If the last few years have proven anything, it’s that businesses cannot afford to operate in silos. Global crises — from geopolitical conflicts to climate disasters — have made it clear that corporations alone can’t solve the world’s biggest challenges. Governments, businesses and nonprofits must work together to create meaningful, lasting change. For corporations, this is not philanthropy. Partnerships can amplify impact while aligning with business goals.
“The latest World Economic Forum Global Risks Report reinforces what we already know — there is less optimism today because of the tragic impacts of wars, severe weather events and economic uncertainty,” says Ken Chan, a global executive PhD graduate of ESCP and partner at Optimus SBR, a Toronto based management consulting firm. “It’s more essential now than ever for businesses to work collaboratively with governments and nonprofits to drive meaningful change in ways that build hope for the future.”
But how can businesses ensure these partnerships actually deliver results — and what are the pitfalls they need to avoid? We spoke with Chan to find out.
It’s more essential now than ever for businesses to work collaboratively with governments and nonprofits to drive meaningful change in ways that build hope for the future.
Key ingredients of a fruitful partnership
A well-structured partnership is not about checking the CSR box, or handing over a donation and walking away. To drive real impact, businesses need to look for areas of mutual interest where both parties stand to gain.
“Start by exploring where there are areas of mutual interest and what leads to win-win outcomes,” Chan advises. “It’s important to see beyond the current year’s objectives and consider what’s past the horizon.”
Take climate action, for example. Had businesses and governments acted more decisively two or three decades ago, would we be dealing with the same frequency of extreme weather events today? “Looking ahead, are there solutions that businesses can bring to the policymaking process that can help mitigate climate risks for years to come?” Chan asks.
Sustainability, human rights, social justice — these are massive, systemic issues that require long-term commitment. Companies need to embed partnerships into their core strategies and measure progress over time to ensure meaningful results, he says.
From words to action
For businesses looking for proof that partnerships can create real change, Chan points to Open For Business, a coalition of global corporations working to advance LGBT+ rights worldwide.
“With the support of coalition partners, Open For Business has been researching the economic benefits of LGBT+ inclusion,” Chan explains. “In recent years, reports have been published on the business case for LGBT+ inclusion in eastern Europe, the Caribbean and southeast Asia.”
These reports are not collecting dust — they are being used by local community groups, businesses and policymakers to advocate for more inclusive policies. The coalition has also produced the Investor Guide to LGBT+ Inclusive ESG Strategies, and a City Ratings index that ranks business environments based on their inclusivity.
What made this initiative so successful? According to Chan, it was not just the financial backing from corporations — it was their active engagement along the way. “Yes, financial support is crucial, but so is the visibility of the coalition partners,” he says. “Don’t underestimate the powerful impact of the voices of businesses.”
To truly make collaborative efforts work, building and maintaining lasting relationships with policymakers and nonprofit leaders is critical.
The challenges of cross-sector collaboration
If partnerships are so effective, why aren’t more companies making them a priority? Two major obstacles stand in the way, according to our expert: time constraints and lack of expertise.
“Business leaders are typically preoccupied with running day-to-day operations,” Chan notes. “To truly make collaborative efforts work, building and maintaining lasting relationships with policymakers and nonprofit leaders is critical.”
And the effort needs to go beyond networking — companies need people who understand how governments and civil society organisations work. There’s a skill set involved in navigating cross-sector collaboration, one that many businesses lack internally. “Doing it right requires dedicated resources and senior leadership buy-in,” Chan adds.
The foundation for impactful partnerships
So, what’s step one for companies looking to build meaningful external partnerships? According to Chan, it all starts at the top.
“The tone starts in the boardroom,” he stresses. “This means embedding external partnerships into corporate goals and ESG objectives, and carving out time on the board agenda to report on progress and risks.”
A successful partnership cannot be an afterthought. It should be an integrated part of a company’s strategic direction. That means assessing whether there are dedicated internal resources to manage partnerships effectively. If not, companies should hire in-house experts or bring in external consultants who specialise in collaboration, Chan says.
As businesses look ahead to a future shaped by AI, sustainability challenges, and evolving social norms, one thing is clear: the most successful companies will be those that don’t go it alone. Instead, they will forge smart, strategic partnerships that create real, measurable impact — not just for society, but for their long-term success.