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									Core Social Performance Indicators




SOCIAL PERFORMANCE TASK FORCE MEETING
             June 10-12, 2007 - Paris
Isabelle Barrès, Microfinance Information Exchange, Inc.
                                                           1
Introduction




               2
   Actions since last SP Taskforce meeting in
                   November
• November 2006 – February 2007:
   – Considerable comments from sub-committee members
• Resolutions from February conference call:
   – Discuss detailed feedback in small groups to refine indicators
   – Seek MFI and social investor feedback through online surveys
   – Feedback should include indication of whether or not the indicators
     are relevant, easy to report on and likely to yield quality results
   – Online survey results should also capture information on current
     practice by MFIs
   – Link client-level indicators to tools (not done yet)
   – Consider phasing approach, to focus on indicators that show less
     consensus – yet make sure that phasing approach does not give
     incentive to over-simplify



                                                                           3
    Follow-up tasks from last sub-committee
           meeting in February 2007
•    Feb. 3: new list of indicators distributed
•    Week of Feb. 5: follow-up call from Client-Level group
•    Feb. 16: final list of indicators from Process group
•    Feb.16: from Client-Level group: summary of tools, summary
     of MFIs that tested the tools, detailed definitions
•    March: finalize survey to send out to MFIs and Investors
     (done in April/May)
•    June: present results at SP Taskforce meeting




                                                                  4
Results of Core SP indicators Survey




                                       5
Core SP indicators for MFIs – Structure
   follows the Common Framework
•    CONTEXT
•    PROCESS
•    RESULTS

•    ‘Yes/No’ answers around 3 dimensions:
    1.   relevant
    2.   easy to report on
    3.   likely to yield quality results

•    For a few selected indicators, open-ended (descriptive)
     answers




                                                               6
                    Participation
•   222 participants captured in online survey tool
•   + MFC feedback
•   + ProsperA feedback
•   + FORO LAC feedback
•   New survey links have been created as a few MFIs indicated
    that they wanted to participate but had missed the deadline
•   New aggregated results will be updated for Glocal Social
    Performance Mapping exercise, beginning of July 2007

•   Close to 40,000 answers, of which 2,400 are descriptive




                                                                  7
                 A few general comments
•       Core indicators for useful for all, but external stakeholders
        perspective
•       Most responses ‘yes’ > threshold put at 70% to see nuances
    –         Apart from 2 exception (mission and outreach to women), no
              clear winners or losers
    –         Highlights importance of having good sets of indicators for each
              category
    –         Phased approach should enable:
          •      Filtering per preferences
          •      Link result indicators to tools




                                                                                 8
                    Context indicators
•       Top of the list for all 3 dimensions:
    –      Total number of active clients
    –      Your MFI's Products
    –      Lending Methodology used
    –      For each product: total number of individuals using product(s)
    –      For each product: total amount
    –      Institutional Charter
•       Bottom of the list for all 3 dimensions were:
    –      Do your clients have access to non-financial services?
    –      For each product: total number of accounts
    –      Non-financial services (number of users)
    –      Non-financial services (description)
•       A few surprises:
    –      “Do clients have access to non-financial services”?
    –      “Year Microfinance Operations began”
    –      “Total number of clients”

                                                                            9
  Process Indicators – Social Performance
Management (SPM), around Social Objectives
  –   SO1: outreach to very poor or poor people
  –   SO2: outreach to low income groups
  –   SO3: outreach to SMEs
  –   SO4: outreach to underdeveloped areas
  –   SO5: outreach to women
  –   SO6: outreach to socially marginalized and/or excluded groups
      or people
  –   SO7: supporting employment (self and hired)
  –   SO8: observing a change in the lives of your clients or their
      households
  –   SO9: observing a change in the local community
  –   SO10: other




                                                                      10
   Process Indicators – Social Performance
 Management (SPM), around Social Objectives
                                                      R E L “Yes/No”     Descriptive
                                                            indicators   indicators

Identify the social objective: Is <the SO> a social                X
objective for your MFI?
Are you tracking <the SO>?                                         X
Are you measuring and tracking <the SO>?                           X
How do you define <the SO>?                                                     X
How are you tracking <the SO>?                                                  X
How are you measuring and tracking <the SO>?                                    X
                                                      DEF

Describe how you define <the SO>?
Describe how you target <the SO>?
Describe how you measure and track <the SO>?



                                                                                       11
  Process Indicators – Social Performance
Management (SPM), around Social Objectives
•    5 social objectives came consistently on top of all the
     dimensions and indicators:
    1.   SO1: outreach to very poor or poor people
    2.   SO2: outreach to low income groups
    3.   SO4: outreach to underdeveloped areas
    4.   SO5: outreach to women
    5.   SO8: observing a change in the lives of your clients or their
         households

    Let’s see an example: by dimension = relevancy…




                                                                         12
  Process Indicators – Social Performance
Management (SPM), around Social Objectives
 120%


 100%
                                                                                                  SO1
                                                                                                  SO2
 80%                                                                                              SO3
                                                                                                  SO4
                                                                                                  SO5
 60%
                                                                                                  SO6
                                                                                                  SO7
 40%                                                                                              SO8
                                                                                                  S09
                                                                                                  S10
 20%


  0%
        How do you    Is <the SO>    How are you      Are you        How are you     Are you
        define <the    one of your    targeting      targeting     measuring and measuring and
          SO>?            social     against <the   against <the    tracking <the tracking <the
                      objectives?       SO>?           SO>?             SO>?          SO>?




                                                                                                        13
      Process Indicators – Social Performance
    Management (SPM), around Social Objectives
•        Easiness to report: surprising results
     –         Over 34% of MFIs could not easily report on whether they have the
               following social objectives:
           •      SO6 (44%), SO8 (47%), SO9 (53%), and other (34%)
     –         Over 46% of MFIs could not easily report on whether they are
               targeting the following social objectives:
           •      SO6 (46%), and other (48%)
     –         Over 46% of MFIs could not easily report on whether they are
               measuring and tracking the following social objectives:
           •      SO7 (41%), SO1 (43%), SO2 (44%), SO8 (49%), SO6 (52%), SO9 (53%), and
                  other (61%)
     –         Also, the category ‘Other’ comes consistently at the bottom of the list




                                                                                          14
      Process Indicators – Social Performance
    Management (SPM), around Social Objectives
•        Descriptive indicators (‘how do you define’, ‘how do target’, ‘how
         do you measure and track’) were generally identified as not
         easy to report on
•        The exceptions were:
     –      outreach to SMEs
     –      outreach to underdeveloped areas
     –      outreach to women
•        Likelihood to yield quality results:
     –      SO6 and SO7 ranked the weakest




                                                                              15
      Process Indicators – Social Performance
    Management (SPM), around Social Objectives
•    All indicators move in the same direction for each SO:

                                                 Relevancy
      120%


      100%
                                                                         How do you define <the SO>?

       80%                                                               Is <the SO> one of your social
                                                                         objectives?
                                                                         How are you targeting against
       60%                                                               <the SO>?
                                                                         Are you targeting against <the
                                                                         SO>?
       40%                                                               How are you measuring and
                                                                         tracking <the SO>?
                                                                         Are you measuring and
       20%                                                               tracking <the SO>?



        0%
             SO1   SO2   SO3   SO4   SO5   SO6   SO7   SO8   S09   S10


                                                                                                          16
  Process Indicators – Social Performance
Management (SPM), around Social Objectives
                                     Easiness to report
120%


100%
                                                                   How do you define <the
                                                                   SO>?
 80%                                                               Is <the SO> one of your
                                                                   social objectives?
                                                                   How are you targeting
 60%
                                                                   against <the SO>?
                                                                   Are you targeting against
                                                                   <the SO>?
 40%
                                                                   How are you measuring and
                                                                   tracking <the SO>?
 20%                                                               Are you measuring and
                                                                   tracking <the SO>?

 0%
       SO1   SO2   SO3   SO4   SO5   SO6   SO7   SO8   S09   S10




                                                                                               17
  Process Indicators – Social Performance
Management (SPM), around Social Objectives
                               Likelihood to yield quality results
120%

                                                                     How do you define <the SO>?
100%
                                                                     Is <the SO> one of your social
                                                                     objectives?
80%                                                                  How are you targeting against
                                                                     <the SO>?
                                                                     Are you targeting against <the
60%
                                                                     SO>?
                                                                     How are you measuring and
                                                                     tracking <the SO>?
40%
                                                                     Are you measuring and
                                                                     tracking <the SO>?
20%


 0%
       SO1   SO2   SO3   SO4    SO5   SO6   SO7   SO8   S09   S10



                                                                                                      18
          Process Indicators – Social Performance
               Management (SPM), general
ADAPTATION OF SERVICES                                                                     Relevant   Easy to report   Likely to yield
                                                                                                               on             quality
                                                                                                                              results
Have you conducted client satisfaction surveys or focus groups in the last 2 years?       88%         84%              88%
Do you regularly conduct exit surveys of clients?                                         85%         85%              88%
UNSING INFORMATION FOR DECISION-MAKING
Has information about your social performance been used to inform decision-making?        91%         73%              81%
What type of information has been used to inform decision-making (e.g., client profile,   92%         79%              87%
     market feedback, etc.)?
Has information about your social performance been used to improve services?              94%         74%              81%
Has information about your social performance been used to take preventive/corrective     94%         78%              80%
      actions?
ORGANIZATIONAL CULTURE
Do Board members represent an effective balance between financial and social              93%         75%              85%
     perspectives and expertise?
Have your social objectives been clearly communicated to management and field staff?      95%         81%              77%
Alignment of organizational systems
Do staff incentives encourage a balance between financial and social performance          87%         75%              83%
      objectives?
Are staff recruitment, induction and training aligned to the social mission?              93%         73%              82%


                                                                                                                                         19
Process Indicators – Social Responsibility (SR)
    –   SR1: towards   staff
    –   SR2: towards   clients
    –   SR3: towards   the community
    –   SR4: towards   the environment




                                                  20
    Process Indicators – Social Responsibility

•       Most SR indicators (apart for SR3) are identified as being highly
        relevant
•       Less relevant indicators fall mostly under SR3 (towards clients)
•       Indicators that are not identified as easy to report on and are least
        likely to yield quality results fall mostly under general indicators:
    –      Does your SR policy and/or code of conduct govern the actions of the..
           MFI towards its staff, its clients, its community, the environment?
    –      How do you implement your SR policy?
    –      How do you ensure compliance of your SR policy?
•       … and under SR3




                                                                                    21
                           Results Indicators

•       All results indicators identified as relevant by at least 63% of survey
        respondents:
    –      Less relevant indicators fall under SO7, SO8, SO9
•       All results indicators identified as likely to yield quality results by at
        least 50% of the participants
•       Wide variation on “Easy to report on” indicator




                                                                                     22
                          Results Indicators
                                 Results Indicators

120%

100%

80%
                                                               relevant
60%                                                            easy to report on

                                                               likely to yield
40%                                                            quality results

20%

 0%
       1   3   5   7   9 11 13 15 17 19 21 23 25 27 29 31 33



                                                                                   23
                                           Results Indicators

% people who answered ‘yes’ to likelihood to yield quality results
II.1 - Social Objective #1: Outreach to very poor or poor people
   Do you measure the poverty levels of your entering clients?                                          58%
   Do you measure the poverty levels of all your entering clients or a sample of clients?               55%
   Of the new clients in the last year, what % are below the national poverty line?                     36%
   Of the new clients in the last year, what % are in the bottom 50% below the national poverty line?   31%
   Of the new clients in the last year, what % are earning less than US$1/day per household member?     36%
   Of the new clients in the last year, what % are earning less than US$2/day per household member?     32%

II.7 - Social Objective #7: Indirect outreach: Supporting employment (self and hired employment)
   % of start-up enterprises/Total number of supported enterprises                                      57%
   Average % self-employed/ Total employed for supported enterprises                                    55%
   Average % hired employees/ Total employees for supported enterprises                                 47%
   Average % women employees/ Total employees for enterprises supported                                 45%
   Distribution of supported enterprises by total number of people employed                             49%




                                                                                                              24
                                           Results Indicators
% people who answered ‘yes’ to likelihood to yield quality results
II.8 - Social Objective #8: Outcome: Change of the lives of the clients or households
   Do you track clients' movement across the poverty line?                                                            39%
   Over what time period do you track clients' movement across the poverty line?                                      48%
   How do you describe the poverty line?                                                                              66%
   How do you measure whether your clients have crossed the poverty line?                                             37%
   Do you track changes in the economic status of your clients?                                                       49%
   Do you measure how all your clients have improved their housing conditions?                                        51%
   Do you measure how all your clients have improved their assets (specify which assets)?                             52%
   Do you measure how all your clients have improved food security?                                                   38%
   Do you measure how clients with the MFI for a number of years have improved their housing conditions?              46%
   Do you measure how clients with the MFI for a number of years have improved their assets (specify which assets)?   46%
   Do you measure how clients with the MFI for a number of years have improved their food security?                   37%
   How do you measure how clients have improved their housing conditions?                                             50%
   How do you measure how clients have improved their assets (specify which assets)?                                  51%
   How do you measure how clients have improved their food security?                                                  47%
   What is the age range in your country (in years) for primary and secondary school levels?                          57%
   Percentage of school-aged children of clients who attend school                                                    47%
   Percentage of client households with school-aged children who attend school regularly                              42%


                                                                                                                            25
SUMMARY – CURRENT SITUATION




                              26
            List of Social Objectives (SO)

SOCIAL OBJECTIVES
SO1           outreach to very poor or poor people
SO2           outreach to low income groups
SO3           outreach to SMEs
SO4           outreach to underdeveloped areas
SO5           outreach to women
SO6           outreach to socially marginalized and/or excluded groups or people
SO7           supporting employment (self and hired)
SO8           observing a change in the lives of your clients or their households
SO9           observing a change in the local community
SO10          other --
SO11          client satisfaction with products


                                                                                    27
 List of Social Responsibility dimensions (SR)

SOCIAL RESPONSIBILITY

SR1                     towards staff

SR2                     towards clients

SR3                     towards the community

SR4                     towards the environment




                                                  28
            Survey – Context and Intent Indicators
CONTEXT

                                    Institutional Charter

                                    etc.

INTENT

Achieving Social Objectives (SO)

                                    Describe the mission of the institution (and date of formulation or update)

Identifying social objectives       Is <…> one of your Social Objectives?

                                    (Breakdown by SO)

Being Socially Responsible (SR)

                                    Do you have a written, formal social responsibility policy and/or a written,
                                        formal code of conduct?
Identifying social responsibility   Does your social responsibility policy and/or code of conduct govern actions of
     dimensions                         the MFI towards…
                                    (Breakdown by SR)



                                                                                                                      29
                       Survey – Process Indicators
PROCESS
Achieving Social Objectives (SO)
                                        (For all the questions below, breakdown by SO)
Defining Social Objectives              How do you define <the Social Objective>?
Targeting against Social Objectives
(are you doing it?)                     Are you targeting against <the Social Objective>?
(how you doing it?)                     How are you targeting against <the Social Objective>?
Measuring and tracking against Social
    Objectives
(are you doing it?)                     Are you measuring and tracking <the Social Objective>?
(how you doing it?)                     How are you measuring and tracking <the Social Objective>?




                                                                                                     30
                      Survey – Process Indicators
Being Socially Responsible (SR)

                                         (For all the questions below, breakdown by SR)

Monitoring awareness or                  Do you monitor awareness or effectiveness of your social responsibility
effectiveness of Social Responsibility   policy for …
policy
Implementing Social Responsibility       How do you implement your social responsibility policy and/or code of
policy                                   conduct govern actions of the MFI towards…

Ensuring compliance of Social            How do you ensure compliance of your social responsibility policy and/or
Responsibility policy                    code of conduct govern actions of the MFI towards…




                                                                                                                    31
                         Survey – Process Indicators
Managing Social Performance (SPM)
Adaptation of services

Have you conducted client satisfaction surveys or focus groups in the last 2 years?

Do you regularly conduct exit surveys of clients?

Using information for decision-making

Has information about your social performance been used to inform decision-making?

What type of information has been used to inform decision-making (e.g., client profile, market feedback, etc.)?

Has information about your social performance been used to improve services?

Has information about your social performance been used to take preventive/corrective actions?

Organizational culture

Do Board members represent an effective balance between financial and social perspectives and expertise?

Have your social objectives been clearly communicated to management and field staff?

Alignment of organizational systems

Do staff incentives encourage a balance between financial and social performance objectives?

 Are staff recruitment, induction and training aligned to the social mission?

                                                                                                                  32
               Survey – Results Indicators
RESULTS

Achieving Social Objectives (SO)
                                   (Selected results indicators by SO)
Being Socially Responsible (SR)
                                   (Selected results indicators by SR)




                                                                         33
Recommendations




                  34
            Survey – Context and Intent Indicators
CONTEXT

                                    Institutional Charter

                                    etc.

INTENT

Achieving Social Objectives (SO)

                                    Describe the mission of the institution (and date of formulation or update)

Identifying social objectives       Is <…> one of your Social Objectives?

                                    (Breakdown by SO)

Being Socially Responsible (SR)

                                    Do you have a written, formal social responsibility policy and/or a written,
                                        formal code of conduct?
Identifying social responsibility   Does your social responsibility policy and/or code of conduct govern actions of
     dimensions                         the MFI towards…
                                    (Breakdown by SR)



                                                                                                                      35
                       Survey – Process Indicators
PROCESS

Achieving Social Objectives (SO)
                                        (For all the questions below, breakdown by SO)
Defining Social Objectives              How do you define <the Social Objective>?
Targeting against Social Objectives
(are you doing it?)                     Are you targeting against <the Social Objective>?
(how you doing it?)                     How are you targeting against <the Social Objective>?
Measuring and tracking against Social
    Objectives
(are you doing it?)                     Are you measuring and tracking <the Social Objective>?
(how you doing it?)                     How are you measuring and tracking <the Social Objective>?




                                                                                                     36
                      Survey – Process Indicators
Being Socially Responsible (SR)

                                         (For all the questions below, breakdown by SR)
Monitoring awareness or                  Do you monitor awareness or effectiveness of your social responsibility
effectiveness of Social Responsibility   policy for …
policy
Implementing Social Responsibility       How do you implement your social responsibility policy and/or code of
policy                                   conduct govern actions of the MFI towards…

Ensuring compliance of Social            How do you ensure compliance of your social responsibility policy and/or
Responsibility policy                    code of conduct govern actions of the MFI towards…




                                                                                                                    37
                         Survey – Process Indicators
Managing Social Performance (SPM)
Adaptation of services

Have you conducted client satisfaction surveys or focus groups in the last 2 years?

Do you regularly conduct exit surveys of clients?

Using information for decision-making

Has information about your social performance been used to inform decision-making?

What type of information has been used to inform decision-making (e.g., client profile, market feedback, etc.)?

Has information about your social performance been used to improve services?

Has information about your social performance been used to take preventive/corrective actions?

Organizational culture

Do Board members represent an effective balance between financial and social perspectives and expertise?

Have your social objectives been clearly communicated to management and field staff?

Alignment of organizational systems

Do staff incentives encourage a balance between financial and social performance objectives?

 Are staff recruitment, induction and training aligned to the social mission?

                                                                                                                  38
                      Survey – Results Indicators
RESULTS


Achieving Social Objectives (SO)
                                   (Selected results indicators by SO)
Being Socially Responsible (SR)

                                   (Selected results indicators by SR)




                                                                         39
PHASE I INDICATORS – WORK IN PROGRESS




                                        40
Results indicators




                     41
                                                RESULTS
      RESULTS
      Achieving Social Objectives (SO)
1     SO1 and SO2     Do you measure the poverty levels of your entering clients?
2     SO1 and SO2     How do you measure the poverty levels of your entering clients?
3.a   SO1 and SO2     Of the new clients in the last year, what % are below the national poverty line?
3.b   SO1 and SO2     Of the new clients in the last year, what % are in the bottom 50% below the national poverty line?
3.c   SO1 and SO2     Of the new clients in the last year, what % are earning less than US$1/day per household member?
3.d   SO1 and SO2     Of the new clients in the last year, what % are earning less than US$2/day per household member?
4     SO4             What is the geographic distribution of your clients (% urban clients, % semi-urban clients, % rural clients)?
5     SO5             Percent of women/ total clients
6     SO6             % clients from socially marginalized and/or excluded groups (((PUT DEF BEFORE)))
7     SO8             Do you track changes in the economic status of your clients?
8     SO8             How do you track changes in the economic status of your clients?
9     SO8             % clients who cross the poverty line
10    SO8             Percentage of school-aged children (of clients) who attend school




                                                                                                                                      42
Baseline indicators




                      43
                                        INTENT
    INTENT
    Achieving Social Objectives (SO)
1                                      Describe the mission of the institution (and date of formulation or update)
2   Identifying SO                     Is <…> one of your Social Objectives?
    SO1 and SO2                        outreach to very poor or poor people and low income groups
    SO3                                outreach to SMEs
    SO4                                outreach to underdeveloped areas
    SO5                                outreach to women
    SO6                                outreach to socially marginalized and/or excluded groups or people
    SO7                                supporting employment (self and hired)
    SO8                                observing a change in the lives of your clients or their households
    SO9                                observing a change in the local community
    SO10                               other --
    SO11                               client satisfaction with products
    Being Socially Responsible (SR)

3                                      Do you have a written, formal social responsibility policy and/or a written, formal code
                                       of conduct?
4   Identifying SR dimensions          Does your social responsibility policy and/or code of conduct govern actions of the
                                       MFI towards…
    SR1                                ... its staff?
    SR2                                ... its clients?
    SR3                                ... the community?
    SR4                                ... the environment?

                                                                                                                                  44
                                                PROCESS
     PROCESS
     Being Socially Responsible (SR)
5    Monitoring awareness or effectiveness   Do you monitor awareness or effectiveness of your SR policy for …
     of SR policy
     SR1                                     ... your staff?
     SR2                                     ... your clients?
     SR3                                     ... your community?
     SR4                                     ... the environment?
     Implementing SR policy                  How do you implement your SR policy or code of conduct governing actions of the MFI
                                             towards…
6    SR1                                     ... its staff?
7    SR2                                     ... its clients?
8    SR3                                     ... the community?
9    SR4                                     ... the environment?
     Ensuring compliance of SR policy        How do you ensure compliance of your SR policy governing actions of the MFI towards…
10   SR1                                     ... its staff?
11   SR2                                     ... its clients?
12   SR3                                     ... the community?
13   SR4                                     ... the environment?




                                                                                                                                    45
                                            PROCESS
     Managing Social Performance
     (SPM)
     Adaptation of services
14                                 Have you conducted client satisfaction surveys or focus groups in the last 2 years?
15                                 Do you regularly conduct exit surveys of clients?


     Organizational culture
16                                 Do Board members represent an effective balance between financial and social perspectives and
                                   expertise?
     Alignment of organizational
     systems
17                                 Do staff incentives encourage a balance between financial and social performance objectives?
18                                 Are staff recruitment, induction and training aligned to the social mission?




                                                                                                                                   46
    Proposed future steps for sub-committee on
        core social performance indicators

•    Link results indicators to targeting and measuring tools
•    Finalize short list and pilot test indicators
•    Analyze descriptive data to inform future indicators
•    Consider result indicator(s) for SO on change in community and SR
     on environment (none so far)




                                                                         47
Feedback from networks




                         48
Discussion and Next Steps




                            49
Results of Social Investors Survey




                                     50
                        Background
• Sub-committee on social investors set-up at last SP Taskforce
  meetings in Halifax
• Decision from sub-committee to conduct survey on a few selected
  core indicators to seek social investors feedback
• End of March: preliminary feedback on indicators at SDC/Seco
  workshop
• April: finalize survey/interview tool and list of social investors
• April/May: online survey + interviews
• June: presentation of results at SP Taskforce meetings




                                                                       51
Who are the Social Investors in Microfinance?

            43%
                      38%




                                  19%




      % European   % US     % Other




                                                52
         Social Investors by type

          n/a                     Type A: Social investor +
                Type A
         2.4%                     subsidized/below market
                 9.5%
Type C                            interest rates
28.6%
                                  Type B: Social investor +
                                  near market, market interst
                                  rates

                         Type B   Type C: Commercial investor
                         59.5%




                                                                53
       Mission orientation of the Social Investors

Table I: Mission orientation of the Social Investors
                           MISSION ORIENTATION
Investor    Total          Outreach to                     Employment
Type        respondents    the poor      Poverty reduction increase     Other
Type A                10%           50%               75%           25%       50%
Type B                61%           56%               64%           40%       36%
Type C                29%           25%               33%           33%       83%
Total                100% Note: More than 1 answer was possible




                                                                                54
     How committed are Social Investors to Social
                  Performance?
Table II: How Commited Are Social Investors to Social Performance?
                                                  Total       Type A   Type B    Type C
Has a vision/mission that references outreach to
the poor, with systems to implement                     64%       100%      60%        58%
Are interested in measuring social performance
on a regular basis                                      90%       100%      91%       100%
Are interested in measuring environmental
performance on a regular basis                          64%        50%      59%        33%
Report on social performance at least on an
annual basis                                            79%        75%      77%        83%
Require Social Performance information when
participating in governance structures                  31%         0%      38%        17%
Note: Social Investors who did not respond to this question were assumed as having no
interest in measuring or reporting social/environmental performance



                                                                                             55
       How do Social Investors measure Social
                  Performance?
The High 5
       Effective Interest
                                                      60%
             Rate

   Portfolio at Risk > 30
                                                      60%
         or 60 days


          Write-Off ratio                       55%


      Average loan size                   50%


   # of active borrowers            45%



                                                            56
             How do Social Investors measure Social
                        Performance?

Table III: Top Indicators by Social Investor Type
                                                                                   Periodically Report
                                        Total         Type A   Type B   Type C     this Indicator
Effective Interest Rate                         60%        75%      52%      67%                   24%
Portfolio at Risk > 30 or 60 days               60%        75%      56%      58%                   36%
Write-Off ratio                                 55%        50%      56%      50%                   38%
Average loan size                               50%       100%      40%      50%                   48%
# of female clients                             45%        75%      44%      33%                   36%
# of active borrowers                           45%        75%      36%      50%                   50%
% growth in active borrowers (annual)           43%        75%      36%      42%                   43%
# of loans disbursed (yr)                       43%        50%      32%      58%                   40%
# of rural clients                              29%        50%      24%      33%                   36%




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            How do Social Investors measure Social
                       Performance?
 The Bottom Dwellers
   % clients (at entry) below 1$/day or $2/day poverty line       5%



            % clients (at entry) below national poverty line           7%



% clients in remote rural areas, or less developed regions             7%



                                  Average size of first loans          7%


Number of clients w ith microinsurance: (a) loan; (b) life; (c)
                                                                            10%
                           health


        % of clients from specified marginal/disadvantaged
                            communities                                     10%



                                                                                  58
            How do Social Investors measure Social
                       Performance?
Table IV: Bottom Indicators by Fund Type

                                          Routinely collect Indicator for Due Dilligence
                                          Total      Type A       Type B      Type C     Would like to use
% clients (at entry) below 1$/day or
$2/day poverty line                              5%        25%          0%          8%                  60%
% clients (at entry) below national
poverty line                                     7%        25%          0%         17%                  60%
% clients in remote rural areas, or
less developed regions                           7%        25%          4%          8%                  57%
Average size of first loans                      7%          0%         8%          8%                  57%
Number of clients with
microinsurance: (a) loan; (b) life; (c)
health                                          10%        50%          4%          8%                  29%

% of clients from specified
marginal/disadvantaged communities              10%        25%          4%         17%                  50%

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                    General Conclusions
• Most social investors that support MFIs promote both financial and
  social returns

• Strong interest in better social performance data, however, need for
  easy, cost-effective means to improve social reporting from MFI
  clients




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Discussion and Next Steps




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