
Carlos Serrano-Cinca, Yolanda Fuertes-Callén & Beatriz Cuéllar-Fernández, University of Zaragoza, Spain.
Mission drift is a popular research topic with respect to non-profit organizations and, in particular, microfinance institutions (MFIs). The need for many microfinance institutions to generate profit often leads these institutions to lose sight of their social mission. The consequences of mission drift for borrowers and MFIs have been extensively studied. Mission drift usually reduces outreach, can be detrimental to the poorest borrowers, harmful to women, and disappointing to donors and social investors. However, the effects of mission drift on other stakeholders (employees, government, micro-savers, and banking creditors) have been insufficiently studied, a gap that our study seeks to address.
Continue reading “When a microfinance institution deviates from its social mission, borrowers are the most harmed, but stakeholders are also affected.”