Organisations like Oxfam, Greenpeace and Amnesty International have become household names in recent years, on the back of high profile campaigns and controversies that have caught the public imagination. Much has been said and written about such northern based NGOs – their agenda, governance, transparency, impact and engagement with business. Much less consideration has been paid to NGOs in the south , yet it is just as important for companies to understand the trends and challenges emerging for southern NGOs, particularly for those operating in developing countries.

Overview

For much of the developing world, the last few decades of the 20th century were a time of significant transition, with democratisation and economic liberalisation greatly influencing cultures and societies. In China and Russia, for example, these transitions included the development of a private sector, which has taken over some roles traditionally played by the government. In countries like India and Brazil, which are opening up their markets, companies face increasing global pressure not just on their economic performance, but also on their ability to respond to new models of corporate responsibility that go beyond their traditional acts of philanthropy. NGOs in the south are evolving accordingly.

Considerations

There are significant differences between NGOs in developed and developing countries which affect both how they operate and how they relate to business. These include:

- Trust: NGOs in developing countries do not generally enjoy the same level of trust as those in the developed world. Their image may be further undermined by corrupt politicians or businesses setting up NGOs to siphon funds and evade taxes. To tackle this problem, legitimate NGOs have begun developing standards or certification systems e.g. Credibility Alliance in India and the Philippines Council for NGO Certification.

- Funding: Most NGOs in developing countries are funded by large organisations, generally multilateral agencies, bilateral donors and international foundations, as well as corporate philanthropy – rather than individual donors. This sometimes affects their independence, which can be influenced by the agendas of their funders.

- Professionalism: In developing countries there are often fewer big ‘brand’ NGOs and more grassroots NGOs, which often have more difficulty in attracting professional staff. This can create management difficulties for the NGO, as well as affecting its capacity to engage with business on equal terms.

- Business-NGO relations: Business-NGO relationships vary significantly from one country to the next. In some cultures, overt conflict is shunned while in others relationships are highly antagonistic and partnering may be difficult. Strategic partnerships may also be difficult in cultures where traditionally engagement is focused on philanthropic donations by business or on the NGO providing a specific service (usually related to community development).

This is not to say that NGOs in developing countries are not progressing on corporate sustainability or that they do not make valuable partners. The Ethos Institute in Brazil, which has developed a self assessment tool to help companies review their own sustainability performance, and the National Business Initiative in South Africa, which works with companies on strategic socio-economic development show how leading national NGOs are focusing on strategic engagement with business.

Implications

There is a strong business case for companies to engage with southern NGOs (see Developing Value). Relationships with local NGOs can help companies bridge the gap between on-the-ground realities of operating in developing countries and developed world demands on corporate behaviour. However, the task is often not a straightforward one.

- Companies need to understand how NGOs fit within the wider society, as well as the traditional and evolving NGO expectations of business. They then need to identify the universe of legitimate potential partners – a challenge that can require significant research and local knowledge in the absence of big brand NGOs.

- Capacity building is an essential requirement. This means sharing not just funds but, more importantly, core management skills, as well as helping NGOs better understand the CSR agenda and the potential for it to contribute to development. Where business-NGO relationships tend to be antagonistic, significant effort may need to be devoted to building trust.

- Finally, companies may also need to challenge their own thinking on why they seek engagement. In countries where NGOs do not have a high and positive public profile, engagement will be less about branding and more about achieving practical results on the ground, innovating for local markets and addressing risks.

SustainAbility believes in the value that NGOs bring to the sustainability debate and is committed to helping NGOs in the developed and developing world engage with the business sector. The Emerging Economies program at SustainAbility will use the learning from the The 21st Century NGO report to help support business-NGO partnerships globally.

 

Reources
- Credibility Alliance India http://credibilityalliance.org
- Philippine Council for NGO Certification www.pcnc.com.ph
- Ethos Institute www.ethos.org.br
- National Business Initiative www.nbi.org.za

 

Source: http://www.sustainability.com/insight/issue-brief.asp?id=63