1. DR. HENDRIKUS VAN BULCK
Jose Ignacio Avalos
An Entrepreneur’s Approach to Addressing
the Collateral Effects of Structural
Deficiencies and Globalization
Deborah A. Cooler
4/26/2011
This discussion will investigate the response of Jose Ignacio Avalos to the issue of
poverty in Mexico, exacerbated by the effects of structural deficiencies and
globalization.

2. TABLE OF CONTENTS
EXECUTIVE SUMMARY ....................................................................................................1
INTRODUCTION..................................................................................................................3
ENTREPRENEURIAL CHARACTER ..............................................................................4
Beginnings .........................................................................................................................4
The Corporate Entrepreneur...........................................................................................5
The Social Entrepreneur .................................................................................................5
ENTREPRENEURIAL DILEMMAS ...................................................................................6
Social Injustice .................................................................................................................6
Structural Deficiencies....................................................................................................7
Globalization and Free Trade ........................................................................................7
ENTREPRENEURIAL SOLUTIONS .................................................................................8
Opportunities....................................................................................................................9
Infrastructures ................................................................................................................10
Capabilities.....................................................................................................................11
CONCLUSION....................................................................................................................13
REFERENCES...................................................................................................................15
APPENDIX ..........................................................................................................................18
Mi Tienda: IFC Loan Documents ................................................................................19
Banco Compartamos: Board of Governance ...........................................................22

3. JOSE IGNACIO AVALOS:
An Entrepreneur’s Approach to Addressing the Collateral Effects of
Structural Deficiencies and Globalization
EXECUTIVE SUMMARY
Mexico is an exciting and vibrant country with a rich heritage. It offers its people a
sensory feast of colors, music and activity everywhere. There are people groups,
dialects, cultures and traditions as diverse as its geographical features. Mexico
never sleeps. The Mexican people are generally very friendly, very religious, and
very connected to their family and friends. Mexico’s heritage includes people of
mostly Aztec or Spanish ancestry, and everything in between. While its history is
dominated by these two cultures, Mexico was ruled for a short time by a French
Emperor Maximillan, who was appointed by the France’s Napolean Bonaparte
(Meyer, M. C., Sherman, W. L., & Deeds, S. M.,2007).
While Mexico is a fascinating country and full of intrigue, at the same time it has
struggled since its existence. A former Spanish colony, it was robbed of its glory,
its riches and wealth, until it was abandoned like an orphaned child when it gained
independence in 1810. Since that time, the people have endured a succession of
strong men (caudillos)--power mongers fighting each other for control. In more
recent years, the presidents of Mexico have attempted to develop Mexico into a
more competitive player in the modern, industrialized world. (Meyer, et. al., 2007).

4. Jose Ignacio Avalos 2
But the country has continued to be plagued by poverty, especially in the
countryside, and violence imposed on daily life by drug traffickers fighting for trade
routes to the United States. The war for peace in Mexico reached intensity in
December, 2006, when newly elected president Filipe Calderon declared official
war on drug traffickers, who were threatening to disrupt the entire fabric of society,
causing its people to live in fear. It is in this context that this discussion will focus
on the efforts of Jose Ignacio Avalos and his response to alleviate suffering in
Mexico using modern business strategies. (Cooler, 2011; Germano, 2010).

5. Jose Ignacio Avalos 3
INTRODUCTION
The seeds of innovation were planted in the heart and mind of a young man
through several life-changing events and the influence of his parents. Jose Ignacio
Avalos struggled with the issue of social injustice from an early age. This issue
continues to be the focus of his efforts even today, as he has established or
inspired many successful organizations in his lifetime that either directly or
indirectly has a bearing on this theme.
Jose Ignacio Avalos was born into a family of entrepreneurs: he currently is
president of his family’s pharmaceutical and cosmetic firm, which was founded by
his father. Mr. Avalos has been called a “serial social entrepreneur,” as he
executes his business strategies on a broad scope of issues encompassing
nutrition, economic empowerment, health care and rural development. It is not
likely that he realized in the beginning that he was also meeting a critical need that
was exacerbated by the effects of weak infrastructures and free trade.
(http://www.synergos.org/globalgivingmatters/features/0212avalos.htm;
http://www.youtube.com/watch?v=0mHGs6PEZZI&playnext=1&list=PLA0B121ED6
1CD4326).

6. Jose Ignacio Avalos 4
ENTREPRENERIAL CHARACTER
Beginnings
Jose Ignacio Avalos was born January 12, 1959. He had grown up in a devout
Catholic home, where charity was an everyday part of life. As a child, he always
accompanied his parents on their visits to orphanages and homes for the elderly.
After a major earthquake his Mexico City in 1985, he was at his mother’s side
delivering assistance to those in need. (www.lideresmexicanos.com
http://www.youtube.com/watch?v=gAEiQZrlelg).
While attending the university where he received his business degree, Mr. Avalos
and his friends were fortunate to receive a visit from the famous nun, Mother
Teresa, founder of the Missionaries of Calcutta. It was she who inspired him and
some friends to establish an organization for young people that would inspire them
to live by godly principles and help others in their communities who were in need.
They named the organization Gente Nueva, which in English means “New People.”
Mother Teresa became his mentor. But that was not enough for the young Mr.
Avalos.
The following year, at the age of 22, Jose Ignacio Avalos traveled to Rome,
determined to have a private audience with Pope John Paul II, during which time
he hope to receive the Pope’s blessings on his detailed plans to serve others. In
his inspirational story, he often shares how he succeeded against all odds in

7. Jose Ignacio Avalos 5
spending one hour alone with the Pope, praying together and receiving the Pope’s
blessing for his plans.
(http://www.synergos.org/globalgivingmatters/features/0212avalos.htm).
The Corporate Entrepreneur
Jose Ignacio Avalos received his degree in Business Administration from the
Universidad Anahuac, and currently lives in Mexico City. Mr. Avalos is an astute
businessman, and his name is associated with many endeavors both in private
enterprise and non-government organizations. He brings to a firm a lifetime of
experience and competencies in leadership and management. Some of these are
noted in the Appendices. As previously noted, he is president of his family’s
pharmaceutical and cosmetic firm. While Mr. Avalos is clearly a successful
businessman, he is most noted for his philanthropic work.
The Social Entrepreneur
Mr. Avalos was exposed to suffering and poverty from an early age. It disturbed
him, and he asked questions about it. He wanted to know why there was a gap
between the rich and the poor. But he never received an answer that resolved the
issue in his mind. Mr. Avalos was determined that he personally would fight and
work to close that gap (http://alliancemagazine.org/node/514 ). The various
elements of his life experiences—exposure to suffering and poverty, the influence

8. Jose Ignacio Avalos 6
of important people in his life, and his experience with his family’s business—would
lay the foundation for his life’s work.
ENTREPRENEURIAL DILEMMAS
Social Injustice
The issue of social injustice has become a concern to many wealthy business
people around the globe. Poverty is probably the most common form of injustice
apparent in our world today, especially when the difference in the standard of living
in the industrialized world is compared to that of developing and third world
countries. We are quite fortunate that there are a growing number of individuals
who have been inspired to share their wealth in search of solutions to this problem.
There are a number of organizations that have developed to connect world leaders
in the business world to share their ideas to this end. These leaders are
incorporating successful business strategies into the fight against poverty. These
business leaders have developed a plan that involves more than donations. Their
objective is to help people become independent and self-sufficient, and hopefully
earn a profit as well as some become owners of their own business.
(http://www.synergos.org/globalgivingmatters/features/0212avalos.htm;
Strategic Philanthropy: Unlocking Entrepreneurial Potential, 2010). These are
sound strategies that should produce desired results in the long-run.

9. Jose Ignacio Avalos 7
Structural Deficiencies
Some researchers discount the poverty and desperation that drives some
Mexicans to migrate to the United States, and instead attribute economic reasons
for migration to “an adaptive strategy to compensate for missing and failed markets
in Mexico, conditions in a country undergoing transition to a developed, market
society” (Durand & Massey, 6, 2004). Durand and Massey blame such structural
problems as failures in insurance markets, credit markets, and capital markets as
reasons for illegal immigration to the United States. Cornelius attributes some of
Mexico’s economic problems on a flooded labor pool, which lowers wages
(Cornelius, 2001). Other structural deficiencies include government corruption and
withholding funds ear-marked for local development which the public may or may
not know about (Germano, 2010). A more personal structural problem is the
breakdown of the home, which the mayor of Juarez sees as part of the problem for
increased violence and drug activity (Valencia, N., 2010).
Globalization and Free Trade
Tens of thousands of farmers clogged main streets in the heart of
Mexico City on Friday, demanding greater protection against U.S.
imports and seeking more government aid. Riding horses and
tractors, waving huge banners and leading burros, members of 25
farm groups gathered to protest the North American Free Trade
Agreement, which on Jan. 1 removed tariffs against many U.S. farm
products. "With the free-trade treaty, our products automatically are
worth nothing because (the U.S.) sells more cheaply," said Teodulo
Ortega Delgado, 53, a corn and sugar farmer from the western state
of Nayarit (Castillo, 2003).

10. Jose Ignacio Avalos 8
Jamaica experienced an identical scenario after borrowing money from the
International Monetary Fund (IMF). One of the requirements for receiving these
funds was to open its borders to free trade. The effects of the conditions placed on
the loan were catastrophic, and the Jamaican people quickly became worse off
than before (Lawrence & Weber, 2008). A middle-aged Mexican forced to migrate
to the United States due to unemployment bemoaned “I love my country, but I hate
my government.” He was forced to leave his family behind just to provide them
with the basics of food and shelter (Courtney, 2001). Developments in commercial
farming facilitated by the North American Free Trade Agreement (NAFTA) “has
forced up to 2.5 (Mexican) peasant farmers off the land they were farming…Many
of the illegal immigrants are peasants who are economic exiles to the United
States” (Ball, McCulloch, Jr, Geringer, Minor & McNett, 2008, p 122). Other studies
have reached similar conclusions with regard to this largely agricultural country
(Ball, et. al, 2008; Germano, 2010). Of course, this can create other forms of
injustice as illegal immigrants are often exploited by employers (Cooler, 2011).
ENTREPRENEURIAL SOLUTIONS
Entrepreneurs see needs as opportunities. Were Jose Ignacio Avalos’ ideas
feasable? The opportunities were certainly there. In addition to the effects of
structural deficiencies and free trade, another important factor is that 36% of
Mexico’s population lives in rural areas. Rural regions make up 80% of the land

11. Jose Ignacio Avalos 9
in Mexico. It is important to note that of the broken homes in Mexico, clearly some
are broken due to failed relationships, but also from husbands who have gone
north in search of work in the United States. These issues present quite a
challenge to the social entrepreneur. But Mr. Avalos is a person with a great deal
of tenacity and determination.
Opportunities
In 1986, Jose Ignacio Avalos founded the microfinance institution, Banco
Compartamos. Compartamos translated into English means, “Let’s share.” Today
it is far and beyond the most successful of its kind in all of Latin American. Its
clients are primarily women, and loans are made only to finance small businesses.
Clients meet in groups on a regular basis, and are offered assistance and
consultation as they manage their businesses and make payments. Mexico has its
fair share of single women head-of-households. “Peer pressure substitutes for
motorcycle-mounted collection agents” (Epstein & Smith, 2007). Banco
Compartamos also offers and award at the end of the year for “Entrepreneur of the
Year.” This banking institution can be found in every small town that this author
has visited.
Like all of Mr. Avalos’ other projects, Banco Compartamos began as a nonprofit
entity. In order to achieve greater scale, it became for profit in 2000. It was
established as a banking institution in 2006. As of the beginning of 2008, Banco

12. Jose Ignacio Avalos 10
Compartamos had over 765,000 clients, a portfolio worth $316 million, and
provided investors with an average annual return on equity of 53% for the seven
previous years. In April of 2007, Banco Compartamos held an initial public offering
(IPO) of 30% of the company, raising $467 million. In 2000, Mr. Avalos borrowed
$250,000 to invest in Banco Compartamos. At the time of the IPO, his investment
had grown to $100 million, which he re-invested in other nonprofits. “He remains
on the bank’s board, but says helping run a for-profit business ‘is just not me.’”
(Epstein & Smith, 2007). However, interest rates by the writing of the article by
Epstein and Smith were annual rates that could exceed 100%. Epstein and Smith
told of one woman’s tarnished success in small business brought on by these
exorbitant rates. This is the dark side of capital markets.
In order to be successful and maintain competitiveness, an organization needs a
team of competent leaders. In the Appendix is a list of the Board of Governance
for Banco Compartamos, along with their credentials. Mr. Avalos is on this list.
Infrastructures
Mi Tienda is a Mexican distribution company founded in 1999 that supplies goods
to rural areas in a more efficient manner, primarily by eliminating a number of
“middle men.” It has strategically located warehouses and its own fleet of trucks
that serve a particular region. This helps small rural stores keep their prices low in
area that serve the poor. Mi Tienda also operates regionally, combining small

13. Jose Ignacio Avalos 11
orders so that store owners do not have to buy large quantities of goods that they
may not be able to afford for which they do not have ample space. This system
also helps them to provide a variety of products, while at the same time increasing
inventory turnover. Store owners are also offered assistance and consultation
such as management, accounting, and working capital management. Food and
consumer goods are its primary focus, with a plan to expand and offer other
services such as insurance, payment of utility bills, branchless banking, and micro-
credit.
(http://www.ifc.org/ifcext/spiwebsite1.nsf/0/49B457698E2F9825852576BA000E328
6; http://www.youtube.com/watch?v=ZBqQWWky1Ug).
In January 2010, Mr. Avalos sponsored a loan through the World Bank’s
investment entity, the International Finance Company. This loan of $2.5 million
was approved with the hope to expand Mi Tienda by creating 900 direct jobs and
sustaining 25,000 store owners, mostly women. Documentation of this loan, along
with more details regarding the functions of Mi Tienda, can be found in the
Appendix.
Capabilities
Un Kilo de Ayuda was founded in 1984, with the primary focus to combat
malnutrition in children under the age of five years and pregnant women. In 1995
the rate of malnutrition in this age group was much higher than in other, much
poorer countries. In 2003, 40% of Mexico’s children were affected by malnutrition.

14. Jose Ignacio Avalos 12
Un Kilo de Ayuda implements a strategy that addresses six critical areas of
attention:
 nutritional surveillance
 anemia detection
 nutritional education
 nutritional package distribution
 neurodevelopment and early stimulation evaluation
 safe water
In order to maintain accurate records and customize programs, Microsoft assiste
in developing a program to monitor children in its program. This information
system is called INFOKILO. Un Kilo de Ayuda is another example of using modern
business techniques in order to achieve notable results. This program has had a
commendable measure of success, and enjoys strong community support and
participation. Most of Un Kilo de Ayuda’s workers are volunteers. Mr. Avalos
maintains that undernourished children have difficulty learning. How will they then
be productive adults? He says we must address poverty much differently that we
did thirty years ago.(http://www.youtube.com/watch?v=gAEiQZrlelg ;
http://www.youtube.com/watch?v=ZBqQWWky1Ug ;
http://www.youtube.com/watch?v=0mHGs6PEZZI&playnext=1&list=PLA0B121ED6
1CD4326; http://www.schwabfound.org/sf/SocialEntrepreneurs/Profiles/index.htm;
Un Kilo de Ayuda, translated into English means, “A Kilo of Help,” and is an
outgrowth of Gente Nueva. In addition to serving the needs of 50,000 children

15. Jose Ignacio Avalos 13
every two weeks, Un Kilo de Ayuda has developed a line of food and essential
household products with its own brand name. Profits are used to fund the other
aspects of the program. Participating companies assist in promoting the brand and
distributing products at major supermarkets and other stores. This is just another
facet of employing effective business strategies by the social entrepreneur. Mr.
Avalos likens the Un Kilo de Ayuda brand and mission to Newman’s Own, and
counterpart founded by actor Paul Newman. The difference, however, is in the
target market segment. Un Kilo de Ayuda offers quality goods at affordable
prices.
(http://www.synergos.org/globalgivingmatters/features/0212avalos.htm.)
CONCLUSION
Jose Ignacio Avalos demonstrates a passion for his work, and this passion has
produced remarkable results. Mr. Avalos still serves as president of Un Kilo de
Ayuda. Both Gente Nueva and Un Kilo de Ayuda have established networks in
other countries. Mr. Avalos also founded COFA, which establishes self-sustaining
hospitals in serving rural areas. In addition to employing a number of effective
business strategies as a social entrepreneur, Mr. Avalos acts as an operating
partner for a venture capital group based in Monterrey that serves the lower
income socio- economic segment of society. IGNIA Partners, LLC sees itself as a
“unique investment vehicle” for an underserved market with good potential for

16. Jose Ignacio Avalos 14
future growth. This group sees the low income market segment not only as
consumers, but also future participants in productive value chains.
(http://www.ignia.com.mx/bop/)
Jose Ignacio Avalos has capitalized on his entrepreneurial capacities and invested
them in such a way that he has earned exponential returns in personal satisfaction.
Those seeds of innovation were planted in this man through early meaningful life
experiences, high moral and ethical principles, and the influence of important
people in his life. These factors, along with the implementation of effective
contemporary business strategies, offer hope to those who suffer from a life of
poverty that they did not create. Mr. Avalos advice to us is to always fight for the
cause, and never give up. Passion.
(http://www.socialedge.org/blogs/global-x/archive/2008/05/06/jose-hernandez).

17. Jose Ignacio Avalos 15
REFERENCES
Ball, D. A., McCulloch, Jr., W. H., Geringer, J. M., Minor, M. S., & McNett, J. M.
(2008). International Business: The Challenge of Global Competition. New
York: McGraw-Hill.
Castillo, E. E. (2003). Associated Press writer. Saturday, Feb. 1, 2003 12:00 a.m.
MST
Cooler, D. A. (December 2005-April 2011). Fieldwork.
Cornelius, W. A. (2001). “Death at the Border: Efficacy and Unintended
Consequences of US Immigration Control Policy.” Population and
Development Review 27(2001): 661-685. Retrieved March 5, 2008 from
http://www.jstor.org.
Courtney, H., dir., prod., and ed. (2001). Los Trabajadores/The Workers. New
Day Films. DVD.
Deutsche Welle News (English). Global 3000 | José Ignacio Avalos in Mexico
Uploaded by deutschewelleenglish on Jul 28, 2009. [Taped interview].
http://www.youtube.com/watch?v=0mHGs6PEZZI&playnext=1&list=PLA0B1
21ED61CD4326.
Durand, J., and D. S. Massey. (Editors). (2004). Crossing the Border: Research
from the Mexican Migration Project. New York: Russell Sage Foundation.

18. Jose Ignacio Avalos 16
Epstein, K., and G. Smith. (December 13, 2007). Compartamos: From Nonprofit
to Profit. Bloomberg Businessweek. [Electonic copy]. Retrieved April 20,
2011 from
http://www.businessweek.com/magazine/content/07_52/b406404591628.ht
ml .
Germano, R. (Director). (2010). The Other Side of Immigration [DVD]. United
States: Roy Germano Films.
Interview – Jose Ignacio Avalos Hernandez. (June 2, 2008). Retrieved April 20,
2011 from http://www.alliancemagazine.org/node/514 .
Jose Ignacio Avalos Hernandez. Retrieved April 20, 2011 from
http://www.joseignacioavalos.com/html.
José Ignacio Avalos Hernández -- Full-time Philanthropist with a Businessman's
Mind-Set. (December 2002-January 2003). Retrieved April 20, 2011 from
http://www.synergos.org/globalgivingmatters/features/0212avalos.htm.
José Ignacio Avalos Hernandez - Gente Nueva. Retrieved April 20, 2011 from
http://www.socialedge.org/blogs/global-x/archive/2008/05/06/jose-hernandez
Lawrence, A. T., & Weber, J. (2008). Business and Society: Stakeholders, Ethics,
Public Policy. New York: McGraw-Hill.
Meyer, M. C., Sherman, W. L., & and Deeds, S. M. (2007) The Course of Mexican
History, 8th
Edition. New York: Oxford University Press.
OECD Rural Policy Reviews: Mexico. (2007). [Electronic version]. Agriculture &
Food, 2007(5), 1-202.

19. Jose Ignacio Avalos 17
Revista Lideres Mexicanos. José Ignacio Ávalos - 12-Abr-09(1) [Taped interview]
José Ignacio Ávalos Dir. Gral. un Kilo de Ayuda Programa del 12-Abril-09
Canal Proyecto 40 www.lideresmexicanos.com
http://www.youtube.com/watch?v=gAEiQZrlelg .
Revista Lideres Mexicanos. José Ignacio Ávalos - 12-Abr-09(2) [Taped interview]
José Ignacio Ávalos Dir. Gral. un Kilo de Ayuda Programa del 12-Abril-09
Canal Proyecto 40 www.lideresmexicanos.com
http://www.youtube.com/watch?v=ZBqQWWky1Ug.
Strategic Philanthropy: Unlocking Entrepreneurial Potential. (2010). White Paper
01: Philanthropy. [Electronic copy]. Research conducted by CSR Asia for
Credit Suisse. Switzerland: Credit Suisse Group AG.
Valencia, N. (April, 2010). Juarez Mayor: Drug violence rooted in Mexico’s social
ills. CNN.com. (retrieved 4/22/2011).
http://edition.cnn.com/2010/WORLD/americas/02/09/mexico.juarez.mayor.

20. APPENDIX

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Mi Tienda
Summary of Proposed Investment
This Summary of Proposed Investment is prepared and distributed to the public in advance of
the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to
enhance the transparency of IFC’s activities, and this document should not be construed as
presuming the outcome of the Board decision. Board dates are estimates only.
Project
number
28587
Company
name
Sistema Integral de Abasto
Rural S.A.P.I de C.V
Country Mexico (IDA)
Sector Wholesale and Retail Trade
Environmental
category
B
Department Reg Manufact, Agri &
Services, CAF/CLA
Status Active
Date SPI
disclosed
October 28, 2009
Projected
board date
November 30, 2009
Previous
Events
Invested: March 24,
2011
Signed: January 19,
2010
Approved: January 14,
2010
View Environmental & Social Review Summary (ESRS), click here
Overview Sponsor/Cost/Location Developmen
t Impact
Contacts Attachments
Project description
MiTienda (“the Company” or “MiTienda”) is a privately-held company engaged in the
rural distribution of food and other basic products in Mexico. The Company was
founded in 1999 and started operations in Atlacomulco (Central Mexico) as a single
pilot cell (a distribution center). It offers non-perishable food and personal care
distribution to approximately 600 stores located in rural zones (towns with less than
5,000 inhabitants). The project consists in the expansion of the pilot cell through the
development of 36 cells that will target 4.8 million households in 602 municipalities
and 14,740 villages, with an expected investment initially estimated at MXP $209
million (US$16.1 million).
MiTienda offers modernization programs to its customers, which will contribute to
increasing sales and efficiency. MiTienda will also implement an affiliation program to
modernized stores and it will use its brand name to promote a certain level of quality
offered by the stores.

22. Project sponsor and major shareholders of project company
Jose Ignacio Avalos Hernandez (the “Sponsor” or Mr. “Avalos”) is one of the original
founders of Compartamos, an IFC client and one of the most successful microfinance
banks in the world. Mr. Avalos has approached IFC for participating in this investment
as he sees a strong role and additionality in having IFC involved in this Project.
Total project cost and amount and nature of IFC's investment
The total project cost is estimated at MXP 209 million It is proposed that IFC finance
up to15.5% of the Project with an equity participation of up to MXP 32.5 million (up to
US$ 2.5 million).
Location of project and description of site
The Company started operations in Atlacomulco, Estado de Mexico (a half hours drive
from Mexico City). Mi Tienda plans to open 36 additional cells distributed throughout
the Central-South region of the country. The next cell will be opened in the city of
Tepeji, which is one of the 84 municipalities of Hidalgo.
Anticipated development impact of the project
The Project will have a strong development impact by:
• Securing regular supply of key basic products in MiTienda’s zone of influence, which
is currently excluded from the formal retail supply chain
• Supporting the development of small businesses in rural areas through MiTienda’s
training and modernization programs.
• Increasing the offering and diversity of products at competitive prices for the rural
population.
• Enhancing access to credit to the stores who purchase from Mi Tienda.
IFC's expected development contribution
IFC will provide long term equity financing to support the Company’s expansion
program in remote parts of the country.
• Anchor Investor: IFC’s involvement and participation is expected to have an anchor
effect in attracting the necessary capital to develop the project.
• Stamp of Approval: Project Sponsor is seeking IFC’s involvement as a long term
partner in the promotion and the replication of the project in other geographies.
• Best practices: IFC will introduce environmental, social and industry best practices.
Environmental and social issues - Category B
This is a category B project according to IFC’s Procedure for Environmental and Social
Review of Projects because a limited number of specific environmental and social
impacts may result that can be avoided or mitigated by adhering to generally
recognized performance standards, guidelines or design criteria.
Key environmental and social issues identified during the appraisal include the
following:
• Environmental and social management capacity during the expansion of the
company
• Labor and working conditions
• Air emissions from the fleet
• Life and fire safety in the distribution centers, and
• Solid waste management, including expired/damaged products
The project is expected to have positive social outcomes, in particular by supporting
and training entrepreneurs in Mexico, mainly women who owns the stores.
Please refer to the Environmental and Social Review Summary (ESRS) for further
information.

23. For inquiries about the project, contact:
Mr. Valentin Martinez Gama Z., CEO
Reforma 1110
Lomas de Chapultepec
México D.F. 11000
México
Tel: + 52 55 55 40 72 22
Fax: + 52 55 55 40 72 21 ext. 15
For inquiries and comments about IFC, contact:
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
Local access of project documentation
Translated versions of the ESRS and the EAP will be available at
MiTienda
Adolfo López Mateo S/N
Col. Fovisste
Atlacomulco, Estado de Mexico, C.P. 50450
Contact Person: Alberto Gutierrez
There are no attachments for this document
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Source:
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24. Banco Compartamos, S.A.
Institución de Banca Múltiple
Insurgentes Sur 553, piso 1 de oficinas, colonia Escandón,
c.p. 11800, México, Distrito Federal
According to the Article 180,
Section II, III and IV of the Circular
for Credit Institutions

25. Corporate Governance and Management
According to the Article 180, Section II, III and IV of the Circular for Credit
Institutions, the following is the description of the Board of Directors’ composition,
profile and work experience, as well as the total amount of any kind of compensation
and benefits received in conjunction from the Bank.
In addition, the composition of the Company’s main Directors is described as follows:
a) Board of Directors
The Bank’s administration consists of a Board of Directors comprised of 10 proprietary
Directors, of which 4 are independent Directors with their respective alternate Director.
The Board of Directors’ members are appointed at the General Ordinary Shareholders’
Meeting.
The following is the list of proprietary, independent and alternate Directors:
Board of Directors Principal Directors Alternate Directors
José Manuel Canal Hernando Manuel Constantino García Independent
José Ignacio Ávalos Hernández Juan Carlos Domenzain Arizmendi Non-Independent
Carlos Labarthe Costas Oscar Iván Mancillas Gabriele Non-Independent
Luis Fernando Velasco Rodríguez Fernando Álvarez Toca Non-Independent
Martha Elena González Caballero
Jerónimo Luis Patricio Curto de la
Calle
Independent
Alfredo Humberto Harp Calderoni Luis Fernando Narchi Karam Non-Independent
Carlos Antonio Danel Cendoya
Javier Fernández Cueto González de
Cosío
Non-Independent
Álvaro Rodríguez Arregui Monica Brand Independent
Juan José Gutiérrez Chapa Juan Carlos Letayf Yapur Non-Independent
John Anthony Santa Maria Otazua Juan Ramón Félix Castañeda Independent
Jose Manuel Canal Hernando has a Bachelor’s degree in Accounting from the
Universidad Nacional Autónoma de México (UNAM). He is a statutory examiner,
director or consultant to several companies, including Grupo Kuo, Comex, ASUR, BBVA
Bancomer, FEMSA, ALSEA and others.
Jose Ignacio Avalos Hernandez holds a Bachelor’s degree in Business
Administration from the Universidad Anahuac. He has a strong vocation and experience
in planning, developing and managing social assistance, as well as in cultural and
business activities in the private sector, which include management positions and
director positions in several companies.
Carlos Labarthe Costas has a Bachelor’s degree in Industrial Engineering from the
Universidad Anahuac. He is a founder and the Chief Executive Officer of Compartamos
Banco, member of CGAP, and during 2007 Chairman of the board of directors of the
Microfinance Network.
Carlos Antonio Danel Cendoya has a Bachelor’s degree in Architecture from the
Universidad Iberoamericana. He is a founder and Co-Chief Executive Officer of
Compartamos Banco, member of the board of directors of Casanueva-Perez Holdings
and Interprotection.
Luis Fernando Velasco Rodriguez has a Bachelor’s degree in Civil Engineering from
the Universidad Anahuac. He has worked in institutions such as McKinsey & Company,
Inc., Goldman, Sachs & Co., JPMorgan, Jazztel PLC and Nestlé Mexico. He is a member
of the board of directors of the World Education and Development Fund and of other
institutions.

26. Martha Elena Gonzalez Caballero has a Bachelor’s degree in Accounting from the
Universidad Iberoamericana. She currently serves on the audit committee of Infonavit,
serves as the statutory auditor of Indeval and is an advisor to Sociedad Hipotecaria
Federal.
Alvaro Rodriguez Arregui has a Bachelor’s degree in Economics from the Instituto
Autonomo de Mexico (ITAM). He is currently a co-founder and Managing Partner of
IGNIA Partners, LLC, Chairman of the Board at ACCIÓN International and other
organizations.
Alfredo Humberto Harp Calderoni has a Bachelor’s degree in Business
Administration from the Universidad Anahuac del Sur. He is Chairman of the board of
directors of Harp Co., Santo Domingo Films and Desarrolladora H. He also serves as
the Vice-President of the Board of the Fundación Alfredo Harp Helu and is a member of
the board of directors of Interceramic, Grupo Marti and Sport City, he is also an active
member of the board of directors of other institutions.
Juan Jose Gutierrez Chapa has a Bachelor’s degree in Industrial and Systems
Engineering from the Instituto Tecnológico de Estudios Superiores de Monterrey
(ITESM). He is the Chief Executive Officer of Consultoria en Normatividad e
Informática, Chairman of the board of directors of the Union de Credito Industrial y
Comercial de Oaxaca and Chairman of the Consejo Mexicano de Uniones de Crédito. He
is also a member of the boards of directors of several companies.
John A. Santa Maria Otazua has a Bachelor’s degree in Business Administration from
the Southern Methodist University Dallas, TX. He is the Chief Operating Officer Mexico
Division of Coca-Cola FEMSA (KOF).
Manuel Constantino Gutierrez Garcia has a Bachelor’s degree in Accounting from the Instituto
Autonomo de Mexico (ITAM). He serves as statutory auditor, is a
Source:
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