Faced with concerns about the globalization of the economy and the implications of the shareholder value model, multinational companies are taking social responsibility initiatives. These speeches and actions aim to show the public that if their primary mission is to benefit their shareholders at the cost of relocations and dismissals, these companies nevertheless contribute to the population’s well-being in radiation exceeding their customers and collaborators. Non-governmental organizations (NGOs) play an essential role in this process. Upstream, they raise public awareness through demonstrations and lobbying campaigns targeting governments and, increasingly, businesses.
Targeted campaigns and partnerships can function as direct relations between NGOs and companies, maintaining indirect relationships around the decision-making processes in the institutional policy field. This article focuses on the first category. This type of relationship is a civil regulation of society, distinct from legal law (Bedell 2000), companies’ self-regulation, and the manifestation of a global right without state and private governance regimes.
A debate is underway on the political effectiveness of civil regulation, the fundamental social changes that will happen due to pressure campaigns and partnerships that link NGOs and companies, and the incentive public policies that this type of mechanism can inspire. Some believe that research and public awareness efforts must focus on this model, investing in markets through consumers and shareholders to directly influence the company’s behavior and serve the public’s interests. It also includes the public beyond legal requirements. On the contrary, others see corporate social responsibility as a lure, a myth, judging it too unlikely that the interests of a private company and the interests of the community coincide. Instead, they call for strengthening the public sector’s prerogatives and pressure on national and international institutions for a more significant legal constraint on economic actors.
This article focuses on the direct relations NGOs and companies maintained on a dozen global socio-economic issues since 1970. It also proposes a typology of relations between NGOs and companies and evaluates political opportunities related to the diverse types of relationships offered. Most cases studied concern relations between Swiss companies and NGOs on issues affecting developing countries. These issues were selected based on available information and for the sake of variety and representativeness (different industries concerned), but not completeness.
The results are based on public input on the one hand (articles, website) and interviews on the other hand (10 companies, 20 NGOs).
NGO refers to non-profit organizations active in human rights, development cooperation, humanitarian action, and environmental protection. By multinational companies, we mean large private groups functional in dozens of countries and listed in different financial markets, but also medium-sized companies with a national anchor. However, they maintain relations with partners located in the country. Foreign.
Power and Proliferation of NGOs
In world politics, the dramatic proliferation of different NGOs allows them to become a powerful force. Multiple business-related issues demand a debate between world authorities at public, private, and within NGOs worldwide. Despite such obstacles, several efforts have moved the country’s focus toward the scope of NGO proliferation. In the USA, 1.5 million non-profit organizations track and serve in the independent sector of American society. According to recent research, millions of US dollars have been prepared for the NGO’s growth budget from the United States Institute of Peace (USIP).
Power and Change in Basic Assumptions
A higher proliferation of non-state actors fueled an inability of both global and domestic institutions. International authorities consider this dramatic shift to respond to political, social, and economic consequences of fast development in technology, political fragmentations, and rising economic interdependence.
Along with such proliferation, transnational threats are increasing, and collaborative solutions are needed to solve global economic issues. Such hazards include the proliferation of weapons of mass destruction (WMDs), global warming, and pandemics. There is a new array of organizational challenges that multiple NGOs face with their increase that must be discussed at international forums.
There are a few interrelated forces that bloom the proliferation of NGOs well.
- Advanced democratization and value of civil society that promotes democracy
- Independent data and analysis higher in demand
- Non-state and inter-state actors’ proliferation
- Advanced communication technologies
NGO fund’s globalization between South and North
- There is a crisis in confidence
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