By Carl Gustav Lorentzen, Head of Corporate Partnerships, SOS Children’s Villages Denmark –
More companies are increasingly moving away from traditional donations to NGOs and are instead seeking strategic partnerships that integrate sustainable solutions into their business models and value chains. At SOS Children’s Villages, we have noticed this shift, where relationships with companies are no longer just about financial support but focus more on creating positive societal development through the core activities of these businesses.
Through a transformative partnership, SOS Children’s Villages and Mascot is directly contributing to positive change for the youth in Laos.
In the not-so-distant past, corporate collaborations were often purely transactional—typically in the form of donations to specific projects. However, today we see more companies wanting deeper partnerships that support their ESG strategies (Environmental, Social, and Governance). These businesses have realized that their business models must be robust and future-proof, not only to meet the needs of their own stakeholders but also to contribute positively to society’s stakeholders.
Every company impacts the communities in which it operates. From resource extraction to outsourcing tasks, corporate activities influence local communities, both directly and indirectly. Therefore, it is crucial that businesses use their influence to create lasting, positive change in these communities.
At SOS Children’s Villages, we focus on forming partnerships where the core business of companies aligns with our mission. A prime example of this is our close partnership with the Danish company Mascot Workwear, which has factories in both Vietnam and Laos. Instead of just donating money, we worked together to analyze their value chain and explore how they could help address some of the social challenges in Laos—such as the lack of skilled labor among young people.
The result of this collaboration was the “Skills4Work” program, which provides young people who face vulnerable circumstances in Laos with vocational skills and access to internships. At the same time, the company contributes to a more qualified workforce that the country needs. This partnership shows how companies can shift from mere philanthropy to a more strategic and transformative approach, addressing both the company’s and society’s needs. Together, we have created a scalable model that can be applied to other partnerships where companies aim to make a real difference.
Additionally, the EU’s Corporate Sustainability Reporting Directive (CSRD) now requires companies to report on their social and environmental efforts. This places greater demands on businesses to document both their positive and negative impacts on the communities they operate in. At SOS Children’s Villages, we see this development as an opportunity to strengthen our partnerships and help companies report on their sustainability goals and address any negative social impacts they may have in affected communities.
The future of corporate partnerships is no longer just about philanthropy but about integrating sustainable solutions into corporate strategies in close collaboration with the communities affected, which SOS Children’s Villages helps to represent. We are working towards partnerships that not only support companies’ ESG efforts but also contribute to a better future for children and young people.
As partners, we can create solutions that promote both business success and social change.
Carl Gustav Klemmed Lorentzen meeting with the Danish company LEGO in Vietnam. Open discussions with businesses about local challenges impacting communities are crucial for NGOs to understand companies’ double materiality assessments, ensuring effective strategic partnerships.
SOS Children’s Villages operates in over 130 countries and territories around the globe, dedicated to breaking the cycle of poverty and creating a brighter future for children in need. The organization provides vital support to children under vulnerable circumstances while also strengthening families. By collaborating with SOS Children’s Villages, companies can make a meaningful impact on local communities affected by hardship throughout their global value chains.
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