On Silos - Part I
Partnerships Beyond Stigma.
Welcome! This is part one of a series towards a topic that receives not nearly enough attention in business: how to make friends in unlikely places. In particular, I want to talk about (and invite you to join the conversation, comment on my LinkedIn post about the series!) private sector x not-for-profit partnerships. The pretty, the ugly, the stigmatised, the solutions. All that jazz, let's go!
In an effort to not make this into a phd dissertation of epic und entirely unreadable length, let's assume a simplified reality to illustrate our scenario:
The private sector's key mandate is to monetise, to deliver goods and services to its customers and, in case of a publicly listed company, generate value for shareholders. Within this seemingly straight forward equation however, resides a universe of activity that is far more subtle in nature and yet of ever greater importance in a transparent and value-based global consumer community: partnerships with the not-for-profit sector.
The concept of strengthening one's position by inviting a high-trust partner to support it is far from new, and yet we are observing a powerful shift in the quality of such partnerships. I read a fabulous 2016 interview with Franck Renaudin, Founder and Executive Director of Entrepreneurs du Monde, describing the private sector's pursuit of not-for-profit partnerships as follows: "Clearly, it is important for businesses to reinforce their brand image with the general public, and also with all of their partners, customers and suppliers. Nowadays, a company that has dubious practices is soon pointed out, becoming a target for the media, or for online petitions, with very serious consequences for its image. The reputational risk is a very real one." In other words, businesses nowadays are required to demonstrate a deep and authentic level of commitment to the causes they elect. One that transcends a mere financial transaction and starts with the internal values to which the business holds itself and its employees accountable, or face the risk of being called out for cause washing in its many colour codes (greenwashing, pink washing, rainbow washing).
So, the quest at hand is this: private sector companies must demonstrate good corporate citizenship along the full ESG corridor to foster good-will with consumers, investors and business partners. And do it in a way that doesn't look like they are just doing their laundry (you see, green washing, pink washing, you get the gist).
The simple solution: get someone else to bolster your credibility, to vouch for you, ideally someone people trust. Enter the not-for-profit, saviour of the poor, steward of the environment.
According to Edelman's latest trust barometer, of the major entities observed (Government, Media, NGO, Business), NGOs are seen as substantially more ethical in their operations than the rest. And they'd be getting something out of it too right? Chronically in need of funding in an increasingly competitive (and limited, thanks Covid) international financial replenishment system, the sector would seek private sector partnerships to stabilise its operations, and increase reach and direct access to places in the world it as dedicated itself to (corporate logistics be sophisticated, let me tell ya).
Sounds like a deal too good to be true? It is.
Their credibility, their reputation, their unimpeachable authenticity and independence is a not-for-profit's greatest asset. With the witch-hunt against x-washing companies in full swing, how to collaborate with these giants without appearing as an accomplice?
That question is the focus of this series, so if your curiosity is sufficiently stimulated, feel free to comment, share and, of course, continue reading part two "Not-for-Profits: A Dependent Hero?"
We need these partnerships. We cannot solve the world's most pressing issues, may they be of social or environmental (it's all related anyways) nature, in isolation. Let's think together about how to break out of our silos, overcome stigma and cultural (sector culture) separation, and make some magic.
That's it for today gentlewomen, gentlemen and everybody in between. Be sure to check out Part 2 below!
Let's go get it,
Tom