Sa-Dhan had drafted a Code of Conduct for its members in 2006. It started data collection on September 22nd 2010 using a reporting sheet that was developed in consultation with members and stakeholders. Simultaneously, it also made efforts to validate the data sent by MFIs regarding their adherence with the Code of Conduct.
M2i helped Sa-Dhan develop the validation tool using its ADDO framework. This tool checks adherence of the MFI to the various Conduct of Conduct dimensions and looks at the Code from four perspectives
- Approval: MFI must be aware of Conduct of Conduct issues and there should be willingness and express approval from the board that the Conduct of Conduct will be adhered to.
- Documentation: Policies and practices confirming to the Conduct of Conduct would need to be clearly and unambiguously documented in operational manuals etc.
- Dissemination: Policies and procedures adopted would need to be clearly disseminated across the organization through trainings, circulars and other communications.
Observance: External assessment at client level to ensure that that the prescribed policies are being followed in practice.