficiaries and that there is a significant positive effect of the duration of involvement with ASA. Further, the effectiveness of the microcredit programme decreases with lack of sufficient amount of loans and training provision

Subjectivity in Credit Allocation to Micro-Entrepreneurs: Evidence from Brazil

This paper estimates the impact of loan officer subjectivity on microcredit granting by exploiting an exceptionally detailed database from a Brazilian microfinance institution. The loan officers collect field data, meet with applicants, and make recommendations to the credit committee, which has the final say on both loan approval and loan size (LS). The loan officer’s subjectivity is captured through gender bias. Our estimations indeed show subjective gender gap in LS. This gap is almost exclusively attributable to loan officers. We interpret this finding as evidence that, despite monitoring and wage incentivization, microcredit officers let their subjective preferences interfere with loan granting. We conclude by suggesting alternative means to curb subjectivity in credit allocation to micro-entrepreneurs.SCOPUS: ar.jinfo:eu-repo/semantics/publishe