This paper proposes a new approach for measuring the social performance of microfinance institutions. The key to developing sustainable social performance measurement (SPM) systems and practices is to consider their design from the perspective of the organizational mission. The fact that the SPM system is built on the organizational mission ensures its cost-effectiveness and facilitates its institutionalization. It not only stimulates an MFI to verify the fulfilment of its social mission and to innovate in the search for optimal solutions to address development needs in a given intervention context, but it also can improve its financial condition through client segmentation and risk management leading to increased efficiency, better product development, and strategic decision-making on the competitive microfinance markets.
Katarzyna Pawlak and Michal Matul work in the Research Unit at the Microfinance Centre for Central and Eastern Europe and the New Independent States (MFC).; Katarzyna Pawlak and Michal Matul work in the Research Unit at the Microfinance Centre for Central and Eastern Europe and the New Independent States (MFC).
Journal of Microfinance
Issue and Volume
BYU ScholarsArchive Citation
Pawlak, Katarzyna and Matul, Michal
"Realizing Mission Objectives: A Promising Approach to Measuring the Social Performance of Microfinance Institutions,"
Journal of Microfinance / ESR Review: Vol. 6
, Article 2.
Available at: http://scholarsarchive.byu.edu/esr/vol6/iss2/2