The Universal Standards of Social Performance Management have 6 key dimensions. Dimension 2 of these standards focuses on the commitment of the Board of Directors on the management of the organization’s social performance. In practice, no formal document is usually in place that demonstrates their commitment to Social Performance Management. For this reason Inclusion [Africa] has designed a Social Governance Charter for the microfinance sector.
The Charter aims to set up rules and a framework for Social Performance Management for the Board of Directors as well as for any special SPM committees. These rules and framework translate into reality its commitment to promote the institution’s social mission. The Charter is meant to complement any additional SPM-related documents and manuals that the institution may have developed. The Charter applies to all members of the Board of Directors upon taking office and is signed off as, “Read and Approved”. Several aspects are included, such as: Roles and Responsibilities of the Board of Directors in SPM; Objectives and Social Indicators to be monitored by the Board of Directors; Issues relating to the SPM to be addressed at Board meetings; Risk Definition for each Social Indicator Identified. The Charter is currently being tested within various organizations in Africa. We hope that it will contribute to improving the social governance practices of Board of Directors.
Gilles Da Costa
West Africa Regional Manager
Inclusion [Social Ratings]
