NGOs cooperate with business

It used to be that a typical encounter between a business and a non-governmental organization (NGO) ended in one of two outcomes: confrontation or donation. Think Greenpeace versus McDonalds or corporate philanthropy between United Way and Habitat for Humanity.

But times are changing.

In the wake of public-private partnerships and the idea of shared value, NGOs are rethinking their relationships with the private sector to better fulfill their social missions.

Increasingly, NGOs are recognizing that the people they are trying to serve are also clients and suppliers of companies or live in the communities where businesses operate. This mutual interest, fueled by the assets, skills, and investment potential of the private sector, can help increase NGO impact to a sustainable level.

For some NGOs, it is difficult to shift from corporate philanthropy to a shared value mindset. NGOs often lack staff who understand the needs and preferences of businesses. For companies, NGOs can be difficult to interpret and penetrate, as business-specific service offerings are still in their infancy. Large international NGOs often position themselves as jack-of-all-trades, making it difficult for companies to choose partners.

In the future, NGOs will have to think more strategically about their partnerships with businesses. NGOs can be much more proactive and analyze their operational assets to match the needs of corporations and market their offerings for mutual benefit. NGOs will need to balance their resources when faced with bilateral contracts and grants to ensure that sufficient resources and leadership attention are directed toward initiatives with shared value, and to explore ways to create synergies between these sectors.

None of these trends should lead to the conclusion that business offers NGOs a reliable path to impact. Nor will a common mindset about values cover all NGOs. Talk to NGO staff and leaders, and you will hear serious questions about working with the private sector. But the trend toward partnerships with shared values is real and growing.