Abstract

NGOs are legal organizations that affect decisions and distribution of resources of governments and companies. They aim to be opinion leaders and pressure groups and initiate strategic changes by creating public awareness and reaction via media and web sites. They should have strategic approaches for their organizations. The number of NGOs have increased in Turkey since the 1990s. Finding financial resources for new projects is one of their major problems. On the other hand, the private sector companies have allocated more resources to corporate social responsibility projects in the last few years in the scope of public relations activities. This study focuses on the advantages of NGO and the private sector cooperation in the implementation process of corporate social responsibility projects of the private sector. It provides examples of major corporate social responsibility projects of the private sector and participation and contribution of NGO’s to these projects in Turkey and in the world. This study also shows a road map for NGOs and companies to cooperate with each other to conduct corporate social responsibility projects.

Keywords: NGO, private sector, corporate social responsibility, Turkey, cooperation

Introduction

NGOs are legal organizations that try to affect decisions and distribution of resources of governments and companies based on their missions and goals. They aim to be opinion leaders and pressure groups and initiate strategic changes by creating public awareness and reaction via media, web sites, etc. Each NGO focuses on certain issue such as protecting human rights, labor rights, and environment. NGOs are powerfull organizations to inform people, initate reactions and boycotts against governments and companies. Most of the NGOs are against governments where as some of them are by the side of  governments. There are other NGOs that are established directly or indirectly by governments and companies. They are not independent. Some of them seem to protect the rights of people but actually try to create the public support for the practices of governments or companies. On the other hand, the public should differentiate independent NGOs from other NGOs that only try to protect the rights of governments or companies. There are also many international NGOs (INGOs) that focus on issues with an international perspective.

INGOs become more visible in the global business and development projects. Companies should take INGOs seriously because INGOs can interfere with business practice as a force. INGOs should consider their views about the private sector’s role in developing countries. They believe that the private sector that is an important factor for economic development will be the only source of the growth needed for social development (Henderson 2000, p.373).

NGOs follow regulations and practices of governments and companies to find out problems related to their main focus. Nowadays, NGOs become more flexible to cooperate with governments and companies for contributions to the business environment, natural environment and society. On the other hand, some NGOs and people believe that NGO’s which cooperate with companies for corporate social responsibility projects lose their independence, integrity and credibility.  

According to a survey conducted by Environics and Gallup in 47 nations in 2002, 48 percent and 52 percent of respondents stated that they had little to no trust in global companies or large national companies respectively. On the other hand, 32 percent of respondents expressed distrust in NGOs whereas 59 percent of respondents stated that they had a lot or some trust in NGOs. Most people seem to question credibility of an NGO when the NGO has partnerships with a company. (Argenti 2004, p.92)

NGOs should be dedicated to achieve their missions and goals that focus on economic, political, environmental, human rights and labor rights improvements. They should cooperate with other organizations, develop core competencies and expertises.

Strategic Approaches of NGOs

NGOs should have strategic missions, visions and goals to achieve and gain support of the public and other stakeholders. NGOs should have missions that can be shared with the public, other stakeholders and organizations. They should also develop attainable visions. They should form organizational culture. They need to determine their approaches to their members and other stakeholders. Their strategic plans should be consistent with their missions, visions and goals. Their operations should provide achievable opportunities for their current and potential members. They should consider threats of governments, supporters of governments and other organizations. Main threats of NGOs’ practices are loosing the support of their members, not finding new members, being controlled by governments, organizations and stakeholders. NGOs shold gain the support of media, opinion leaders, independents groups and public besides the support of their members. Organizing meetings and workshops, using management information systems and effective communication tools such as media and internet are important to inform these groups and gain their support. This support will help to find new funds and not to be controlled by governments and other organizations.

If an NGO convince public to accept its mission, vision and goals and gain public support, it can grow easily and be powerfull and influential. The strategic cooperation between NGOs at national and global levels support their growth strategies, help to develop core competencies and get the advantage of different expertises. If an NGO does not achieve strategic cooperation with another NGO, it can differentiate its core competencies and focus on different issues. The performance appraisal of NGOs should be made based on their missions, visions, goals and strategic plans annually or periodically. NGOs should provide transparency in their management. They should reveal reports to public to inform about their practices and their results to survive and gain the public support. They should have flexible organizational structures that let each member have equal rights and chances to reach top management positions.

An Overview of The Business Environment

Nowadays, some companies have global operations and greater revenues than GDP’s of some countries so they can easily influence governments to obtain advantages.

There are approximately 60.000 global companies and 500.000 foreign affiliates in the world. They are central organizers of the global economy. They invest $600 billion abroad annually and control two thirds of international trade (Garvey and Newell 2005, p.390). Global FDI exceeded $US 916 billion and around $US 334 billion of it was made to developing countries in 2005 (http://www.unctad.org/en/docs/wir2006 overview_en.pdf, cited on 2 November 2006).

Although some companies act responsibly most of the time, there are many national and global companies that do not care about corporate social responsibility. These national and global companies try to extract benefits and profits by harming natural resources and exploiting employees and people in poor countries. International agreements and national laws should encourage global companies to move beyond corporate social responsibility to corporate accountability. Corporate accountability means that companies have a legal obligation to uphold international standards and protect the rights of their stakeholders (Pendleton 2004, pp.77-81). Governments, NGOs, multilateral institutions such as the United Nations and the World Bank should affect companies to be aware of their social responsibility, act based on ethical values, help poor people and countries; protect the environment, human, labor and customer rights.

The Global Compact that is developed by the United Nations provides a set of ten principles on the environment, human rights and corporate transparency for companies in member states (Vivarta and Canela 2006, p.96).

Nowadays, business schools offer corporate social responsibility modules and programs at graduate level in Europe. It is important for students to learn about the responsibilities of companies to the stakeholders and the shareholders. (Pendleton 2004, p.79). Press, TV channels and web sites are widely used by NGOs to create public awareness and coercion for corporate social responsibility practices of companies.

There are several publications and web sites that highlight the best and the worst corporate social and environmental responsibility practices. Publications such as Ethical Consumer exist to help consumers to make ethical purchases. There are ethical pensions and stock portfolios for people who prefer to invest in socially responsible companies. Leader companies care their reputations and attract more consumer pressure for corporate social responsibility issues than followers (Pendleton 2004, p.79). According to a survey by MORI, 80 percent of people thought large companies had a moral responsibility to society in 2002. According to another survey by MORI, 46 percent of people thought that social responsibility in corporate behavior was very important in 2001. One fifth of the UK population select or boycott goods on social grounds (Pendleton 2004, p.79).

On the other hand, it is very difficult to monitor, manage and report corporate social responsibility practices of companies (Henderson 2000, p.374). E.g.:Shell emphasises that it aims to be a good neighbour in Nigeria but it does not clean up oil spills quickly not to ruin local villages. Coca Cola stresses that it uses natural resources responsibly but it depletes village wells in an area where water is scarce in India. (Pendleton 2004, p.77). BP, Shell, Nike, Reebok, and Disney are critisized by human rights groups and labor unions in the past few years. (Manokha, 2004: 57).

Responsible businesses should provide benefits to the shareholders and all stakeholders in their industries. They should also provide benefits to their society, country and the world. The term “corporate social responsibility” means for companies to care social and environmental issues. NGOs can help companies to achieve corporate social responsibility in areas such as protecting the environment, providing nutrition, health and education services to the poor and the public. They conduct projects and find financing from companies that want to realize their corporate social responsibility duties.

Most of the western companies want to obtain profits without destroying the environment and hurting the community. Labor unions, religious organizations and some pension fund investors try to find ethical investment portfolios that provide morally palatable return on capital. On the other hand, NGOs push companies that do not demonstrate fair dealing through their supply chains (Young 2002, p.38).  When companies operate in countries that have influential NGOs and strong traditions of corporate governance, they prefer to accept their corporate social responsibility (Garvey and Newell 2005, p.398). NGOs can influence the media and the public opinion, mobilise people on the streets so they can exert pressure on the corporate sector. (Sayer 2005, p.259). NGOs have different roles at different times, use different tactics from protests to collaboration to enforce their messages (Argenti 2004, p.95). NGO’s use several tactics to encourage companies to accept their social responsibility. These tactics are as follows: dialogue to promote the adoption of voluntary codes of contact, advocacy of social accounting and independent verification schemes, the filing of resolutions of the shareholders, documentation of moral shaming and abuses, calls for boycotts of products of company and divestment of stocks, advocacy of selective purchasing laws and government-imposed standards and litigation seeking punitive damages (Winston 2002, p.77).

The scope of corporate social responsibility should involve protecting the employees, customers, natural environment, suppliers, shareholders and the public as follows:

§         Protecting rights of the shareholders and providing reasonable returns to them

§         Protecting labor rights. Providing fair dealing through the supply chain and fair wages to all employees. Providing required working conditions, health benefits and safety of workplace for employees. Not employing kids and not forcing people to work

§         Providing products and services that have high quality, fair prices, after sale services and do not harm the health of customers

§         Protecting natural environment and scarce resources

§         Protecting human rights

§         Making contributions to the society by supporting education and health services, projects to improve the living conditons of poor people and other infrastructure projects such as technological development projects for the community.

Some global companies have established voluntary codes of contact for overseas offices, subsidiaries, contractors and suppliers. They cover nondiscrimination, compliance with local and national laws, workplace safety and health, adequate wage levels, working hours and overtime, prohibitions on child and forced labor, freedom of association and the right to organize trade unions, environmental protection, dissemination of company policies, implementation of company policies by supervisors, and protection for employees who complain about breaches of company policies (Winston 2002, p.77). According to a survey conducted on CEOs and institutional investors, 88 percent of respondents believe that corporate responsibility is central or important consideration in decision making (Vivarta and Canela 2006, p.96). One of Shell’s chairmans noted that sustainable business should be sensitive and responsible to the needs of all people involved. The demands of economics, of the environment and, contributing to a society are important for a global company to flourish. To neglect any of them threatens the whole (Henderson 2000, p.372).

Nowadays, some companies believe that their main responsibility is providing profits to investors. Others are passive and have not considered position on corporate social responsibility issues. Some others discuss about corporate social responsibility and human rights issues as they affect their businesses and embrace greater social responsibility for their operations and supply chains. Some companies have accepted that they should base their business practices on international human rights and labor standards and adopt codes of conduct to embody their commitments. Few companies that have accepted their corporate social responsibility, educate their employees, make benchmarking with successfull companies for their good practices, communicate their standards to their suppliers, business partners, carry out internal and external audits to verify their social performance to internal and external stake holders (Winston 2002, p.85). According to recent studies consumers are motivated to avoid purchasing products that are made under abusive labor conditions (Winston 2002, p.86).

Companies that do not care about their corporate social responsibility are paid with falling share prices, profits and their CEOs’ jobs (Manokha, 2004: 58). Companies can acquire the following benefits by embracing corporate social responsibility; compliance with local and international laws, benefit of control their supply chains, protect their brand images and reputations, decrease operationg costs, enhance their risk management strategies; increase loyalty, morale and productivity, improve relationships with external stakeholders and improve financial performance and increase stock value (Winston 2002, p.78).

Examples of Corporate Social Responsibility Projects in The World

Most of the companies conduct corporate social responsibility projects either by themselves or by cooperating with NGOs and government. Some of them conduct voluntarily these projects whereas others conduct these projects after they are critisized or boycotted because of not considering their social responsibilities.

The Body Shop has been a responsible company and conducted a corporate social responsibility project with the cooperation of an NGO, Amnesty International. The Body Shop and Amnesty International organized a ‘Make your Mark’ campaign to mark the 50th anniversary of the Universal Decleration of Human Rights. They collected more than three million thumbprints in 34 countries in the support of 12 human rights campaigners who defend human rights in threatening conditions (Manokha, 2004: 58).

On the other hand, Starbucks has worked with NGOs since 1996. Global Exchange that is a non-governmental organization focused on human rights criticized Starbucks not buying Fair Trade coffee in 2000. It accused Starbucks to profit at the coffee farmer’s expense by paying low prices and not buying ‘Fair Trade’ coffee beans. Starbucks made an agreement to collaborate with the Ford Foundation, Oxfam America, and CEPCO to get rid of this critisicm in 2002.  Oxfam America that is a member of Oxfam International is an NGO dedicated fighting poverty, hunger, and social injustice in the world. CEPCO is the largest association of small-scale coffee producers Oaxaca that is one of the poorest state in Mexico. Its members are 16.000 farmers and 44 cooperatives. The Ford Foundation is a private, non-profit institution that provides loans and grants to organizations that support its goals around poverty, democratic values, injustice, human achievement and international cooperation. Starbucks and the Ford Foundation provided financial support, each committing $125.000 per year for the two-year pilot project for a total of $500.000. This collaboration had four overreaching goals: Increase the supply of high quality Certified Fair Trade coffee for specialty coffee market in US from small-farmer cooperatives; improve the skills of small-scale coffee farmers by providing training and resources to implement and standardize post-harvest quality improvement; provide information and support to enable farmers to earn Premium prices by producing a high-quality coffee; and enable farmers to disseminate their knowledge and experiences to other coffee cooperatives. Oxfam also shared its broader view of human rights with Starbucks. Oxfam and Starbucks developed greater mutual respect for each other (Argenti 2004, pp.91-109).

BP has worked with the World Wide Fund for Nature in China to support environmental education in schools with multi disciplinary approach. It signed an agreement to develop and test environmental education materials and methodologies to transform the primary and secondary school curriculum. The program focuses on teaching the teachers. It helps China integrate environmental education into national teacher-training programs in all subject areas. Students are encouraged to understand environmental issues and take action themselves. The extracurricular activities are rubbish collecting, water pollution testing, recycling drives, handicraft classes to make items such as cloth shopping bags and visits to restaurants not to use disposable chopsticks (Young 2002, p.36).

Examples of Corporate Social Responsibility Projects in Turkey

National and global companies in Turkey follow the trend in the world, try to be socially responsible and announce their practices to the media and the public to gain their support. They conduct voluntary corporate social responsibility projects by themselves or by cooperating with NGOs and government. They determine annual budgets for corporate social resposiblity projects in the scope of public relations activites. Nowadays, companies give information about their corporate social resposiblity projects in their annual reports and web sites . Companies prefer to make contributions to projects that are related to their products, services, core competencies and sectors. They also prefer to provide funds for projects that will initiate the publicity. They try to choose well-known NGOs or NGOs that have good reputations to gain the support of the media and the public. Number of NGOs and their influences on companies and in the society also increase in Turkey as well. They try to cooperate with companies to find the required financing for their projects that will improve their reputation, provide benefits to the poor people and the society. Thus, many companies have conducted successfull corporate social responsiblity projects by cooperating with NGOs and ministries.

Turkey is a developing country that has young population. Education and health care services are inadequate to provide equal opportunities for all people in the society. Natural resources such as forests and seas are harmed and polluted because of carelessness of people and companies. Most of the corporate social responsibility projects focus on providing better education opportunities such as awarding scholarships, providing training, building or reparing schools, classrooms and dorms for students in Turkey. There are other projects that focus on providing health services, building hospitals and clinics, donating drugs for poor, ill, old and disabled people. There are also projects to save the environment. NGOs and companies have conducted successfull corporate social responsibility projects in Turkey.  

One of these projects is ‘Kardelenler’ that has been conducted with the cooperation  of ÇYDD, Turkcell and The Ministry of Women's and Family Affairs since August 2000. ÇYDD (The Association in Support of Contemporary Living) is an NGO that provides scholarships to poor students, builds schools and dorms in poor regions, organize cultural and social projects (http://www.cydd.org.tr, cited on 10 November 2006). Turkcell is a leading GSM operator.  The objective of the project is providing scholarships to poor girl students who do not have enough money to continue their education. This project has been turned out to be a country wide project. It includes a donation campaign for the public. A book that compiled the success stories of these students was published and sold. Turkcell also worked with a popular singer, Sezen Aksu, to make a song and a CD and organize a series of concerts. Turkcell have financed major part of the project, 10.000 girl students have been awarded with scholarships, 4.400 girl students have been graduated from high school and 550 girl students have passed the university entrance exam. Turkcell have received many corporate social responsibility awards such as “The Best Public Relations Campaign for Corporate Sponsorship”. ÇYDD have increased its reputation, public and media support (http://kardelenler.turkcell. com.tr, cited 10 November 2006).

Another project of ÇYDD has been realized with the cooperation of Mercedes Benz A.S. that is a subsidiary of a global automotive company DaimlerChrysler. The project is called “Each of Our Girls is Star”. The objective of the project is providing scholarships, foreign language courses and internships in Mercedes Benz A.S. and its dealers to 1000 poor girl students who attend vocational high schools. Mercedes Benz A.S., its dealers and employees have financed the project for 4 years in 29 cities (http://www.mercedes.com.tr, cited on 5 November 2006). 

Hurriyet Newspaper and CNN Turk TV Channel organized a corporate social responsibility campaign, “No to Domestic Violence”, with the cooperation of an NGO, The Contemporary Education Foundation, and Istanbul Governorate Human Rights Department. The campaign received 2006 United Nations Grand Award for outstanding achievement in public relations. The annual award that was established in 1990 to recognize excellence in campaigns that address priority issues before the world organization, was jointly sponsored by the United Nations Department of Public Information and the International Public Relations Association (IPRA). The objective of the campaign was improving communication and conflict resolution within families. It included a training program entitled “Spouse Relationship Support Programme”, a volunteer programme, a television public service announcement, a special booklet, a website, print articles and news programmes. Research conducted during the training sessions of the campaign revealed that, overall, 39 percent of Turkish women and 63 percent of women in the 15 to 19 age group believe wife-beating is justified in some cases.  The campaign reached 9,000 women and men in Istanbul and Turkish communities in Germany, culminated in an international conference hosted jointly by Hürriyet and United Nations Population Fund (UNFPA) in Turkey in November 2005 (http://www.un.org/News/Press/docs/2006/note6044.doc.htm, cited on 12 November 2006).

Another cooperation was realized between The Economists’ Platform, Tırsan and Finansbank. The Economists’ Platform was established in 2000 and can be refered as a think tank working on economic policies in Turkey. The Economists’ Platform, an NGO, is chosen because of its distinguished activities as a think tank. The Economists’ Platform organized a world wide conference with the financial support of Tırsan and Finansbank. Tırsan that is a leading trailer logistics company and Finansbank that is a leading bank in Turkey. The Economists Platform organized a conference in New York with the financial support of Tırsan and Finansbank to discuss the global positioning of Turkey in 2004. The Economists platform is a youth organization and has a limited annual budget. It can not achieve organizations or projects without financial support of the private sector. The annual budget of the The Economists’ Platform was 22.000 USD whereas the cost of the conference in New York was 50.000 USD (http://www.ekonomistler.org.tr, cited on 7 November 2006).

There are other ongoing corporate social responsibility cooperation projects in Turkey. All of these projects have high costs. It is very difficult for an NGO to achieve these projects without any financial support. The increasing corporate social awareness of the private sector is a means of support for NGOs to realize their projects with more financial opportunities. The cooperation between NGOs and the private sector companies offers advantages to both parties. NGOs can find the required financing easier to achieve projects that will improve the public support,  contribute to the society and poor people by cooperating with companies. Their reputations and financing can increase easily. On the other hand, companies can realize their corporate social responsibility easier by cooperating with NGOs. They can make contributions to the society and poor people. They can also use corporate social responsibility projects for public relations purposes. They can be appreciated by their employees, customers and the public. Their reputations, brand awareness, sales and profits can increase easily.

The Guidelines for Companies and NGOs to Cooperate with Each Other

There are important points that will help the cooperation of companies and NGOs:

Companies should have strategic approaches for their financial, social and environmental responsibilities. They should focus on making contributions to the society and the environment instead of making public relations activities. They should be ethical and act based on values. They should consider all stakeholders and people while they are deciding on the corporate social responsibility projects.

Developing the right corporate social responsibility strategy requires an understanding of what differentiates the company such as its mission, values, core business activities, social and environmental impacts. Corporate social responsibility statements of companies should reflect the missions and values of the companies. They should differentiate companies from the competitors. They should show the deep commitment of companies to corporate social responsibility. They should also identify the issues that require measurement, management and reporting. (Smith 2005, p.64)

NGOs need public support, new members and financing to survive. They need to cooperate with companies without losing their relaibility and integrity. They should develop projects that will provide benefits to the people in the society, to gain the support of people, increase their members and financing.  They should focus on the immediate and long term needs of the society. They should have strategic plans for different project with different time intervals. These projects should solve problems related to education and health care services, human rights, labor rights or environment. Companies can approach NGOs to conduct corporate responsibility projects whereas NGOs can approach companies to find financing for their prospective projects. Each party should choose the appropriate partners that have good reputations or want to improve their reputations with good practices. NGOs should be careful not to be used by companies for only public relation purposes. They should choose the appropriate companies to cooperate not to lose their reliability and credibility. They should prepare reports that show the needs for the projects in the society. They can explain the benefits of the project to the society and the companies. 

Companies and NGOs should know each other, review missions, visions and goals of each other to have long term relationships. If they focus on similar issues, they can work more efficiently. They should focus on projects that will provide substantial benefits to the society. Both of these parties want to improve their reputation, public suppport and financing so they should choose projects that will solve problems in the society to be more effective. Companies should choose projects that will be consistent to their missions, visions and goals. The corporate social responsibility projects should be supported by the top management, employees, shareholders and other stakeholders of the company. The top management should communicate with stakeholders and convince them to gain their support to conduct the projects.  The projects should have long term goals. The results and the achievements of the projects should be controlled based on financial criterias. All communication tools of the company such as advertising,sponsorships and PR activities should be consistent and support each other to conduct more effective projects.

Companies can follow the following guidelines when they cooperate with NGOs: Companies should realize that socially responsible companies are targets and candidates of NGOs for collaboration. Their corporate social responsibility practices are watched by NGOs. They should collaborate voluntarily with NGOs and not wait for crises to collaborate. They should recognize that collaboration with NGOs involves compromise. Both parties should decide general principles to work together.

They should understand that building relationships with NGOs requires effort and time. They should think strategically about their relationships with NGOs. They should appreciate the value of the independence of NGOs. They should think like NGOs by using communication strategically (Argenti 2004, pp.110-113).

Conclusion

Companies should balance their social, environmental and financial responsibilities.  They should choose NGOs and projects based on their missions, visions and goals.  They shouldn’t try to conduct to corporate social responsibility projects just for public relations activities. They should act based on values and ethical standards. They shouldn’t harm the environment and exploit people for benefits of their shareholders and profits. On the other hand, NGOs should not be used by companies to gain public support. They shouldn’t only focus on having reputation, big funds and many supporters. They should convince companies to conduct projects that will provide substantial benefits and funds to protect the environment, human, labor and customer rights; improve the living conditions of people, serve nutrition, health care and education for poor, old, sick and disabled people. The cooperation projects between NGOs and the private sector should initiate big changes and improvements in the society and the lives of people. 

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Web site of CYDD Available at: http://www.cydd.org.tr [cited on 10 November 2006].

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This study was firstly published in the "III. International NGO's Conference" organised by Canakkale Onsekiz March University Biga IIB Faculty, Biga, Turkey. 9-10 December 2006. USAK Journal of Turkish Weekly. 2006.