Organisation Mission and Service

1. Social performance management Organisation Mission and Service What is your mission and social goals? Do you have clear social performance objectives and targets? How do you monitor who uses and who is excluded from using your services? Reaching the target? Reducing poverty? Having impact? Are they satisfied? How do you assess the effect of these services on clients? Poverty Targeting Impact Satisfaction How do you assess the reasons why some clients leave? Reasons for Exit Leaving due to impact? Who is leaving? Leaving due to dissatisfaction? How do you use your social performance information to improve your services and achieve your social goals?

2. Tools for assessing social performance Impacts Intent and Design Internal systems/ activities Outputs Outcomes Cerise ACCION CGAP-Grameen-Ford FINCA M-CRIL Microfinance Rating SPA Tool Planet Rating • Comparable social performance standards indicators and benchmarks are yet to be developed • Many different frameworks and tools exist with varying degrees of complexity and cost-effectiveness • The challenge of finding the right framework and the right tools for targeting the poor, listening to them, understanding their different and changing financial needs and using their voices to influence the functions of an institution can be done and in a cost-effective way

3. Cerise tool Cerise tool – focuses on the institutional process and internal systems through assessing intent, activities and indicators of output Source: Beyond Good Intentions: Measuring the Social Performance of Microfinance Institutions, CGAP Focus Note, May 2007

4. Social responsibility • Gender aware policies • Staff: the representation of men and women within the organisation, and whether there are specific constraints relating to women’s participation and promotion, and how these are addressed • Clients/community: whether the MFI strategically tries to address the social and economic constraints that women face in the local area (e.g., low literacy, limited access to markets) • Responsibility towards clients: refers primarily to client protection and includes issues of • Fair and transparent pricing • Effective communication (including teaching financial literacy to clients and adapting communication methods to include illiterate clients) • Sensitivity to over-indebting clients (effective credit appraisal and monitoring) • Ethical behaviour of staff, including appropriate debt repayment practices • Provision for loan insurance • Pro-active mechanisms for client complaint and redress • Responsibility towards staff • Staff training – percent of staff trained and number of days of staff training (excluding new hires) • Salary structure (and benefits) in line with comparable sectors • Security of working conditions • Fairness and transparency of incentive schemes as perceived by staff • Feedback mechanisms for staff and their involvement in decision making Source: From Mission to Action: Quality Audit Tool for Managing Social Performance Handbook, Microfinance Centre for Central and Eastern Europe and the New Independent States (www.mfc.org.pl)

5. ACCION social tool • Social mission • Articulation of mission • Evidence of understanding and commitment to mission • Measurement of fulfilment of social mission • Outreach • Coverage • Depth of outreach • Products and services for underserved clients • Information transparency/ consumer protection • Transparency • Efforts to ensure consumer protection • Client service • Client satisfaction • Adequacy of products and services being offered • Use of mechanisms t obtain feedback from clients The SOCIAL Tool • Association with the community • Relations with surrounding community • Contribution to the well-being of the community • Labor climate • Staff satisfaction • Mechanisms to gain feedback from staff Source: Beyond Good Intentions: Measuring the Social Performance of Microfinance Institutions, CGAP Focus Note, May 2007

6. CGAP-Grameen-Ford Progress Out of Poverty Index (PPI) • Uses country-level “poverty scorecards” based on statistical analysis of national household expenditure surveys • The poverty scorecard is simple, inexpensive, transparent, and intuitive, measuring poverty via simple questions rather than long surveys and complex calculations of income and expenditure • Scorecards have been developed for 16 countries including Bangladesh, India, Indonesia, Nepal, Philippines and Vietnam in Asia, Ethiopia, Kenya, Malawi and Malawi in Africa, and Bolivia, Ecuador, Haiti and Mexico in Latin America and the Caribbean Poverty Scorecard for the Philippines Source: Beyond Good Intentions: Measuring the Social Performance of Microfinance Institutions, CGAP Focus Note, May 2007

7. Social Performance Assessment tool Social performance assessment (SPA) tool – developed by Gary Woller, includes a scorecard with a set of indicators under six dimensions of outreach • SPA tool also includes indicators to assess outreach to the community, including • Percentage of operating revenues re-invested back into the community • Percentage of employees that have left • Female-male employee ratio among professional-level staff • Benefits to employees • Transparency and management access to clients The final social performance report includes both the organisational scorecard results and the findings on internal processes from the audit. Instead of trying to measure social performance directly, the tool determines the extent to which key performance indicators are consistent with the social performance, and whether the internal processes are designed and implemented in a way that aligns policies, behaviours, and outcomes with an MFI’s stated social mission. Source: Beyond Good Intentions: Measuring the Social Performance of Microfinance Institutions, CGAP Focus Note, May 2007

8. M-CRIL social rating tool M_CRIL social tool covers both organisationalsystems and results, including client level indicators. The rating assesses the efficacy of the services in meeting client needs. In addition, short surveys are conducted to determine whether poor and excluded households are being served and whether clients are improving their social and economic conditions. Source: Beyond Good Intentions: Measuring the Social Performance of Microfinance Institutions, CGAP Focus Note, May 2007

9. Assessing the Impact of Microenterprise Services (AIMS)Conceptual Framework: Levels and Domains of Impact • Household Level • Domains of Household security • Income • Expenditures • Assets • Enterprise Level • Domains of Development • Resource base • Production process • Management • Markets • Financial performance • Individual Level • Domains of Well Being • Control of resources • Leverage in decision making • Community participation • Community Level • Domains of Development • Employment and income • Forward and backward linkages • Social networks • Client participation