Beirut - May 2009

1. Sanabel 6th Annual Conference Beirut - May 2009 Advancing State of Practice of Social Performance Laura Foose Chair Social Performance Task Force

2. Who is the Social Performance Task Force? MFIs Global, Regional & National Networks Donors Social Investors NGO networks Microfinance Raters Action Research Programs/Universities

3. What is Social Performance? • The effective translation of an institution’s mission into practice in line with accepted social goals that relate to: • reaching poorer and excluded clients; • improving the lives of clients and their families; • widening the range of opportunities for communities.

4. Why Is Social Performance Important? • Achievement: to improve our programs to achieve the social goals we set out in our mission statements • Accountability: to be more transparent

5. Mission Social Performance Financial Performance Performance Management Deliberately Managing to Achieve Desired Results • Performance is not incidental • What is explicitly defined and • measured is what is managed • Need to define desired • performance • Need to measure results against • desired performance

6. Dimensions of Social Performance Impacts Intent and Design Internal Systems / Activities Outputs Outcomes • INTENT AND DESIGNWhat is the mission of the institution?Does it have clear social objectives? • INTERNAL SYSTEMS & ACTIVITIESWhat activities will the institution undertake to achieve its social mission? • Are systems designed and in place to achieve those objectives?OUTPUTDoes the institution serve poor and very poor people? • Are the products designed to meet their needs? OUTCOME • Have clients experienced social and economic improvements? IMPACT • Can these improvements be attributed to institutional activities?

7. Tools for Assessing Social Performance Impacts Intent and Design Internal Systems/ Activities Outputs Outcomes SPI 3 Quality Audit Tool GRI FMO E&S Risk Audit Progress out of Poverty Index USAID/IRIS PAT FINCA FCAT SEEP/AIMS tools MicroSave tools INAFI (Oxfam/Novib) M-CRIL MicroFinanza Rtg Planet Rating MicroRate

8. Objectives of Social Performance Task Force Transparency Social Performance Task Force Improving Practice Communication

9. Transparency • Practitioners: • MIX/SPTF Social Indicators • Coordinate with MF Transparency & Campaign for Client Protection • Social Investors: • MIV Disclosure Guidelines • Common Reporting Framework for Investors Reporting Transparency • Social Reporting Transparency Award: • MSDF, Ford, CGAP SPTF Improving Practice Verifying • Social Rating Tools • Social Rating Fund Communication

10. Improving Practice Social Performance Management Training • Imp-Act Consortium and National Networks: • Training, • Mentoring, • Working on best practices Transparency • Social Performance Audit: • MFC Quality Audit Tool • CERISE SPI SPTF Tools Improving Practice Communication • Endorse principles—MFI level & Investor level • CFI Beyond Codes—pilots to improve practice Campaign for Client Protection

11. Communication Social Performance Resource Center Transparency SPTF Consumer Report on SPA Tools Improving Practice Communication SPTF Annual Meetings Encourage Communication between TF Members SPTF Subcommittees