Responding to a Crisis at FUNDESER

The Smart Campaign's Client Protection Principle on Fair and Respectful Treatment of Clients requires that financial service providers create a corporate culture that values high ethical standards among staff and ensures that controls exist to prevent, identify, and correct corruption or mistreatment of clients. FUNDESER's efforts in meeting this principle can serve as a good practice example to other institutions. This Smart Note No. 12 describes how the MFI dealt with the aftermath of both the worldwide credit crisis and the internal No Pay Movement (Movimiento No Pago). It explains how the institution overhauled its human resource department in an effort to steer the institution to recovery. Fundersers approach to rebuilding its brand and credibility was to make high ethical standards and sound risk management central to the institutions corporate culture. Additionally, the Smart Note shows the thought process and follow-up strategy that Fundesers board members and senior managers implemented.