Is Social Performance Profitable?

Is social performance profitable? The question may be cynical, but nevertheless relevant for microfinance to keep its “promise” of being an economically viable development tool (Morduch, 1999). For years, the sector focused on sustainability and growth, measured in terms of financial performance. For the most part, social performance was taken for granted, which led many microfinance institutions (MFIs) to neglect its measure and management. Concerned by this trend, pioneer practitioners, investors and donors have taken steps to address social performance by developing tools, methodologies and assessment frameworks. As criticism of the sector has increased, social performance has been mainstreamed (Copestake, 2007). But has it been at the expense of financial performance? read more...