Social Performance Reporting Award

The Michael & Susan Dell Foundation, the Ford Foundation, and CGAP, launched the first Social Performance Reporting Award on June 2nd at the annual Social Performance Task Force meeting. The award, powered by the MIX is designed to promote greater transparency in MFIs’ social performance. The Award recognizes transparency in social performance reporting, not social performance achievements. Performance indicators, such as return on assets, portfolio at risk, or operating efficiency, will not be considered. All regulated and nonregulated financial institutions and NGOs that offer microfinance services are encouraged to participate.

Why a MFI Social Performance Reporting Award?

Historically, the microfinance industry has been considered socially responsible by definition. However, the number and diversity of industry actors is increasing, new and improved MFI products are being developed, and the industry as a whole is expanding worldwide. As a result, microfinance is coming under increased scrutiny: Who are MFIs reaching? How poor are these clients? Do MFIs have responsible lending practices? How has microfinance actually affected people’s lives—what is its impact?

The industry is responding to the need to answer these questions in many ways. Socially responsible investors in microfinance have a growing interest in tracking the social performance of their investees. And, an increasing number of MFIs have started to disclose their codes of conduct and policies focused on their clients, their staff, and the environment.

What is the Social Performance Reporting Award?

The award will recognize microfinance providers who provide reports on a set of social performance indicators. These indicators were developed over three years through a consensus process involving industry leaders and lead by SPTF.

The Award features three levels of recognition:

• MFI Silver Certificate Award for MFIs that comply with minimum SPTF core disclosure requirements (Part I of indicators’ form)
• MFI Gold Certificate Award for MFIs that comply with SPTF core disclosures requirements (Part I, II and Poverty Measurement data) and a third-party validation report of poverty outreach data.
• Network award for networks that have at least 50% of their affiliates eligible to receive a Silver or Gold Award.

In addition, awarded institutions will be recognized on the CGAP and MIX Web sites and at special events. Certificates will be given to award participants in two rounds between June and December 2009 at major microfinance regional events.

Who can participate?

The competition is open to all formal regulated and nonregulated financial institutions and nongovernmental organizations that offer microfinance services.

MFIs that have not yet received the social performance reporting form from MIX should contact Micol Pistelli at mpistelli@themix.org to request a form. Completed forms should be sent back to Micol via email by 15 September 2009.