Unlikely Compliance Allies: Rethinking the Role of NGOs in Corporate Compliance Strategies

Non-governmental organizations (NGOs) are not always considered in the world of compliance. But what if NGOs were considered as strategic allies? NGOs are allies that bring local knowledge, community trust, and issue-specific expertise that businesses often lack. In today’s complex risk environment, many NGOs, including business associations, worker groups, and community-based groups, can be essential partners in creating ecosystems of integrity. This is especially true for companies operating in high-risk markets with complex supply chains. The right partnership can offer practical value.

NGOs' Insights Extend the Reach of Traditional Compliance

NGOs have clear missions, but they also have real connections in the spaces they operate in. Their knowledge is valuable and may provide insight into risks that traditional compliance does not have. For example, workers’ rights organizations often uncover forced labor issues in factories that pass formal audits. Environmental groups can also use data collected on the ground to expose deforestation in protected areas. When traditional compliance ends, NGO insights begin. NGO insights provide context and can reveal blind spots. When relationships are properly cultivated, this becomes an asset for companies.

Building a New Mindset

The relationship between NGOs and companies can sometimes be tense. Some NGOs were created to challenge corporations, while others aim to collaborate with businesses toward shared goals. Recognizing and understanding this difference is key. Collaboration does not mean collusion; it means proactive prevention. When the goal is to create a long-term ecosystem of integrity, prevention is a better strategy than crisis response. However, this requires trust.

Building trust starts with transparency. Building trust takes time, but these are ways to begin the process:

• Formalize collaboration with MOUs; 

• Agree on how and when data will be shared;

• Establish collaborative ethics training initiatives;

• Invite NGOs to provide comments on new ethics and compliance protocols; and

• Include NGO insights in annual risk assessments.

These sorts of steps create accountability for both the company and the NGO. In a complex risk landscape, unlikely allies can be the strongest integrity partners. By thinking beyond traditional compliance boundaries and collaborating with NGOs as partners, companies can enhance due diligence and credibility, and build stronger systems to prevent corruption and promote ethical business.

Michele Crymes

Anti-Corruption and Governance Expert