Our Social Performance Program
KREDIT addresses the real needs of their targeted clients. This means that before starting a projects/programs, KREDIT conducts assessments based on the needs of the clients, working closely alongside staff, villagers and local authorities to ensure that they offer real needs of the communities. Some of our social performance programs are permanent while some are need- based programs. KREDIT will sharpen our permanent programs from one to another time so that in the future KREDIT will become main player to these selected issues.
A- Social responsibilities towards clients
Financial training is specially designed and provided directly by our staff to poor clients with an aim at increasing their knowledge and good practice on family financial management. The training communicates to clients importance of savings, ways to increase their daily income, decrease unnecessary expenses, cash flow projection and management, also smart ways to select financial partners. KREDIT also provides this training to normal villagers and staff of our partners. Early 2014, KREDIT was selected by National Bank of Cambodia (NBC) and Cambodia Microfinance Association (CMA) to produce a documentary about the financial training for Global Money Week, arranged by Child and Youth Finance International. One of KREDIT’s senior manager was invited to be an Editorial Board to a nationwide- promoted program “Money and Life” of OikoCredit and Cambodia Microfinance Institution (CMI). KREDIT is also the only Cambodian MFI to be invited by Child and Youth Finance International to join the High-level Stakeholders Meeting in the US one the topic “Chance for Change”.
Special Agriculture Training
This special training is designed to equip the rural poorest and poor households with their most preferred agriculture skill. The group members discuss and select a topic that they mostly like to learn while trainers are experts from KREDIT’s development partners. The training conducted on both ways: theory and on-hand practice with a demonstration farm per training and usually it takes 2 days at their villages. During the on-hand training, all members are getting involved in all activities on the fields this will help them to see and practice. In addition, a follow- up program is also arranged to give trainers and trainees an opportunity to talk about their experiences when putting theories in to their own practice.
To promote child education and development, KREDIT developed and provided parenting training to our staff, poor clients, and staff of our partners. We want to see perceptions of poorest and poor clients changed by investing more resources towards the education and welfare of their children instead of sending them to work lace.
Contribution to Improvement of Hygiene and Sanitation
Since 2012 and under partnership approach with specialized NGOs, KREDIT has started lending small loans to the rural households for a specific purpose is purchasing latrine and water filter. This intervention aims at contribution to hygiene and sanitation improvement at rural community. Within 2014, KREDIT was also invited by World Bank to join a workshop in Singapore about sanitation and hygiene. KREDIT also studies and provides some sanitation materials to rural school so that the students can clean their and create a good habit of cleaning hand before eating food.
Under support from our partners: ERIKS, Kiva, and Vittana, KREDIT successfully developed and started lending education loan to adult with good academic performance but cannot pursue their higher education or vocational skills training due to their financial constraints. KREDIT is committed to creation of product features which are really responsive to the educational need of the adult. Many universities and schools have partnered with KREDIT to promote this new product.
Loan for People with Disabilities
Cambodia was recorded as one of the highest rates of people with disabilities in the world after prolonged civil war and consequential poverty. KREDIT is really committed to helping this vulnerable group and finally KREDIT became the first Cambodian microfinance institution who partnered with Handicap International (HI) to provide special financial accessibility for people with disabilities.
In- house micro insurance
For clients who are in Vulnerable Unit Service (VSU) and they died, KREDIT will write off balanced loan and additionally gives a package of money to their family for funeral ceremony.
Client Protection Principle
With strong commitment to mainstreaming Client Protection Principles (CPP) in to the operations, KREDIT endorsed with SMART campaign and has started working with specialized consultant under a support from CAM and AFD.
KREDIT’s CPP will be developed according to 7 Principles. The principles are the minimum standards that clients should expect to receive when doing business with KREDIT. The principles include appropriate product design and delivery, prevention of over-indebtedness, transparency, responsible pricing, fair and respectful treatment of clients, privacy of client data, and mechanisms for complaint resolution. The training on the principles will be provided to all staff so that they can understand the concepts and be able to provide quality services to the clients.
B- Social Responsibility toward Staffs
KREDIT really cares of working environment, benefits as well as career development of staff. KREDIT follows all regulation and Prakas issued by ministry of labor. KREDIT is also committed to provision of competitive benefit package to the staff. Benchmark of the industry by working with some MFIs through a consultancy services was regularly conducted.
KREDIT believes that one of core success of KREDIT’s business is staff. With this believe, KREDIT carefully studied and provides different types of training to ensure our staff are competent enough to perform their roles and duties with high quality. The training include internal, external, oversea, and degree.
KREDIT rejects all discrimination based on race, religion, gender or political allegiances, and only focuses on staff competency and ethics. KREDIT provides equal opportunities to all staff and the public when applying within KREDIT.
C- Social Responsibility to Community and Environment:
Contribution to Reduction of Traffic Accident
Having seen traffic accident is the hot issue of the country, from year to another year, KREDIT has continued getting more involvement in this intervention. Radio program to build awareness of people about traffic law still continues and many more helmets produced and given to staff and clients. Workshop with high schools and universities to build awareness about traffic law, banner at each traffic light, and other promotional leaflets have been also arranged.
Environmental and Social Policy
KREDIT recognizes the importance and relevance of social and environmental risk management in microfinance institutions. KREDIT is committed to identifying and addressing all short, medium, and long-term social and environmental risks associated with its activities by effective sound social and environmental risk management at the microfinance level. KREDIT developed an Environmental and Social Policy and recently get it approved by the BoD. The policy and an exclusive list planned to be trained to staff in 2015. This policy outlines the ways that KREDIT will put into practice its commitment to promote environmental and social sustainability.
Volunteer and Internship Program
This program was established to provide volunteers and interns with an opportunity to get real work experience with KREDIT.
Need- based programs
KREDIT also has another program called “Need- Based Program” to respond to the real needs of the clients and communities we are working with. Under this programs, we have done some activities: supporting pump well, channel renovation, kindergarten building, schooling materials given to rural school, etc. Clear criteria to select projects to be supported by the funds is also clearly set.
“KREDIT’s shareholders set aside 5-10% of their yearly net profits for social programs and activities in Cambodia!”