Difference between revisions of "NGO-Business Partnerships"
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==Partnering for Success== | ==Partnering for Success== | ||
| − | The World Business Council for Sustainable Development (WBCSD) in their paper on sustainable livelihoods identifies six global trends that are encouraging NGO-business collaboration | + | The World Business Council for Sustainable Development (WBCSD) in their paper on sustainable livelihoods identifies six global trends that are encouraging NGO-business collaboration: |
| − | + | #Many companies see a need to break out of mature market sectors. | |
| − | + | #Framework conditions in many developing countries are improving. | |
| − | + | #Communications are faster and cheaper, making the world a smaller place. | |
| − | + | #Public expectations of corporations are changing. | |
| − | + | #New and better partners are available. | |
| − | + | #Aid and investment are beginning to reinforce one another. | |
With a win-win model, businesses would try to: | With a win-win model, businesses would try to: | ||
| − | * | + | *Blend financial and social values |
| − | * | + | *Create opportunities for the poor |
| − | * | + | *Engage the poor in a business relationship that relates directly to the companies’ core commercial operations |
| − | * | + | *Integrate the poor in the company’s value chain. |
| − | By studying the “win-win” case studies discussed by organizations such as the WBCSD, NGOs can learn to understand the business point of view and can negotiate more effectively during the process of selecting and developing a partnership | + | By studying the “win-win” case studies discussed by organizations such as the WBCSD, NGOs can learn to understand the business point of view and can negotiate more effectively during the process of selecting and developing a partnership (WBCSD). |
| − | The Global Corporate Citizenship Initiative | + | The Global Corporate Citizenship Initiative (GCCI) proposes several examples of ways to engage in partnerships: |
* Build framework conditions for good governance | * Build framework conditions for good governance | ||
| − | *# Spread industry-wide or global standards for accountability, transparency and responsible business practices. | + | *#Spread industry-wide or global standards for accountability, transparency and responsible business practices. |
*# Help to strengthen public institutions and administrative capacity. | *# Help to strengthen public institutions and administrative capacity. | ||
* Expand economic opportunities | * Expand economic opportunities | ||
*# Ensure that local communities benefit from major development projects. | *# Ensure that local communities benefit from major development projects. | ||
*# Support small and micro-enterprise development. | *# Support small and micro-enterprise development. | ||
| − | *# Invest in youth entrepreneurship and employment. | + | *# Invest in [[Youth NGOs|youth]] entrepreneurship and employment. |
*# Engage in integrated approaches to poverty reduction. | *# Engage in integrated approaches to poverty reduction. | ||
| − | * Invest in physical infrastructure | + | * Invest in physical infrastructure (water, energy and transportation) |
| − | *# Preserve and provide access to clean water | + | *# Preserve and provide access to clean water. |
| − | *# Provide access to clean energy | + | *# Provide access to clean energy. |
*# Leverage logistics and transportation competencies. | *# Leverage logistics and transportation competencies. | ||
| − | * Improve access to and quality of education | + | * Improve access to and quality of [[Educational NGOs|education]] |
| − | *# Build national business coalitions for education | + | *# Build national business coalitions for education. |
| − | *# Mobilize private resources and technology for education | + | *# Mobilize private resources and technology for education. |
| − | *# Prevent child exploitation | + | *# Prevent [[Children's NGOs|child]] exploitation. |
* Provide better healthcare and affordable treatments | * Provide better healthcare and affordable treatments | ||
| − | *# Help to build capacity and infrastructure in public health systems | + | *# Help to build capacity and infrastructure in public health systems. |
| − | *# Support global and national alliances for health | + | *# Support global and national alliances for health. |
* Build partnership skills | * Build partnership skills | ||
*# Invest in training and experiential learning programs. | *# Invest in training and experiential learning programs. | ||
| − | |||
==Potential reasons for forming partnerships== | ==Potential reasons for forming partnerships== | ||
Revision as of 11:19, 12 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.
