Journal Article

Supporting Social Enterprises to Support Vulnerable Consumers: The Example of Community Development Finance Institutions and Financial Exclusion

Wilson, Therese Ann

2012

Overview

This article examines the role of social enterprises in providing fair services to vulnerable consumers, focusing on the vulnerability of low-income consumers to high-cost exploitative credit as a result of a lack of access to mainstream financial services. It will be argued that both the state and the corporate sector have a role to play in providing the means with which vulnerable consumers can overcome financial exclusion, through access to fair services. However, this cannot and should not be achieved through increased welfare provision or through reliance on corporate social responsibility initiatives alone. In rejecting solutions focused on increased welfare or voluntary corporate social responsibility initiatives, this article suggests that regulatory support for the development and growth of social enterprises, such as community development finance institutions, will most effectively give rise to a social framework in which vulnerability and unequal opportunity with respect to financial services is addressed.

• Publisher: Springer US,Springer,Springer Nature B.V
• Subject: Access / business enterprises / Commercial Law / Community development / Community development finance institutions / Companies / Consumer protection / Consumers / consumers (people) / Consumption / corporate social responsibility / Costs / credit / Development finance / Economic development / Economic Policy / Equal opportunities / Equal opportunity / Equality of opportunity / Finance / Finance companies / Financial exclusion / Financial institutions / Financial services / Financial systems / issues and policy / Low income groups / low-income population / Marketing / Original Paper / Public finance / Reflexive regulation / Regulation / Regulation of financial institutions / Services / Social development / Social economics / Social enterprise / Social entrepreneurship / Social exclusion / Social responsibility / Social Sciences / Studies / Vouchers / Vulnerability / Welfare