Amret Microfinance Institution - SPM

Social & Environmental Responsibility

I-  Introduction to Amret Social Performance Management (SPM)


Amret is strongly focused on the triple bottom line goals of the institution (economic, social and environmental) with backing and motivational support from its Board of Directors. In 2008, Amret created the role of Social Performance Management (SPM) officer. This officer is in charge of developing and updating Amret’s SPM system and any related policies as well as for selecting and implementing SPM tools. In addition, the Social Performance Management Committee (SPMC) chaired by the CEO and comprised of related management staff was set up in June 2011 to design and monitor the implementation of Amret’s SPM Framework. Amret’s SPM system seeks to ensure the institution’s social responsibility to the environment, clients, employees and the community in line with Amret’s vision, mission, and social objectives.


II- Social Responsibilities

Amret strives to contribute to the development of society and the protection of the environment and endeavors to ensure that Amret’s operations have no negative impact on staff, clients, communities or the environment.


A-  Social Responsibility to Clients:

•   Amret pays considerable attention to protecting its clients. Amret joined the Smart Campaign in December 2010 to obtain the information, tools and resources from this campaign and benefit from the experience of other global MFIs implementing the core Client Protection Principles (CPP). In endorsing and implementing the CPP, Amret’s goal was to build sound lending practices in order to deliver transparent, respectful and prudent financial services to its clients.


•   Amret commissioned an assessment by MicroRate to increase awareness, understand the institution’s strengths and weaknesses in terms of CPP, and come up with an action plan for addressing any identified gaps through enhancing business practices around client protection.


•   Amret was selected to participate in the Cambodian Microfinance Association’s (CMA) Client Protection Initiative funded by the AFD. The project will help the institution take action to comply with the Smart Campaign’s standards of client care and to obtain a Client Protection Certification, therefore contributing to the growth of the institution and the well-being of its clients.

•   Amret strongly commits to implementing the seven Client Protection Principles detailed below:


1- Appropriate Product Design and Delivery: Amret will take adequate care to design products and delivery channels in such a way that they do not cause its clients harm. Products and delivery channels will be designed with client characteristics in mind.


2- Prevention of Over-Indebtedness: Amret will take adequate care in all phases of the credit process to determine that its clients have the capacity to repay their loans without becoming over indebted. In addition, Amret will implement and monitor internal control systems that support the prevention of over-indebtedness; it will foster efforts to improve market-level credit risk management (such as credit information sharing).


3- Transparency: Amret will communicate clear, sufficient and timely information in a manner and language clients can understand so that clients can make informed decisions. Amret commits to providing transparent information on product pricing as well as terms and conditions.


4- Responsible Pricing: Pricing, terms and conditions will be set in a way that is affordable to clients while allowing the financial institution to be sustainable. Amret will strive to provide positive real returns on deposits.


5- Fair and Respectful Treatment of Clients: Amret will treat its clients fairly and respectfully and will not discriminate. Amret will ensure adequate safeguards to detect and eliminate corruption as well as aggressive or abusive treatment by our staff, particularly during loan and debt collection processes.