Introduction

According to the European Union, “A civil society organization (CSO) is an organizational structure whose members serve the general interest through a democratic process and which plays the role of mediator between public authorities and citizens.”. CSOs play an essential role in addressing social, economic, and environmental issues through advocacy, direct service, research, capacity building, partnerships, and transparency. The Global Civil Society Report 2024 shows the number of people requiring humanitarian aid surged from 63 million in 2012 to 367 million by March 2024, including 183 million children, emphasizing the growing demand for CSO intervention. CSOs fund their activities through grants from governments and international organizations, individual donations, and partnerships with companies via CSR initiatives. 

Bangladesh, a country known for its vibrant culture and rapid economic growth, is at a turning point in its development. However, during recent years, the flow of funds to the NGOs of Bangladesh has fallen alarmingly. According to NGOAB, in 2024, the release of development funds to NGOs in Bangladesh was USD 655 million, which is the lowest point in seven years. These funding numbers are considerably low since there are more than 50,000 active CSOs registered in the Department of Social Services (DSS) alone, with many that remain unregistered.  This reduction of development funds has several underlying and complex circumstances behind it. One of the major causes is Bangladesh’s progress toward becoming a lower-middle-income country, which has led many development partners to shift their focus away from providing aid. In this article, we will explore how strategic private sector engagement (PSE) can revolutionize civil society in Bangladesh.

Key Areas CSOs Play a Role in the Economy

Examining the sectors where CSOs already have a significant economic impact is crucial to understanding the transformative potential of private sector collaboration with these organizations. In Bangladesh, civil society organizations (CSOs) have played an essential role in promoting social and economic progress across multiple fields. CSO initiatives range from building markets and strengthening supply chains to improving workforce skills, encouraging environmentally friendly infrastructure, and advocating for policy reforms—efforts that directly support economic growth and the expansion of local industries and businesses.

CSOs have made notable progress in entrepreneurship and market system development through initiatives that provide underserved communities with access to finance, market opportunities, entrepreneurship development, and skills training. These programs fuel local businesses and create supply chains that larger industries can leverage.

CSOs have also been pivotal in addressing socioeconomic challenges through interventions that promote climate resilience, gender equality, and public health infrastructure. They have significantly promoted women’s participation in the workforce by offering targeted programs that develop skills and provide employment support to women, many of whom contribute substantially to sectors like textiles and manufacturing. By focusing on female workforce inclusion, CSOs have helped reduce gender gaps, increase the skilled labor pool, and create a more diverse workforce, enhancing productivity and fostering inclusive growth across various sectors.

Scope of private sector engagement with CSOs in Bangladesh

Despite their relentless efforts to address various socio-economic issues, these grassroots organizations struggle to secure the financial resources needed for their continued operation and are often unable to scale-up impactful programs. One of the most direct ways the private sector can support CSOs is through sustainable funding. Private sectors are increasingly prioritizing environmental, social, and governance (ESG) goals, positioning impact funding for CSOs as an effective strategy to achieve these objectives. Moving beyond one-off donations, companies can develop long-term funding models that contribute to the sustainability of civil society initiatives. CSR programs can be structured to support specific causes aligned with a company’s values, ensuring a steady stream of resources for targeted projects.

Private sector engagement is not limited to financial assistance. Technology transfer and capacity building are equally critical. Corporations that specialize in digital solutions, for instance, can collaborate with CSOs to develop custom tools that streamline operations, enhance data collection, and improve service delivery. 

The private sector can contribute to CSOs by lending its talent for pro bono work, mentorship programs, and specialized training workshops. This type of engagement can help bridge the skills gap in areas like strategic communication, financial forecasting, and operational management. Employees from private companies can volunteer their time and expertise, building the capacity of CSOs to handle complex projects and adapt to changing environments.

Benefits of the private sector in this partnership

Partnerships with CSOs present numerous benefits for private sector entities. These collaborations go beyond traditional CSR and can significantly contribute to sustainable growth while aligning brands with social impact. Modern consumers prioritize socially responsible companies. By partnering with CSOs, businesses can position themselves as proponents of social good, fostering trust and loyalty among stakeholders. An example in Bangladesh is a leading telecommunications company that partnered with a CSO for a digital literacy campaign targeting underserved communities. This not only addressed the digital divide but also strengthened the company’s reputation, resulting in increased brand loyalty and customer retention as well as new partnership opportunities.

CSOs also provide invaluable insights into underserved communities that businesses may lack access to. Collaborations can help companies better tailor their products and services to community needs, enhancing revenue growth while contributing to broader social development. For instance, a multinational food and beverage company teamed up with a local CSO to create fortified nutritional products for malnourished children in rural areas. The CSO provided essential field expertise, while the company utilized its production and distribution strengths. This partnership not only addressed a pressing health issue but also opened new markets for the company.

Innovative solutions can emerge from CSO partnerships, thanks to their deep understanding of local challenges and unique problem-solving approaches. For instance, a textile manufacturer in Bangladesh collaborated with an environmental CSO to implement eco-friendly production practices, reducing water usage and waste. This guidance allowed the company to adapt to changing environmental regulations and meet the growing consumer demand for sustainable products.

Finally, CSO partnerships can help businesses meet their CSR goals more effectively. By aligning with organizations experienced in education, health, and sustainability, companies can amplify their social impact and adhere to global CSR standards. An example is an apparel retailer collaborating with a CSO to launch a fair-trade certification for local artisans. The CSO ensured ethical practices were followed, while the retailer integrated fair-trade products into its supply chain, appealing to conscious consumers and meeting international compliance standards.

Conclusion

In conclusion, CSOs in Bangladesh are pivotal in advancing sustainable development, social inclusion, and climate resilience. Their expertise and on-the-ground reach make them invaluable partners in addressing issues that impact both rural and urban communities. However, they lack proper funding for their project implementation. As a result, their long-term sustainability and ability to effectively serve their communities are being threatened. For that, private sector actors should come forward by encouraging sustainable funding, enhancing public-private partnerships, fostering capacity building,, & promoting CSO-led social enterprises. So that CSOs in Bangladesh can enhance their impact and create long-lasting partnerships with the private sector, driving sustainable and inclusive growth for both in the years to come.