MEDIA RELEASE PR36439
Oikocredit Announces Results of Social Audit
AMERSFOORT, Oct. 13 /PRNewswire-AsiaNet/ --
- Pushing the frontiers for a social audit of investors
How to measure the economic performance and social progress of our economies? The debate on the
macro economic indicators is animated since the latest report of the commission headed by the Nobel Prize
winner Joseph Stiglitz. On a micro level, tools and indicators are now in the process of being developed and
tested. Today, Oikocredit, a leading private investor in microfinance, has released the results of its social
audit, the first audit of its kind. Does Oikocredit really fulfil its social mission and maintain its values?
Focus on high social return
For Oikocredit and its investors, it is essential to know that investments of some ? 370 million lead to
positive changes in the lives of the working poor. In the past few years, Oikocredit has taken substantial steps
to assess the social performance of its 500 partners in microfinance. Since 2005, Oikocredit has notably
increased the number of tools used to monitor and assess social performance. In addition to impact studies,
Oikocredit carefully reviews its partner's mission, their products and services, their interest rates and their
gender and environment policies.
Social auditing
The latest innovation in social performance measurement is to look not only at the performance of the
microfinance institutions, but also to undertake a social audit of private financiers. Oikocredit, by turning the
examination on itself, is the first financier to collaborate with Cerise in the on-going development of the social
audit tool. Cerise is at the forefront of social performance, and serves as an exchange platform on practices in
microfinance. Cerise's Social Performance Indicator tool, a social audit instrument for microfinance institutions,
is recognized by CGAP, SEEP network and donors worldwide. The tool is currently being developed to
analyse financier's internal systems and processes. Oikocredit's collaboration in this development process
reflects its commitment to a serious assessment of its policies, procedures, products and services and the
extent to which it fulfils its mission.
Main findings
The social audit report reveals that Oikocredit has a strong social mission and vision, committed human
resources, trained staff and is actively pilot-testing innovative tools for social performance assessment. It also
has a clear focus on rural development and it finances a wide range of institutions, from small village banks to
medium and large established institutions. It adequately answers the needs of partners that need financing
in local currencies (some 45% of the total capital outstanding).
But the report also shows the challenges ahead of the organization. At this stage, Oikocredit collects
information on its microfinance partners and draws their attention to tools to enable them to know their 16.8
million clients better and to improve their products. The main challenge is now to operate the shift from
collection and assessment of data to management. This implies a pro-active strategy to improve and promote
social performance.
Using the outcome from this audit, Oikocredit can update its social performance procedures and further
develop its outreach strategy, products and services. Fulfilling its mission means both investors and clients
can benefit from the social and financial empowerment of an Oikocredit loan.
SOURCE: Oikcredit
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