Opinion: NGOs as bystanders or changemakers for Corporate Sustainability?

This opinion piece is written by Lakshana Asthana , Sr. Manager - Social Impact, CSRBOX.

The intersection between Environmental, Social, and Governance (ESG) and Non-Governmental Organizations (NGOs) is becoming of increasing interest, as both entities are focused on promoting sustainable development however the areas of coherence are still difficult to identify with the Corporate Social Responsibility laws in place.

With the evolving sustainability landscape, there is immense ambiguity on what the role of civil society could be in shaping this for multimillion-dollar conglomerates while them being profitable yet socially and environmentally relevant. 

In reality, given the dearth of experience and the nature of NGOs’ work, small to mid-sized non-profit organisations who have been working in the remotest geographies of a country as diverse as India has immense potential to shape this narrative further with their incredible expertise. NGOs (non-governmental organisations) can play a significant role in promoting and implementing Environmental, Social, and Governance (ESG) practices under Corporate Social Responsibility (CSR) laws.

Here is the answer to the vital question of HOW?

Channelising socially welcomed and economically viable ways to scale businesses:

NGOs play a vital role in promoting ESG practices and can provide valuable guidance and support to companies and investors in implementing socially inclusive practices in the influence they have on the grassroots. With their unique expertise and experience in specific areas of sustainable development, such as sustainable agriculture, renewable energy, and community development, NGOs can provide valuable guidance and support to companies and investors in identifying and mitigating potential negative impacts, and in maximizing positive influence. Additionally, NGOs can help companies and investors to identify opportunities for sustainable development, such as investing in renewable energy or sustainable agriculture. 

NGOs can also provide companies with access to communities and stakeholders that they may not otherwise have access to. NGOs and social workers know the local context more than global conglomerates due to the direct last-mile connect. With the profitable and tested processes of established businesses, the community connect through the NGOs will aid in easier acceptance of the same in communities. 

Advocacy and campaigning:

NGOs can also serve as a platform for communities to voice their concerns and feedback on the impact of corporate activities. This can help companies and investors to understand the effects of their actions and identify areas for improvement and inclusively intervene through the geographical and contextual expertise of NGOs. 

Additionally, NGOs also play a vital role in monitoring and reporting on the impact of corporate activities. This promotes transparency and accountability in ESG practices. NGOs can provide independent assessments of the social and environmental impact of corporate activities, which can help companies and investors to understand the true impact of their actions. 

Intersection with Corporate Social Responsibility:

Furthermore, NGOs can also partner with companies in implementing their Corporate Social Responsibility (CSR) activities. These activities are often and are increasingly continuing to become an important part of an organization's ESG strategy. NGOs often have deep expertise in specific areas such as sustainable agriculture, renewable energy, and community development, and can provide valuable guidance to companies on how to best invest their CSR funds in these areas. NGOs can provide guidance, expertise, and support to companies in identifying and implementing CSR projects that align with their ESG goals and have the greatest potential for positive impact in alignment with the Sustainable Development Goals towards the 2030 Agenda. 

In conclusion, the intersection between ESG and NGOs is crucial and the imperative need to be identified, as both entities are focused on promoting sustainable development. NGOs can provide valuable guidance, expertise, and support to companies and investors in implementing ESG practices, advocacy, monitoring, and reporting. Additionally, NGOs have the potential to serve as promising partners for companies in implementing their CSR activities, which align with their ESG goals and have the greatest potential for positive impact thereby demarcating roles for already existing relevant stakeholders.

Meet the Author

An internationally published and awarded researcher specialising in content curation, business development, and donor engagement, Lakshana brings her data management and analytical skills lens in curating funder-specific philanthropic solutions with high calibre grassroots organisations in India. With her enriching experience of supporting partnerships with eminent CSRs and global philanthropic foundations, Lakshana has successfully aided the management of one-of-a-kind large-scale collaboratives in the country. A graduate of Tata Institute of Social Sciences, Mumbai, who was involved in advocacy work with vulnerable populations of persons with disability and tribal groups, Lakshana is a feminist researcher and a former One Future Collective Fellow. At CSRBOX, Lakshana is an integral part of CSRBOX’s core team and works on building new collaborations, intensifying services and scaling-up partnerships. Lakshana also leads the team in ideation, content curation, events and road map building for new social impact verticals.

We at CSRBOX are accepting Pro bono Guest Posts from development sector writers and experts to act as a catalyst for change through their opinion pieces, write-ups, blogs, stories, biographies, etc.

Interested?? feel free to get in touch with our Newsletter Editor - Archana Masih.