M2i discussion note: Independent Directors can help MFIs in Sustainable Value Creation

MFIs where decision making ensures that expectations of stakeholders are met to a reasonable extent, and stakeholder concerns are adequately addressed, can be considered to be moving along a path that leads to sustainable value creation. Independent Directors, ie, those Board members who do not represent the executive-management, or investors and lenders, can play a vital role in sustainable value creation by ensuring a virtuous alignment of diverse expectations and concerns . In this note we discuss three essential characteristics for Independent Directors to create sustainable value for MFIs – Ability-interest, Role clarity and Access to information – and call for sector level initiatives for greater dissemination of best practices in this regard.

Please download the paper by clicking the link below.

Independent Directors & Sustainable Value Creation

Leave a Comment