Social Responsibility
Main principles of Mol Bulak Finance's business philosophy are: positive social impact alongside with the financial results, responsible lending, staff development and sharing financial results with the team, empowering women, and environmental sustainability. These principles are incorporated into the policies and procedures, delivered to staff through trainings and enforced daily.
Social responsibility is more than a timely allocation of taxes to the budget, strict observance of laws and decent wages. For LLC "MCC Mol Bulak Finance" (hereinafter referred to as "Mol Bulak Finance" or "Company") social responsibility is voluntary and purposefully taken commitment to contribute to the improvement of the lives of employees, clients, community and country.
The Company aims to participate in public life of the regions, to consider the interests of the employees, interact with various public organizations, to make all possible efforts to reduce the detrimental impact on the environment, as well as to do everything possible to attract partners and clients to equally responsible attitude to environmental protection.
1. Social Impact and Responsible Lending
According to the CGAP "Microfinance, and the impact it produces, go beyond just business loans. The poor use financial services not only for business investment in their micro enterprises but also to invest in health and education, to manage household emergencies, and to meet the wide variety of other cash needs that they encounter".* Mol Bulak Finance is striving to provide large number of financially excluded people with targeted financial services for betterment of their lives.
Although access to financial services can lead to improvements in the well-being of microfinance customers, an ill-advised loan can lead to excessive debt that is impossible to repay. Mol Bulak Finance observes a principle to "do no harm" in its operations. Our loan policy and procedures provide for a careful assessment of each client's financial needs and business capacity in order to insure that every loan will only have a positive impact on the client.
As a value-added service financial education is embedded into the loan process of the company and clients receive financial advice at each loan disbursement.
The Company realizes other initiatives aimed at addressing social issues:
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Revival Foundation
This project was implemented by "Mol Bulak Finance" in cooperation with juridical firm "Kalikova and Associates" and microfinance company "Bai Tushum and Partners". The main goal of the project - rehabilitation of housing and stimulation of economic activity of entrepreneurs in Osh and Jalalabad, who were affected by ethnic conflict in June. During 2010 the Foundation disbursed 17 loans totaling 1 400 000 soms. These seventeen clients were selected from more than hundred applicants for receiving the Foundation's financing. The loans were disbursed under the concessional terms (7% annually), and one loan was disbursed under non-interest-bearing basis. All the loans were directed by the borrowers of the Foundation to business restoration, which was partially or fully affected in result of events which had place.
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Foundation for Support of New Generation
The Foundation was established by the management of the Company. Due to the contribution of each of the shareholders, as well as generous financial support of Mol Bulak Finance's member - Mr. Klimov, in 2010 the Foundation launched the first pilot project - collaboration with secondary school #14. Within this project the Foundation identified priority areas to be realized, such as capacity development of young generation, providing school with necessary equipments and teaching materials, involvement of pupils in sport sections, creation of hobby groups.
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"Helping Good People" Project
The "Helping good people" Project is aimed to implement social objectives on promotion of the social responsibility ideas. Within this project the Company supports the clients, who do good to the others. In 2010 two initiatives were implemented:
- Orphanage in Orlovka village;
- Rest home for the elderly people in Kemin
Support of SIFE (Students in Free Enterprises)
As general sponsor of SIFE National Competitions, Mol Bulak Finance provided an opportunity for students to present their projects, aimed at creating and improving socio-economic conditions of the society and at preserving the environment.
Other social initiatives:
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The support of Rehabilitation Center for handicapped children
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The support of families of killed students of MIA Academy
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Humanitarian aid to affected people during Osh events in June 2010
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Financial support of students
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Sponsorship of charity events and young talents.
2. Internal Social Impact
Mol Bulak Finance considers its employees to be a key factor for success of the planned organizational development. Adopted in March 2008 our Corporate Policy promotes high standards of corporate culture and provides for creation of a friendly and safe environment for our employees. The Company ensures an on-going dialogue between junior staff and management; and the opinion and suggestions of every employee are highly valued.
Company plans to invest significantly in its employees' professional development a lot. A Share Profit Plan will be implemented in 2008 to share the company's returns among all staff and key employees will become co-owners of the company.
Empowering women
Women take an active part in the decision making process at the Company. Women are represented on the management team and play a key role in everyday operations.
Around 80% of our clients are women. World experience in microfinance shows that women are more financially responsible with better repayment rates: they are more likely than men to invest their increased income in the household and the future of their children.
Environmental Sustainability
We care about the natural environment of our beautiful country and believe that every company can contribute to preventing ecological damage by implementing environmentally friendly practices.
Mol Bulak Finance provides mandatory environmental training for all staff members, uses environmentally sound practices and does not provide loans for environmentally harmful practices.
Mol Bulak Finance and the UNDP Environment Protection for Sustainable Development Programme signed a memorandum of cooperation to enhance the social and environmental responsibility. Within the memorandum thematic trainings were conducted for Mol Bulak Finance employees. The purpose of the training is to increase the potential of staff in the field of social and environmental responsibility using the elements of strategic environmental assessment in the lending process, as well as practical acquaintance with the methodological features of the environmental risk assessment.
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