Difference between revisions of "NGO-Business Partnerships"
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#'''Strategic Alliance'''. This kind of relationship goes beyond a donation, grant, or other contracting arrangement. In a [[Strategic Planning|strategic]] alliance, both partners contribute resources necessary to carry out a set of activities that, when accomplished, will achieve the goal. Resources might include people with a relative set of skills, money, materials, and other pertinent tangible or intangible assets. The goal is one in which both organizations believe is important and relative to its organizational mandate. The partners agree to work together to monitor progress, identify problems and success, and make adjustments. | #'''Strategic Alliance'''. This kind of relationship goes beyond a donation, grant, or other contracting arrangement. In a [[Strategic Planning|strategic]] alliance, both partners contribute resources necessary to carry out a set of activities that, when accomplished, will achieve the goal. Resources might include people with a relative set of skills, money, materials, and other pertinent tangible or intangible assets. The goal is one in which both organizations believe is important and relative to its organizational mandate. The partners agree to work together to monitor progress, identify problems and success, and make adjustments. | ||
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#'''Issue Specific Engagement'''. This relationship is similar to the strategic alliance with the exception that it is focused on an issue that is having a negative impact on sustainable development. An NGO must be careful not to accept a grant from a corporation to implement a community-based project if that same corporation’s behavior is harming efforts to achieve sustainable development. | #'''Issue Specific Engagement'''. This relationship is similar to the strategic alliance with the exception that it is focused on an issue that is having a negative impact on sustainable development. An NGO must be careful not to accept a grant from a corporation to implement a community-based project if that same corporation’s behavior is harming efforts to achieve sustainable development. | ||
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#'''Advocacy and Constructive Dialogue'''. In this relationship, NGOs do not develop a partnership or accept any form of contribution from the corporation. The relationship is solely based on a constructive dialogue between the NGO and the corporation regarding the issues at hand. An example of advocacy and constructive dialogue could be the diamond industry in conflict zones like Sierra Leone, Angola, and the Democratic Republic of Congo. Diamond companies, such as De Beers, are under pressure from human rights organizations to verify that they do not purchase diamonds from [[Peace and Conflict NGOs|conflict]] areas where the revenue can be used to fuel the civil war. Interested NGOs could band together to advocate that diamond companies develop a verification and certification system that demonstrates that the revenues from the purchase of its diamonds are not used to continue the fighting. | #'''Advocacy and Constructive Dialogue'''. In this relationship, NGOs do not develop a partnership or accept any form of contribution from the corporation. The relationship is solely based on a constructive dialogue between the NGO and the corporation regarding the issues at hand. An example of advocacy and constructive dialogue could be the diamond industry in conflict zones like Sierra Leone, Angola, and the Democratic Republic of Congo. Diamond companies, such as De Beers, are under pressure from human rights organizations to verify that they do not purchase diamonds from [[Peace and Conflict NGOs|conflict]] areas where the revenue can be used to fuel the civil war. Interested NGOs could band together to advocate that diamond companies develop a verification and certification system that demonstrates that the revenues from the purchase of its diamonds are not used to continue the fighting. | ||
Revision as of 12:27, 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.
