NGO-Business Partnerships
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.
