NGOs do not have a single type of relationship with business. Some NGOs have very close ties to business or have been specially created by companies or business associations – such as the powerful International Chamber of Commerce or the influential Business Council on Sustainable Development. Other NGOs have mixed attitudes, partly critical, partly not. While still other NGOs tend to systematically differ from business firms in their views of the world and their sense of international priorities. Big companies increasingly seek to have "dialogue" with critical NGOs and to coopt them through grants, "partnerships," "multi-stakeholder dialogues and other means. While leading public relations firms pioneer ever-new forms of "proactive" business policies towards NGOs, global justice movement NGOs pioneer ever-new forms of criticism and public accountability for private firms.
Articles and Documents
Key Documents
NGOs and Transnational Finance (February 2001)
GPF's Jason Garred presents a general introduction to NGOs, and then looks at how NGOs can influence the murky world of transnational finance.
2009
Corporate Responsibility-Products for War and Occupation or Products for Peace (August 12, 2009)
According to Ann Wright, US Army veteran and former US diplomat, it is our responsibility as consumers to convince companies that peace is more profitable than war. The Israeli cosmetics company Ahava is making money off war by exploiting occupied natural resources from the Dead Sea. Whereas the Japanese company Leila donates one yen to the Women's Peace Fund for every cosmetic product sold. Consumers must therefore be conscious when choosing which products to buy. (commondreams)
2008
Spanning the Great Divide: A Report on the Relationship Between Canadian NGOs and Corporations (November, 2008)
The growing partnerships between NGOs and corporations may lead to a conflict of interest for NGOs and their role as corporate watchdogs. This report argues that Canadian NGOs feel forced to have closer relationships with the corporate sector, due to a decline in government funding and a more competitive fundraising environment. These partnerships raise questions of NGO legitimacy and independence. (National)
Wireless Technology for Social Change: Trends in Mobile Use by NGOs (2008)
This UN Foundation – Vodaphone Group Foundation Partnership paper publicizes a public-private initiative to sell mobile technology to poorer nations, and argues that "telecommunications can be a powerful tool for positive change in the world." Yet empirical evidence in the report fails to show that mobile initiatives achieve development goals. NGOs in healthcare studies gathered data with mobile phones, but could rarely use the information in the field because they lacked technology for data storage and analysis. The case studies also focused on small mobile networks, which the authors acknowledged rarely reach the poorest areas. The report peppers the research with success stories of mobile initiatives in rich countries, like text message sex education in the UK.
United Nations Global Compact: Impact and Its Critics (September 13, 2007)
Supporters of the UN Global Compact argue the UN should cooperate with the private sector in order to promote corporate social responsibility. However, the UN Global Compact lacks a monitoring process and no binding measures have been taken since the start in 2000. By 2006, less than 60 percent of the corporations reported to have taken action to comply with the ten guiding principles on human rights, labor, anticorruption and environment. Critics argue that companies use the UN Global Compact as a tool to improve their image by being associated with the UN, without being required to take action. (Covalence Analyst Papers)
The Contrarian: Are NGOs Playing Both Sides of the Human Rights Abuse Debate? (July 18, 2006)
The author of this Ethical Corporation piece argues that NGOs should not blame multinational firms for human rights violations but instead seek accountability from states. However, such an argument overlooks how big companies sometimes push governments for "favorable deals" that further corporate interests. NGOs demand that UN Special Representative on Business and Human Rights John Ruggie call for "universally recognized standards and effective accountability mechanisms" in his final report.
How Web of Activists Gives Coke Problems in India (June 7, 2005)
Coca-Cola's expansion in India meets fierce resistance by activists inside and outside the country, who accuse the corporatio,n of damaging both the population's health and the environment with pesticides, pollution, waste disposal and excessive water use. While big companies such as Coca-Cola seek dialogue with NGOs to aid public relations campaigns, activists reproach them for not looking beyond their profit-motive which keeps them from making concrete efforts in the safeguarding of human welfare and the environment. (Wall Street Journal)
From the Streets to the Inner Sanctum (February 20, 2005)
Though big businesses shunned activists in the 1990s as little more than a nuisance, NGOs have been highly successful in improving their own trustworthy image while pressuring large organizations to open meetings, release documents and monitor social and environmental affects of their actions. The Los Angeles Times points to the Internet, better fundraising, alternative ideas and activists' participation in World Trade Organization discussions and the Davos World Economic Forum as reasons for the rising status of NGOs.
CBI Chief Claims Davos Hijacked by NGOs (January 31, 2005)
As poverty reduction and climate change gained more attention at this year's World Economic Forum, Sir Digby Jones, the head of Britain's leading employers' organization, accuses NGOs of "hijacking" the venue. Instead of holding businesses accountable, he would prefer the forum to celebrate "risk takers and wealth creators." (Guardian)
Business/NGO Partnerships -- What's the Payback? (April 2004)
Partnerships between NGOs and business are both attractive and bear dangers for the parties involved. Citing successful examples, the article argues that a deeper relationship can bring credibility to the businesses and give NGOs the chance to challenge and change business practices. (Ethical Corporation)
NGOs: More than Flower Power (July 11, 2003)
The Christian Science Monitor says that the Global Exchange, an international human rights organization, and Starbucks "work together to make 'fair trade' a reality." However, increased engagement with business could turn internationally credible NGOs watchdogs into "lapdogs."
The 21 Century NGOs: In the Market for Change - Executive Summary (June 2003)
This report, supported by a wide consortium of NGOs, focuses on the role of NGOs in civilizing capitalism through market-oriented activities. (SustainAbility)
The 21 Century NGOs: Roles, Rules and Risks (2003)
The radical change in markets required to address sustainable development blends NGOs with businesses, mixing civil society values with private sector tactics. (SustainAbility)
Dot-com Exiles Turn Up at New Charities (June 23, 2003)
Business professionals help under-funded non-profits by taking pay cuts and devoting their skills to philanthropy. (Christian Science Monitor)
Has the American Enterprise Institute Lost Contact with Reality? (June 13, 2003)
Ralph Nader argues AEI's criticism of NGOs as a threat to the constitutional democracy is unfounded. In fact, advocacy work and monitoring governments' and businesses' performance are fundamental to the democratic process. (CommonDreams)
Bringing the War Home: Right Wing Think Tank Turns Wrath on NGOs (June 13, 2003)
The American Enterprise Institute denounced NGOs for their "liberal internationalist" vision and attempts to "constrain the US." One professor even described NGOs as a "Stalinist concept." (Foreign Policy in Focus)
US Conservatives Take Aim at NGOs (June 12, 2003)
American Enterprise Institute declares NGOs a threat to US sovereignty and free-market capitalism. "NGOs have created their own rules and regulations and demanded that governments and corporations abide by those rules." (OneWorld)
