What is the role of non-governmental organizations (NGOs) in international business?

Non-governmental organizations (NGOs) play a significant role in international business by promoting social and environmental causes. They advocate for issues such as human rights, environmental protection, and social justice, which can greatly influence the practices of businesses and their operations in different countries. Through advocacy and campaigns, NGOs can create awareness, shape public opinion, and pressure companies to adopt more ethical and sustainable practices. This influence encourages businesses to consider their social and environmental impact, which can lead to changes in corporate policies, practices, and strategies.

While NGOs involve themselves in a variety of activities, the primary focus remains on driving social change and raising awareness about pressing global issues. Their effectiveness often stems from their ability to mobilize grassroots support and engage stakeholders, including consumers and local communities, thereby impacting how international businesses operate in various regions.

The other options address roles that do not encapsulate the core function of NGOs. For instance, NGOs are not primarily providers of financial support to businesses; their focus is more on advocacy than funding. Additionally, they do not typically engage in setting international trade regulations, as this is usually the domain of governments and intergovernmental organizations. Lastly, while NGOs may conduct some research, they do not primarily exist to perform market research for multinational companies,