Abstract

Author:
MA. LYN F. SILVA

Doi: 10.26480/mmhj.02.2025.67.72

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

The microfinance institutions (MFIs) are instrumental in the social and economic development of the Philippines by rendering various financial services such as loans, savings, and other insurance products to low- and middle-income communities. However, besides financial performance, the effective working of an MFI and sustainability are founded on a moral stand of its employees in their dealings with the members. The study aims to check the ethical orientation of microfinance employees who deal with microfinance members. This study employs quantitative analysis using data from 200 MFI members based in Lucena City, Philippines. This data analysis uses a statistical weighted mean. Transparency, fairness, and accountability were the major ethical dimensions identified that would create the relationship of trust and fairness, especially when dealing with vulnerable groups. Similar to the normative behavior in employees, it is suggested improving communication on terms of loans, improve treatment of members, and enhance handling of complaints. Therefore, it is recommended that MFIs buttress ethical policies and improve training on fair treatment, transparency, and respect to staff who, at the end of the day, must prioritize member interests and promote trust in the relationship. Improved ethical conduct will, however, translate into better client contentment which in turn leads to higher financial returns and greater integrity of the institutions serving MFIs.