The Universal Standards for Social Performance Management A - PowerPoint PPT Presentation

The Universal Standards for Social Performance Management A Comprehensive Resource For the Microfinance Industry

“ Everyone should have the opportunity to improve their lives — and financial services should be available to anyone that needs them to do so .” – Ging Ledesma, Oiko Credit

STANDARDS FOR SOCIAL PERFORMANCE MANAGEMENT Comprehensive By and for Resource for Credibility for Realistic manual of good people in the achieving social institutions and implementation practices field goals industry process

“They are standardized, collaborative and global in nature. People want to learn from each other and figure out how others are addressing these same problems.” – Rachel Brooks, Juhudi Kilimo, Kenya Photo credit: John Rae for Accion

Based on leading industry initiatives and practices implemented successfully by MFIs Voluntary resource — not a rating, regulatory or certification system

“Tracking and monitoring how the MFI’s mission is  Has a strategy to achieve its social goals. embedded in its day-to-day  Collects, reports, and ensures the accuracy of operation is client-level data. key.” – Ellen Willems, Triodos Investment Management

“What’s  Board is committed to the important is social mission. that the  Board holds institution principals of accountable to its social the company mission and goals. are true to the mission and  Senior management sets, and pursuing goals oversees implementation of, strategy for achieving social in a meaningful goals. way.”  Recruits, evaluates, and – Asad Mahmood, recognizes employees based on Deutsche Bank both social and financial performance criteria.

 Ensures clients have the capacity to repay without becoming over- indebted.  Communicates in a manner and “We want MFIs language that clients can to be seen as a understand. place where  Treats clients fairly and clients are respectfully — and has treated safeguards to detect corruption responsibly.” and abuse. – Stuart Coe,  Respects the privacy of The Co-operative individual client data. Banking Group  Has timely and responsive mechanisms to resolve problems and improve products and services.

"Understanding  Understands the needs and preferences of different clients opens types of clients. the way to developing  Designs products, services, and delivery channels services that are that do not cause clients harm. useful to them .”  Designs products, services, delivery models and channels to benefit clients. –Jủ rgen Hammer, Grameen Crê dit Agricole

 Follows a written Human Resources policy that protects "Another socially employees and creates a responsible supportive working business practice environment. is treating staff  Communicates terms of well .” employment and provides training for essential job – Dina Pons, Incofin functions to all employees.  Monitors employee satisfaction and turn-over.

“Microfinance  Has growth rates that are stands on two sustainable and appropriate for pillars — one is market conditions. financial, the  Has a financing structure that is other is social — appropriate to a double bottom and without line institution. both the industry will  Pursuit of profits does not never have the undermine long-term sustainability or client well- impact we being. want.”  Compensates senior managers – Nancy Samy, former Deputy Executive Director appropriately for a double of Sanabel, Egypt bottom line institution.

“ They make your job easier because for the first time, all the information is consolidated in one common document.” – Kasia Pawlak, Microfinance Centre

A Social Performance Management Resource For Investors/Funders as well as MFIs The Universal Standards can: Align due diligence tools to help monitor SPM practices Provide more concrete information about SPM “The stories are important, but it would be better if those were accompanied by a more analytical approach to the whole portfolio.” – Rekha Unnithan, TIAA-CREF

The Universal Standards can help rebuild the industry’s reputation – demonstrates efforts to self regulate VS. kiefelphotography.com/fonkoze “The Standards are important because they are an attempt to distinguish microfinance that has positive social impact from microfinance that can be exploitive and damaging.” – John De Wit, The Small Enterprise Foundation, South Africa

We can demonstrate that our industry is working with common purpose to achieve financial inclusion: Define balanced returns Incorporate into due diligence Implement with & reporting partner FIs

www.sptf.info EDA Rural Systems www.edarural.com