Businesses have a huge impact on the world, not only through the internal climate impact but also through their supply chains, their products and their customer’s choices.
Lidl’s partnership recently with the children’s charity NSPCC, is an excellent example. The supermarket offers UK customers a rental option to buy a Christmas sweater this year, a clothing item with a limited lifespan. The “rent-not buy” solution is a great way to save money when finances are tight. It also helps to reduce the amount of clothing that goes to landfill every year.
Obviously, challenges like climate change and biodiversity loss, poverty, inequality, and inequality are not easy to solve. These interconnected, complex systemic issues have global implications. These challenges often affect the poorest communities in the world.
Sustainability strategies for businesses must take into account the impact of not just their own operations but also those of other stakeholders, such as global supply chain partners, customers, and suppliers.
All companies have limits in these areas. For example, most businesses must consider profits and shareholders. They should also be cautious about attracting accusations of greenwashing. This can affect even the most well-intentioned initiatives.
Partner up
How can business leaders create a better future without being accused of hypocrisy? Can a company address environmental and social challenges without sacrificing its daily operations, revenue, and profit? Our study shows that partnering with another organization can help.
Citroen UK’s cross-sector partnership with the Big Issue Group has helped the charity reduce carbon emissions from its 350,000-mile annual deliveries. Citroen Berlingo vans are now delivering Big Issue magazines to their vendors.
Managers may encounter differences in values, purpose, and objectives when engaging in these types of partnerships. According to our research, partnering can reveal hidden aspects of a company’s culture and lead to a clash in culture. If differences in expectations or “ways of being” are not recognized and managed explicitly, they can lead to a partnership failing at launch or falling apart later.
The Pantheon is a Marks & Spencer store on Oxford Street. Robert Evans/Alamy
The ” shwopping ” program, run by Marks & Spencer in partnership with Oxfam, is an example of a successful sustainability partnership that has avoided the culture trap. Customers can donate their unwanted clothes in-store and receive vouchers to spend at M&S. The donated clothing is given to Oxfam. The program was launched eleven years ago to stop one in four items of clothing from being thrown away in the UK.
Collaborations that work
In our research, we have identified five management practices that are essential to a successful partnership like that between M&S & Oxfam.
1. Building Bridges
A bridge can be built between an external partner and a company by appointing a member of staff or a group. A person who holds this position has often worked in two or more industries during their career. Businesses may hire people who have a background in non-profits or government. Charities may also recruit people who have an experience in business.
2. Find ways to engage
The development of processes and methods for engaging with external partners promotes trust and cooperation. In our research, we found that face-to-face and regular meetings with charities and businesses are the most likely to foster openness and honesty. Some organizations choose neutral venues to build a shared identity.
3. Alignment
In our research, we found that both the project as a whole and the individual partners need to have mutually agreed upon goals. It helps to avoid misinterpretations due to different perspectives. Oxfam’s Shwopping Programme, for example, allows M&S to meet its landfill reduction goals, while Oxfam collects clothing to be sold to fund poverty alleviation initiatives.
An Oxfam shop in Nantwich, Cheshire. Clive Platt/Shutterstock
4. Engagement across the Business
M&S’s ” Plan A ” sustainability program is a company-wide, long-running initiative that provides a cultural context to support the partnership with Oxfam. Oxfam was able to access an extensive network of M&S employees who were eager to help the league right from the beginning. The relationship grew, and learning was boosted on both sides. During our research, we also found examples of reporting lines which made it difficult for both organisations to benefit from the partnership.
5. Integrating sustainability
Sustainability should be a part of all company processes. This includes strategy development, product development, market research, and performance management. Employees are more likely to approach issues in a more systemic manner, which is more conducive to collaboration with other stakeholders.
For-profit businesses can benefit from partnering up with charities, whether they rent out Christmas jumpers once a year or maintain a clothing swap program. It’s not only about looking good and attracting new clients. These organizations can use their differences to create innovative solutions to complex problems such as the climate crisis.
