The Effects of Organizational Traits on NGO–Business Engagement in Mexico

Abstract

This paper explores the organizational traits that increase the likelihood of non-governmental organizations (NGOs) to engage with businesses in order to enhance their mutual economic, environmental and social goals, consistent with UN Sustainable Development Goal (SDG) 17, Targets 17.16 and 17.17. The research is based on a survey of 364 randomly selected environmental and social NGOs in Mexico. A probit model is used to analyze the data and generate insights whereby an NGO’s proclivity to engage with the private sector is associated with a number of fundamental organizational characteristics that make them distinct from other NGOs active in their field. The main findings show that likelihood of NGO engagement with firms is correlated with making corporate donations deductible for businesses, NGO size and scope, activities and level of professionalization, sustaining broader stakeholder relations, and showing transparency about the mission and goals of the NGO. The paper includes an analysis of the determinants of specific forms of engagement and discusses some implications for NGO–business engagement and its support of the SDG targets.