Abstract
The paper is aimed at comparing MFIs practice and code of conduct in Afghanistan and Cameroon based on founder's philosophy. It seeks to find out if the MFIs are ethical in their practices and how the strive to achieve sustainability and social responsibility. This study made use of twelve points of ethical issues of MFIs and relate these to it practices in recent MFIs structures. It is found though MFIs are socially responsible (poverty alleviation function of granting microcredit and encouraging micro saving) they are becoming unethical. This unethical behaviour is notice more in Cameroon than Afghanistan. These institutions are more profit oriented leading to high interest charging to customers and constantly use collateral as a base for granting credit. High transactional cost and high risk of borrow are some of the reason advance for their high charges now our days on microloans. Notwithstanding MFIs are consider very important to these low income economy as they encourage micro loans and savings. They equally secure employment for the poor population.
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