Difference between revisions of "NGO-Business Partnerships"
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#'''Communication''': Communications should be fair, open, effective, respectful, and candid. | #'''Communication''': Communications should be fair, open, effective, respectful, and candid. | ||
#'''Respect''': Partners must demonstrate mutual respect and trust in negotiations and decision-making. | #'''Respect''': Partners must demonstrate mutual respect and trust in negotiations and decision-making. | ||
| − | #'''Values''': Shared | + | #'''Values''': Shared values on development and social action are crucial to the success of the partnership. In order to find common approaches, partners must understand each other’s views of development and the particular work in which they are engaged. |
#'''Vision''': Partners should conduct their partnership using shared priorities and organizational visions. They must agree on how to address not only complex issues such as finances, information sharing, program activities, but also basic issues such as meeting schedules and logistics. | #'''Vision''': Partners should conduct their partnership using shared priorities and organizational visions. They must agree on how to address not only complex issues such as finances, information sharing, program activities, but also basic issues such as meeting schedules and logistics. | ||
| − | ==Key Questions to Ask | + | ==Key Questions to Ask== |
| − | + | These questions are adapted the Asian Development Bank (ADB) Proceedings. | |
| − | === | + | ===Choose the Rights Partner: Seek Mutual Trust and Respect=== |
* What is the mandate of the organization/company? | * What is the mandate of the organization/company? | ||
* What is its reputation in the target community? | * What is its reputation in the target community? | ||
* Is the NGOs reputation likely to be damaged through association with this entity? | * Is the NGOs reputation likely to be damaged through association with this entity? | ||
* If this individual or entity has been critical of the NGO’s operations in the past, will a partnership help alleviate such criticisms or will it exacerbate them? | * If this individual or entity has been critical of the NGO’s operations in the past, will a partnership help alleviate such criticisms or will it exacerbate them? | ||
| − | * “If I were working for their organization or in their line of business, would I conduct myself in a similar fashion?” If the answer is yes, then there may be a basis for respect. | + | * “If I were working for their organization or in their line of business, would I conduct myself in a similar fashion?” (If the answer is yes, then there may be a basis for respect.) |
| − | ===Managing the | + | ===Managing the Partnership: Establish Shared Objectives, Clearly Defined Expectations and Systems for Communication=== |
| − | + | Do you agree on the objectives? The issue of misaligned expectations is one of the common causes of failure. Among the issues that should be clarified are: | |
| − | * Roles: Does the private sector partner wish to play an active or passive role in program implementation? Is the NGO an equal partner in all decision-making, or is it playing a supporting role? Roles will vary from case to case and no single approach works in every circumstance. The ADB recommends that NGOs be prepared for a negotiation in which both partners compromise to ensure a win-win situation for all. | + | :* Roles: Does the private sector partner wish to play an active or passive role in program implementation? Is the NGO an equal partner in all decision-making, or is it playing a supporting role? Roles will vary from case to case and no single approach works in every circumstance. The ADB recommends that NGOs be prepared for a negotiation in which both partners compromise to ensure a win-win situation for all. |
| − | * Accountabilities: To ensure a necessary transparent decision-making structure, negotiators must be clear from the outset who will be responsible for what. Which partner, for example, will ensure that funds are properly spent and accounted for? What deadlines and milestones have been agreed to, and are there consequences if they are not met? | + | :* Accountabilities: To ensure a necessary transparent decision-making structure, negotiators must be clear from the outset who will be responsible for what. Which partner, for example, will ensure that funds are properly spent and accounted for? What deadlines and milestones have been agreed to, and are there consequences if they are not met? |
| − | * Policies: Partners should jointly develop operational procedures or policies. It is useful to have clear guidelines on such issues as confidentiality and public relations in advance. | + | :* Policies: Partners should jointly develop operational procedures or policies. It is useful to have clear guidelines on such issues as confidentiality and public relations in advance. |
| − | * Communication: Establish a mechanism on the frequency and manner of communication. The language of NGOs differs from that of the private sector. A pervasive argument or reasonable excuse in one sector may not be seen as legitimate in another. Recognize these differences and try to talk the same talk. This is just as important during the implementation of a project as it is during the exploration or negotiation phase. | + | :* Communication: Establish a mechanism on the frequency and manner of communication. The language of NGOs differs from that of the private sector. A pervasive argument or reasonable excuse in one sector may not be seen as legitimate in another. Recognize these differences and try to talk the same talk. This is just as important during the implementation of a project as it is during the exploration or negotiation phase. |
==Need for International Standards== | ==Need for International Standards== | ||
| − | The limited use of international codes and standards by both | + | The limited use of international codes and standards by both business and NGOs causes considerable concern. According to a survey conducted by the UK-based Forster Company, only 18% of NGOs use any form of standards to assist them in their work, despite the fact that these codes and standards are the only objective benchmarks that are available to check the behavior of business. The most frequently used by respondents was the Ethical Trading Initiative Base Code, followed by the use of Global Reporting Initiative criteria for best practice CSR reporting (Forster, 7). |
Forster proposes five stages during which international standards might add real value to an NGO: | Forster proposes five stages during which international standards might add real value to an NGO: | ||
| − | + | #Identifying or confirming the need for collaboration | |
| − | + | #Identifying the shortlist of potential partners. | |
| − | + | #Selecting the partner for the collaboration. | |
| − | + | #Setting the aims and objectives of an agreed partnership. | |
| − | + | #Monitoring and reporting of collaboration against international standards (Forster,7). | |
| − | (Forster, | ||
==Examples of Successful Alliances== | ==Examples of Successful Alliances== | ||
| − | * BP worked with local groups to develop a fuel-efficient stove for poor consumers in rural India. | + | * BP worked with local groups to develop a fuel-efficient stove for poor consumers in rural [[India NGO Sector|India]]. |
* Coca-Cola transformed libraries into youth learning centers in Indonesia. | * Coca-Cola transformed libraries into youth learning centers in Indonesia. | ||
| − | * Chevron built local business and civil society in Angola and worked with Citibank on microfinance in Vietnam. | + | * Chevron built local business and civil society in Angola and worked with Citibank on microfinance in [[Vietnam NGO Sector|Vietnam]]. |
| − | * Hewlett Packard has helped to provide microfinance in Uganda. | + | * Hewlett Packard has helped to provide microfinance in [[Uganda NGO Sector|Uganda]]. |
* Microsoft has teamed with NGO Pratham to deliver personal computers to Indian villagers. | * Microsoft has teamed with NGO Pratham to deliver personal computers to Indian villagers. | ||
* Starbucks maintains alliances with groups impacted by the coffee business. | * Starbucks maintains alliances with groups impacted by the coffee business. | ||
| − | Examples of multi-member partnerships include | + | Examples of multi-member partnerships include: |
| + | *Nordic Partnership, a consortium of leading Scandinavian companies. | ||
| + | *World Business Council for Sustainable Development. | ||
| − | Pact, a | + | Pact, a [[US Nonprofit Sector, Tax Benefits, WANGO Survey|United States]]-based organization, and the International Business Leaders Forum are among the groups devoted to making partnerships work. |
==References== | ==References== | ||
Latest revision as of 08:06, 13 August 2008
The foundation for this article was a paper on "Networking with Business" prepared by Frances C. Gretes for the NGO Handbook.
A partnership is defined as a relationship between individuals or groups that is characterized by mutual cooperation and responsibility and established for the achievement of a specified goal. Within the international development community, the term “partnership” often comprises the host country's counterpart organizations, for-profit entities, and program beneficiaries. The UN defines the private (for-profit) sector as having four components:
- Multi-national corporations (MNCs)
- Small and medium enterprises (SMEs)
- National large-scale enterprises (LSEs)
- Micro-enterprises.
Since 2000, MNCs have increasingly played a more active role as partners providing financial resources, expertise and other forms of support. (Cooley, 1)
Models for successful business-NGO partnerships have been slow to develop. As the number of NGOs grows and NGOs face increasing competition, they are moving towards partnering as a means of differentiation. (Davies, 29) Both NGOs and businesses have learned lessons from early partnership experiences and are now developing meaningful relationships that provide mutual benefits. Each side, possessing certain knowledge, skills and infrastructure, is helping the other meet their goals, without sacrificing integrity or profit, and producing results for the common good.
Jeb Brugmann points out: “As their interests and capabilities converge, these corporations and NGOs are together creating business models that are helping to grow new markets at the bottom of the pyramid and niche segments in mature markets.” (Brugmann, 2)
Rajat Gupta, former McKinsey managing director, said to the UN General Assembly in 2005, “… there is no hope for development without business, and in the long term, there is no hope for business without development.” (Gupta)
To achieve partnership success, development and business experts agree that the requisites are common ground, effective leadership, and accountability at all levels. They recommend focusing on trust, people, and on managing those relationships. Businesses need to have flexibility and work in circles other than those that are customary. NGOs, on the other hand, must understand that businesses work with different start timetables and protocols and that they expect their partners to respect deadlines and commitments. NGOs must also improve accountability to their partners as well as their communities.
Below is a presentation of the key issues and recommendations for building successful long-term partnerships.
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