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Social Responsibility Practices in the Marketing of Loans by Microfinance Companies in Ghana, the Views of the Customer

Yaw Brew, Junwu Chai, Samuel Addae-Boateng, Solomon Sarpong

Nana Gyasi by Nana Gyasi
9 March 2023
in Publications
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Abstract

Microfinance companies provide loans and other facilities like savings, insurance, and transfer
services to poor low-income household and microenterprises. It is expected that by the nature of
their customers and services, microfinance companies will be strictly socially responsible in dealing
with customers to protect and preserve their rights, but this is not always the case. This research
observes the views and concerns of customers about the social responsibility practices of
microfinance companies in Ghana, especially, the customer’s right to be informed, to be safe, to
choose, and to be heard. The sample is drawn from two major cities, the Accra Metropolis and
Kumasi Metropolis of Ghana, and the respondents constitute past and present customers of microfinance
companies providing services under the Tier-2 category of microfinance institutions in
Ghana. The analysis of the data shows that respondents perceive microfinance companies having
transacted with not doing much to ensure that the customer’s rights are protected. Based on the
analysis and results of the survey, recommendations are made to managers of microfinance companies
and the Ghana Association of Microfinance companies.

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