Spotlights: Ethics in Economic Life

A loan officer records savings and credit transactions for a women's group in Pakistan.
Photo: AKF/Jean-Luc RayThe ethical underpinnings of the AKDN require that its component institutions operate with the highest ethical standards. The administrative structures that are put in place, the strict codes of conduct that are enforced and the benchmarks which are used to measure performance are also meant to provide examples of good governance that can be emulated, whether it is in the management of finances at the village level or on a national scale. In AKDN’s experience, the efforts expended on good governance directly impact the ability to alleviate poverty at all levels.

“The obligation to maintain the highest level of integrity in the management of donated resources, and of the institutions benefiting from them, is grounded in our faith. It is critical to the realisation of the purposes of all gifts, to the continuation and growth of philanthropic giving, and for credibility in the eyes of the public.”
Speech by His Highness the Aga Khan, The Conference on Indigenous Philanthropy, Islamabad, Pakistan
16-17 October 2000The First MicroFinanceBanks (part of the Aga Khan Agency for Microfinance), for example, operate in accordance with the highest levels of international corporate governance while committing to developing local leaders and administrators who respect and work to these same standards.

A Board of Directors is charged with oversight. Financial statements are kept in accordance with International Financial Reporting Standards (IFRS) and are audited annually in accordance with International Standards of Auditing (ISA). In addition to IFRS compliance, the Banks also seek to meet the supplementary requirements laid out in the Disclosure Guidelines published by the Consultative Group to Assist the Poor (CGAP), which is affiliated with the World Bank. In 2006, The First MicroFinanceBank Limited (FMFB) in Pakistan received one of the coveted “transparency” awards from CGAP.

ALSO SEE:
Aga Khan Agency for Microfinance
Pakistan

2007 Annual Report (2007)
Language: English
Size: 3.21 MB