Article
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Corporate-NGO Partnerships through Sustainability Labeling Schemes: Motives and Risks
Version 1
: Received: 5 March 2019 / Approved: 6 March 2019 / Online: 6 March 2019 (10:46:18 CET)
A peer-reviewed article of this Preprint also exists.
Poret, S. Corporate–NGO Partnerships through Sustainability Labeling Schemes: Motives and Risks. Sustainability 2019, 11, 2689, doi:10.3390/su11092689. Poret, S. Corporate–NGO Partnerships through Sustainability Labeling Schemes: Motives and Risks. Sustainability 2019, 11, 2689, doi:10.3390/su11092689.
Abstract
This article analyzes the emergence of partnerships between corporations and nongovernmental organizations (NGOs) through voluntary product labeling schemes. The economics, management, and business literatures are reviewed to highlight cross-checking, consistencies, and complementarities among these disciplines. The objective is to identify and analyze the motives, risks, and joint benefits of partnering via voluntary product labeling, using examples from the agri-food sector. This study is an attempt to offer a framework of corporate-NGO partnerships by showing that the drivers and risks of each partner merge because each takes a step into the sphere of the other. The main risks – namely, a loss of profitability, credibility and legitimacy – are related to the financial and existential dependency and the asymmetric information between the partners in favor of corporations, inducing an ``NGO-capture'' risk.
Keywords
Corporate Social Responsibility; Cross-Sector Alliance; Firm Strategies; Nongovernmental Organizations; Sustainability Labels
Subject
Business, Economics and Management, Human Resources and Organizations
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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