Why Social Performance Management? A Note for Microfinance Associations

How can microfinance associations promote social outcomes among member MFIs?
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This note advocates promotion of social performance management (SPM) among MFIs by microfinance associations, lists benefits of SPM for associations, and suggests ways in which they can support institutions in implementing SPM.

Social performance management enables MFIs to improve and demonstrate social outcomes. The article suggests that microfinance associations, with their global perspective, industry experience, resources and technical knowhow, can play a major role in promoting SPM among MFIs. By engaging in the social performance of members, associations can provide more relevant services, align their activities to a social mission, increase member loyalty and build reputation. Promoting SPM helps associations in pro-microfinance advocacy, disseminating local information and supporting balanced growth of MFIs.

The article suggests several measures for microfinance associations to promote SPM. These include:

  • Awareness-building through training for MFIs and investors;
  • Considering MFIs’ social performance during new member selection;
  • Publishing SPM data and best practices of MFIs;
  • Providing technical and financial assistance and support for selecting SPM tools;
  • Completing social audit of the association;
  • Participating in the Social Performance Task Force.

About this Publication

By Social Performance Task Force