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Transparency:
Reporting social performance information to constituents (taxpayers or
investors).
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Accountability:
MFIs claim social impact and solicit funding and investment based on this claim.
This entails a responsibility for MFIs to account for their social performance.
- Matching objectives: Picking the right institutions to fund, by matching the social objectives of donors with the social objectives of the MFI.
When picking the right institutions to fund, donors and investors can obtain social performance information of an MFI by:
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Relying on information
given by the MFI
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Conducting an
assessment. This may involve conducting
audits and/or commissioning an impact
assessment
- Commissioning a Social Rating
Social Ratings have been developed by the following three rating agencies. For more information on each of the ratings click below.
Donors and investors are key in helping MFIs maximize their social performance. They can do so by:
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Setting social
performance requirements for the funding or investment
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Providing
funding for the development of a social performance management system within
the MFI.
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Influencing the
MFI to ensure strong, transparent management and an organizational culture
committed to improving the social performance bottom line. If the management is
weak or organizational culture stagnant, the MFI will not be able to develop or
maintain an effective social performance system.
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Participating in
the planning process of the MFI, particularly when performance indicators and
targets are being set
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Requiring that
the MFI report against particular social indicators.
- Conducting periodic audits or ratings.