Indicates whether the organization implements policies to protect its clients.
Social Responsibility Client Policies (OI7783)
- Reporting Format Yes/No
- Metric Type Metric
- Metric Level Organization
- IRIS Metric Citation IRIS, 2021. Social Responsibility Client Policies (OI7783). v5.2.
Footnote
Organizations should footnote details on the types of policies implemented. See usage guidance for further information.
Usage Guidance
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This metric can be used by many different types of organizations. Examples of policies that a financial service organization might have in place to protect its clients may include:
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- All employees involved in collections are trained on collection practices and in particular on acceptable and unacceptable debt collection practices which are clearly spelled out in a code of ethics, book of employee rules, or debt collection manual.
- Internal audits check household debt exposure, lending practices that violate procedures including unauthorized refinancing, multiple borrowers or co-signers per household, and other practices that could increase indebtedness.
- Productivity targets and incentive systems value portfolio quality at least as highly as other factors, such as disbursement or customer growth. Growth is rewarded only if portfolio quality is high.
- The institution's collection practices are covered during the initial training of all employees involved in collections (loan officers, collections employees, and branch managers). In particular, collections employees receive training in acceptable debt collections practices and loan recovery procedures.
- The institution documents and communicates to clients about loan policies and procedures for rescheduling credit.
- The institution's prepayment penalties, account closure fees, transaction fees, or other penalties are not excessive.
- The organization has a culture that values and rewards high standards of ethical behavior and customer service.
- Other
Impact Categories & Themes
SDG Goals & Targets
No Poverty
- SDG Target 1.5
- SDG Target 1.4
Gender Equality
- SDG Target 5.5
Decent Work and Economic Growth
- SDG Target 8.1
- SDG Target 8.2
- SDG Target 8.3
- SDG Target 8.10
Industry, Innovation and Infrastructure
- SDG Target 9.3
Reduced Inequality
- SDG Target 10.1
- SDG Target 10.2
- SDG Target 10.3
Sustainable Cities and Communities
- SDG Target 11.5
Metric History
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June 2022 - IRIS v5.3 Released (current version)
Immaterial change. Minor revision to usage guidance for clarity.
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January 2020 - IRIS v5.1 Released
No change.
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May 2019 - IRIS v5.0 Released
No change.
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March 2016 - IRIS v4.0 Released
Material change. Social Responsibility Client Policies (OI7783) replaced Social Responsibility to Financial Services Clients (OI7783). Metric name modified to increase clarity. Metric definition language and reporting format modified to maintain consistency with changes to IRIS structure.
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March 2014 - IRIS v3.0 Released
Material change. Metric definition modified to provide clarity based on best practices and standard guidance.
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November 2011 - IRIS v2.2 Released
Immaterial change. Social Responsibility to Financial Services Clients (OI7783) replaced Social Responsibility to Microfinance Clients (OI7783). Metric name modified to be more inclusive of financial services industry outside of microfinance.
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February 2011 - IRIS v2.1 Released
Immaterial change. Minor revision to definition language for clarity.
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September 2010 - IRIS v2.0 Released
Material change. Social Responsibility to Microfinance Clients (OI7783) replaced Client Protection Policy (M15), Over-indebtedness (M16), Transparent Communications (M17), Collections Practices (M18), Complaint Resolution (M19), Staff Ethical Code of Conduct (M20), and Client Safety Safeguards (M21). Metrics combined to maintain consistency with the Social Performance Task Force Guidelines (SPTF).
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September 2009 - IRIS v1.0 Released
New metric. Client Protection Policy (M15), Over-indebtedness (M16), Transparent Communications (M17), Collections Practices (M18), Complaint Resolution (M19), Staff Ethical Code of Conduct (M20), and Client Safety Safeguards (M21) was developed via the Original IRIS Working Group.