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SOCIAL PERFORMANCE INDICATOR (SPI4) Developed by CERISE - Coggle Diagram
SOCIAL PERFORMANCE INDICATOR (SPI4)
Developed by CERISE
Universal Standards
ENSURE MANAGEMENT, AND EMPLOYEE COMMITMENT TO ENSURE BOARD, SOCIAL GOALS
Accountability to Mission and Social Goals
Senior Management oversee the strategy
Employee recruitment
Financial performance
Social performance
DESIGN PRODUCTS, SERVICES AND DELIVERY CHANNELS THAT MEET CLIENTS’ NEEDS AND PREFERENCES
Benefits to clients
Reduce barrier to financial Inclusion
Loan Size
Guarantee/Guarantor requirement
Repayment schedule saving withdrawal conditions,
Insurance/remittances product use
Methodology and Technology used for delivery
Reduce Client Risk
Offering Product and services reducing client vulnerability & cope with common emergencies
Policy
Suitable product & services
Fair collateral requirements
Flexible payment schedule based on client cash flow
Prevent aggressive sale
Monitor Suitability of product
Survey
Feedback
Client needs and preferences
Market Research
Need and preferences of product
Potential barriers to excess product
Characteristic of target Client
Need Preferences for delivery channel
DEFINE AND MONITOR SOCIAL GOALS
Strategy to achieve social goals.
Formal Mission Statement - Increases access to financial services
Expected social outcome
Create benefit for client, meeting needs
Product, Services, Other mechanisms
Reduce Client Vulnerability
Reduce barrier to financial Inclusion
Promote Economic opportunities
Characteristic of target Client
Demographics
Banked/unbanked
Business activities
At est 1 measurable indicator to each goal
Collect and Disclose accurate Client data specific to its goals
Formal System
Protocols for Data
Storage
Verification
Collection
Analyzing
Reporting
Employee Training
Validation
Internal Audit/Management Review + Field checks
TREAT CLIENTS RESPONSIBLY
Prevent over-indebtedness
Sound Policy
Credit Info
Well Documented process
Loan Approval
Management &Board reviews results
Measures Discussed & Implemented
Transparency
Policy & document
Communication
Fair and Respectful Treatment
Privacy of client data
Secured & Confidential
Client's consent to use data
Mechanisms to resolve client complaints
Client informed rights to complain & Steps
Use Complain data to improve Product and Service
TREAT EMPLOYEES RESPONSIBLY
Communication
Employment
Training
Documents
Job Responsibilities
Performance evaluation
Policy
Protects the Employee
Supportive working environment
Monitoring
Employee Satisfaction
Turnover
BALANCE FINANCIAL AND SOCIAL PERFORMANCE
Growth Rate
Alignment of objectives
Responsible Pricing
Appropriate Compensation
Number of Audit Till Match 2020
Globally
904 Audits
618 different FSP
India
41 different FSP
85 Audits
Advantages
Easy to use and can be self-administered
Indicators are simple and directly attributable to the MFI
Standardized
Indicators are based on readily available data, easily verifiable by an external auditor
Adaptable to different types of MFIs & local contexts
Implementation Phase
Review preliminary findings - Management /Stakeholders
Disseminate findings
Enter data into the SPI Excel file and generate graphs
External auditors - Summary of results
Graphic representation of the dimensions and criteria
Compares social performance with financial performance and gives recommendations for improving social performance
All dimensions
Fill in the questionnaire & verify information
External approach: auditor fills in the questionnaire alone, setting up interviews with top management when needed
Participatory approach: auditor (internal or external) conducts interviews with a large range of participating stakeholders (HQ, branch management, field staff, clients, donors, investors, etc.
Focus groups may be organized to gather feedback from staff and/or clients.
Preparation Phase
Get familiar with the tool
Centralized approach: this step will take place among top management
Participatory approach: person in charge may organize a workshop with the stakeholders to be involved.
Prepare the documentation and interviews for the questionnaire
Strengths
Increases transparency and improves credibility among clients, investors and donors
Reinforces governance
Reinforces efforts to improve social performance and encourage internal dialogue on this issue
Maximizes financial efficiency by improving social performance
Initial diagnostic of the quality of systems and processes, comparing them to the MFI’s mission and objectives
Enables MFIs to distinguish themselves from competitors
Improve practices to better serve clients
Allows FSPs evaluate their level of implementation
Weakness
The SPI4 tool is NOT something you can do in a couple of hours
SPI4 tool is NOT a rating system
Parameter to Measure steps taken to ensure MSME Growth other than funding
A subset of SPI4 for social investors
Aligning Investors due-diligence and reporting to the Universal Standards.
Helping social investors track what matters
CERISE expertise
MICROFINANCE
Reaching the target market
Appropriate products and services
Social Responsibility
RURAL FINANCE
SOCIAL BUSINESS