Social Impact Measurement: the experience of the Microfinance sector Evolutions, approaches, coordination

Transcription

1 Presentation from CERISE with SPTF inputs - April 19, GECES Subgroup Social Impact Measurement: the experience of the Microfinance sector Evolutions, approaches, coordination

2 Impact assessment: from proving to improving the practices Impact assessment judged as too complicated due to attribution issues and fungibility of money + too long to get results for practitionners Clients surveys on satisfaction, dropouts, use of products, etc. Work on Social Performance Assessment since early 2000 s How to verify implementation of mission and help for social management

3 Do no harm Do good Why social performance? What is Social Performance? The effective translation of an institution s mission into practice in line with accepted social values that relate to: Reaching target market Delivering high-quality and appropriate services Responding to the needs of clients, their families, and communities Ensuring responsibility toward its employees, its clients, the community it serves, and the environment Intent Internal systems/activities Outputs Outcomes Impact SOCIAL PERFORMANCE TASK FORCE

4 The Coordination at the sector level Starting in 2000 s, pioneer initiatives with MF institutions (CERISE, Imp-Act Consortium, networks, rating agencies, research) Pilot-testing SP assessment and SP management In 2005, creation of the Social Performance Task Force (now more than 1000 members) -Definition of SP -Key standards indicators for reporting (Mix Market) -Coordination (e.g. ratings) -Promotion & dissemination Photo credit: John Rae for Accion

5 Exemples of SP assessment - Social Audits (e.g. SPI by CERISE) - Social Ratings - Clients surveys on client profile, needs, use of products, level of satisfaction, perception of changes Photo credit: John Rae for Accion

6 Social performance assessment tools Intent Internal systems/activities Results Outputs Outcomes Impact Mostly Internal Use External Use [ PROCESS ] [ RESULTS ] AUDIT CERISE SPI Social Audit QAT Smart Assessment FMO E&S Risk Audit INVESTOR DUE DIL SOCIAL RATING M-CRIL MicroFinanza Planet Rating MicroRate CLIENT PROFILING CGAP/Ford/ Grameen PPI USAID/IRIS PAT IMPACT ANALYSIS Randomized control SEEP/AIMS tools MicroSave Combination Quanti - Quali

7 Exemple of results on SPI assessment

8 The Universal Standards by SPTF Based on leading industry initiatives and practices implemented successfully by MFIs Voluntary resource not a rating, regulatory or certification system

9 A Social Performance Management Resource For MFIs The Standards can: Clarify SPM practices Guide strategies for achieving social goals Set consistent objectives and expectations kiefelphotography.com/fonkoze Streamline reporting to investors and donors They make your job easier because for the first time, all the information is consolidated in one common document. Network

10 A Social Performance Management Resource For Investors The 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

11 The Standards can build the industry s reputation for improving clients lives 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. Microfinance Practitioner

12 From Microfinance to Social Business Work in progress with CERISE and investors involved both in Microfinance & SB: a framework to assess SB Key points of analysis ( 5P ): The Project The Public The Products The Profits The ethical Principles

13 Lessons for our group - Common Framework for achieving the social goals (management & assessment) -Limits of impact measurement to be clarified - Interest of coordination once the basis of approaches are tested (work on impact assessment + social business) Photo credit: John Rae for Accion

14 Ressources & Contact Laura Foose Cécile Lapenu