Tools and Resources for Assessing Social Impact



This tool is a social rating that measures the level of social return from an investment in a microfinance institution (MFI). The rating allows investors to compare MFIs from a social point of view. MicroRate evaluates the MFI’s social results and social commitment within the context of its country or region. The first component – social results – evaluates the MFI’s capacity, efficiency, and consistency in achieving its social mission by considering depth and diversity of services; cost, efficiency, and sustainability; and institutional responsibility. The second component – social commitment – assesses the MFI’s focus and the chances of potential deviation from the social mission by examining the MFI’s mission, communication, management, strategic planning, monitoring, client protection, customer service, recruitment and training, and incentive system. After analyzing these two components, MicroRate arrives at a social rating grade.

Tags: consultant service, scorecard/rating

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