Social Performance Indicators
In 2008, Oikocredit began to use the Social Performance Indicators tool: an audit much like a financial audit. It assesses the social performance of an organization by evaluating its intentions and actions, and shows whether a particular project partner is reaching the people it intends to reach.
The SPI focuses on process management. It looks at the organization's stated objectives and the effectiveness of its systems for achieving them. It analyzes social performance using a wide range of indicators, comprising four dimensions:
- targeting and outreach
- benefits to clients
- products and services
- social responsibility
This gives an organization a comprehensive overview of how their actions measure up against a number of common social objectives. Using the SPI tool enables an organization to:
- make an initial assessment of the quality of their processes compared to their mission and objectives
- strengthen the organization's attempts to improve social performance and stimulate internal dialogue on the issue
- increase transparency and improve credibility among clients and donors
- reinforce the organization's system of governance and knowledge of their activity
- enable an organization to distinguish itself from its competitors by adopting an explicitly social approach
The SPI tool for MFIs was designed using an open, collaborative and transparent approach. Updates to the SPI include a better appraisal of current issues in the microfinance sector (interest rates, consumer protection and environment) and compatibility with social performance standards to be reported to the MIX MARKETTM, a global, web-based, microfinance information platform.
Case studies for download:
SPI case study: Banco da Familia, Brazil
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