NGOs- Business Partnership

8/8/2019 NGOs- Business Partnership

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NGO- B USINESS P ARTNERSHIP

Lecture 13 & 14


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W HAT IS AN NGO?


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NGO

An organization formallyindependent of the state andprivate sector having its ownconstitutional identity that

doesnt seek profit forindividuals/members.


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What are thevarious types of NGOs?


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T YPES OF NGO S : WORLD B ANK CLA SSI F ICA TI ON

Operational NGO

Design and

implementation of development-relatedprojects.These NGOs can becommunity based,national orinternational

Advocacy NGO

Defend or promote a

specific cause.These NGOs typicallytry to raise awareness,acceptance &knowledge by lobbying,press work & activistevents.


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LE GAL IDE N TITIES OF NGO S

NGO

Society

registered under Societies

Registration Act, 1860

Trus tformed under

the Trust Deed &registered with

Income Tax Authority

Limited Company

incorporated under Section 25 of the

Companies Act, 1956


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WHY ----NGO- C OR P ORA TE P AR TN E RSHIP

Risk management : rising socialconsciousness

ActivismM OTIVES

E mergence of new

expectations

Mgrs focus now on

long-term socio-environmentalimpacts &value addition


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W H A T IS P AR TN E RSHIP ?

A sort of collaboration topursue common goals,while leveraging jointresources and capitalizing

on the respectivecompetences and strengthof both partners.


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H OW P AR TN E RSHIP : NGO S &COR P ORA TE S E CTOR

Resource MobilizationE mployee volunteeringSupport in kind/infrastructure

Issue /cause based


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A RE A S OF NGO B U SI N ESS P AR TN E RSHIP

MarketplaceWorkplaceE nvironment

Community


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W HY SHOULD C ORPORATESENTER INTO C ROSS S ECTORPARTNERSHIPS ?


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B us ine ss

NGO sGove r nment s

SustainableDevelopment

CRO SS S E CTOR P AR TN E RSHIP


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Contemporary-Strategies and tactics for

promoting CSR Research and Reporting media exposure;Social Responsibility dialogue with Companies

Social Accountability standards and audits;Shareholder Activism shareholder resolutions;Economic Pressure boycotts;Government Regulations supporting legislation;Litigation bringing law suits; andNorm Creation development of international law


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S AL IE N T F E A TUR ES OF A P AR TN E R ING ARRANG E ME N T

Self assessment in the initiation stage A careful consideration of partner choiceMission connect

Alignment of values A clear assignment of management responsibilityin the respective areas of competenceCommitment of resourcesOpen , frank and constructive communicationInter-personal relationship between the C E Os of partner firms

Appreciation and positive inclination to learningRegular tracking of progress and performance


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K EY REQ U IRE ME N TS OF E FF E CTIVEP AR TN E RSHIP

Resource dependency

Commitmentsymmetry

Common goalsymmetry

Intensivecommunication

Alignment of cooperationLearningcapability

ConvergingWork culture

Interdependence

integration

Institutionalization

K eyIngredients


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H OW T O SE LE CT P AR TN E RS?

F our CsCompatibilityCapability

Commitment andControl


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DR IVE RS OF COLLABORA TIVE CSRP ROJ E CTS

Centrality : thecloseness of fit b/w the

firms C SR activity & itsmission & objective

Specificity : the extent towhich the firm is able to

capture a share of the profitstream generated by its

investments in C SR


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W HAT ARE THE BENE F ITS O F

C ROSS S ECTORP ARTNERSHIP ?


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BU SI N ESS P E RSPE CTIVE

B rand Image

Avoid duplicationOf Services

Accommodating

CommunityPerspective


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F EW E X AM P LES : WORK P LAC EIN TE R VE N TI ON

L& T collaborated with D TK , an NGO for A IDS awareness programme at the P owai plant. Voluntary Counseling and T raining Centre at theL& T H ealth Centre in collaboration with MADC S foremployees.

y Recently identified & referred to MDAC S for follow-up & AR T

Management trainees & students of the L& T Institute of Technology contact workmen, transportdrivers, children of employees and impart HIV /A IDS education.


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F EW E X AM P LES : WORK P LAC EIN TE R VE N TI ON

BP CL collaborated with Kripa Foundation , De-addiction centre for the employees addicted toalcohol


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F EW E X AM P LES : M ARK ETP LAC EIN TE R VE N TI ON

Nestles , Nesquik milk powder contained G E ingredients which was not indicated in the labelwhen sold in China.

Greenpeace has been campaigning globally toeradicate G E ingredients from food products.


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F EW E X AM P LES : M ARK ETP LAC EIN TE R VE N TI ON

Bhopal Gas Tragedyy Safety measured designed to prevent a gas leak had

either malfunctioned or were otherwise inadequatey Safety siren intended to alert the community in case of

an accident turned off.y Union Carbide refused to provide full information

regarding the nature of poisoning which meant thedoctors were unable to properly treat those exposed.

Union Carbide merged with Dow Chemicals, thecompany refused to take moral responsibilities of theactions of Union Carbide.

Greenpeace campaigning for an international liabilityinstrument to ensure that both corporations are heldliable for their action , for compensation to victims of pollution & for environmental clean-up


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F EW E X AM P LES : E N VIRONM E N TIN TE R VE N TI ON

Greenpeace as a part of its global Tox TechCampaign had issued a public challenge toWIP RO to phase out its hazardous chemicalsfrom its electronics products.

A day before W ipros AGM, the IT giantcommitted to 100% Ro HS compliance by2007.Sustained campaign of Greenpeace hasalready resulted in international marketleaders like HP , Dell, LG E lectronics,Samsung , Sony, Sony E ricssion & Nokiacommitting to eliminate some of the mosthazardous chemicals from their products.


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F EW E X AM P LES : E N VIRONM E N TIN TE R VE N TI ON

Tata International Limitedy Concern for the environment is reflected in the E nvironment

P olicy and the E nvironmental concern measures taken up bythe company in the leather manufacturing facilities in M P and Tamil Nadu.

y Developed special training programs that educate employeeson the hazards of wastage and pollution.

y The first Leather manufacturing unit in India which wasgranted the E CO-MARK for their products from the Bureauof Indian S tandards.


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EW X AM P LES : OMMUN ITY IN TE R VE N TI ON

The Infyosys Foundation : y Grants to socially & physically challenged children for

education.y partnered with various NGOs & local government in

strengthening rural development activities andinfrastructure

Cadbury India : funds a street children projectfocusing on education

Ranbaxy has contributed for community healthcare programmes


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EW X AM P LES : OMMUN ITY IN TE R VE N TI ONP ratham : catalytic role in improving primaryeducation in Mumbai

y Developing low-cost mass replicable innovative models toaddress existing problems,

y motivating teachers & parentsy studying the current system to make it more effective.

P ratham & MCGM are the active partners in thistime bound effort to achieve universalization of primary education

Corporate partners ICICI Bank, ACC, HS BC,Ballarpur Industries etc.


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C AU SE RE LA TE D MARK ETI NG

P &G , H ygiene & H ealth Care India : project DR ISHTI 1 st ever S ight Restoration Corporate project inassociation with NAB

OPE N M IND with UN ICE F : support & educate workingchildren

These initiatives are support by their brand. P art of thesale of the products is contributed towards theseinitiatives


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W HAT IS E M PLOYEE

VOLUNTEERING ?


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E MP LO YEE VOLUN TEE RING

Allowing staff to volunteer in NGOs which canbe part of a broader corporate socialresponsibility programme or to improve theirimage as a good corporate citizen.By responding to employee interests, employerscan build loyalty and pride in their company aswell as reducing many of their core costs in theprocess.


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F EW E X AM P LES OF E MP LO YEE VOLUN TEE R INGH LL deputes management trainees to NGOs to sensitizethem to the rural ethos, markets & culture

OTIS elevators motivates its employees to work with

mentally challenged .

Tata Group of Companies encourages its employees toparticipate in community development activities


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C AN C ROSS S ECTORP ARTNERSHIPS R EALLY

M A K E A D I FF ERENCE


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Y es NO


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Y ES - C AN M AK E A D IFF E RE NC E

Cla r ity

Con s is tencyCollabo r ation


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W HAT ARE THE BARRIERS TOPARTNERSHIPS ?


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B ARR IE RS TO P ARTN E RSH IP S TH E BUS I N E SS PE RS PEC T IVE

N GO credibility: need for standards Lack of familiarity withBusiness contexts and processesBound to traditional views of Business: limited role in development Bound to ideological views of Business: necessary evil

Inability to discern between responsible/irresponsible businessViewingBusiness as either something to be fought or as a source of funds

N GO support for exclusively compliance drivenSR


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B ARR IE RS TO P ARTN E RSH IP S - TH E N GO PE RS PEC T IVE

Vast majority of Business either irresponsible,indulge in green-washing, or at best only practice philanthropy.S elf-regulated SRB not acceptable. Concerns about globalization widening gap between poor and rich ; concern about privatisation of essential services Lack of understanding of Poverty issues by Business Lack of equity in Partnerships Lack of disclosure on C SR issues by Business


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T H E W AY F OR W ARD

More Companies must get past why should we? to H ow can we? Dont wait to be shamed for bad practices.MoreN GOs need to lose their I dont need to engage withBusiness mindset.MoreN GOs need to review ideological anti-for-profit/business biasand begin to distinguish between the difference betweenresponsible and irresponsible business.MoreN GOs need to experiment with tri-sector partnership

initiatives.Companies need to begin to think about C SR compliance as anormal part of the cost of doing business, and as providing acompetitive advantage.

Documents

NGOs- Business Partnership