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Beyond Good Intentions: Measuring the Social Performance of Microfinance Institutions
May 2007, Hashemi, S., Foose, L. & Badawi, S.
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CGAP Focus Note No. 41 highlights the emerging emphasis on social performance in microfinance and reviews some of the assessment tools available
The note states that:
- Social performance seeks to shed light on how financial services affect the lives of poor people,
- To be accountable to funders, microfinance institutions (MFIs) should be able to report on how/whether the goals they have set are being realized,
- Social performance tracks the improvements that have actually occurred in clients’ lives, so that scarce subsidies and funds may be allocated to the right areas,
- The ‘Social Performance Task Force’ comprises microfinance practitioners, donors, rating agencies, etc. who focus on adopting a common definition for social performance, coordinating different initiatives and creating a common reporting format,
- Social Performance Assessment (SPA) includes examining the intent and design, the internal systems and activities, the output and the outcome.
The paper provides an overview of the following SPA tools:
- The CERISE Social Performance Indicators Initiative,
- The Social Performance Initiative Tool,
- ACCION SOCIAL Tool,
- The Consultative Group to Assist the Poor (CGAP) / Grameen / Ford 'Progress out of Poverty Index' (PPI),
- FINCA’s Client Assessment Tool,
- M-CRIL’s Social Rating,
- Planet Rating,
- Microfinanza Social Rating.
The authors conclude that SPA will:
- Ensure transparency that will make actors accountable for what they advertise,
- Lead to actual social performance, helping microfinance clients reduce their vulnerability and improve their conditions.
| 19 Mar 2009 |
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| United States |
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Publisher(s): Consultative Group to Assist the Poor
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