Reyes AnnaAs NGOs advocate for the interests of customers, employees and society, they are considered one of the main motivating factors in changing corporate behavior. NGO campaigns can be successful in changing corporate behavior and policies by shifting to more socially and environmentally friendly management practices that also have a positive impact on financial value. For example, companies can save money by increasing energy efficiency and improve business operations by improving employee well-being. NGOs facilitate communication and interaction with businesses, which can create social capital and, in turn, benefit the business as a whole. In addition, NGOs help to embed the values of responsibility and sustainability into commercial corporate culture.
NGOs are important players that help companies expand and form complex networks. NGOs collaborate with other stakeholders of the firm (e.g., customers, suppliers, investors, governments, regulators, and other NGOs) to shape corporate policies, culture, and beliefs. There are potential values for businesses that engage with NGOs to access their hidden knowledge and networks. With the help of NGOs, companies have the potential to open up new markets and enter them. Supporting reputable NGOs can help companies attract more customers.
When companies commit to change, these actions often have a positive impact on their corporate reputation and public perception. Companies also maintain a level of legitimacy that helps them gain the trust and recognition of many stakeholders, including government, media, employees, customers, suppliers, and investors. Conversely, companies that are unwilling to change may face additional pressure and scrutiny from activists and the public, or even increased regulatory scrutiny. As a result of activist campaigns, companies make changes to policies, products and business operations. Companies are asked to disclose more information about their social and environmental performance. With greater transparency, consumers become better informed about a company’s products and performance.
NGOs can play an important role in promoting sustainable development and addressing societal issues by serving as early warning mechanisms and assisting in the monitoring and implementation of international agreements.
Collaboration between NGOs and corporations can help prevent conflict and reduce criticism from environmental activists and the public. In areas where regulation is increasing, companies that have already made changes in response to NGO activism are well prepared for regulatory shocks. This readiness can serve as a competitive advantage in many industries. For NGOs, building relationships with corporations can help improve the environment while increasing their own publicity and visibility. Building these relationships also helps NGOs obtain additional funding from businesses and individual donors, thus increasing long-term financial security and stability.