Posted by: Micol Pistelli
A microfinance client of SKS, an MFI in the MicroFinance Network
Following posts on Tuesday and Wednesday by guest contributors Tomas Rodriguez (REDCAMIF) and Jack Burga (CRS-Project MISION), we asked two regional networks, Sanabel and MFC, as well as the international network MFN to share their social performance agendas. Here is a summary of their key points.
Nadine El Leissy, Project Coordinator at Sanabel: The Microfinance Network for Arab Countries (Sanabel) has been involved in social performance management (SPM) advocacy since 2007, when it launched its first SPM project in cooperation with MFC and funded by Oxfam Novib. The project’s key milestones included training and certifying Arab trainers and senior representatives on the SPM course, training and certifying Arab trainers on conducting social audits, and completing 10 social audits for member MFIs. A 'lessons learned' report summarizing the project’s key findings is available on the Sanabel website.
Sanabel recently launched the second phase of its SPM project, which is intended as a continuation of the first phase and will be directed specifically towards action planning and streamlining of SPM principles within the operations of capable and interested Sanabel members, as well as developing, testing, and disseminating useful SPM tools.
Finally, Sanabel’s Executive Director, Ranya Abdel Baki, serves on the Steering Committee of the Global Campaign for Client Protection, the principles of which help to strengthen social performance in microfinance. To incorporate Arab MFIs into the Campaign’s Beyond Codes research project, Sanabel has taken the initiative of translating some of the research materials and questionnaires into Arabic and disseminating them among its members.
Ewa Bankowska, Social Performance Manager at MFC: The Microfinance Centre for Central & Eastern Europe and the New Independent States (MFC) is one of the pioneers in SPM at the global level, having worked on the issue since 1999. Since the beginning of its engagement in SPM promotion, the ultimate goal of MFC has been to help practitioners manage their institutions against their social missions. Thus, MFC has developed practical tools supporting MFIs as well as facilitated experience sharing and good practices development, such as a Quality Audit Tool for Managing Social Performance (QAT), a Strategic Management Toolkit, and a Social Performance Management Training Course.
Since 2005, MFC has implemented a three-tier region-wide program on advancing and scaling up SPM in Eastern Europe and Central Asia (ECA). It has also been part of the Social Performance Task Force, contributing to the development of common social performance definitions and first reporting standards on social performance for microfinance.
In 2006, MFC, together with other organizations active globally in promoting SPM (Freedom from Hunger, Institute of Development Studies, CARD, MCPI, Ideas, Eda Rural), founded the Imp-Act Consortium with the goal of mainstreaming SPM in the microfinance industry. The collaborative work of the consortium resulted in the development of our Social Performance Management Training.
Part of MFC’s responsibility in promoting Social Performance is to work outside the ECA region to disseminate developed tools and expertise gained. Thus, MFC has been cooperating with regional and national networks, building their capacity in SPM and building partnerships in SPM innovation.
Masami Hayashi, Director of MFN: MicroFinance Network (MFN) members care very much about their social goals; they are aware that the social side is the core of microfinance. We believe that without targeting the core of its business, any organization will fail sooner or later.
In 2008, MFN agreed to ten “Core Principles” which demonstrate our belief that attending to the social side is integral and essential for MFN members. These ten principles refer to: (1) customer-oriented organization; (2) sustainability and profitability; (3) market-driven principles; (4) new business models; (5) integral part of the financial sector; (6) transformation; (7) good governance; (8) transparency; (9) social performance management; and (10) pro-employee organization.
In this context, MFN keeps its 33 members updated on the latest happenings related to the social side of microfinance, informing them on what is available from whom so that they can make informed decisions to participate in activities important to their business. Moreover, we encourage our members to submit social performance reports to MIX. [To date, 61% of MFN affiliates have reported.]
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