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What are the Universal Standards for Social Performance Management?
Developed through broad industry consultation, the SPTF Universal Standards for Social Performance Management (“the Standards”) are a set of management standards that apply to all microfinance institutions pursing a double bottom line. Meeting the standards signifies that an institution has “strong” social performance management (SPM) practices. To achieve this, institutions must:
1. Define and Monitor Social Goals; 2. Ensure Board, Management, and Employee Commitment to Social Goals; 3. Treat Clients Responsibly; 4. Design Products, Services, Delivery Models and Channels That Meet Client’s Needs and Preferences; 5. Treat Employees Responsibly; and 6. Balance Financial and Social PerformanceWhy should an institution seek to meet the Standards?
The ultimate aim of the Standards is to benefit clients. A double bottom line institution seeks not only financial sustainability, but also to achieve one or more social goals. Though each institution will have its own unique social goals, all double bottom line institutions should share the broader purpose of increasing financial inclusion and creating benefits for clients, beginning with reducing client vulnerability.
Furthermore, all institutions should seek to fulfill their goals while ensuring that clients are not harmed. An institution that meets the Standards has put in place the building blocks of a client-focused institution, and is in a good position to achieve their social goals.
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