Performing Citizenship: An Innovative Model of Financial Services for Rural Poor in India.

Arora, Bimal; Ali Kazmi, Syed Bahar

Firms are showing increasing interest in combining innovation and inclusive business models to contribute to sustainable community development. One framework to conceptualize such a business contribution is “corporate citizenship.” This article utilizes, extends, and critically reflects on the framework of corporate citizenship by identifying, explaining, and assessing the citizenship role toward sustainable community development that firms can perform. The article reviews a business model for delivering financial services to the rural communities in India. The business model is developed by a private firm “A Little World (ALW),” and the article argues that the firm and its sister not-for-profit organization Zero Mass Foundation (ZMF) perform a strategic bridge role between public sector organizations and rural communities and assist in achieving their respective developmental goals. Using this case study, the article argues that firms can act as corporate citizens through a strategic bridge role. In so doing, firms can change political and economic infrastructures by inducing institutional, governance, and cultural changes. While the article underlines the positive contributions, it also raises questions about the extension of market rationality in the public domain and its potential influence on governmental development policies.

INDIA; SOCIAL responsibility of business; FINANCIAL services industry; RURAL poor; COMMUNITY development; INDIAN economy, 1991-; SUSTAINABLE communities

Business & Society, 2012, Vol 51, Issue 3, p450

0007-6503

Academic Journal

10.1177/0007650312446784