MNE/NGO Partnerships and the Legitimacy of the Firm

Abstract

This manuscript investigates the legitimating function of Multinational Enterprise (MNE)/Non-Governmental Organization (NGO) partnerships. First, it reviews the complexities inherent in the MNE’s quest for social legitimacy. Then, it discusses the characteristics of MNE/NGO partnerships, and the growing anecdotal evidence about their applications for managing corporate social legitimacy. Next, propositions are advanced to suggest how the complexities in the legitimating environment of the MNE may drive its decision to partner with an NGO. Partnership governance and outcomes are also discussed and several examples of MNE/NGO partnerships are presented to illustrate how firms use them to manage their social legitimacy.

Keywords: Multinational Enterprise, Non-Governmental Organization, Cross-Sector Partnerships, Legitimacy