We leverage insights and theories from the extensive inter-firm alliance literature to explore the effect of the sector of the partners on Firm–NGO alliance governance. Our analysis suggests that the sector of the partners has an important impact on alliance governance, not only because it constrains the availability of some governance mechanisms but also because it makes alternative mechanisms available or relevant to the partners. Specifically, we predict that B2N alliances will rely on contracts, a restricted scope, and non-equity hostages, (...) such as reputational hostages and stakeholder involvement, rather than equity, leading to limited protection against opportunism. As a consequence, B2N alliance partners will need to rely on trust-based governance mechanisms to a greater extent than B2B alliance partners, although trust will be harder to build in B2N alliances. (shrink)

This study examines how Caterpillar Brasil Limitada, located in the city of Piracicaba, Brazil, expanded its concept of social responsibility over a 30-year period. It first provides a contextual overview of Piracicaba within the agro-industrialized interior region of São Paulo State. It then traces the history of the firm from its initial installation in the city. While Caterpillar maintained a distant relationship with the Piracicaba community for many years, it later realized the importance of becoming involved in city development. The (...) community-based effort led by Caterpillar to elaborate and carry out a sustainable development plan for the city is a notable example of how a firm can encourage civil participation and offer strategic planning know-how to civil-society organizations. Finally, the study analyses some of the problems Caterpillar encountered and stresses the importance of developing open democratic channels and continued civil participation in joint partnerships between business and civil society. (shrink)

This study examines how Caterpillar Brasil Limitada, located in the city of Piracicaba, Brazil, expanded its concept of social responsibility over a 30-year period. It first provides a contextual overview of Piracicaba within the agro-industrialized interior region of São Paulo State. It then traces the history of the firm from its initial installation in the city. While Caterpillar maintained a distant relationship with the Piracicaba community for many years, it later realized the importance of becoming involved in city development. The (...) community-based effort led by Caterpillar to elaborate and carry out a sustainable development plan for the city is a notable example of how a firm can encourage civil participation and offer strategic planning know-how to civil-society organizations. Finally, the study analyses some of the problems Caterpillar encountered and stresses the importance of developing open democratic channels and continued civil participation in joint partnerships between business and civil society. (shrink)

Partnerships between businesses and nonprofit organisations are an increasingly prominent element of corporate social responsibility implementation. The paper is based on two in-depth partnership case studies (Earthwatch-Rio Tinto and Prince's Trust-Royal Bank of Scotland) that move beyond a simple stage model to reveal the deeper-level micro-processes in the selection, design and institutionalisation of business-NGO partnerships. The suggested practice-tested model is followed by a discussion that highlights management issues within partnership implementation and a practical Partnership Test to assist managers in testing (...) both the accountability and level of institutionalisation of the relationship to address any possible skill gaps. Understanding how CSR partnerships are implemented in practice contributes to the broader CSR and partnership literatures a contextspecific level of detail in a systematic way that allows for transferable learning in both theory and practice. (shrink)

Firms and industries increasingly subscribe to voluntary codes of conduct. These self-regulatory governance systems can be effective in establishing a more sustainable and inclusive global economy. However, these codes can also be largely symbolic, reactive measures to quell public criticism. Cross-sector alliances (between for-profit and nonprofit actors) present a learning platform for infusing participants with greater incentives to be socially responsible. They can provide multinationals new capabilities that allow them to more closely ally social responsibility with economic performance. This paper (...) examines learning facilitators in cross-sector alliances that enrich corporate understanding of stakeholder concerns. It suggests that these organizational learning experiments can translate into globally responsible practices and processes that improve the content and effectiveness of voluntary corporate codes. (shrink)

This study explores the relational processes that underpin social innovation within strategic cross-sector partnerships. Using four longitudinal narratives to document the duality of success and failure in strategic collaborations between nonprofit and for-profit organizations, the authors explain how partners navigate this duality: deliberate role calibrations help the partners sustain the momentum for success and overcome temporary failure or crossover from failure to success. Our grounded framework models three relational factors that moderate the relationship between role recalibrations and the momentum for (...) success or failure: relational attachment, a personalized reciprocal bond between partners, which provides a stabilizing buffer in the face of unexpected contingencies; partner complacency, an insufficient investment that signals temporary misalignments; and partner disillusionment, an erosion of confidence in the other partner’s commitment that diagnoses premature failure. (shrink)

This review shows how the relationship between nongovernmental organizations and businesses has been examined in business and society, management, and international business literatures. Altogether 88 relevant studies have been identified through the analysis of article abstracts from 11 leading journals in these fields. The articles have been classified into three categories according to their focus: NGO—business interface, NGO—business— government interface, and NGOs as one of many corporate stakeholders. Six main themes are identified: Activism and NGO influence, dyadic partnership , cross-sector (...) partnership , global governance and standardization, national-level governance, and stakeholder management. The state of the research topic is assessed, and implications and avenues for further research are provided. (shrink)

Firms and industries increasingly subscribe to voluntary codes of conduct. These self-regulatory governance systems can be effective in establishing a more sustainable and inclusive global economy. However, these codes can also be largely symbolic, reactive measures to quell public criticism. Cross-sector alliances (between for-profit and nonprofit actors) present a learning platform for infusing participants with greater incentives to be socially responsible. They can provide multinationals new capabilities that allow them to more closely ally social responsibility with economic performance. This paper (...) examines learning facilitators in cross-sector alliances that enrich corporate understanding of stakeholder concerns. It suggests that these organizational learning experiments can translate into globally responsible practices and processes that improve the content and effectiveness of voluntary corporate codes. (shrink)