Nonprofit organizations can act as drivers of sustainability for multinational companies

For successful nonprofit impact on business governance, it is essential to advocacy nonprofit organizations to engage key business stakeholders, a new study from the University of Eastern Finland shows. These stakeholders, such as employees, investors, politicians and the media, can be influenced by nonprofit organizations in various ways. The study has been published in Nonprofit and Voluntary Sector Quarterly.

"With a strategic confrontation and collaboration interaction model (SCCIM), nonprofit organizations can plan their strategy and figure out how to engage these important business partners effectively," Doctoral Researcher Maike A. Diepeveen of the University of Eastern Finland says.

Advocacy nonprofit organizations aim to protect, promote and support interests, often recommending new practices. They focus on issues like climate change, ecosystems and biodiversity. Additionally, they assist vulnerable or marginalized groups who may struggle to voice their concerns. The study examined how resource-strapped nonprofit organizations can effectively promote their interests or causes by influencing the practices of multinational businesses.

As global issues like climate change become more urgent, everyone is expected to contribute by adopting more sustainable practices. Certain forward-thinking companies, driven by their stakeholders, quickly establish new guidelines to lead the way in adopting sustainable practices.

"When nonprofit organizations work closely with these responsible businesses, it creates a chance to create excellent best practice examples," Diepeveen concludes.

With the help of the SCCIM, these best practices can then be applied to other companies either through collaboration or influence, and they can also inform improved government policies.