kruglikova
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Environmental NGOs and Businesses: Friends of Foes?Green alliances as a path to sustainable development
Nina Kruglikova
Student Summit for Sustainability Regina, Saskatchewan, Canada
13 May 2008
Outline
Historical Perspective Drivers for Change Challenges Typology of Green Alliances Case studies (e.g. Greenfreeze) Different Approaches in US and Europe Conclusions
Historical Perspective 1960s and1970s:ENGOs – boycotts and protestsBusinesses – no response
1980s:ENGOs – public environmental pressureBusinesses – environmental policies, annual reports, auditing, eco-labelling
1990s:ENGOs -shift from problem-focused to solution-oriented advocacyBusinesses - search for less confrontational relations with ENGOs
Drivers for Change: companies’ perspectives
NGO credibility with public on issues
Desire to head off negative public confrontation
Desire to engage stakeholders
Greater efficiency in resource allocation
Competitive advantage of companies with reputation for environmental responsibility
Drivers for Change: ENGOs’ perspectives
Disenchantment with government as provider of solutions
Credibility of business with government
Need for more resources (funding, technical expertise)
Growing interest in markets
Source: Sustainability 1996
What can ENGOs give businesses? help businesses track developments n
regulations Spot their environmental vulnerabilities before
they become fatal flaws Save money on R&D by providing solutions Inspire consumer confidence and credibility Endorse products
Challenges: Hard-Liners in ENGO community
‘Window-dressing’ ‘Potential minefield’ ‘Painting the deck-chairs on the Titanic a
lighter shade of green’ ‘Shifting the battle for the environment from
the courtroom to the boardroom’ ‘Abandoning boats for suits’ ‘Buy-sell of indulgencies’ ‘greenwash’
Typology of Green Alliances
Licensing Corporate sponsorship Product endorsement Task force Green systems alliance Green public policy alliance
Source: Hartman and Stafford (1997)
Case Studies
WWF and Unilever: Marine Stewardship Council
US Environmental Defence and McDonald’s/General Motors
Alliance for Environmental Innovation and S.C. Johnson&Son, Inc.
GREENFREEZE - Greenpeace and Foron (1991) ‘The other cold war’ ‘The story of the little East German David vs the big West German industry Goliath’ ‘The German EPA’s prestigious Blue Angel Eco-label’
ENGOs-Business Partnerships
US: more cooperative ‘corporate citizenship’ Three Miles Island Nuclear Accident and Exxon Valdez Oil
Spill
Europe:
less cooperative ‘corporate social responsibility’ Brent Spar and Nigerian Ogoni UK - pioneer
Reasons for this Difference Different level of reliance on the authoritiesUS: no strong role of central government, DIY approachEurope: strong belief in ‘finger pointing’ power of governm. Different level of public supportUS: 1/3 of Americans attempt to avoid boycotted brandsEurope: ½ of Europeans attempt to avoid boycotted brands Different level of philanthropyUS: long-established tradition of charitable donationsEurope: ‘sponsorship scam’ approach? Different level of trust of businesses and NGOsUS: 4 most trusted brands are corporationsEurope: 4 most trusted brands are NGOs
Source: The Fourth Edelman Survey on Trust and Credibility.(2003)
13%
16%
25%
29%
30%
35%
36%
36%
37%
40%
41%
45%
47%
47%
49%
52%
54%
55%
56%
59%
66%
69%
0% 20% 40% 60% 80% 100%
HSBC*
Oxfam*
Unilever*
Royal Dutch/ Shell
Deutsche Bank
ExxonMobil
Monsanto
BASF
Citicorp
Dow Chemical
Greenpeace
Amnesty International
Nike
Merck
World Wildlife Fund
Pfizer
Bayer
McDonalds
Ford Motor Company
Microsoft
Coca-Cola
J ohnson & J ohnson
Source: The Fourth Edelman Survey on Trust and Credibility.(2003)
12%
14%
16%
21%
22%
25%
27%
28%
30%
32%
34%
34%
36%
37%
38%
42%
47%
49%
51%
62%
62%
34%
0% 20% 40% 60% 80% 100%
Monsanto*
Citicorp*
Dow Chemical*
Pfizer*
McDonalds
HSBC*
Merck*
ExxonMobil
Deutsche Bank
Royal Dutch/ Shell
Nike
Johnson & Johnson
Unilever
BASF
Coca-Cola
Ford Motor Company
Bayer
Microsoft
Oxfam
Greenpeace
World Wildlife Fund
Amnesty International
Conclusions
ENGOs are increasingly exercising their stakes in corporate affairs, whereas businesses are staking their claim in the ENGO sector
Win-win solutions: each partner should have smth to give to and gain from
Need to educate businesses what NGOs can offer
Need to help ENGOs sell their agendas and capabilities – not themselves – to businesses
Reasonable balance between carrot-led approach of cooperation and stick-driven approach of confrontation
On our way to sustainable development....
...businesses are not only
part of the problem but also part of the solution!
