For many years, sustainabilty was all about "the financials"—social performance was taken for granted. CERISE and its partners were the first to pioneer a social performance assessment tool for microfinance, in 2001. Developed in collaboration with networks from the North and South, the Social Performance Indicators is one of the most widely used social audit tools in the sector today. In addition to the SPI, CERISE has also developed innovative methodologies for assessing impact.

CERISE has spearheaded a whole new facet of performance assessment to complement financial analysis. Our goal is to help MFIs become sustainable while genuinely contributing to development.

In a context of financial turbulence and growing skepticism, these innovative tools offer constructive solutions for MFIs.

Microfinance is maturing. It’s no wonder donors and social investors are demanding greater accountability from their MFI partners, who do they really serve and what effects are they are having on clients? Some MFIs also sense that improving social performance will, in the medium-term, boost their financial performance.

Social auditing tools like the SPI analyze internal processes to assess if the MFI is meeting its social goals. This approach helps MFIs set objectives for improvement and take the necessary steps to meet them.

CERISE is a pioneer of social audits. Today, over 250 MFIs have administered the SPI either alone, with their network, TA provider or social investors.

SPI Charter

Social utility is the main argument for microfinance investment. Investors who cannot clearly demonstrate the social impact of their activities risk overstating microfinance’s benefits and seeing their own reputation discredited when “problematic” aspects are publicized. But, for investors to make decisions based on social value added, they must be able to measure it.

Social audit tools for MFIs have multiplied in recent years, helping MFIs measure and improve their social performance. While some of these tools have been used by investors, Socially Responsible Investors (SRIs) deserve an audit methodology adapted to their own concerns and structures.

CERISE’s SPI Investor is a four-dimensional audit tool for investors that draws on the UN’s Principles for Responsible Investment and CGAP’s work on aid effectiveness.

Currently being tested by social investor Oikocredit, SPI Investor enables SRIs to take stock of operations, strategies and social impact. Designed to be administered internally, the SPI Investor can also be used as a management tool to guide investment decisions, and a communication and benchmarking tool to increase transparency improve credibility of SRIs in microfinance.

The SPI tool is open access. In exchange for using the tool, users send their findings to CERISE along with comments on the tool. This user collaboration has led to an improved version of the SPI and a rich database with results of over 200 social audits.

CERISE has used this databank to test the relationship between social and financial performance to verify synergies between the two.
CERISE has also tested the relationship between SPI and the results of impact studies to verify synergies between systems and impact.

CERISE works with its investor partners and the Social Performance Task Force working group on social investors to identify criteria for promoting socially responsible investment.