Defining and Promoting Social Performance: Certification Initiatives in Microfinance

The term "social performance" refers to microfinance's socioeconomic impact, which, together with financial performance, constitutes an MFI's "double bottom line."

For further explanation of social performance, here is a video with Beth Rhyne and Asad Mahmood on the Smart Campaign, a global effort to unite microfinance leaders around a common goal: to keep clients as the driving force of the industry.

The Social Performance Task Force is another key initiative charged with clearly defining social performance and addressing questions about measuring and managing social performance. The Social Performance Task Force defines social performance as: "The effective translation of an institution's social mission into practice in line with accepted social values that relate to serving larger numbers of poor and excluded people; improving the quality and appropriateness of financial services; creating benefits for clients; and improving social responsibility of an MFI."

The Microcredit Summit Campaign is also doing important work in the area of social performance. To learn more about the Seal of Excellence and the Microcredit Summit Campaign's efforts in the field of social protection and certification, please read my summary of the latest report by the Microcredit Summit Campaign.

In addition during the upcoming Microfinance Center (MFC) conference in Prague, there will be another discussion on Social Performance and Certification. To view presentations and summaries from the conference, please stay tuned to the Microlinks blog as our team reports live from the event later this month.