Corporate Social Responsibility and the Non-Governmental Organizations Linkages for an enhanced sustainability (April 2012)

Corporate Social Responsibility and the Non-Governmental Organizations

Linkages for an enhanced sustainability

April 2012

Dr Elie Abouaoun

Executive Director

Arab Human Rights Fund / www.ahrfund.org

Only three decades ago, the role of Non-Governmental Organizations (NGOs) in filling the gaps resulting from the public sector’s shortcomings was intensively debated in a context of extreme caution (by governmental stakeholders). It was perceived as an “invasion” of the “public” sphere by unknown non-governmental actors. Nowadays, this role is more acknowledged than ever before and the public sector cannot claim exclusivity in serving the public good anymore. Exploring the synergies between the public sector, the NGOs and the private sector is a studious assignment. This article tries to shed light on the main elements of this complex but necessary relationship.

Corporate Social Responsibility (CSR) is, in a nutshell, the voluntary role and contribution on the part of the business community towards a better social and environmental development. It consists of a wide-range activities and programs looking at how to improve the social, environmental and local economic impact of businesses, as well as their influence on society, and social cohesion. Where do NGOs fit in this framework?

When NGOs engage in social development programs, they ensure community participation to the developmental process. Because the CSR concept assumes that businesses do not act as isolated entities or in detachment from the surrounding society, the role of NGOs in involving the community as a major actor is key to inclusiveness and hence to the prospects of sustainability.

NGOs are in a better position to understand the real needs of the communities, to map the existing potential within these communities and to act as a “conveyor” of relevant messages to the business community. Through the interaction with NGOs, the business sector will have an opportunity to look at the community needs and capacities from a different perspective. An enhanced and multifaceted understanding of these needs and capacities might be useful to the businesses at many levels, not the least being a window to align the business goals to the community needs.

Some literature describes the “triple bottom line” for businesses as “the obligation to respect and promote human rights, labor rights, and sustainable development”. The United Nation’s policy framework for business and human rights is organized around the three foundational principles of “protect, respect and remedy”.

Looking to fulfill such requirements is far easier in a framework of partnership with NGOs compared to isolated approaches. As businesses go further towards a substantial contribution in sustainable development, NGOs become an increasingly important actor due to the expansion of their scope of influence. Partnerships between businesses and NGOs are actively promoted by multilateral institutions and mechanisms such as the UN’s Global Compact and the World Bank’s World Social Forum and also encouraged by several governments. While businesses contribute expertise, products or services NGOs provide outreach, projects and knowledge - at least knowledge from a different perspective. Such partnership also helps businesses to effectively move from trivial charity giving to genuine commitment towards integrated approaches aiming at sustainable development.

This partnership is not as simple as it might look like. Both NGOs and businesses have to reflect on several questions such as the extent to which such partnership may change business social behavior and how much NGOs can convince capital holders to take a more sustainable and right based approach in their CSR strategies.