The Social Performance Task Force (SPTF) and the Small Enterprise Education and Promotion (SEEP) Network, recently published a technical note authored by SPTF’s Social Performance Working Group for Associations that highlights the proceedings of their meeting during the Social Performance Task Force Annual Meeting in June 2010. The authors of this technical note suggest that donors should encourage microfinance associations to harness their status as member-based organizations that represent and serve microfinance practitioners in order to expand and improve the social performance of their members [1].
The working group prescribes the following five strategies to strengthen the ability of microfinance associations to promote social performance: serving as local ambassadors and implementers of global initiatives by sensitizing their members and other stakeholders to the need for microfinance institutions (MFIs) to incorporate social performance in their management strategies; requiring transparency from members so that their social performance can be accurately measured; developing and promoting standards of practice to include codes of conduct, client protection, responsible finance and ethical competition; developing member capacity in social performance through training and technical assistance; and building the social performance knowledge base by disseminating research via a wide range of communication channels.
Donors are encouraged to support microfinance associations committed to advancing social performance by, inter alia, endorsing capacity-building programs for associations to increase their knowledge base and portfolio of tools in social performance, providing training programs for association members, fostering market awareness and advocacy, supporting the development of information systems, encouraging the hiring of social performance management officers, promoting knowledge management and offering access to innovation grants.
By Jacqueline Foelster, Research Associate
About Social Performance Working Group for Associations: The working group was formed during the Social Performance Task Force meeting in June 2009 as a platform for collective action among microfinance trade associations worldwide interested in advancing social performance among their members. The group is led by a steering committee made up of regional representatives from Africa, Asia, Europe, Latin America, and the Middle East. Its work is supported and facilitated by the Small Enterprise and Education Promotion (SEEP) Network. One of the first activities of the working group was to survey associations about their interest, experience, and capabilities in social performance. The purpose was to identify common needs for capacity building that, if addressed, could improve an association’s ability to promote social performance among its members.
About Social Performance Task Force (SPTF): The Social Performance Task Force (SPTF) was created in 2005 as an initiative of CGAP (Consultative Group to Assist the Poor), Argidius Foundation and Ford Foundation. As of February 2011, SPTF consists of approximately 850 leaders from microfinance stakeholder groups including practitioners, donors and investors (multilateral, bilateral and private), national and regional networks, technical assistance providers, rating agencies, academics, researchers and others. It has been charged with clearly defining social performance and addressing questions about measuring and managing social performance. According to SPTF, social performance includes operating “in line with accepted social values that relate to serving larger numbers of poor and excluded people.”
About Small Enterprise Education and Promotion (SEEP) Network: SEEP Network, founded in 1985, connects microenterprise practitioners from around the world to develop practical guidance and tools, build capacity and help set standards to advance its mission of sustainable income in every household. Its members are active in reportedly 180 countries. Headquartered in Washington DC, SEEP is governed by its members, which include microfinance institutions (MFIs) and nongovernmental organizations (NGOs).
Sources and Resources:
[1] Social Performance Task Force of SEEP Network, October 2010, “Donor Strategies for Advancing Social Performance through Microfinance Associations”, http://networks.seepnetwork.org/en/node/2306
MicroCapital.org Article, February 28, 2011, “Microfinance Information Exchange (MIX) Eases Access to Social Performance Data of Microfinance Institutions (MFIs), Announces 11 Social Performance Indicators in Conjunction With Social Performance Task Force (SPTF)”, https://www.microcapital.org/microcapital-brief-microfinance-information-exchange-mix-eases-access-to-social-performance-data-of-microfinance-institutions-mfis-announces-11-social-performance-indicators-in-conjunction-with/
MicroCapital Microfinance Universe Profile: Social Performance Working Group for Associations, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Social+Performance+Working+Group+for+Associations
MicroCapital Microfinance Universe Profile: Social Performance Task Force (SPTF), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Social+Performance+Task+Force
MicroCapital Microfinance Universe Profile: Small Enterprise Education and Promotion (SEEP) Network, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SEEP+Network
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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