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NGOs and the private sector

Summary of unpublished report1

Recent research, carried out by an intern at Concern Worldwide, has examined the costs and benefits of

public-private partnership, involving the non-governmental organisation (NGO) sector. The aim of the

research was to better prepare and guide public actors in potential collaborations.

NGOs and the private sector have recently initiated a remarkable, though precarious, movement away from

confrontation and towards dialogue and co-operation. Collaborative efforts are sought out and desired on the

part of both the business sector and NGOs. The relationships between NGOs and their business partners are

varied. Public private partnerships include activities such as fundraising or 'resource mobilisation',

negotiations for lower product prices, research collaborations, consultations or discussions, arrangements to

implement codes of conduct, corporate social responsibility marketing projects, and contracting out public

services.

The main findings of the study were as follows:

Negative aspects of partnership

q Private sector actors may be using the interaction to gain political and market intelligence or advantage,

in order to gain political influence and/or a competitive edge.

q Private sector actors may desire access to new 'untouched' markets to which the NGO has access. This

compromises NGO legitimacy, credibility, and focus.

q Private sector actors may use the relationship to set the global public agenda.

q Private sector actors may offer research and development and access to information that is biased

towards market effectiveness and profit rather than philanthropic or ethical motives.

q Private sector actors may recognise the appealing reputation and credibility associated with an NGO and

seek interaction based on image-boosting.

q Private sector actors may seek out costeffective, technical solutions to complex problems.

q Private sector actors may prove to be an inappropriate choice when corporate image clashes with NGO

objectives and motivations.

q Private sector actor involvement may undermine NGO control and principles in partnership programmes.

q Private sector actor involvement may divert programme interests towards decidedly corporate interests.

q Private sector collaboration may require an exclusive or limited relationship, binding the NGO to certain

loyalties and limiting available support from other agencies and/or corporations.

q Private sector donations may be available under certain caveats or requirements that bind the NGO to

those caveats.

Positive aspects of partnership

q Private sector actors may provide critical amounts of financial support.

q Private sector actors may award grants or donations without criteria for use or other restrictions.

q Private sector interactions increase availability and access to various contacts, political influences and

technical expertise.

q Private sector actors may develop internal and external organisations for education, awareness and

advocacy.

q Private sector actors may initiate and develop policy-making opportunities for the NGO.

Conclusion

Vast amounts of funding become available to NGOs as a result of collaboration, partnership, or donation

relationship with the corporate sector. This may be funding that would otherwise be entirely unavailable to the

NGO. Partnership relationships depend on the characteristics of the individual actors and the specific

initiatives being co-ordinated for collaboration. It is necessary, however, that the positive and negativeoutcomes are equitably and appropriately evaluated and analysed prior to partnership. Understanding the

private sector and its motivations, calculating potential positive and negative effects, and determining

whether benefit exceeds cost may provide NGOs with guidelines and strategies for developing a positive,

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beneficial, and rewarding relationship with the business sector.

1Doing Business with 'Big Business': Profit Motive, Philanthropy, and Public Private Partnerships. By Ellen J.Johnson, Concern Intern via Boston University, April 2003.

2Richter, Judith. (2003). 'We the Peoples' or 'We the Corporations'? Critical Reflections on UN-Business'partnerships'. IBFAN/GIFA: Geneva. p17.

Taken from Field Exchange Issue 19, July 2003

http://fex.ennonline.net/19/ngos.aspx

2010. ENN is a registered charity in the UK no. 1115156, and a limited company no. 4889844.