Taking Stock of Investors' Perceptions of the Social Rating

This report presents findings from a survey of social investors on the social rating tool developed by USAID AMAP Knowledge Generation research team. AMAP researchers exposed seven social investment firms to different versions of the MicroRate social rating report on ProMujer Bolivia. Next, they conducted interviews where they asked social investors to answer questions related to the content and formatting of the social rating, in addition to their perceived market demand and willingness to pay. The survey found that:

• The report's "process assessment approach" was valid, and investors found its information useful in assessing ProMujer's social performance;
• The report presented information in a clear and accessible way;
• Social investors were unwilling to pay for social rating;
• Respondents wished to see benchmark data on social performance in the rating report in addition to direct information on social outcomes and impacts.

The paper concludes that despite pessimistic survey reports regarding willingness to pay, the success of the social rating system in the Community Development Financial Institutions (CDFI) sector offers good reason to be optimistic about the success of social rating tools.