When Corporate-NGO Partnerships Become Sustainability’s Double-Edged Sword

Authors
Hoi-man Ng Brandon
Region
North America
Topic
Ethics & Social Justice
Strategy & General Management
Length
3 pages
Keywords
corporate-ngo partnerships
Social Exchange Theory
Resource Dependence Theory
Stakeholder Salience
Nonprofit Sustainability
Student Price
$4.00
Target Audience
Undergraduate Students

Alex Wong, founder of Hong Kong Bunny Rescue (HKBR), faced a pivotal decision when Century Honest Pharmaceutical (CHP) proposed a long-term partnership to develop rabbit-specific herbal supplements. While the collaboration promised stable revenue to advance HKBR’s mission, it risked mission drift and alienating stakeholders, particularly volunteers, adopters, and donors. Past experiences revealed tensions between financial survival and grassroots integrity, as corporations often prioritized profit over genuine animal welfare. Alex needed to assess CHP’s motives, manage potential power imbalances, and communicate strategically to retain stakeholder trust. The case examines how NGOs should manage business partnerships without compromising core values, applying Social Exchange Theory, Resource Dependence Theory, and the Stakeholder Salience Model. Key questions include: How could Alex unfold potential issues of reciprocity and autonomy before finalizing the partnership? How should he analyze the long-term trade-offs between financial stability and mission integrity? How should he prioritize stakeholder concerns to sustain support?

Learning Outcomes

In completing this assignment, students should be able to: 

1. Formulate Social Exchange Theory-grounded questions to uncover trust, reciprocity, power dynamics for cross-sector partnership viability assessment 

2. Analyze trade-offs in cross-sector partnerships from a Resource Dependence Theory lens 

3. Evaluate priorities among stakeholder concerns and communication needs based on stakeholder salience