The role of NGOs in corporate environmental responsibility practice: evidence from Ethiopia

Abstract

This research explores the role of Non-Government Organizations (NGOs) in corporate environmental responsibility practice within the context of a developing country, Ethiopia, and provides a framework that enables NGOs to influence firms to improve environmental performance and increase environmental disclosure. This research is a qualitative research which employs content analysis. The result of the study shows that the environmental NGOs in Ethiopia are engaged more on reacting to the damage that has been caused by the unsustainable business practices rather than working proactively by collaborating with corporations, government and other stakeholders. This implies that donors should play a pivotal role in this regard since it is the donors' thematic area of activities that dictates the NGOs projects and programs.

Influence of Non-Governmental Organizations on Corporate Sustainability Practices. Towards an Institutional-Legitimacy Perspective

“…Although non-managerial stakeholders, particularly NGOs, do not have any financial stake, their "confrontational strategy" can have a severe negative impact on the financial performance of the Preprints (www.preprints.org) | NOT PEER-REVIEWED | Posted: 19 July 2020 doi:10.20944/preprints202007.0441.v1 (Asfaw, Botes and Mengesha, 2017;Winston, 2002). Despite their resolve for more dialogue and collaboration, many corporation-NGO partnerships continue as rather "adversarial" such that NGOs intensify the voice of "disgruntled" civil society group (Marano and Tashman, 2012).…”

“…NGOs could use key stakeholders to sign petitions, boycott and protest companies for poor environmental performance leading to loss of credibility and reputation (Asfaw et al, 2017). Mostly, the result of confrontational mode seeks "to demonstrate more to accountability, dialogue, and between NGO-civil society and government, (Matei and Apostu, 2014) recognizes the following policy dimensions: "Good Governance" based on sound social, environmental policies, and accountability to broader society; "Regulations" designed to help, implement social, environmental performance; "Taxation policies" as incentive for good performance, and conformance to best practices; "Coordination" by relevant stakeholders, including NGOs; and "official support" to civil society and NGOs to strengthen activities without undermining "autonomy and independence" through funding, contracts, and training opportunities.…”

“…While NGOs continue to strengthen their efforts to raise environmental awareness through public awareness campaigns, their role in corporate sustainability practices of corporations remain low, thus, relegating social and environmental considerations in the hands of corporations. Although NGOs' believe that environmentally conscious public will eventually force companies to improve their environmental performance (Asfaw et al, 2017) through different mechanisms such as sustainability reporting and stakeholder engagement (Aras and Crowther, 2008), little progress have been made in that front.…”

“…"(Arenas et al, 2009). To remain relevant in their discourse for sustainable environmental performance, NGOs must strengthen public environmental awareness because the environmentally conscious public will eventually force companies to improve their environmental performance(Asfaw et al, 2017) through different mechanisms such as sustainability reporting and stakeholder engagement. Avenues like public platforms and social media campaigns will enhance their public-environmental awareness efforts.…”

“…on the part of corporations for negative social impact caused, and thus promote positive attitude towards social performance(Marano and Tashman, 2012), and improved government regulations, and behaviour of public servants(Asfaw et al, 2017).Some examples of include the NGOs-business confrontation in the form of anti-corporation campaigns largely due to the demand of Ogoni people over oil spills in Nigeria, those against Shell over the North Sea Oil Platform Brent Spar, the ones against Nike over child labour and GAP for the working conditions in suppliers' factories. This rising anti-corporation campaign has made businesses to change their policies due to powers and influence of environmental NGOs.…”