Selling Out or Joining In: Survey Underscores NGO Ambivalence About Corporate Partnerships
by National Public Relations
 While a majority of Non-Governmental Organizations (NGOs) welcome collaboration with the private sector to achieve mutual objectives, most see such engagement as a less-than-ideal solution that could threaten their independence and legitimacy as ‘watchdogs’ of corporate performance on social and environmental issues.
This is one of the major findings of a survey of the NGO sector released today by NATIONAL Public Relations entitled Spanning the Great Divide: A Report on the Relationship Between Canadian NGOs and Corporations. 21 NGOs participated in the research.
As the social and environmental causes
championed by NGOs emerge as mainstream public concerns, these groups
have faced increased pressure to partner with corporations to meet
their funding needs.
“There is a global trend towards more engagement
between NGOs and corporations, which is being driven by public demand
for action on such issues as climate change and pollution,†says John
Crean, National Managing Partner, NATIONAL Public Relations.
“Partnering with NGOs benefits corporations by helping them connect with stakeholders and providing them with valuable insight and expertise. Given that these partnerships are likely to be more prevalent in future, we thought it would be timely to explore Canadian NGO concerns regarding engagement, as well as identify what can be done to ‘span the great divide’.â€
“For NGOs, working with the private sector involves a delicate balance between staying true to their mission and the need to build their resources and impact,†says Michael Jantzi, President and Founder of Jantzi Research. “This report underscores the importance of legitimacy to NGOs, and the need for any relationship with a private sector organization to preserve and even enhance this legitimacy in the eyes of their stakeholders. And a good way to build mutual respect and trust is to understand what the ‘deal-breakers’ are.â€
All respondents believe that corporations ‘greenwash’, either misrepresenting their environmental practices or spending more time and money advertising being green than they do on implementing environmentally sound practices. They further believe that corporations have “ramped up†their greenwashing efforts in the past five years in an attempt to connect with – and profit from – the rising environmental consciousness of consumers.
Respondents lament the lack of support and funding from government, which has forced them to turn to corporations to fill the gap, and thereby risk compromising their legitimacy.
The research found that while larger and better-established NGOs are more open to negotiating and working with the private sector, their smaller counterparts are more wary. For this group, corporate involvement is an unwelcome incursion into the domain of civil society (defined as the public, consumers, NGOs and public institutions).
Asked about how they decide whether to partner with an individual company, most NGOs say they are guided by its reputation and transparency, and whether it has formal CSR principles, procedures and targets in place. Respondents note their wariness about marketing initiatives disguised as CSR commitments.
NGOs are divided on the need to enhance their own levels of governance, accountability and transparency. While some acknowledge the need to adopt best governance practices to be credible, others dismiss governance as a concept relevant to the private sector but not appropriate as a model for NGOs.
“When it comes to corporate-NGO partnerships, the train has already left the station,†says Rick Petersen, Senior Vice-President, Corporate Responsibility, NATIONAL Public Relations. “What will keep it on track is a good faith effort on both sides to understand respective roles, respect boundaries and work together for the good of society. As with any relationship, each party must have genuine respect for the other, be willing to compromise to achieve common goals, and keep the dialogue flowing.â€
NATIONAL Public Relations conducted this survey of 21 Canadian NGOs in the spring of 2008. Respondents were interviewed by telephone to determine their attitudes and perceptions toward engagement with the private sector, and identify issues and trends in the NGO community.
Respondents included environmental organizations; those involved in law, advocacy and politics; and international organizations. According to a 2003 study by Statistics Canada on the non-profit and voluntary sector, there are approximately 9,000 such organizations in Canada, or 11% of the entire non-profit and voluntary sector.
About NATIONAL Public Relations
NATIONAL is the largest public relations consultancy in Canada with offices in Victoria, Vancouver, Calgary, Toronto, Ottawa, Montreal, Quebec City, Saint John, Halifax, New York and London. The firm offers corporate communications, investor relations, public affairs, marketing, technology and healthcare communications services to a broad range of leading corporate, government and institutional clients. A subsidiary of RES PUBLICA Consulting Group, the firm is affiliated internationally with Burson-Marsteller.
Spanning the Great Divide: A Report on the Relationship Between Canadian NGOs and Corporations is available online at www.national.ca. For further information, please contact: Jamie Jo Alton, NATIONAL Public Relations, at 416- 848-1370 or jalton@national.ca.
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