•  
  •  
 

Journal of Microfinance / ESR Review

Abstract

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.

Biography

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).

Section

Articles

Journal Title

Journal of Microfinance

Issue and Volume

6-2

Download

Share

COinS