An Evaluation of Socio-Economic Development Through Partnership of Micro-Finance and Corporate Social Responsibility

Abstract

Social responsibility involves many social issues like environmental, caring of elders, food for children and poor, disabled persons, homeless etcetera. Microfinance as a tool of corporate social responsibility provides small loans with some sort of repayment criteria, savings and other financial services to the impoverished over the world. So it has dual advantages - first it aids emerging entrepreneurs to become socially responsible and second it encourages economic development. With increasing importance of social responsibility, many big corporations have made partnership with major microfinance institutions by providing financial aid, management skills and employee training. As credit lines are easily opened because of microfinance, people who struggle to grow during the time of financial hardship or natural disaster can access small loans to survive till their financial status improves. The strong idea behind microfinance is to offer independency and economic stability to every class of society, which helps to recover their communities from social and economic downfall and thus empowers Socio-Economic status. So the paper deals to evaluate the increased level of Social and economic development because of micro-finance and CSR partnership. At the end some suggestions are incorporated to give new directions to MF-CSR program to fulfill new aspirations of people.