ABSTRACT
Currently there is no agreement regarding instrument used in social performance measurement although it is required by rural community-oriented microfinance institutions. This research aimed to explore microfinance institution programs related to social performance from the perspective of local culture implemented by the institutions in serving their customers. This paper analyzed the ways in which the LKM a (microfinance institutions) selected for this study measure and manage their social performance. Data were acquired from two sessions of focus group interviews, a series of semi-structured interviews, and extensive reviews of documentaries. Harmonious culture was used to explore the social performance of three microfinance institutions that had the largest assets and implemented a harmonious culture. The research results indicate that LKM programs consistently favored rural communities through credit services to improve the rural economy. Social activity that became its goal included cultural preservation and was used to evaluate social performance. The indicators of social performance were making a donation for the construction of places of worship; funding the spiritual journey activities; assisting ceremonies in a village; making a donations for religious ceremonies in a communal group environment; donation to make ceremonial facilities; donation of funds for ceremonies related to ancestors; improvement of community skills; assisting humanity ceremonies; providing entrepreneurship education; making a donation for funeral, health or; business assistance; improving education at the village level; assisting the construction of a meeting hall in the village; market, road, sport facilities; and garbage bins. This type of research was not conducted broadly; thus, it gave a contribution to the development of social performance. The implication of the research results is that microfinance institutions in Indonesia could include harmonious culture in their working programs when implementing a social mission.
