Non-Governmental organizations and Profit-making Entities
Non-Governmental organizations were formed to provide services to the communities who would have otherwise had no access to such services. They are services that are provided for the sole benefit of the community and without a profit motive. It is therefore hard to contemplate a partnership of NGO’s with profit-making entities. However, in the current business environment, profit-making entities have realized the benefit of partnering with NGOs because the services provided by each of the two entities are not mutually exclusive. In fact, various reasons have necessitated the need for NGOs and the private sector to collaborate and form partnerships (Bendell " Lake, 2000).
Benefits to the Private Sector
First, the private sector and NGOs share similar goals. SurfAid, for instance, is an organization that uses sports to raise funds for community-based programs. Partnering with SurfAid enables both developments of the community and sport. Consequently, this creates numerous opportunities for private business. For instance, sports is a way of bringing communities together leading to secure, well-governed, and peaceful, and in turn, a stable business environment (Borwankar " Ramakrishna, 2009).
Furthermore, sports encourage active and healthy populations. Moreover, SurfAid uses proceeds from sports charity events to fight malnutrition, diseases, and significantly reduces poverty levels. In turn, local business benefit as the society is not only productive but also has a better purchasing power with extra income to spare, which would have otherwise gone to health expenses (Dahan, Doh, Oetzel, " Yaziji, 2010).
SurfAid engages in activities that strengthen the local communities. During its formation, the local communities were instrumental in its formation. The locals realized that the NGO promoted shared values that underpin other socially and economically stable societies. In turn, the communities gathered the required signatures and contributions that were required for its formation. Ever since SurfAid has been instrumental in reducing inequality and empowering marginalized groups in the region (Seitanidi, " Ryan, 2007).
Characteristics and Business Motivation of NGOs
Another reason that should be considered in a private sector partnership with NGOs is the characteristics and business motivation behind such an engagement. An active private sector engagement with a sports development NGO can be described as empowerment of individuals, poverty alleviation, and formation of social change through individuals. The following characteristics of NGOs are very advantageous to the local business communities in the long run.
First, NGOs encourage universal participation of all local communities. Theoretically, NGOs provide equal opportunities for everyone in society. This creates a perfect opportunity for Private corporations that intend to provide corporate social responsibility services that target the entire community. Most importantly, NGOs provide services that governments should provide but are unable or fail to provide due to corruption. In turn, they have links to local communities with networks that reach and engage all sections of local communities, who are the crucial clients and in case of coffee companies, producers of raw materials. Partnering with such NGOs helps alleviate any negative a business partner has as it will be actively involved in services that directly and positively affect the local communities (Nijhof, de Bruijn, " Honders, 2008).
Opportunities and Challenges for NGOs
The first point of concern of most critiques of NGO’s collaboration with the private sector is the risk that such a partnership presents to the autonomy of the NGO. NGOs do not have a source of income except for the contributions of well-wishers and income from private companies willing to fund some of their programs. This is indeed a challenge, especially when the private entities wish to use the NGOs to further their self-interests. In turn, private businesses may dilute the ability of NGOs to act as a force for social change. Another risk of ever-closer engagement of NGOs and Private sectors is the possibility of business deflecting comprehensive analysis or criticism of practices that may be less than beneficial for progress (Heap, 1998).
Whereas contribution of resource and sharing of information enable both entities to further their general objectives and ongoing organizational models, shifts towards the pooling of resource vastly affect the core nature of the institutions involved. As a response to the perceived imperative brought about by such engagement, there has been a proliferation of social enterprise type activity on the part of NGOs. Integration of business CSR teams into mainstream business departments (and away from external communications departments) is the business equivalent.
Partnership Benefits for NGOs
On the positive side, there are numerous opportunities that NGOs can benefit from in a partnership with the private sector. First, SurfAid will undoubtedly benefit from additional financial support for its programs. The private sector provides significant financial support for programs that are mutually beneficial or merely to further their CSR culture. Secondly, actors in the private sector may provide donations or grants without restrictions such as criteria for usage, unlike other donors. This gives NGOs more freedom to handle emergencies and more pressing concerns not budgeted for before. Thirdly, interacting with profit-making entities increases access to and availability of diverse technical expertise and political influences. Fourthly, private entities may provide a system for educating communities and employees of various services or lifestyle choices. Lastly, NGOs benefit from favorable policy-making opportunities as a result of shared values through partnership (Hansen " Spitzeck, 2011).
Conclusion
The relationship between private sector actors and NGOs is mutually beneficial but filled with numerous challenges. The primary challenge is the risk of losing the autonomy to act as a force for social change. However, NGOs also benefit by having access to numerous amounts of funding as a result of the donation, partnership, or collaboration with the corporate actors. Whether the partnership relationships will succeed and mutually beneficial depends on the characteristics of each party and the specific initiatives under consideration. However, it is crucial that both positive and negative outcomes are appropriately analyzed and evaluated before forming entering such a partnership.
References
Bendell, J., " Lake, R. (2000). New Frontiers: Emerging NGO activities to strengthen transparency and accountability in business. Terms for Endearment. Sheffield: Greenleaf Publishing Limited, 226-238.
Borwankar, A., " Ramakrishna Velamuri, S. (2009). The potential for management development in NGO-private sector partnerships. Journal of Management Development, 28(4), 326-343.
Dahan, N. M., Doh, J. P., Oetzel, J., " Yaziji, M. (2010). Corporate-NGO collaboration: Co-creating new business models for developing markets. Long range planning, 43(2-3), 326-342.
Hansen, E. G., " Spitzeck, H. (2011). Measuring the impacts of NGO partnerships: the corporate and societal benefits of community involvement. Corporate Governance: The international journal of business in society, 11(4), 415-426.
Heap, S. (1998). NGOs and the private sector: Potential for partnerships?. Oxford: Intrac.
Nijhof, A., de Bruijn, T., " Honders, H. (2008). Partnerships for corporate social responsibility: A review of concepts and strategic options. Management Decision, 46(1), 152-167.
Seitanidi, M. M., " Ryan, A. (2007). A critical review of forms of corporate community involvement: from philanthropy to partnerships. International Journal of Nonprofit and Voluntary Sector Marketing, 12(3), 247-266.
