Aligning a Company's Economic and Social Interests in Cross-Sector Partnerships

Abstract

The lack of a conclusive business case for corporate social responsibility (CSR) is at the heart of the ongoing debate on the role of companies in solving social problems. Acknowledging that companies increasingly execute their CSR activities through partnerships to address a social problem together with public and civil-society partners, this paper discusses how companies balance their economic interests with the partnership's social interests. Building on an extensive literature review, the paper develops a conceptual framework for sustainable interest alignment. It highlights that companies different types of economic interest materialise at different points in time during the partnership's life-cycle and discusses the managerial implications at the company and partnership levels for aligning and achieving both social and economic interests. Practical insights into two partnerships in the area of education are presented to illustrate the framework.