Corporate–NGO Partnerships through Sustainability Labeling Schemes: Motives and Risks

Abstract

This article examines the development of partnerships between multinational companies (MNCs) and large nongovernmental organizations (NGOs) through voluntary product labeling schemes. First, the economics, management, and business literature are reviewed to highlight cross-checking, consistencies, and complementarities among these disciplines to identify and analyze the motives of partnering via voluntary product labeling. This analysis shows that, through such partnerships, companies and NGOs share similar objectives, viability and visibility and exchange essential resources, information and legitimacy. The development of shared goals and the complementarity of resources are the basis for successful partnerships, but they also create a phenomenon of blurred roles between companies and NGOs. Each partner enters the other’s sphere, which allows for better communication among partners, a clear and common vision of the partnership, a mutual trust, and a symmetric commitment of partners, necessary conditions for successful partnerships. However, I show that this phenomenon also leads to new risks for partners: competition, “NGO-capture”, and inconsistency.

Mapping and Analysis of Sustainability-Oriented Partnerships in Non-Profit Organizations: The Case of Saudi Arabia

“…The study's findings also highlighted the importance of improving the financial stability of NPOs, with leveraging resources being the most important motives in most of the partnerships. Attracting private sector finance for infrastructure development is critical for economic and social development, improving environmental sustainability, reducing poverty and inequality, and ensuring decent work for all (SDG 9) [31]. Generally, it was concluded that SDG 17-Partnerships for the Goals, should empower NPOs to implement the other SDGs through collaboration with other actors, in order to create value for nature and society by sharing knowledge, expertise, technology, and financial resources [103].…”

“…These organizations have networks along with knowledge, experience, skills, and resources in the societal issues that firms and other actors face. Therefore, for a more practical purpose, selecting the right partner and establishing a coordination committee between partners before a partnership engagement are absolutely critical steps to the success of a CSR strategy [31]. In this context, Fontana [106] identified the urgent need for an informed view of charitable organizations' expectations before initiating collaboration.…”

“…In fact, most actors, in particular, private sector actors, are mainly concerned with strategic partnerships that could maximize long-term mutual benefit [78]. Hence, the charitable association should change its strategy from being donation-oriented toward leveraging complementary resources in order to use a partnership as a source of competitive advantage [31].…”

“…Collaboration in partnerships is one of the effective strategies in motivating businesses to source sustainably so as to improve the community's social or environmental conditions [30,31]. Partnerships have become one of the main issues within business-society relations to achieve sustainability governance [32,33].…”

Understanding Sustainability Reporting in Non-Governmental Organisations: A Systematic Review of Reporting Practices, Drivers, Barriers and Paths for Future Research

“…This study fills this gap and extends his study by highlighting a new perspective for the understanding of sustainability. This research principally attempts to bridge this gap by examining the understanding of SR, the barriers and the drivers in NGOs in order to support a framework of action for strong sustainability that preserves nature, promotes societal wellbeing and improves the quality of life by NGOs [12,15,59]. Accordingly, this research seeks to answer the following research questions: R1: What is the trend in SR in NGO This research makes several contributions to knowledge, aside from the fact that it enriches the existing literature on SR in NGOs, this research provides insight for theoretical blending and pluralism that supports greater research applicability or the development of 'indigenous' accounting theory.…”