Sptf 20120104 universal standards for social performance

Universal Standards for SocialPerformance Management:Revised Standards January 4, 2012

Agenda• Overview of the universal standards for SPM• Review of the development process to date• Phase II: indicators and benchmarks• Timeline for next steps• How to get involved

What are the universal standards forsocial performance management?• The USSPM are… …a set of management standards for microfinance institutions (MFIs) with a double or triple bottom line. They establish clear requirements for the policies, procedures, and operations that an MFI should have in place in order to achieve its social goals.• Key points:. ─ Developed through broad industry consultation ─ Called “universal” because they are fundamental, not aspirational ─ Not mandatory. They help MFIs set strategies and self-regulate. Also inform the work of investors, auditors/raters, and networks.

Review: examples of commonlyaccepted social goals• Serving increasing numbers of poorer and more excluded people sustainably. ─ Outreach based on poverty, gender, rural location, youth, or indigenous people ─ Inclusion of persons with disabilities• Improving the quality and appropriateness of financial services ─ What is needed to invest in an economic opportunity, manage anticipated short term and longer term financial needs, and/or cope with emergencies• Creating benefits (e.g., increasing social capital, assets, income; providing access to services; reducing vulnerability; fulfilling basic needs) ─ Poverty alleviation; women’s empowerment; employment creation; growth of existing business; development of start-up businesses• Improving the social responsibility of the MFI towards its clients, its employees and the community it serves.

The standards are organized into sixcategories1. Define and Monitor Target Clients and Social Goals2. Ensure Board, Management, and Employee Commitment to Social Performance3. Protect Clients’ Rights4. Design Products, Services, Delivery Models and Channels that Respond to Clients’ Needs and Preferences5. Treat Employees Responsibly6. Balance Social and Financial Returns

SPTF will present standards along withseveral types of supporting information Proposed Rationale Diagnostic Indicators Benchmarks Standard The Explanation Process indicators that A defined level of individual of why it is assess whether an MFI has performance that an standard for important to implemented the standard. organization would SPM. achieve the Multiple audiences may use have to meet or standard. these indicators: MFIs, to exceed in order to self-evaluate; investors, to achieve fundamental inform due diligence; and performance against auditors/raters, to assess an the standard. organization’s level of social performance management.Released today

Example of a standard: Standard 2a Proposed Rationale Diagnostic Indicators Benchmarks Standard (DRAFT) (DRAFT) (DRAFT)Ensure Board, Management, and Employee Commitment to Social Performance2a. Members of As the • The Board includes members •20% of Board the Board of ultimate with expertise in some aspect of members have at Directors are strategy- social performance (for least 5 years of committed to setting body example, field work, human field-level the for the resources, advocacy, etc.) experience institutions institution, • Each Board member receives a social mission. the Board social performance orientation MIX indicator(s): must be fully upon joining the board. • Does your Board committed to • Board members have a of Directors have achieving the mechanism for making contact a formal institution’s with clients on a regular basis committee that social mission. (for example, field visits, Board monitors social meetings with client performance? representatives, etc.) yes / no • … [more] • …[more]

The Standards combine and build fromthe work of other key initiatives• Standards have their origins in work that began in 2005 to collect social performance data through the SPTF/MIX Social Performance Report• The Standards incorporate work of many other initiatives/organizations: ─ CERISE ─ Imp-Act Consortium ─ MFTransparency ─ MIX ─ Smart Campaign Standards are aligned with, and reinforce, existing initiatives

SPTF developed the standards over atwelve-month periodPreliminary Official Kick- Revisions Further Final review Release ofwork off: review based on debate and and decisions revised(e.g., early and debate feedback at revision in by SPTF standardsdrafts and over annual working Steeringpublic standards at meeting groups (four Committeecomments) Task Force thematic, plus annual Gender and meeting Associations)Jan – Jun Jun 2011 Jul – Aug Sep – Nov Dec 2011 Jan 20122011 (Den Bosch) 2011 2011 Today

Hundreds of Task Force members fromaround the globe provided input Feedback Channel Numbers providing feedback Spring 2011 public • 59 survey respondents comment period • 8 direct email responses SPTF annual meeting • approx. 250 participants June 2011 Fall 2011 working group • Between 20 and 40 members in each thematic period working group and Gender group • 121 MFIs submitted feedback via Associations working group • 16 other organizations (e.g., networks, NGOs) submitted feedback via Associations working group Note: All 1000+ members of the SPTF were invited to participate in each feedback period

Phase II will involve creating indicatorsand benchmarks for each standard• Diagnostic indicators help assess whether the MFI has implemented the standard ─ Very preliminary indicators have been drafted by the SPTF Secretariat to start the conversation ─ Working groups will review the indicators and delete / revise / add, as needed• Benchmarks define the specific performance level the MFI must meet or exceed in order to achieve the standard ─ Very few benchmarks suggested so far ─ SPTF Secretariat / MIX have identified areas of data collected by MIX (i.e., the social performance indicators) that could inform benchmark decisions ─ Working groups will suggest benchmarks and / or identify what data would be needed in order to set a benchmark

Timeline for Phase II and beyondWorking groups SPTF Secretariat Public comment SPTF launches Continuedevelop and Steering period on completed gathering dataindicators and Committee indicators and standards, for benchmarks;benchmarks; review feedback benchmarks indicators, and Help MFIsAssociations and finalize benchmarks implementworking group indicators, also (where possible) standardscollects feedback finalizefrom the field benchmarks as possible and set plan to gather additional requisite benchmark dataJan – Apr 2012 Apr 2012 Apr– May 2012 Jun 2012 Jun 2012 and (Jordan) beyond

How to get involved: Join a working group! • Meetings are online • Detailed notes from each meeting are mailed to all group members • Comments may be provided in online meetings or via email at any time Working Group Name Facilitator Social Goals, Target Clients Natalie Domond Governance Anita Campion Products and Services That Meet Client Needs Chris Linder Treat Employees Responsibly to be determined Balancing Social and Financial Returns Tony Sheldon Email Amelia Greenberg (ameliagreenberg@sptf.info) to join any of the working groups

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Sptf 20120104 universal standards for social performance

by Leah Nedderman on Jan 04, 2012

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Sptf 20120104 universal standards for social performance — Presentation Transcript