28 Feb '12, 2pm

Micro-Credit Sector Scandal Reinforces Need for Impact Investment Standards

Micro-Credit Sector Scandal Reinforces Need for Impact Investment Standards

The sky is falling! As a long-time advocate of impact investing , I am chilled by the news that debt collectors for SKS, an Indian publicly traded micro-credit corporation , may have pushed clients to suicide. Add to that, the steady drumbeat of reports that charter schools in Georgia , Minnesota and other states are under-performing. Top it off with the scandals involving Kaplan and other for-profit colleges, and it really seems as if for-profit efforts to address social problems are doomed to failure. If impact investors don’t find a way to define and police themselves, they’re going to be faced with draconian regulations that prevent them from operating at all, as happened in the Indian state of Andhrah Pradesh when news of the suicides first came out. Yes, on one level SKS is just another example of the greed that fueled the recent economic collapse, but things have go...

Full article: http://www.triplepundit.com/2012/02/micro-credit-sector-s...

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