Micawber Capital: For Mission or Profit?
In July 2010 Robert Drake, senior director at Micawber Capital, one of India's largest microfinance organizations, needed to recommend a corporate structure and organization for Micawber after its scheduled IPO in August 2010.
The IPO would bring to Micawber new stakeholders, primarily financial institutions. Drake was skeptical that the new investors shared Micawber's commitment to help alleviate poverty in rural India through microcredit loans; he assumed their primary interest was a good return on their investments. The two objectives—increasing ROI and meeting the financial needs of the poor—seemed at odds with each other.
Drake had to consider how the interests of clients and investors would be represented in strategic decisions so that they balanced the conflicting values of the stakeholders.
David Austen-Smith, Jeffery C. Burrell
Austen-Smith, David, and Jeffery C. Burrell. Micawber Capital: For Mission or Profit?. Case 5-112-005 (KEL712).