How corporations and environmental groups cooperate: Assessing cross-sector alliances and collaborations

Abstract

Corporate environmental responsibility is becoming an increasingly important strategic concern for companies, their stakeholders, and nonprofit organizations (NPOs). Although many corporations now provide financial support, equipment, or personnel to assist environmental interest groups, the relationship between companies and NPOs has typically remained one of tension and mutual distrust. Given the complementary resources of these two types of organizations, forming cross-sector collaborations that more effectively use the knowledge and capabilities of both can create new opportunities to achieve both greater corporate profitability and stronger environmental protection. A growing interest by some corporations and NPOs in reconsidering traditional adversarial relationships is yielding new forms of cooperation. Executives interested in participating in more intensive cross-sector collaborations on environmental issues need to know about the types of interactions in which corporations and NPOs are now engaging and how cross-sector alliances are similar to or differ from conventional corporate strategic alliances. A set of strategic criteria can help executives assess the feasibility of cross-sector collaborations.