A CSR Thoughtpiece from the CSR Training Institute Multi-sector CSR partnerships can drive organizational successes. Yet they often fail to start or start and fail. This article discusses 13 common mistakes that prevent them from realizing their full potential To keep updated on postings and events go to www.csrtraininginstitute.com and sign up for the newsletter

1. Helping business to
serve shareholders AND society
SIMULTANEOUSLY
13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
-by Wayne Dunn
www.csrtraininginstitute.com/knowledge-centre

2. The private sector is playing an increasingly important role in
development. Companies from all sectors, including especially the
extractive and fast moving consumer goods sectors, are investing in
development initiatives in areas such as education, health, poverty
alleviation and livelihoods, environment and gender equality.
The impact areas of these private sector social responsibility
investments closely maps the impact areas outlined in the Millennium
Development Goals (MDGs) and anticipated impact areas of the soon
to be adopted Sustainable Development Goals (SDGs).
The MDGs and SDGs serve to guide the development activities of
the member countries of the United Nations and the vast majority
of development NGOs and organizations. Official Development
Agencies, national governments, multi-lateral and international
organizations and NGOs focus development efforts on areas such as
education, health, poverty alleviation and livelihoods, environment
and gender equality
While the various private, public and civil society organizations noted
above approach development with a focus on common areas, they
often bring unique skills, experience and capacities to the work.
13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
Chasms often separate natural development
partners

3. 13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
Page 02
In many cases these are complimentary and synergistic, at first glance,
would seem to naturally invite partnerships and collaboration and
the various sectors (e.g., ODA agencies, private sector, NGOs, etc.)
even have stated goals of collaborating with each other in support of
their development efforts.
Simple logic would suggest that collaboration would result in
efficiencies and more and better development impact per dollar spent
or effort expended.
Yet, the reality is that, while there are notable exceptions, this
collaboration is not easy to achieve. Whether on an individual project
level or a strategic organizational level these natural partnership
opportunities too often do not result in effective partnerships.
Value is lost for the organizations involved but the real price is paid by
their community partners who do not receive the full impact that they
could have received had these natural partners found an effective
way to collaborate.
Value is lost when natural partners can’t bridge the
chasm that separates them

4. Page 03
This is common to the destruction of many different sorts of partnerships.
What makes multi-sector CSR partnerships more prone to ego related
challenges is that, in many cases, the partnering organizations will
have a general history of opposition or antagonism towards each
other.
For industry to embrace and support the role that NGOs and
development agencies can play in the success of a business or project
is relatively new. Similarly for NGOs and development agencies to
acknowledge the important role of the private sector in development
projects. In many cases the sectors, or at least many organizations
within them, have been actively opposed to each other.
These means that in some instances a 180 degree about face is
necessary along with an acknowledgement that previous perspectives
were flawed. This can often be overlooked during the giddy early
days of a partnership but will often come back in a destructive way
as the partnership plays out over time
Every partnership is bound to run into difficult challenges over
time. Project issues arise, personnel changes, partners have strong
opposing views on external issues, finances come under pressure,
etc. Sometimes these come out of the blue and sometimes there is a
slow build up over time.
In many instances if the partners can hang in there the issues will
either resolve themselves, or they will find a mutually acceptable way
to work through them.
However, for reasons discussed above, there are latent pressures
in the partnership that can surface when other issues emerge. This
can make it more difficult to work through the inevitable issues and
challenges that always show up.
1. Egos of main
actors
2. Didn’t hang in
through the tough
stuff
13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
Here are thirteen common reasons why they
start and fail, or even fail to start.

5. Page 04
Those partnerships that survive over time will find ways to hang in and
work through the rough spots and will also actively seek to reduce the
latent pressures.
13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
Conflict and differences of opinion happen in
every partnership. All the time. There are ways to
systematically prevent conflict and disagreement
from destroying partnerships
Multi-sector CSR partnerships are often developed and negotiated by
front line personnel with some level of support or acquiescence from
corporate and NGO head offices. They frequently end up in place
and operating without ever really getting the attention of key senior
stakeholders.
In many cases the partnerships bring both an expanded and enhanced
ability to achieve some of an organization’s objectives and, along
with that, constraints in other areas.
As partnership and relations issues arise, as they always will, there
is sometimes a sudden realization in the leadership ranks that the
partnership has taken away degrees of freedom to act. This can be
exacerbated by historical organizational opposition as noted above.
3. Internal buy-in
wasn’t there

6. Page 05
13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
When this happens you can have key internal stakeholders, who
hadn’t really paid attention to the creation of the partnership and
don’t have any ‘ownership’ in it, start to question both the partnership
itself and the general principle of multi-sector CSR partnerships.
Historically there has been a strong theme in many business sectors
that business is inherently more efficient. The theme maintains that
because it more directly subjected to the demands of the marketplace,
business is somehow more efficient than NGOs and governments.
Dig deep enough and you will find that perspective exists somewhere
in most businesses and sometimes can permeate individual businesses
and even large swaths of industry sectors.
This mentality can surface when problems arise and present barriers
that prevent the challenges from being worked through objectively or
prevent constructive solutions from emerging.
Too often you will see much effort being put into finding confirming
evidence of inefficiency, rather than a balanced analysis looking for
examples of efficiency and inefficiency and their underlying causes.
This can create a dangerous spiral that can undermine even the best
partnerships.
4. Only business is
efficient mentality
Keeping everyone pulling in the
same direction takes ongoing
effort. Just because everyone pulls
together at the start doesn’t meant
that they will keep pulling in the
same direction. Many things
can happen to change aligned
interests to opposing forces.

7. Page 05
13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
The NGO equivalent of the Only business is efficient mentality is the
Business is too greedy perspective.
NGO partners that fall into this perspective are prone to examining
business decisions only from this vantage point and not taking a more
balance and objective approach to understand the ‘why’ of business
decisions.
Confirming evidence is sought and focused on and more and more
partnership and operational decisions of the business are seen as
being based, at least partly on greed
There is another discussion on the relationship between greed and
shareholder interest, which are often quite different. Greed based
decisions tend to be short-term and with narrowly defined interests.
Longer-term strategic shareholder interests are broader and provide
much more scope for interest alignment.
As with the only business is efficient mentality the business is greedy
perspective can create a partnership killing spiral of unbalanced
confirming evidence.
5. Business is too
greedy mentality
Strategy and insight can turn opposing forces into
aligned interests

8. Page 05
13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
There is generally a high level of entrepreneurial energy and
innovation amongst the partners at the beginning of a partnership.
In many cases they would not have gotten together to launch the
partnership without the innovation and entrepreneurship of at least
one of them.
As time goes by the partnership activities can become routine and the
workers and leaders stop looking for ways to do things better and/
or new areas that they might collaborate on that would be mutually
beneficial.
Over time a stagnation can develop and energy drains from the
partnership. This can end up killing the partnership itself but more
often it simply makes the partnership much more vulnerable to the
impacts of other mistakes.
Often partnerships will form quickly around a specific opportunity.
Partners will see that by collaborating they can advance their interests
and objectives further than they could by working individually.
This can create a euphoria that tends to generate a forward
momentum and the partners don’t take time to get to know each other
well enough or deep enough. This happens at the individual and the
organizational level.
Then when issues arise and differences emerge they are often seen
as surprises and somehow a betrayal of what was represented at the
onset. This can put a lot of strain on the relationships.
6. Not enough
entrepreneurship
and innovation
7. Didn’t get to know
each other deep
enough and broad
enough
Diverse and committed partners collaborating
and innovating together can solve complex
puzzles

9. Page 05
13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
Every organization has a range of internal and external stakeholders,
many of which have significant influence and impact. Sometimes a
partnership will develop and create conflict with key stakeholders.
For example, many NGOs rely on individual and organizational
donors for financing and for general support. In some cases the same
individuals and organizations are also writing checks to support
advocacy NGOs that are in direct opposition to either the industry
sector, or in some cases the actual partner (this can often happen
where an industry partner has multiple projects, some of which are
actively opposed by advocacy organizations)
This places leadership in uncomfortable positions and may result in
the need to make hard choices if agreeing to disagree isn’t a viable
option.
Similar situations can occur when development agencies begin to
develop mechanisms that either enable direct funding of industry led
CSR projects or that will facilitate or partner with such projects.
These development agencies often have key stakeholders that may
be generally opposed to certain industries like extractives, or have
unrealistic social performance expectations. In many cases the
development agency will also be providing direct or indirect support
to the opposing organization.
8. Organizational
stakeholders didn’t
support it
Internal support and understanding is critical if an organization
wants to be a strong partner
(See Seven proven strategies for getting colleagues on board with CSR)

10. Page 05
13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
A deep and nuanced understanding of the other partners is so
critical. Too often as the euphoria of the early days wears off deep
seated, underlying assumptions and perspectives emerge that can be
poisonous.
Partners (individuals and the institutions) forget that all partners are in
the project because there is something in it for them.
NGOs can start to perceive corporate partners as just a set of deep
pockets, of money that should just be allocated in support of community
and NGO priorities, without a thought for what’s in it for the company
and how to optimize value across all partners and stakeholders.
In the same was as NGOs can see companies as just deep pockets,
companies can often develop a perspective that NGO partners are
only interested in doing good works and not understand the many
other interests and realities of a modern NGO.
No real collaboration between partners. If not nurtured project
partners can end up withdrawing, or being relegated to project silos.
This can result in each contributing individually, but can lose all of the
potential synergy from the diversity of experience, perspectives and
insights that each bring.
When this happens it can suck the energy out of a project and be the
start of a downward spiral.
It may seem easier to carve things into discreet silos and minimize
collaborative interactions, and the disagreements, stresses and
tensions that can come with them. In the long run it is far better to
work together and get stronger by working through the differences,
and staying open to the synergy that can be found in diversity.
As the African proverb says.
If you want to go fast, go alone. If you want to go far, go together.
Good partnerships go far.
9. NGOs look at
company as just a set
of deep-pockets
10. Company looks
at NGO as just a
do-gooder
11. Project solitudes.

11. Page 05
13 Mistakes that prevent and destroy
Multi-sector CSR partnerships
Cost expectations can be unrealistic. Companies will sometimes think
that NGOs will almost work for free, forgetting that they too have
organizational and institutional overhead that needs to be covered.
NGOs will sometimes think that companies have tons of money and
shouldn’t be concerned about cost.
This can be especially true when small, nimble companies partner
with development agencies that have seemingly incomprehensible
sets of reporting and operational requirements.
This can be especially true in partnerships where one partner comes
with compliance requirements and obligations that are foreign to the
other.
Multi-sector CSR partners can bring unique pieces of the puzzle to the
table. They can create value and mitigate risk for all partners, and
benefit society in the process.
Often they can be difficult to create and even more difficult to maintain,
but the effort can be worth it.
12. Unrealistic cost
expectations
13. Different
standards around
quality, flexibility
/ adaptability and
reporting

12. Should Business Serve
Helping business to serve society and
shareholders, SIMULTANEOUSLY.
Should Business Serve
WAYNE DUNN, PRESIDENT AND FOUNDER
SHAREHOLDERS?
SOCIETY?
IT SHOULD SERVE BOTH.
Wayne Dunn is President & Founder of the CSR Training Institute and
Professor of Practice in CSR at McGill. He’s a Stanford Sloan Fellow
with a M.Sc. in Management from Stanford Business School.
He is a veteran of 20+ years of award winning global CSR and
sustainability work spanning the globe and covering many industries
and sectors including extensive work with Indigenous Peoples in
Canada and globally. His work has won major international awards
and has been used extensively as ‘best-practice’ by industry and
academia.
He’s also worked oil rigs, prospecting, diamond drilling, logging,
commercial fishing, heavy equipment operator, truck driver and
underwater logging, done a couple of start-ups and too many other
things to mention.
Wayne’s career includes big successes, and spectacular failures. He
hopes he’s learned equally from both.
www.csrtraininginstitute.com