Benefits and the Pitfalls of Partnerships between Development NGO’s and the Private Sector

More often than not, most NGOs go against the government and initiate ideas and projects that the government may not be willing to take. They may be formed indirectly or directly by the companies or the government, though they are not merely independent (University Consortium on the Environment, 2008). However, they are seen in protecting people’s rights and creating awareness while supporting government and business practices. Above all, NGOs have been seen to have greater influence in business setups due to their strong actions. Companies, more so, the private sectors, which partner with non-governmental organizations gain fame and prestige internationally due to new ideas and supports. Most of the private business entities value NGOs and their views and they dominantly incorporate them in their developments. On the other hand, NGOs believe that these private sectors are key factors of economic and social development (Hany &amp. Kindornay, 2013).

According to Stevenson (2010) and Hoebink (2009), the reputation of the company is no doubt an important factor to both consumers and the investors. The impact of the company on the stakeholders is an emergent benchmark of commercial performance because the stakeholders have begun to ask what the companies can do to the general public (society) and not what the general public can do to the company. Trust is a driver for partnership between the private sectors and the NGOs since the members of the public put more trust in NGOs than the private companies (Fredrik &amp. Ian, 2003). Therefore, in order to establish stable relations with the customers, companies have no option, but to partner with the NGOs to upgrade their trust. In one of the articles entitled “Collaborating with Activists: How the Starbucks works with NGOs,” it is evident that its global success has been attributed mostly to the partnership with NGOs. This is because the company has gained fame and its services supported by other private investors.

Consequently, in public opinion, the Non-Governmental Organizations are more trustworthy than organizations in term of helping society.