Social Performance Indicators Initiative - Phase 2: Audit of the Social Performance of Microfinance Institutions: The Definition of a Tool
This paper describes the steps involved in the second phase Social Performance Indicator (SPI) initiative for finalizing the auditing tool. It begins by briefing on the set of indicators deployed to measure social performance of the microfinance institutions (MFIs) as agreed upon in the questionnaire (first phase).
The paper reveals that to help design a relevant questionnaire, the steps involved in the testing phase of the questionnaire will include:
- Field testing with a sample of diversified MFIs;
- External validation to analyze the quality of the tool;
- Collating feedback from the microfinance community on the use of the tool.
This will be followed by a virtual meeting between the stakeholders to express their assessments on the methodology, results and the future use of the tool. The final result will be a simple auditing tool comprising of:
- Questionnaire along the 4 dimensions of social performances;
- Companion manual documenting the source of information, method of verifying the data validity and some indication for using the tool;
- Results and analysis for the participating MFIs as an appendix.
The paper concludes by delineating the role of external reviewers, advisory committee and coordinating institution, and sets the time frame for organizing and finalizing the SPI tool.
