Code of Ethics

I. RATIONAL

Chamroeun’s VISION isA leading Cambodian social microfinance institution working to achieve positive and lasting changes in the livelihoods of economically active poor families in a socially responsible manner” and to achieve this vision, Chamroeun has its MISSION as “To improve the livelihoods, skills and self-confidence of poor families in Cambodia by providing them a wide range of responsible microfinance and complementary socio-economic services”

Chamroeun, as a social driven MFI,strongly believes that the code of ethics is a crucialelement of the success of itsbusiness. It setsout framework to regulate its relation and business with both internal and external stakeholders including Board members, clients/partners, employees, other microfinance institutions, suppliers or service providers, government officers, regulators and auditors and investors and funding agencies.

The standard of practices provides the outline for Chamroeun to perform the institution’s values and ethical standards in day-to-day operations in highly effective manner for the benefit of its clients/partners, employees, and communities as a whole.

II. CODE

     1.  CORE VALUE

INTEGRITY –Chamroeun provides financial services and socio-economic services to its partners to enhance their well-being. It achieves this ethically and with transparent, fair, and cost effective methods. This manner is also applied to Chamroeun’s other stakeholders.

QUALITY OF SERVICES - At Chamroeun, we believe that our partners deserve tailored as well as efficient services. We provide these services in a convenient, proactive, and timely manner.

TRANSPARENCY –At Chamroeun, we provide our partners with complete and accurate information about the terms of our financial services. Information is provided in a user-friendly manner to enable our partners to easily understand terms and conditions of our products and services.

FAIR PRACTISES –At Chamroeun, we ensure that the services we provide to our partners as well as the interactions we have with other stakeholders are not unethical or deceptive. We are committed to building relationships that are based on respect, fair treatments, and courtesy.

CONFIDENTIALITY –Privacy of partners and other stakeholders is strictly safeguarded and stored, and such data is only used upon their consents, and they are well informed on specific purposes of data usage.

NON-DISCRIMINATION –Chamroeun considers its partners and other stakeholders as value assets and take all of efforts to make sure that the institution treats them in appropriate manner.

2.  STANDARD OF PRACTICES

Chamroeun will ensure the adherence to the following minimum standard of practices towards itsboard members, clients/partners, employees, other microfinance institutions, suppliers or service providers, government officers, regulators and auditors and investors and funding agencies.

A.   Board members

  1. Directors shall demonstrate their commitment by actively participating in Chamroeun’s decision-making bodies, by regularly attending meetings of the Board and of committees or working groups on which they sit, and by promoting Chamroeun’s reputation and influence at events and in publications.

  2. Directors shall exercise their duties on a voluntary basis. However, they shall be entitled to be reasonably

        reimbursed for travel and living expenses.

 B.   Clients/Partners

  1. Endorsed and implement the Client Protection Principles (CPP) and commit to conduct regular assessments of its practices. The  7 principles are as follows: 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 client complaint resolution;

  2. Appraise the client/partner households’ poverty level from a general point of view in order to ensure Chamroeun truly reaching out to our chosen target population; and

  3. Track poverty movement of its clients/partners over a time period to ensure that our program contributes to the reduction of poverty level among its clients/partners.

 C.    Employees

  1. Commit to prohibiting the discrimination against employees or applicants based on race, color, religion, sex, national origin, age, economic status and sexual orientation;

  2. Employ qualified people with disabilities regardless of their physical appearance for them to generate regular income to support their families and communities;

  3. Provide employeeswith equal personal growth and development opportunities regardless of their position;

  4. Commit to protecting employees’ health and safety which is one of the most important factors in any decisions;

  5. Offer competitive salaries and benefits at the minimum expectation a MFIs should address to take care of its employees; and

  6. Put in place transparent mechanism for addressing staff grievances and complaints.

 D.   Other MFIs

  1. Do not accept, disclose or use competitive information that we know or have reason to believe was disclosed to us in breach of a confidentiality agreement between a third party and one of our competitor;

  2. Do not engage in any illegal or illicit activity to obtain competitive information. This may include theft, trespassing, computer hacking, invasion of privacy, bribery;

  3. Encourage employees to collect, share and use information about other MFIs, but to do so only in legal and ethical manner. Just as Chamroeun values and protects its own nonpublic information, we respect the nonpublic information of other companies;

  4. Encourage our employee to ensure a fair and healthy competition with other MFIs;

  5. Involve in national activities undertaken under the Cambodian Microfinance Association and

        Central Bank of Cambodia as follow:

  • Join MFI clubs and provincial networks to build up strong relationship and to share challenges and best practices;

  • Relationships with other MFIs are based on mutual respect and good collaboration;

  • Reporting to CMA the operating areas, number of clients, loan portfolio, portfolio quality, etc; and

  • Sharing client data with the industry through Credit Bureau Cambodia.

 E.    Suppliers or Service Providers

  1. Do not cooperate nor deliver services to companies or individuals whoeither through their businesses or individually are engaged in any:

           a. Activities that are not in line with or a breach of national regulations or  international treaties and conventions dealing with child labor,labor conditions and human rights;

          b. Activities connecting with wildlife danger, selling wildlife or other products made of wildlife, deforestation, and illegal logging;

           c. Activities that have a strong and irreversibly adverse impact on the communities and environment;

           d. Activities that support or involving with terrorism which is against Cambodia and international laws; and

    2. Do not in any way take part in transactions that could be construed as unethical oruncontrollable.

F.   Government Officers, Regulators, and Auditors

  1. Do not offer anything of values to a government official - directly or indirectly –it is forbidden unless it is counseled with CEO and legal unit (Anti-bribery law has been passed criminalizing bribery of government officials);

  2. Provide information requested by regulators and auditors meeting quality standards and in a timely manner.

  3. Comply with regulations issued by government including:

                 .Implementation of policy, procedure and requirement defined by regulation;

                 .Fair practice, and preserving the client’s benefit;

                 .Develop and maintain feedback to regulator and auditors.

Kindly collaborate with and answer without conceal to regulators and auditors;

Immediately implement recommendations raised by audit;

Immediately reply to regulators and auditors requirements and reporting; and

Regularly have meeting with regulators and auditors to confer about business, regulations, and other mutual benefits.

G.  Investors and Funding Agencies

    1. Provide accurate, transparent and reliable records to meet Chamroeun’s legal and

    2. financial obligations and to manage its affairs;

    3. Chamroeun’s books and records must reflect in accurate and timely manner all business transactions. The employee responsible for accounting and record keeping must fully disclose and record all assets, liabilities or both and must exercise diligence in enforcing these requirements; 

    4. Our employeesmust not make or engage in any false record or communication of any kind, whether internal or external, including but not limited to:

                     .False expense, attendance, financial, or similar reports and statement;

                     .False advertising, deceptive marketing practice, or other misleading representations.