Mission drift

Definition

Mission drift refers to the phenomenon where an organization strays from its original mission or goals, often prioritizing financial sustainability over its intended social impact. This can occur when organizations, particularly in the fields of social entrepreneurship and microfinance, shift their focus towards profit-making activities that do not align with their foundational objectives. Such a shift can lead to criticisms about the organization's commitment to its social mission, raising ethical dilemmas about prioritizing financial success over social good.

5 Must Know Facts For Your Next Test

1. Mission drift can lead organizations to prioritize clients who are more profitable rather than those who are most in need, potentially exacerbating inequalities.
2. This phenomenon often arises when external pressures increase, such as competition for funding or market demands that conflict with original missions.
3. Organizations may unintentionally adopt practices that favor financial metrics over social outcomes, leading to a disconnection from their core values.
4. Stakeholders, including investors and customers, may push for a focus on financial returns, further contributing to mission drift.
5. Mission drift can be mitigated through strong governance and accountability measures that ensure alignment with the organization's original goals.

Review Questions

• How does mission drift affect an organization's ability to achieve its social goals?
  • Mission drift can severely limit an organization's capacity to fulfill its social objectives by diverting resources and focus towards profit-generating activities. When an organization prioritizes financial sustainability over its original mission, it may begin serving clients who offer higher returns rather than those who genuinely need assistance. This shift not only undermines the intended social impact but can also create mistrust among stakeholders who supported the organization for its commitment to social change.
• Discuss how mission drift presents challenges for maintaining a balance between social impact and financial sustainability in organizations.
  • Balancing social impact with financial sustainability is a tightrope walk that can easily lead to mission drift. Organizations may feel pressure to generate revenue through services or products that do not align with their core mission. As they chase profits, they might compromise on the quality of services provided to marginalized groups. This creates a conflict where financial health is prioritized over meaningful social change, raising concerns about whether the organization remains true to its foundational values.
• Evaluate the ethical implications of mission drift in social entrepreneurship and its potential consequences for stakeholders.
  • Mission drift raises significant ethical concerns as it reflects a departure from an organization's commitment to serving vulnerable populations. For stakeholders, particularly those who initially supported the organization's mission, this shift can result in disillusionment and loss of trust. Moreover, if organizations begin prioritizing profit over people, they risk perpetuating systemic inequalities rather than alleviating them. The long-term consequences can include a failure to achieve intended social outcomes and negative perceptions of social enterprises as merely profit-driven entities rather than genuine change agents.

Related terms

Social Impact: The effect an organization has on the community and society as a whole, often measured by improvements in quality of life, economic conditions, and overall well-being.

Financial Sustainability: The ability of an organization to maintain its operations and programs over the long term without relying excessively on external funding or donations.

Ethical Responsibility: The obligation of organizations to act in ways that are morally sound and beneficial to society, taking into account the impacts of their decisions and actions.