PHL295H1 Lecture Notes - Lecture 12: Business Ethics, Small Business, Grameen Bank
Document Summary
Functions of finance (3: circulation of money by gathering ppl"s savings, create competition to finance best firms, finance deals with economic risks. Class 12: access to bank services and microfinance. Microfinance specific type of institution / activity that might bring benefits when following ethical guidelines. General idea: financial institutions should secure everyone"s access to financial services through microfinance. Outline: what is microfinance, the ethical benefits of microfinance, the ethical problems raised by microfinance, conclusions: individuals / institutions, final writing assignment and final exam. The main function of finance = providing money necessary for economic activities: the problem: poor ppl tend to be excluded from financial services. Reasons (supply side) banks exclude ppl based on costs (poor ppl usually small loans) More costly to manage small loans than large loans. Risky repaying loan is harder for poor ppl. Specific needs / ways to manage money (infamous)
