Corporate Awakening: why (some) corporations embrace public-private partnerships

Predominantly since the 1992 Rio Summit, corporations have been increasingly pursuing partnerships with public institutions including governments, international organisations and NGOs that aim to contribute to sustainable development activities. Both the business community and public organisations are recognizing the potential benefits of public-private partnerships for furthering the Millennium Development Goals while having a positive impact on business. Partnerships have become more common as corporations react to mounting pressure from corporate stakeholders, civil society and government on the responsible nature of their business practices. The accountability of corporations has moved beyond the traditional obligations of addressing shareholder demands and today, corporations must be accountable to society and all stakeholders affected by global development. The corporate awakening towards a broader role of business in society and the trend of corporations embracing partnerships has led many to question the driving factors that motivate corporations to pursue partnerships. In this paper, the authors examine the underlying drivers of corporate organisational behaviour from the theoretical perspectives of both legitimacy and stakeholder needs, and discuss the challenges of gaining insight into why corporations embrace public-private partnerships. These theoretical perspectives are used to gain a deeper understanding of the corporate drivers that motivated TOTAL S.A. to approach UNESCO for cooperation on community development programs in Myanmar.