When NGOs come calling: Strategies of engagement and influence for corporate social responsibilities (CSR)

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1 When NGOs come calling: Strategies of engagement and influence for corporate social responsibilities (CSR) Vidhi Chaudhri Assistant Professor Media & Communication Elena Tankovski MA, Media & Business Media & Communication BLEDCOM, July 1, 2017

2 Why this topic? Stems from an interest in foregrounding the NGO perspective on CSR Impetus for NGOs to be involved in CSR: Trust deficit in business (e.g., Edelman Trust Barometer) Declining State influence and/or filling institutional voids Scrutiny of business practices The imperative for collaboration (more recent): A new relational paradigm? Historically, characterized by conflict and lack of trust, even reflected in terminology (e.g., Kourula & Laasosen, 2010), ideology (denhond & debakker, 2007), tactics and strategy (e.g., Ählström & Sjöström, 2005, classify into partnership and independency organization) TO Recognition that A successful sustainable development agenda requires partnerships between governments, the private sector and civil society (UN SDG goal 17).

3 What we know from research: NGOs as crucial actors in influencing managerial decision making (Frooman & Murrell, 2005; Yaziji & Doh, 2009; Zietsma & Winn, 2008). NGOs have the ability to meaningfully shape the contemporary discursive landscape within which corporations operate (Dempsey, 2011, p. 446) Using information as a disruptive weapon (MacKay & Munro, 2012) NGO influence also propelled by: Importance of CSR reputations (also driven by stakeholder interest and pressure) Growth of digital and social media (e.g., Greenpeace-Shell) YET NGOs (civil society, voluntary sector, non-profit) are not homogenous Institutional standpoint: Just as CSR is contextual, so is the role of NGOs in influencing business practice(s) E.g., Arenas, Lozano, and Albareda (2009) study of Spanish NGOs E.g., In India, NGOs don t have teeth

4 Research questions and method RQ1: How do Swiss NGOs make sense of their role(s) as CSR actors? RQ2: What strategies of influence do NGOs use in their roles as CSR actors? RQ3: What challenges do they encounter in the process? RQ4: How do they navigate aforementioned challenges? Expert interviews with 14 NGO professionals, involved in an direct or indirect relationship with business (e.g., Head of corporate partnerships, campaigning, etc.). 82 invites sent; 13 responded +1 recruited via snowballing Participants represent a variety of NGOs (e.g., advocacy, service, hybrid NGOs) Interviews held in English (13) and German (1) across Basel, Berne, and Zurich

5 Organization Participant s current Role P1 Unicef Switzerland Advisor Corporate Engagement P2 Swiss Red Cross Head of Corporate Partnerships P3 Vivamos Mejor Head of Fundraising & Communications P4 Solidar Suisse Campaign Head P5 ADRA Communications Officer P6 Anonymous Head of Corporate Relations P7 World Wide Fund for Nature (WWF) Head of Corporate Relations P8 Biovision Head of Program Switzerland & Policy Advisor Agenda 2030 P9 Bread for All Program Officer Business & Human Rights P10 Multiwatch Member & Author (March Against Syngenta Revealing Monsanto s Twin from Switzerland) P11 Campax Co-Founder & President P12 Anonymous Head of Corporate Partnerships P13 SOS Children s Villages Head of Corporate Partnerships P14 Bruno Manser Fonds Manager Campaigns

6 NGO sensemaking Confirms the heterogeneous landscape ( The NGO countryside is quite dense ) Range of CSR-related FUNCTIONS: Consulting partner/advisor on CSR policies and actions Partnering, assisting, enabling and/or advising on implementation of CSR strategy ( Companies are the ones setting the agenda and picking the goals they want to achieve with their CSR strategy, while they are looking for a perfect partner which may support them in realizing those projects or targets) Promoting awareness/higher consciousness (e.g., awaken the social spirit and broaden horizons ; make someone say It s not just about us, we also have to take responsibility for people in other countries ; talking with companies involved in cocoa trading and making them aware of the impact on children in the supply chain; about the SDGs) and knowledge training Lobbying and advocacy Critiquing and campaigning

7 NGO sensemaking Dense countryside makes NGOs acutely aware of their position vis-à-vis peers Identity and purpose Impact Differentiation The NGO brand (presence, scale, and awareness) No, no, we are not a watchdog NGO, no, we would not do that [actively campaign against business], that s not part of who we are. But there are other organizations that focus on that. The brand is a big facilitator. I think, being a global organization is an important factor. Size matters, like how many people you can reach to mobilize. I mean we have grown considerably, but if you could reach it s better than if you reach , and that s an obstacle. Then, although we ve been in the papers here and there, not everybody knows who we are and what we do and that will take a couple of years to be a household brand where people actually think Ah, that s them, ah oops, they re talking to me, maybe I should listen. So if you re less known, it takes longer to be heard.

8 NGO sensemaking: NGO position re CSR Beliefs Tactics and strategies Attitude(s) toward CSR Approach(es) to working CSR is not a business priority, since many firms still mainly focus on the production of shareholder value There is also the pull effect, coming from within a corporation, that they understand, that they have a responsibility going beyond their system towards the nature and the society they work within. Leveraging influencers (e.g., governments) and demanding legislation. You can t do it without politics, otherwise it s just a single combat ; without government involvement, NGOs who are often not even perceived as partners, but as petitioners cannot have an influence. Willingness to partner with business more and more NGOs are actually engaging more actively with the private sector, because they believe that actually working with the private sector has more impact on the purpose of an NGO, than just this naming and shaming approach

9 NGO sensemaking vis-à-vis business: Are they listening? Making sense of their roles as CSR actors contingent on corporate willingness to engage together with [retail company] we changed their, or parts of their, supply chain heavily [based on] an analysis of the child rights and business principles of their supply chain to understand where they had to improve and how they could improve their whole manufacturing processes. Well, in the end, if a company doesn t want to incorporate [NGO advice], you cannot do anything as an NGO, except, calling them out, calling them out and calling them out, until they feel like Oh my god, my business model might run into nothing and that s why I should probably react. Consumers have more impact than NGOs?

10 NGO sensemaking vis-à-vis business : Are NGOs good role models? Triggers a process of self-reflection and introspection in which many participants question whether NGOs have the credibility to influence the CSR agenda. And just because you are an NGO, it doesn t mean you are better. I doubt that NGOs per se are more sustainable than companies. I think the whole transparency aspect, this is also very interesting When you go to the WWF International website, you would find the whole kind of transparency and accountability report, what they did with the private sector, even how much money they earned. That s cool, you know, and this is also what I said here is you expect quite a lot from the private sector and the bar is quite high and you as Unicef organization, can you also fulfill the expectations in terms of working hours, in terms of gender salary gaps, in terms of, I don t know, over time being paid, in terms of transparency. Everyone wants to know what the CEO of a bank is getting paid, but do we know what the CEO of Unicef is earning? NGOs have to clean your own house before.

11 Implications re NGO sensemaking NGO self-perception as CSR actors shaped by multi-level understanding of the symbolic and material (position viz peers, CSR, and business) These perceptions, in turn, can impact the influence strategies NGOs (may) use. The acceptance of corporations setting the CSR agenda (and inviting NGOs to partner/contribute) and NGO self-criticism legitimizes the lead role for business and reinforces the unequal relationship NGOs have to learn business ways of working and develop a common language Despite the purported power of social media (e.g., in giving NGOs a voice), Swiss NGOs do not regard it as their weapon of choice