Unveiling the New Era of Corporate-NGO Collaborations: Revolutionizing Solutions for the Cost of Living Crisis

Source: C&E Advisory Corporate-NGO partnerships Barometer 2023

Over the past couple of years, there has been a shift in the priorities of both brands and charities, with a strong emphasis on addressing the challenges posed by the escalating cost of living. This comes after a prolonged period where the focus was predominantly on the pandemic and the subsequent efforts towards recovery, which garnered significant media coverage and public attention.

It is no surprise that the cost of living crisis has become a prominent issue in corporate-NGO partnerships. According to C&S Advisory's 2022 Corporate-NGO Barometer, 90% of corporate entities and 98% of non-profits surveyed believe that the crisis is making a significant or moderate impact in their partnerships.

Analyzing this data further, there has been a 20% rise in the percentage of brands stating that the crisis is having a "strong" impact. This indicates that corporates are progressively recognizing the influence the crisis is having on consumers.

However, despite the significant impact of the current economic climate, only 61% of corporations and 65% of non-profits prioritize reaching individuals in underserved areas or those with low incomes who are experiencing the greatest hardships as crucial objectives of their partnerships.

Nevertheless, C&E Advisory CEO Manny Amadi asserts that the significance of collaborations between corporations and non-governmental organizations (NGOs) in addressing social issues is increasingly recognized. According to Amadi, this is not a surprising discovery in this year's report, but it is an established and expanding trend.

The majority of people surveyed in corporate and charity sectors (86% and 84% respectively) think that partnerships will gain increasing importance over the next three years as companies take matters into their own hands. Not surprisingly, one of the main reasons non-profit organizations collaborate with corporations is to secure funding during challenging economic times (80%).

Amadi believes that brands are transforming their approach to working with charity partners because it has become a "strategic necessity". He states that when organizations engage in such partnerships, they are able to jointly address and solve problems, marking a significant evolution.

This year’s most admired partnerships

The barometer showcases the most esteemed corporate-nonprofit organization partnerships as the significance of collaborations grows for both businesses and consumers. Outshining others in the ranking with a score of 7.2%, Tesco's comprehensive 'Helping you to live healthier' partnership, initiated in 2018, in conjunction with Cancer Research UK, British Heart Foundation, and Diabetes UK, takes the top spot.

Boots' partnership with Macmillan Cancer Support closely trails behind (6.5%), with Tesco's collaboration with WWF in a similar position (6.5%).

In the survey, participants were asked to share unprompted their admiration for certain partnerships and the reasons behind it. One respondent praised Tesco's partnerships with CRUK, BHF, and Diabetes UK for their "genuine effort to encourage shoppers towards healthier choices." Another respondent highlighted how these partnerships drive transformative change in both organizations and consumer behavior on a broader scale.

Tesco's substantial customer base has been attributed by Amadi for facilitating a significant partnership. He states, "They have achieved success on a large scale. Through learning about one another, allocating time to comprehend and construct the culture surrounding the partnership, they have consistently maintained their mission and objective."

In addition, Tesco sets itself apart in charity partnerships due to its noteworthy level of commitment. Amadi argues that the supermarket's aspiration and financial investment contribute to its flourishing success.

The following partnerships are also highly admired: Network Rail and Samaritans (5.8%), GSK and Save the Children (3.6%), HSBC and Shelter (3.6%), and Greene King and Macmillan Cancer Support (2.9%). Additionally, Accenture Development Partnerships ranks at 2.2%, as do IKEA and Shelter, Barclays and Refuge, Lloyds Banking Group and Crisis, and M&S and Macmillan Cancer Support. Santander and Macmillan Cancer Support, as well as Pure Gym and BHF, are also included on the list with a rating of 1.4%.

Macmillan has been recognized as the most esteemed non-profit partner this year, obtaining a 13.1% admiration rate, whereas Tesco, with an admiration rate of 13.8%, holds the title of the most admired corporate partner. One key lesson that Amadi takes away from this is the significance of effective communication. He emphasizes that it is crucial for people to be made aware of their accomplishments. This external communication is particularly important as it ensures that Tesco's customers, among others, are knowledgeable about the partnership.