Measuring the Impacts of NGO Partnerships: The Corporate and Societal Benefits of Community Involvement

Corporate Governance: International Journal of Business in Society, Vol. 11, No.4, pp. 415–426, 2011

Posted: 16 Jun 2011 Last revised: 19 Jan 2018

See all articles by Erik G. Hansen

Erik G. Hansen

Johannes Kepler University (JKU) Linz

Heiko Spitzeck

Fundação Dom Cabral

Date Written: 2011

Abstract

Purpose: This paper addresses partnerships between corporations and non-governmental organizations (NGOs) dedicated to corporate community involvement (CCI). It focuses on how to measure both business and community benefits derived from CCI. We especially stress the need for developing indicators beyond the input level considering outputs and impacts.

Design/Methodology: This paper follows a case study research strategy in a subsidiary of a multinational chemical and pharmaceutical company. Data collection is based on triangulation of data using interviews, action research, and documents.

Findings: Based on the case study presented, we find that when CCI is an integral part of corporate strategy, it is also possible to develop advanced performance measurement systems for CCI. Such measurement systems include input, output, and impact level metrics for both community and business benefits. Community benefits are best developed and monitored in collaboration with the NGO partner. Further, we find that the measuring frequency partly transcends conventional reporting periods.

Practical implications: Our research should motivate companies which engage in corporate community involvement to go beyond input-level metrics in measuring the success of such initiatives. However, in order to successfully operate a performance monitoring on output and impact levels, partnering with an NGO which has greater capability in socio-economic assessments, is key.

Originality/value: This paper shows how NGOs can contribute to performance measurement as part of the strategic performance management system of a corporation and how this allows for metrics beyond common input-level to address output or even impact-level metrics.

*Highly Commended Award Winner at the Emerald Literati Network Awards for Excellence 2012*

Keywords: performance measurement systems (PMS), corporate community involvement (CCI), non-governmental organizations (NGO), corporate social responsibility (CSR), pharmaceutical industry, balanced scorecard (BSC)

JEL Classification: M13, M14, D21, D23

Suggested Citation

Hansen, Erik G. and Spitzeck, Heiko, Measuring the Impacts of NGO Partnerships: The Corporate and Societal Benefits of Community Involvement (2011). Corporate Governance: International Journal of Business in Society, Vol. 11, No.4, pp. 415–426, 2011. Available at SSRN: https://ssrn.com/abstract=1865192

Erik G. Hansen (Contact Author)

Johannes Kepler University (JKU) Linz ( email )

Linz
Austria

HOME PAGE: http://www.jku.at/iqd/content/e288348

Heiko Spitzeck

Fundação Dom Cabral ( email )

Avenida Princesa Diana 760, Alphaville
Nova Lima, 34000000
Brazil
+551172769574 (Phone)

HOME PAGE: http://www.fdc.org.br

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