Alliances between For-Profit and Non-Profit Organizations as an Instrument to Implement the Economy for the Common Good

Carmen Talavera,Joan R Sanchis

doi:10.3390/su12229511

Abstract

The model of the Economy for the Common Good (ECG) has cooperation as one of its main principles. This alternative economic model proposes to prioritize cooperation over competition to favor the creation of social value. From this point of view, strategic alliances between organizations can be used as an instrument that supports implementation of the ECG model. In recent years, alliances between for-profit and non-profit entities have been strengthened as a method to facilitate actions focused on social responsibility and sustainability. Moreover, the ECG model has become an adequate management framework for corporate sustainability. This work aims to connect alliances between for-profit and non-profit organizations with the ECG model. First, this connection is manifested in a theoretical way. This paper is going to analyze how such alliances can contribute to increasing the values of the ECG model: human dignity, solidarity and social justice, environmental sustainability, and transparency and codetermination. Afterwards, this work analyzes two cases of this type of alliance—Grupo Vips-Fundación Hazlo Posible and Danone Foods-Grameen Bank—to determine the benefits that this type of cooperation can provide to society. We study their motives and the benefits that they bring to the organizations and the community. Therefore, this work assesses how these types of alliances influence the different topics included in the Common Good Matrix. Moreover, we conduct a comparative analysis between both cases. This work demonstrates that, by implementing this type of strategic alliances, the creation of social value is favored, thus contributing to implementation of the ECG model.

Highlights

Cooperation between organizations is a practice for which history dates back to the beginning of economic exchanges
After analyzing the cooperation agreements, we can state that there is a common pattern between both cases concerning the benefits provided to the community
The first purpose of this work was to establish a theoretical relationship between strategic alliances between for-profit and non-profit organizations and the Economy for the Common Good (ECG) model

Summary

Introduction

Cooperation between organizations is a practice for which history dates back to the beginning of economic exchanges. It becomes more relevant when the environment starts to be considered a significant variable in strategic analysis during the second half of the twentieth century. Alliances become a critical strategic tool for business success [1] The literature on this subject is extensive [2], and the names used to refer to it are diverse: cooperation agreements [3,4], alliances [5,6], or coalitions [7], among others. Available online: http://www.grameen.com/introduction/ (accessed on 10 September 2020). Available online: http://www.plataformatercersector.es/sites/ default/files/N17%20RETS%20Emprendimiento%20social.pdf (accessed on 10 September 2020).

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