Laura Foose, Director Social Performance Task Force

SPTF Universal Standards for Social Performance Management June 26-27, 2012 MCPI Annual Conference

The Universal Standards for SPM A set of management standards that apply to all microfinance institutions pursuing a double bottom line. Meeting the standards signifies that an institution has “strong” social performance management (SPM) practices. The Standards document contains standards, essential practices, and additional good practices.

The Standards apply to double bottom line institutions A double bottom line institution: Seeks not only financial sustainability, but also to achieve one or more social goals. Works toward increasing financial inclusion and creating benefits for clients, beginning with reducing client vulnerability. Ensures that clients are not harmed.

The Standards are for institutions with any variety of social goals The Standards do not specify what an MFI’s social goals should be, only that: Goals should be clearly defined and have measureable targets; MFIs should monitor their progress toward their social goals and use this information to improve their operations; and Employees, managers, and the Board should be accountable for achieving the institution’s goals.

SPTF developed the Standards in response to member demand Task Force members asked the SPTF to establish clear standards for strong SPM for microfinance institutions. The Standards respond to an industry desire to re-focus microfinance on the client.

The document is organized into six categories 1. Define and Monitor Social Goals; 2. Ensure Board, Management, and Employee Commitment to Social Goals; 3. Treat Clients Responsibly; 4. Design Products, Services, Delivery Models and Channels That Meet Clients’ Needs and Preferences; 5. Treat Employees Responsibly; and 6. Balance Financial and Social Performance

Why these six categories? The SPTF started with the assumption that, to achieve a double bottom line, an institution must: Set a strategy Build employee buy-in Put clients first

The Standards combine and build from the work of other key initiatives Imp-Act Consortium CERISE Smart Campaign MFTransparency MicroSave International Labor Organization MIX (social performance indicators and data analysis) Social rating agencies Investors’ due diligence

The Standards will be useful for many stakeholders MFIs Learning tool Self-evaluation Roadmap Investors/donors Learning tool Due diligence and monitoring Networks/ associations Learning tool Teaching tool Others: Raters/auditors Regulators/policymakers Researchers

SPTF developed the Standards collaboratively and has built buy-in 18-month process, five rounds of public comment Feedback gathered in a variety of ways: working groups, surveys, conversations with MFIs in the field, webinars Input from approximately 40 countries, in all regions of the world 300 to 400 individual members

Thank you! For More information on the USSPM, FAQs, go to Join us for the Webinar series starting in September – Implementation of the USSPM – all are invited!!