Cross-Sector Alliances

Abstract

Globalization and the internationalization of business present both opportunities and challenges for multiple stakeholders to work together across borders and oceans. Societies at home and abroad face high crime rates, water shortages, economic recessions, unemployment, malnutrition and illiteracy. Firms face skilled labor shortages, increased competition for finite markets, mounting pressure to preserve the environment and agency costs particularly in foreign countries. Non-profit/non-government organizations (NGOs) face dwindling government funding, increased competition from other NGOs for public funds and constant need to recruit quality volunteers. This chapter discusses how many of these challenges can be addressed through cross-sector alliances between for-profit organizations (FPOs) and NGOs or non-profit organizations (NPOs). The question to be addressed is: “Are cross-sector alliances an appropriate vehicle for addressing humanistic elements of cross-border transactions?”