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Enhancing Cooperation Between For-Profit Businesses and NGOs for a Sustainable Future

This document explores the current state of collaboration between for-profit businesses and NGOs, highlighting the vast divide driven by misconceptions and traditional attitudes. It emphasizes the mutual benefits they can gain by working together, such as NGOs finding new income sources and for-profits improving their market image. The Austrian So-Pro initiative exemplifies how social enterprises can produce sustainable products, encouraging local partnerships and reducing waste. Key principles include environmental awareness, social responsibility, and economic sustainability, aiming for a more respectful relationship that transcends mere donations and charity.

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Enhancing Cooperation Between For-Profit Businesses and NGOs for a Sustainable Future

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  1. SUSTAINABLE SOCIETY Howfor-profit businesses and NGOscanreducetheirdistanceandcooperate

  2. A snapshot of thepresentsituation • For-profit businesses and NGOsoperateindifferentsectorswithhardlyany meeting points • CSR? • Donations? • POWER INEQUALITY

  3. TRADITIONAL ATTITUDES and concepts • Business is business • Market rulez • NGOsareneedy, low-status, charitableorganizationswithphilantropicambitions • Business is evil • Market is evil • Forprofitsexploitemployees/environment

  4. MUTUAL PREJUDICE VS MUTUAL INTEREST • Cooperationsbasedonneeds • NGOsneed • Income • New connections • Acknowledgment /respectable status • Sensitivesocialenvironment • BUT WHAT MIGHT BUSINESSES NEED?

  5. FOR-PROFIT BUSINESSES • NEED: • Abetter image • Bigger market • Affordableservices • Costreduction

  6. HOW TO PAIR THEM UP? • FOR-PROFITS SEEK: Economicallysoundsolutions Sociallysoundsolutions • NGOs SEEK: Solutionsin line withtheirmission Marketable and profitablesolutions (whichenablethemtobuildconnectionsintheentiresocietythuspromotingtheiraimsandcauses)

  7. Onepossiblesolution • AustrianSo-Proinitiative (SozialeProduziert) • Products producedbysocialenterprises • Productionsparesresources, asit is produced: • Locally • By local partnerships • Bysupportedemployment • Fromwastematerials

  8. IN thehungarianso-pro • Supportingsocialenterprises’ appearanceinthe market • Preparingcooperationwithfor-profitactors • Findingcommonopportunitiesforcooperation

  9. INTERNATIONAL dissemination • Preparigtheinternationalnetwork • Preparing a European trademark (highquality, economically and sociallysustainableproduct) • CooperationwithDanubeRegionStrategy

  10. EXAMPLES SO FAR • Industrialwaste of a matressproducingcompany is turnedintoconstructiontoycubesbypeopleemployedbyCaritas • Gardeningjobsaredonebymentallyhandicappedpeopleat a cardealership • Coffeepodsfrom a cafeteriaareturnedintojewellerybyunder-educated and drug-addictedyoungpeople • Bagsareproducedfromwaterprooftextilebannerspreviouslyproduced and usedby an advertisingagency

  11. TO sUMMARIZE THE CONCEPT • BASIC PRINCIPLES: • Environmentalawareness • Socialresponsibility • Economicresponsibility (reasonablewages, free fromtaxevasion and corruption) IT IS NOT: - Donation / Charity / CSR

  12. THE NOVELTY OF THE CONCEPT • Itacceptsthat market is profit-oriented • Itacceptsthebasicprincipleshowthe market works • Itemphasizesresponsibility and sustainability: theyare a priorityforallactors

  13. AND what is ourroleinthis? • Weworkasadvisorswithbothparties

  14. WithFor-profitcompanies: • Webuildconnections • Weintroducethemodel • Weexploreopportunities (withstatesectoractorscooperation is alsopossible, local authorities, etc)

  15. Withngos: A much more gradualprocess • Fundraisingtechniques (donations, volunteers, etc) – 1st stage of socialenterprises • Findingservicesourproductstheycansupplyevenifonlytemporarilyorseasonally – handicappespeoplemakingChristmasdecorations – how and wheretosellit – involvement of professionals,eg.adesigner – 2nd stage of socialenterprises • Servicesorproductswhichareself-sustaining – environmentalist NGO lettingaccommodationin a house in a forest – thusmakingitpossiblefortheactiviststouseitfor free – market research, marketing, business plan – allneeded. -3rd stage of socialenterprises • Profitableproductor service is developed and launched – a fullscale business bythe NGO thoughthe profit is usedinordertohelpthebeneficiaries, theNGO’stargetgroup – 4th stage of socialenterprises

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