Formation, implementation and outcomes of cross-sectorial partnerships between non-governmental organizations and businesses

Abstract

Executive summary: With insights from existing theories and former studies on cross-sectorial partnerships between NGOs (Non-Governmental Organizations) and private companies, I have built a model to help analyze how these partnerships are formed, how they are implemented and executed, and what the outcomes are for both collaborating parties. In the formation phase I find that both sectors have different motivations in partnering, and I divide between ethical, political and strategic motivations for partnerships. I find that businesses are motivated by ethical concerns such as contributing to a better livelihood for their stakeholders, and strategic motivations such as pairing a social or environmental issue with a business opportunity or managing their stakeholders. NGOs also do have some strategic motivations such as finding new ways to attract funding and increase their visibility, so they in turn can get more attention to their cause and work towards it at a larger scale. Implementing the partnership is done by merging the different resources of the two parties, be it more generic resources such as money or more distinctive resources like access to advanced technology or knowledgeable human capital. I’ve found that governing the partnership and communicating between the parties and their stakeholders is one of the main challenges in making the partnership work other than finding the right mix of resources. Finding common ground in some linked interests help the parties and its involved personnel in trusting each other, a fundamental requisite for making the partnership work.