Bargaining with the devil? A politicized view on cross-sector partnerships targeting the BoP

Abstract

PurposeThis paper aims to investigate whether and how cross-sector partnerships (a growing yet controversial phenomenon) contribute to both non-governmental organizations (NGOs) and multinational companies (MNCs) political powers.Design/methodology/approachThe method consists of a single case study on a partnership involving a large MNC and a small NGO, in the delivery of lighting and cooking devices to BoP (bottom of the pyramid) populations.FindingsThanks to economic compromises and structural arrangements, both partners succeed to take advantage of the partnership to strengthen their respective (local and transnational) political power and to serve deprived populations’ needs.Research limitations/implicationsThis paper contributes to the political corporate social responsibility (CSR) literature by presenting cross-sector partnerships as a potential means to reconcile the “brother enemies” and increase both firms’ and nonprofit organizations’ political roles.Practical implicationsThe results help both NGOs and MNCs in understanding the political stakes of cross-sector partnerships and in envisioning mechanisms to handle those collaborations so as to deepen their respective goals and build public goods.Originality/valueWhile most of the literature focuses on the strategic rationales, this paper provides political rationales for cross-sector partnerships linking MNCs and NGOs.