Social Performance Standards

1. October 2009 – Kenya AMFI SPM Workshop Social Performance Standards

2. Measuring the double bottom line There is a growing recognition that MFIs should be held accountable for the achievement of social outcomes as well as their financial performance. The development of ways to measure that social performance has been the focus since 2005 of a global industry-wide Social Performance Task Force (SPTF).

3. MIX (Microfinance Information Exchange, Inc.) As the leading business information provider dedicated to strengthening the microfinance sector, MIX has been charged by the SPTF to be the information platform where the social performance indicators will be collected, analyzed and publicly displayed

4. MIX Vision on Social Performance Standards Have a microfinance industry accountable for transparency and able to achieve measurableimprovements with regard to its social performance.

5. Why do we need standardized indicators to measure the social performance of an MFI? • To determine whether microfinance institutions are meeting the social goals set out in their missions • To improve both financial and social performance of an MFI • To provide tangible indicators of achievement and attract funding from donors and social investors • To increase the level and quality of information transparency in the microfinance industry • To benchmark an MFI’s performance against peers

6. Which criteria did the SPTF follow in the selection of the social performance indicators? • Indicators had to be: • Relevant • Easy for the MFI to obtain • Easy to verify • Not confidential for the MFI

7. Social Performance Indicators Framework Impact Intent Internal systems/activities Outputs Outcomes [---------------------------- PROCESS---------------------------- - - -- ] [-------------------------------- RESULTS -----------------------------] Achievement of social goals Strategies & Systems Policies & Compliance Intent Q1–Mission & Social Goals Q2- Governance Q3–Range of Products and Services (financial & non-financial) Q4–Training of staff on social performance Q5–Staff performance appraisal and incentives Q6–Market research on clients Q7–Measuring client retention Q14–Poverty assessment Outreach Q11- Geographic outreach Q12- Women outreach Q13- Clients outreach by lending methodology Q8– Social responsibility to clients Q9-Cost of services to clients Q10–Social responsibility to staff Q15 – Social responsibility to the community Q16–Social responsibility to the environment Outputs and outcomes Q17-Outreach by Products Q18–Employment (Family & Hired in credit supported ents.) Q19–Children in School (girls/boys) Q20–Poor clients at entry Q21–Clients in poverty Q22–Clients out of poverty Indicators MFIs that want to update their profile on MIX Market with the social performance indicators are expected to be able to report information on the 13 indicators contained in Part I of the report (indicators highlighted in red)

8. MFIs that have reported ( Feb – Sept 2009) • The report was sent on February 2009 to all MFIs registered on MIX Market • In 7 months since the launch of the reporting form, over 200 MFIs have already reported on SP indicators • The reports which have already been reviewed by MIX are published on MIX website at this address: http://www.themix.org/standards/social-performance • The report is currently available in 5 languages: English, French, Spanish, Russian and Arabic.

9. Benchmarks and diamonds system • When a considerable number of MFIs will have reported and a consolidated system of data verification will be in place MIX will start to create benchmarks on social performance • Given the qualitative nature of the data, benchmarks will necessarily have a strong focus on the country and working environment in place • In the future social performance will be integrated to financial performance in the diamond system of transparency

10. Social Performance Reporting Award • CGAP, Michael & Susan DELL Foundation and Ford Foundation have launched the social performance reporting award, powered by MIX • To be able to gain the Award MFIs have to fill at least the first part of the SPS report and send it to MIX • To know more, visit this link: http://www.cgap.org/p/site/c/template.rc/1.26.10625/

11. MIX next steps on social performance for the year 2009 - Launch of the SPTF Blog on social performance indicators and newsletter (August 2009) Goals: create a platform of information, analysis, exchange of experience and best practices about social performance management of the MFIs reporting on the indicators to MIX - Implementation of MIX Market 2.0 including data on SP (Autumn 2009) Goals: integrate social performance data into the new MIX Market website (2.0) which will allow to display SP data from MFIs on our database; create a database with country data regarding social performance to serve as a background for the data reported by each MFI • Creation of SPI Tool Kit (Autumn 2009) Goal: Learning tool aiming at improving the understanding of the social performance indicators and data reporting in the MF industry.

12. Thank you! For more information about MIX Social Performance Program please contact: Ms. Micol Pistelli at mpistelli@themix.org And visit our website: http://www.themix.org/standards/social-performance For more information about the SPTF, visit: http://www.sptf.info/ http://www.microfinancegateway.org/p/site/m/template.rc/1.11.48260/

13. MICROFINANCE INFORMATION EXCHANGE, INC. The leading provider of business information and data services for the microfinance industry. Web: www.themix.org Email: info@themix.org Headquarters: 1901 Pennsylvania Ave., NW, Suite 307 Washington, D.C. 20006 USA Other Locations Lima, Peru ● Dakar, Senegal ● Guragon, India ● Jakarta, Indonesia