On Silos - Part III
Rise or Stoop? Partnerships Of Equals
| Long-read Alert
Greetings, let's talk about David and Goliath shall we?
But not about their epic battle, oh no. In this little thought experiment, let's imagine they need each other, need to join forces, enter into a partnership to achieve their respective goals.
Now what are we looking at: Goliath has the brawn, the height, the reach, the muscle, the fearsome reputation. David has the wit, the good looks, popularity with the masses. Goliath wants David's mass-appeal to polish his reputation, and David needs Goliath's muscle to achieve his own goals. But: what will being associated with a fearsome giant do to his popularity?
Right, back to the real world (was this David and Goliath strictly analogy strictly speaking necessary? Probably not, but here we are):
The On Silos - series focuses on the private sector x not-for-profit relationship, and reputation and legitimacy risk for the latter when partnering with the private sector. The world needs these partnerships to solve its ESG woes, and we need those partnerships to be communicated with pride to be sustainable. So, how can not-for-profits safeguard against loss of legitimacy and find the courage to partner with Goliath?
(academic language warning: what follows is an extract from a paper I wrote for my post-grad, consume with caution and only after having had at least 3 cups of coffee)
The key to legitimacy is the development of robust guidelines for private sector partnerships towards environmental and climate crisis issues, covering every aspect of the engagement: Screening, transactions, accountability, credibility of the partner and maintaining independence throughout the partnership. Countless organisations have established manifests to that effect and elected a variety of approaches. Here, we want to reflect on a blend of many that we believe can serve not-for-profits as a guide to assembling their own, with actionability and realism as goals.
Build Internal Alignment First
A crucial first step is the internal alignment around one's own organization, its mission, its values, and the prospective private sector partner. Internal alignment is critical to show-case your organization as a credible party that engages partners with determination and an holistic approach to achieving its vision. Lack of internal alignment can lead to private sector partners being approached by multiple individuals from the same not-for-profit, cause internal infighting about territories and political influence, and inevitably derail the partnership. Furthermore, successful partnerships with the private sector have as a base a shared vision and communication mechanism to provide an effective checks and balances system that is built on mutual respect and a sense of equal powers. Such a mechanic cannot be established in a sustainable fashion unless the partnership-seeking party has its internal affairs in order to begin with (for more on this, this 2020 paper is BRILLIANT!)
Do Your Homework and Screen
When planning to engage in a private sector partnership towards achieving climate change objectives, it is of pivotal importance for the not-for-profit in question to rigorously screen the organization in question. Some lead assumptions must be checked in all cases:
What ESG policies are in place?
How has the prospective company actioned its own ESG ambition, what programs are they leading independently and to what effect?
What other partnerships has the company engaged with previously, is engaged in currently, and to what effect have they been concluded? Specifically any notions of these partnerships in (social) media must be inspected cautiously to allow a gage as to what reputation the prospective partner has gained over time, and whether or not they were called out for inauthentic behaviour (see 'cause washing'). USAID has developed a comprehensive (and utterly fabulous) set of questions to ask ahead of any partner engagement.
Is the partner compliant with the not-for-profits engagement principles? There are myriad standards that can be referenced and applied to one's own organisation, and deliciously laid out by the Donor Committee for Enterprise Development.
Another critical element to consider is organisational complexity. Many corporates will deploy their ESG efforts and funding not directly, but through foundations set-up for that particular purpose, in an effort to divert attention away from perceived commercial interest and to gain authenticity. It is of crucial importance to understand the organisational affiliation behind such foundations to truly see who it is one is entering into a partnership with.
Demonstrate Independence and Integrity
As I mentioned previously, reputation and legitimacy are the not-for-profit sectors greatest asset, their strongest selling point to attract donations. Maintaining it is of crucial import, and a first step to ensure it is to move from a purely transactional partnership to an integrative one. A partnership that is not simply about the receipt of assets, but transcends into shared governance, decision making within the company and creating the road map for implementing the ESG/climate change initiative at a local level as a shared effort. David Menascé interviewed Franck Renaudin, Founder and Executive Director of Entrepreneurs du Monde, in 2016, and he makes a striking argument about the finances of private sector partnerships. Easily the prime target for criticism of a not-for-profit's credibility being 'purchased' by the private sector, the financial nature of such partnerships must be navigated with great care. The fact that the not-for-profit sector relies on donations to remain operational is not a secret, and therein lies the key to staying ahead of bad press: vocally acknowledge the received funding value, and demonstrate that it is matched out of other revenue streams to the best of the organization's ability. Pay for what you can yourself, and demonstrate it with pride.
A second pathway to increased perception of independence and integrity is the involvement of a third party validator whose standards the private sector partner must adhere to. Those of you that are academically inclined can read more about this kind of enabling structure here. You'll most assuredly have heard of such structures before, think B-Labs, MSC, Rainforest Alliance or Fair Trade.
Own it
Once the decision has been made to enter into a partnership and it is publicly up and running, there is no backing out of it. Both parties have to be vocal and proud of what they are achieving together, and open about the nature of the partnership. Having a risk management plan and related position communications in place is crucial, to respond to negative backlash from detractors. The not-for-profit partner's greatest asset is a solid ethical partnership doctrine, as well as a public perspective on what private sector partnerships mean to them. In an interview ran by The Partnering Initiative in 2008, a not-for-profit leader reflected on this matter as follows: “We ask ourselves quite often whether our partnering activities are „green washing‟ companies. We also agonise as to whether being funded by a company to do our work, even if through this we raise awareness of environmental issues more widely, is a conflict of interest for an environmental NGO. My personal view is that when we weigh up the moral consequences of our decision to work with business, and because the relationship enables us to get things done more efficiently and effectively, the collaboration is entirely appropriate and justified.”
That's it gentlewomen, gentlemen and everybody in between, the On Silos-series has come to an end. Should you have started it by reading this part, part 3, be sure to check out part 1 and part 2 as well!
Let's go get it,
Tom