1. Section 1 of the Universtal Standards Define and Measure Social Goals 1

2. The standards in Section 1 The institution has a strategy to achieve its social goals. The institution collects, reports, and ensures the accuracy of client-level data that are specific to the institution’s social goals. 2

3. 1aThe institution has a strategy to achieve its social goals The institution strategy needs to include: Social mission—broader social purpose Target clients—specific characteristics of clients and how the target outreach is linked to the social mission Social goals—the client outputs and outcomes expected Social targets—for client outputs and outcomes Social indicators—what the institution uses to measure progress toward achieving targets How to achieve social goals—products, services, delivery models and channels used 3

4. 2b The institution collects, reports, and ensures the accuracy of client-level data that are specific to the institution’s social goals Have at least one indicator for each social goal. Identify: who collects the data; where it is stored; who analyzes it; who verifies its accuracy, how it is reported and to whom. Disaggregate client data by gender and other key client characteristics, using the MIS. Ensures data quality by: 1) validating the data, and 2) training employees on data collection tools and data entry. If poverty reduction is a social goal, monitor the poverty levels of its clients using a poverty assessment tool. Disclose data, including the MIX Social Performance Indicators, in a public format. 4

5. Section 2 of the Universal Standards Ensure Board, Management, and Employee Commitment to Social Goals 5

6. The standards in Section 2 2a- Members of the Board of Directors are committed to the institution’s social mission. 2b- Members of the Board of Directors hold the institution accountable to its social mission and social goals. 2c- Senior management sets, and oversees implementation of, the institution’s strategy for achieving its social goals. 2d- Employees are recruited, evaluated, and recognized based on both social and financial performance criteria.

7. 2a Members of the Board of Directors are committed to the institution’s social mission. Provide Board with an orientation on the social mission and goals, and the Board’s responsibilities for managing social performance, and confirm that each member agrees. Requires Board members to adhere to the institution’s code of ethics

8. 2b Members of the Board of Directors hold the institution accountable to its social mission and social goals. Board reviews SP data, including: mission compliance, performance results, HR policy, SP related risks, client protection practices, growth, and profit allocation. Board oversees the institution’s strategy, taking into account both social and financial goals. Board uses SP criteria when evaluating the performance of the CEO/Director. Board prevents institutional mission drift during changes in ownership structure and/or legal form (e.g., transformation). 8

9. 2c Senior management sets, and oversees implementation of, the institution’s strategy for achieving its social goals. Sr. management integrates SP goals into business planning, making strategic and operational decisions based on how they effect both social and financial performance. Sr. management analyzes SP data, incl. data on client-level outcomes, to compare the institution’s actual performance against its stated social targets. Senior managers consider and take action to avoid social performance related risks (e.g., reputation risk, mission drift). CEO/Director holds senior managers accountable for making progress toward the institution’s social goals (e.g., reaching target clients, successful implementation of client protection practices). 9

10. 2d Employees are recruited, evaluated, and recognized based on both social and financial performance criteria. Screen job candidates for their commitment to the institution’s social goals, and ability to carry out SP related responsibilities. Evaluate employees on how they perform both their SP and FP responsibilities 10

11. Section 3 of Universal Standards Treat Clients Responsibly 11

12. The standards in Section 3 3.a. Conducts good capacity analysis and participates in market level risk management. 3.b. Communicates transparently with clients so that clients can understand and make informed decisions. 3.c. Treats clients fairly and respectfully without discrimination. 3.d. Respects the privacy of client data and only uses data as agreed to with the client. 3.e. Offers timely and responsive mechanisms for complaints that permits problem resolution for the clients and improvements to products and services. 12

13. Section 4 of Universal Standards Design Products, Services, Delivery Models and Channels that Meet Clients’ Needs and Preferences 13

14. The standards in Section 4 4.a. The institution understands the needs and preferences of different types of clients. 4.b. The institution designs its products and services such that they do not cause harm. 4.c. The institution designs its products and services to benefit clients in line with its social goals. 14

15. Section 5 of Universal Standards Treat Employees Responsibly 15

16. The standards in Section 5 5a The institution follows a written human resources policy that protects employees and creates a supportive working environment. 5b The institution communicates to all employees the terms of their employment and provides training for essential job functions. 5c The institution monitors employee satisfaction and turnover. 16

17. Section 6 of Universal Standards Balance Financial and Social Performance 17

18. The standards in section 6 6a Growth rates are sustainable and appropriate for market conditions, allowing for high service quality. 6b The institution’s financing structure is appropriate to a double bottom line institution in its mix of sources, terms, and desired returns. 6c Pursuit of profits does not undermine the long-term sustainability of the institution or client well-being. 6d The institution offers compensation to senior managers that is appropriate to a double bottom line institution. 18