1
Section 1 of the Universtal Standards
Define and Measure Social Goals
2
The standards in Section 1
• The institution has a strategy to achieve its social
goals.
• The institution collects, reports, and ensures the
accuracy of client-level data that are specific to the
institution’s social goals.
3
1aThe institution has a strategy to achieve its
social goals
• The institution strategy needs to include:
•
Social mission—broader social purpose
•
Target clients—specific characteristics of clients and how the
target outreach is linked to the social mission
•
Social goals—the client outputs and outcomes expected
•
Social targets—for client outputs and outcomes
•
Social indicators—what the institution uses to measure
progress toward achieving targets
•
How to achieve social goals—products, services, delivery
models and channels used
4
•
•
•
•
•
•
2b The institution collects, reports, and ensures the
accuracy of client-level data that are specific to the
institution’s social goals
Have at least one indicator for each social goal.
Identify: who collects the data; where it is stored; who analyzes it;
who verifies its accuracy, how it is reported and to whom.
Disaggregate client data by gender and other key client
characteristics, using the MIS.
Ensures data quality by: 1) validating the data, and 2) training
employees on data collection tools and data entry.
If poverty reduction is a social goal, monitor the poverty levels of
its clients using a poverty assessment tool.
Disclose data, including the MIX Social Performance Indicators, in
a public format.
5
Section 2 of the Universal Standards
Ensure Board, Management, and Employee
Commitment to Social Goals
The standards in Section 2
• 2a- Members of the Board of Directors are committed to the
institution’s social mission.
• 2b- Members of the Board of Directors hold the institution
accountable to its social mission and social goals.
• 2c- Senior management sets, and oversees implementation
of, the institution’s strategy for achieving its social goals.
• 2d- Employees are recruited, evaluated, and recognized
based on both social and financial performance criteria.
2a Members of the Board of Directors are
committed to the institution’s social mission.
• Provide Board with an orientation on the social mission
and goals, and the Board’s responsibilities for
managing social performance, and confirm that each
member agrees.
• Requires Board members to adhere to the institution’s
code of ethics
2b Members of the Board of Directors hold the
institution accountable to its social mission and
social goals.
• Board reviews SP data, including: mission compliance,
8
performance results, HR policy, SP related risks, client
protection practices, growth, and profit allocation.
• Board oversees the institution’s strategy, taking into
account both social and financial goals.
• Board uses SP criteria when evaluating the
performance of the CEO/Director.
• Board prevents institutional mission drift during
changes in ownership structure and/or legal form (e.g.,
transformation).
9
•
•
•
•
2c Senior management sets, and oversees
implementation of, the institution’s strategy for
achieving its social goals.
Sr. management integrates SP goals into business planning,
making strategic and operational decisions based on how
they effect both social and financial performance.
Sr. management analyzes SP data, incl. data on client-level
outcomes, to compare the institution’s actual performance
against its stated social targets.
Senior managers consider and take action to avoid social
performance related risks (e.g., reputation risk, mission drift).
CEO/Director holds senior managers accountable for making
progress toward the institution’s social goals (e.g., reaching
target clients, successful implementation of client protection
practices).
10
2d Employees are recruited, evaluated, and
recognized based on both social and financial
performance criteria.
• Screen job candidates for their commitment to the
institution’s social goals, and ability to carry out SP
related responsibilities.
• Evaluate employees on how they perform both their SP
and FP responsibilities
11
Section 3 of Universal Standards
Treat Clients Responsibly
12
The standards in Section 3
• 3.a. Conducts good capacity analysis and participates in market
level risk management.
• 3.b. Communicates transparently with clients so that clients can
understand and make informed decisions.
• 3.c. Treats clients fairly and respectfully without discrimination.
• 3.d. Respects the privacy of client data and only uses data as
agreed to with the client.
• 3.e. Offers timely and responsive mechanisms for complaints
that permits problem resolution for the clients and improvements
to products and services.
13
Section 4 of Universal Standards
Design Products, Services, Delivery Models
and Channels that Meet Clients’ Needs and
Preferences
14
The standards in Section 4
• 4.a. The institution understands the needs and
preferences of different types of clients.
• 4.b. The institution designs its products and services
such that they do not cause harm.
• 4.c. The institution designs its products and services to
benefit clients in line with its social goals.
15
Section 5 of Universal Standards
Treat Employees Responsibly
16
The standards in Section 5
• 5a The institution follows a written human resources policy that
protects employees and creates a supportive working
environment.
• 5b The institution communicates to all employees the terms of
their employment and provides training for essential job
functions.
• 5c The institution monitors employee satisfaction and turnover.
17
Section 6 of Universal Standards
Balance Financial and Social Performance
18
The standards in section 6
• 6a Growth rates are sustainable and appropriate for market
conditions, allowing for high service quality.
• 6b The institution’s financing structure is appropriate to a double
bottom line institution in its mix of sources, terms, and desired
returns.
• 6c Pursuit of profits does not undermine the long-term
sustainability of the institution or client well-being.
• 6d The institution offers compensation to senior managers that is
appropriate to a double bottom line institution.