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CSI HANDBO K
19th EDITION
About the
CSI HANDBO K
19th EDITION
The Trialogue CSI Handbook provides reliable data and thought leadership on
corporate social investment (CSI) and is intended as a resource for enhancing
the impact and sustainability of social development in South Africa.
This edition has a special focus on the recently adopted Agenda 2030 for
Sustainable Development, with its 17 Sustainable Development Goals (SDG)
referenced throughout the publication, helping to position local developmental
issues within a global context.
Chapter 1: The state of CSI
The most noteworthy results from Trialogue’s annual CSI research into spending
patterns and approaches to development.
Chapter 2: Focus on development
Corporate and governmental support of various development sectors, with
relevant SDGs (which are cross-cutting in design), also detailed per sector.
Chapter 3: Corporate practice
A closer look at select companies’ approaches to CSI and their key lessons in
development.
Chapter 4: Trends and topics
An overview of innovations in CSI, a summary of global corporate giving,
approaches to CSI in Africa, criteria applied to determine strategic CSI, and a
profile of the recipient of Trialogue’s annual Strategic CSI Award.
Chapter 5: Sustainable Development Goals
An introduction to the 17 SDGs, lessons from the Millennium Development
Goals, a comparison of local, continental and global development agendas, and
a look at business strategies for engaging the SDGs.
8 www.trialogue.co.za
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@TrialogueSA
* zdavids@trialogue.co.za
Although great care has been taken to ensure accuracy, Trialogue cannot accept any legal responsibility
for the information or opinions expressed in this publication.
Vodacom
Foundation
About the book 1
The publisher 2
Contents 4
Sponsors 6
Guest foreword 10
CONTENTS
CHAPTER 1
THE STATE OF CSI 26
Overview of key research findings 28
Corporate and NPO reputations 50
CSI expenditure per company 56
CHAPTER 2
FOCUS ON DEVELOPMENT 70
Development sector support 72
CHAPTER 3
CORPORATE PRACTICE 90
Absa Shared growth, shared value 92
Eskom Eskom Development Foundation throws its weight behind the
South African economy 94
Hollard Kago Ya Bana – from catalysing significant systemic change in ECD
to innovative ECD enterprise incubator 96
IDC Improving the quality of life in rural and underdeveloped communities 97
Liberty Feeding children to support early childhood development 98
SABC Foundation Resourcing communities and inspiring hope 99
Mondi Sustainability at the core of our business 100
Murray & Roberts Murray & Roberts supports and benefits from Go for Gold 102
Old Mutual Driving enterprise development through partnership 104
Santam Creating partnerships to build resilient communities 106
Telkom Protect your tomorrow today 108
PRELIMS
Trialogue Strategic CSI Award Winner 2016 146
CHAPTER 5
SUSTAINABLE DEVELOPMENT GOALS 150
Overview of the Sustainable Development Goals 152
The 2030 Agenda for Sustainable Development 154
A comparison of development agendas 170
Lessons from the Millennium Development Goals 174
Business strategies for engaging the SDGs 176
VIEWPOINTS
Prof Adam Habib Lessons from the #FeesMustFall movement 62
Keri-Leigh Paschal The case for CSI in South Africa 66
Barbara Dale-Jones The art of collaboration 126
Dr Susan de Witt Innovative funding in development 128
Prof Alan Fowler African philanthropy and gifting 138
Tendani Nelwamondo Establishing community trusts 166
Ann Bernstein The Growth Agenda 180
Minister Susan Shabangu Gender equality is integral to development 182
David Lewis Monitoring and evaluation for impact 184
Absa – pages 92, 93 Accenture – pages 48, 49 ADvTECH Group – pages 64, 65
Barloworld – page 59 Cyril Ramaphosa Foundation – pages 116, 117 Distell Foundation – page 11
Edcon – page 125 Eskom Development Foundation – Export Credit Insurance Corporation
pages 94, 95 SOC LTD – page 173
JAM South Africa – page 19 Liberty – page 98 Leliebloem House – page 145
Mail & Guardian – page 181 MMI Foundation – pages 88, 89 Mondi – pages 100, 101
MTN SA Foundation – pages 24, 25 Murray & Roberts – pages 102, 103 The Mvula Trust – pages 168, 169
Nedbank – pages 67, 68, 69, IBC Nedbank Private Wealth – page 9 Old Mutual – pages 104, 105
Rand Water Foundation – pages 15, 160, 161 SABC Foundation – page 99 Santam – pages 106, 107
Sibanye Gold – page 167 Sozo Foundation – page 139 Telkom Foundation – pages 108, 109
Thembalethu Development – pages 140, 141 Transnet Foundation – pages 148, 149 Ubuntu Community Chest – page 37
University of Johannesburg – page 165 Vodacom Foundation – pages 3, 52,53 WESSA – page 133
BUILDING
A S E L F - S U S TA I N I N G L E G A C Y
Nedbank Priva te Wealth | Philanthropy Office
Nedgroup Private Wealth (Pty) Ltd Reg No 1997/009637/07, trading as Nedbank Private Wealth. Authorised financial services provider (FSP828), registered credit provider
through Nedbank Ltd (NCRCP16) and member of JSE Ltd through Nedgroup Private Wealth Stockbrokers (Pty) Ltd (NCRCP59).
Sustainable Development Goals –
A north star for societal transformation
GUEST FOREWORD
I
am honoured in my capacity as the chairperson of South Africa’s Network of
the United Nations Global Compact (UNGC), to write this year’s foreword for
The Trialogue CSI Handbook. The Handbook has a consistent history of providing
useful trends and examples of CSI in South Africa.
With the first anniversary of the Sustainable Development Goals (SDG) approaching, it
is timeous that Trialogue has dedicated a chapter to this important global framework.
Unlike the Millennium Development Goals, the SDGs were developed through an
inclusive process with governments, civil society and the private sector. This multi-
stakeholder collaboration was an early indication that each key stakeholder would
have a role in advancing the Goals.
For South Africa, the SDGs should be a welcome guidance due to their great relevance
for and close alignment with the National Development Plan. At the continental
level, the SDGs were preceded by Agenda 2063, the 50-year development roadmap
Nozipho January-Bardill
for Africa, framed by the African Union in 2013. The three frameworks are linked by
common themes of reducing poverty, inequality and achieving transformational
change through sustainable development. This synergy between frameworks enables
South Africa to focus on its priorities and to move speedily with implementation.
As South Africa’s Network of the UNGC, managed by the National Business Initiative,
our role in the SDG process involves facilitating company action. Likewise, the UNGC
at a global level is at the forefront of championing action on the SDGs, supporting
implementation through useful resources, tools and guidance materials, as well as a
global platform for leadership and learning.
For businesses in particular, action on the SDGs should be understood for potential
opportunities that would arise out of collaboration with other companies, government
and civil society on common priority goals. More directly, opportunities likely to arise
from concerted action on the SDGs include expanded markets, improved educational
outcomes and greater gender parity, economic growth and increased employment, a
socially just and a more stable society, improved social license for business to operate,
improved business competitiveness and investments.
To achieve scale and impact on the SDGs requires commitment by business. A 2016
global survey – The UN Global Compact – Accenture Strategy CEO Study – reports that
business leaders are committed to the SDGs. A majority of CEOs, surveyed at 87%,
believe the SDGs provide opportunities for value creation, while 78% already see
opportunities to contribute through their core business. Companies in South Africa
share this optimism. We will need to pool and redirect resources to priority Goals and
explore new financing models and innovations necessary to create impact. While
companies are likely to prioritise the SDGs that are closely aligned to their operations,
opportunities exist to harness the strengths and expertise of others through collective
action on other relevant Goals.
We also need to embrace a new set of values that will enable us to create a more
transformed, socially cohesive and inclusive society. We need to learn to collaborate
within industries and across sectors on common priorities as well, disrupt business
as usual and make strategic decisions for the long-term sustainability of South Africa.
Through the UNGC Network in South Africa, we will continue to facilitate action on
the SDGs, share best practice with the rest of the world and bring in international best
practice.
To become a signatory to the UNGC and engage locally, please email: achiengo@nbi.org.za.
Nozipho January-Bardill
Chairperson: Advisory Committee, UN Global Compact Network SA
our country. To live in South Africa right now is to be inundated with the harsh
realities of pervading inequality, ongoing student protests, cases of corruption,
a lack of national leadership and a fragile economy. It is easy to misinterpret these as
oppositional realities, but they are intrinsically interlinked. It is, after all, out of necessity
and urgency that innovation in development is inspired and collaboration compelled.
Our challenges in South Africa are undeniable, but so is our resilience. If we view our
current national context as a base – however fractured – from which to build, our local,
continental and global developmental plans (pages 170 – 172) as complementary
roadmaps, and our people as our greatest asset, we can begin to better articulate and
action the various roles, responsibilities, competencies and contributions needed to
overcome our current challenges and achieve our full potential, not just in South Africa,
but across our incredible continent.
Building on its well-established track record of providing key insights into the CSI
landscape in South Africa (pages 26 – 86), this 19th edition of The Trialogue CSI
Handbook also aims to contextualise developmental issues within a broader global
Zyaan Davids framework. The 17 Sustainable Development Goals (SDG), which constitute the 2030
Agenda for Sustainable Development, are referenced throughout the publication and
are explored in depth in chapter five (beginning on page 150), with emphasis on how
business can incorporate the SDGs to ensure greater and more holistic impact in their
developmental efforts.
In CSI in Africa: A game-changer in waiting? (pages 134 – 137), we explore various African
countries’ approaches to, and perceptions of, the role of business in development.
After some years of knowledge-sharing with CECP (Committee Encouraging Corporate
Philanthropy) – a coalition of CEOs united in the belief that societal improvement
is an essential measure of business performance – our partnership as the Southern
Africa Local Authority of this Global Exchange was formalised in August 2016. Drawing
from CECP’s annual research, we are pleased to once again bring you an overview of
international approaches to corporate giving, as well as a look at how businesses across
the world are engaging the SDGs (pages 130 – 132). This is part of our commitment to
ensuring that CSI in South Africa is measured against international best practice, while
being responsive and tailored to local issues.
The SDG focus of this publication also highlights fundamental issues which, when
not adequately engaged, can be detrimental but, when prioritised, can significantly
enhance development. Minister of Women in the Presidency, Susan Shabangu,
explains why gender equality is integral to development (page 182), Barbara Dale-
Jones discusses the art of collaboration (page 126) and vice chancellor of the University
of Witwatersrand, Prof Adam Habib, shares his views on what business can learn
from the #FeesMustFall movement about how best to support tertiary education.
Our sincere thanks to all the thought leaders who contributed to the Viewpoints
interspersed throughout this publication, as well as to the Innovations in CSI feature
(pages 112 – 124).
Thanks also to our valued corporate and non-profit advertisers and research participants
for supporting this initiative, and for contributing to the development of our great
country. And, of course, thank you to the Trialogue team for their tireless dedication to
ensuring that we produce a publication of the highest standard. While this is the first
edition that I have had the privilege and pleasure of co-creating in its entirety, I am
fortunate to have been guided by an expert team who contributed to an enriching
and enjoyable editorial process.
I hope that you will find this publication interesting and useful for referencing,
reflection and inspiration, and welcome all feedback.
Zyaan Davids
zdavids@trialogue.co.za
R0 vs R0 0 vs 0 Unqualified
The value of breaches
Repeat and unresolved
of the materiality and Unqualified audit report
audit findings
significance framework
PRELIMS
School
The Health Foundation
Pinelands High School LUCKY DRAW WINNER
The Ibbamo Foundation
Play Africa
The Institute of Training and Education for Respondents were entered
Precious Possessions Daycare Capacity Building into a lucky draw upon
Prochorus Community Development completion of the NPO
The Jack and Jill ECD research questionnaire.
Project for Conflict Resolution and
The Kamvalethu Foundation Congratulations to the
Development
The Lebanon ARROHHH – Husky Rescue winner, Leliebloem House
Project Gateway Child & Youth Care Centre –
KZN
Rachel Swart Funds a Western Cape-based NPO
The Lonely Road Foundation committed to improving
RAM Charity Projects
The New Social Project the quality of life of formerly
READ Educational Trust
The Papillon Foundation deprived children. Read more
Ripple Reading about this organisation in
The Rock of Africa Music Academy and their complimentary feature
SA Federation for Mental Health
Projects on page 145.
Safe, High Employment and Prosperous
South Africa The Siyazisiza Trust
San Salvador Home for Intellectually The Society for Language and Hearing-
Disabled Women impaired Children
SECTION27 The Sozo Foundation Trust
Senecio Support for People with The United Nations Children’s Fund
Disabilities Thusanani Children’s Foundation
Shine Literacy Training and Resources in Early Education
Sighthound Rescue South Africa Trendsetters Youth Foundation
Sithand’Izingane Care Project Tshegetsanang Support Group
Siyabonga Africa TUHF Limited
Sizanani Ma-Africa Ubuntu Community Chest
SOS Children’s Villages South Africa Ukwakha Isizwe Foundation
Soul Provider Trust United Way South Africa
South African Guide Dog Association University of KwaZulu-Natal Foundation
South African History Archive Unjani Clinics
South African National Council for the
Uplands Outreach
Blind
Uviwe Child & Youth Services
South Africans Against Drunk Driving
Volunteer Venture SA
South Coast Hospice Association
Sparrow Ministeries Vukani-Ubuntu Community Development
Projects
Sparrow Schools Educational Trust
WeCanChangeOurWorld
Spear Health
Western Cape Association for Persons with
St Joseph’s Care and Support Trust
Disabilities
St Joseph’s Home for Chronically Ill
Western Cape Forum for Intellectual
Children
Disability
St Mary’s School Waverley Foundation
Western Cape Health Foundation
Symphonia for South Africa | Partners for
Possibility Western Cape Primary Science Programme
Takalani Foundation Wheel Well
Tape Aids for the Blind Wildlife and Environment Society of South
Africa
TASK
Witkoppen Health and Welfare Centre
Thandulwazi Trust – Thandulwazi Maths &
Science Academy Wits Siyakhana Initiative
The Cancer Association of South Africa XPrize Foundation
The Centre For Social Development Youth of 90s Development Forum
The Character Company Zenex Foundation
The Click Foundation
CSI Handbook. This index is intended to assist with navigation of the graphic
representations of data in the publication.
Figures Figure 25
BBBEE elements accessed for funding, page 39
Figure 1 Figure 26
Corporate respondents by industry sector, page 29 Months of operating costs in reserve, page 39
Figure 2 Figure 27
Corporate: Total annual income, page 29 SED score, page 41
Figure 3 Figure 28
Corporate: Number of employees, page 29 Linkages between CSI and skills development/ED
Figure 4 programmes, page 41
NPO: Total annual income, page 29 Figure 29
Figure 5 Anticipated impact on relationship between CSI and skills
NPO: Number of employees, page 29 development, page 41
Figure 6 Figure 30
Nominal versus real growth in CSI expenditure, page 30 Anticipated impact on relationship between CSI and
enterprise development, page 41
Figure 7
Changes to CSI expenditure, page 31 Figure 31
Impact of SDGs on CSI strategy, page 42
Figure 8
CSI expenditure across top 100 companies, page 31 Figure 32
Existing CSI strategy alignment with the SDGs, page 42
Figure 9
Distribution of CSI expenditure by industry sector, page 31 Figure 33
Governance structure of CSI function, page 43
Figure 10
Distribution of CSI expenditure, page 32 Figure 34
Oversight of CSI function, page 43
Figure 11
Companies reporting non-cash giving, page 32 Figure 35
NPO registration status, page 43
Figure 12
Non-cash giving as a proportion of total CSI spend, Figure 36
page 32 Levels of measurement for flagship projects, page 44
Figure 13 Figure 37
Distribution of corporate support and CSI expenditure by Allocation of a portion of budget to M&E, page 45
region, page 33 Figure 38
Figure 14 Portion of M&E costs paid by organisation, page 45
Distribution of NPO support and resources by region, Figure 39
page 33 Stage of the project lifespan when M&E processes are
Figure 15 conducted, page 45
Distribution of corporate support and CSI expenditure by Figure 40
development sector, page 34 Use of M&E data, page 45
Figure 16 Figure 41
NPO involvement by development sector, page 35 Companies with employee volunteer programmes,
Figure 17 page 46
CSI funding channels, page 35 Figure 42
Figure 18 Companies with employee volunteer policies, page 46
Percentage of CSI budget spent on flagship projects, Figure 43
page 36 Individual to manage employee volunteerism, page 46
Figure 19 Figure 44
Number of flagship CSI projects, page 36 Volunteer time included as part of social investment,
Figure 20 page 46
Average length of flagship CSI project support, page 36 Figure 45
Figure 21 Employee volunteerism type and participation, page 46
CSI funding options, page 37 Figure 46
Figure 22 CSI reporting channels, page 47
Changes in NPO income, page 38 Figure 47
Figure 23 CSI communication budget and responsibility, page 47
NPO income by source, page 38 Figure 48
Figure 24 Participation in cause-related marketing, page 47
Sources of growth or decline in NPO income, page 39
PRELIMS
Education: Subject area, page 75 page 85
Figure 53 Figure 64
Education: Contribution to the NECT, page 75 Safety and security: Type of intervention, page 86
Figure 54
Social and community development: Type of support,
page 76
Tables
Figure 55 Table 1
Social and community development: Target beneficiaries, Median number of donor relationships, page 39
page 76 Table 2
Figure 56 Companies’ ranking of corporate developmental impact,
Health: Type of healthcare, page 78 page 50
Figure 57 Table 3
Health: Type of intervention, page 78 NPOs’ ranking of corporate developmental impact,
Figure 58 page 50
Food security and agriculture: Type of support, page 80 Table 4
Figure 59 Companies’ ranking of NPO developmental impact, page 51
Entrepreneur and small business support: Type of Table 5
intervention, page 81 NPOs’ ranking of NPO developmental impact, page 51
JAMSA014
JaM@worK
Reducing hunger one child at a time
South African born Peter and Ann Pretorius established Joint Aid
Management (JAM) in 1984. Since then, JAM’s growth reflects strong
progress in South Africa, Angola, Rwanda, Mozambique and South Sudan,
focusing on nutritional intervention to more than a million children daily.
In 2005, JAM’s work expanded into South Africa, where 26% of children
under six are severely underdeveloped. JAM South Africa feeds children in
more than 2 000 daycare centres in informal settlements in nine provinces,
with a holistic approach to development in line with five pillars:
u Nutritional feeding
u Infrastructure development through Early Childhood Development
(ECD) centre Makeovers
u ECD practitioner training
u Agricultural training
u Community involvement
In partnership with the Provincial Department The centre teaches school readiness
of Education in the Northern Cape, programmes for children while
MTN SA Foundation provided a working with severely disabled
40-seater computer laboratory learners who will never
to Steinkopf Secondary be accommodated in a
School, 10 compujectors to mainstream school due to
Bulletrap Primary School, the severity of their disability.
Johan Hein Primary School, The centre also teaches life
Elizabeth Wimmer Primary and survival skills to young
School, Okiep Primary adults by including in-service
School Louriesfontein training programmes to
Primary School, Rooiwal enable them to become self-
Primary School, Paulshoek employed and economically
Primary School and Witbank independent.
Primary School. Carolusberg
Taking their needs into consideration,
Primary School received three
the MTN SA Foundation provided
compujectors.
the centre with a 20-seater computer
The compujector, which is also known as a laboratory. The centre boasts of custom-made
classroom in a box, is a plug-and-play compact hardware and software that was specifically
computer that is equipped with a data projector adapted to suit the unique learning requirements for
and an interactive whiteboard. people with special needs. This is very useful and of great
assistance to the learners as they use it to learn life skills,
These interventions will enable the learners to access
literacy and numeracy.
endless opportunities provided by the digital era that we
live in today. Adults from the surrounding communities are allowed
to use the laboratories to acquire practical skills that will
enable them to earn an income.
ISTOCK IMAGES | AFRICAIMAGES
Corporate respondents
Professional researchers conducted one-on-one interviews with representatives from
large South African companies between July and September 2016. For the second
year, we also allowed companies to complete the questionnaire themselves and all
self-completed responses were verified by the researchers.
zz82 companies participated in the 2016 research. Of these, 64 (78%) also
participated in 2015.
zzFinancialservices was the best-represented sector in the sample of corporate
respondents (22%), followed by retail and wholesale (15%).
zzMore than 80% of corporate respondents had annual incomes of over R1 billion in
their latest full financial year.
Trialogue is pleased to zzJust over half of the companies (51%) employed less than 5 000 people, while 13%
announce that, as of August had more than 20 000 staff members.
2016, we are the Southern
We once again aligned our corporate questionnaire with the CECP (Committee
Africa Local Authority of the
CECP Global Exchange. Encouraging Corporate Philanthropy) Giving Around the Globe report, available at
www.cecp.co, which included data from eight South African companies in 2016.
22 Financial services
15 Retail and wholesale
11 Mining and quarrying
CORPORATE 2016 n=70
CORPORATE
CORPORATE 2016 n=80
NPO respondents
The NPO survey was completed during July and August 2016, using the online tool, Survey Monkey.
zz219 NPOs participated in the 2016 research. Of these, only a small portion (24% or 52 organisations)
also participated in 2015.
zzOver 60% of NPOs had income of between R500 000 and R20 million in 2016 and 21% had income of
less than R500 000.
zzMost NPO respondents (64%) employed between one and 30 staff members.
2 R0 or loss-making 36 1 – 10 people
19 Less than R500k 28 11 – 30 people
19 R500k – R2m 11 31 – 50 people
18 R2m – R5m 25 More than 50 people
24 R5m – R20m
13 More than R20m % NPO respondents
5 Don’t know
% NPO respondents
NPO 2016 n=147 NPO
NPO 2016 n=192
Total estimated CSI expenditure in 2015/16 was R8.6 billion. This represents a
6% nominal and 0% real increase on 2014/15 estimated spend.
CHAPTER 1
zzJustover half (51%) of companies reported increased expenditure in 2016, slightly down from the
59% that reported increases in 2015.
zzThe most common reason given for increased expenditure was an increase in corporate profits (40%).
Similarly, decreasing profits was the most commonly cited reason for declining budgets, where this
was the case (48%).
9
Nominal
8
CSI expenditure (R billion)
7
6
5
4 Real
3 (adjusted for inflation)
2
1
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2016 51 14 35 Increased
24
57% More than R100m per company
13
15
32
Mining and quarrying 29
22
Retail and wholesale 23
21
Financial services 20
4
Information technology and telecommunications 5
4
State-owned and public enterprises 4
18
Other sectors 19
% CSI expenditure
Median:R19m
31 32
CHAPTER 1
21
15 14 14 13 14
9 10 11
8
5
3
Less than R1m R1m - R5m R5m - 10m R10m - 30m R30m - R50m R50m - R100m More than R100m
% corporate respondents
Non-cash giving
zzThe proportion of companies reporting non-cash giving in 2016 was 35%, lower than the 2014 peak
(40%).
zzNon-cash giving as a portion of total social spend increased – from 10% in 2015 to 13% in 2016.
zzProduct and service donations accounted for the vast majority of non-cash giving. Twenty-nine
companies reported figures for these donations, equating to 19% of their total giving. By comparison,
11 companies quantified the value of their employees’ volunteering time, which accounted for less
than 1% of total giving.
19 13
27 34 35 Yes
40
No
% corporate respondents
81 87 73 60 66 65
CORPORATE 2011 n=110 / 2012 n=103 / 2013 n=99 / 2014 n=99 / 2015 n=82 / 2016 n=82
6 5 12 12 10 13
Non-cash
Cash
% CSI expenditure
94 95 88 88 90 87
CORPORATE 2011 n=97 / 2012 n=83 / 2013 n=88 / 2014 n=88 / 2015 n=77 / 2016 n=82
59 National 37
62 34
60 Gauteng 19
70 24
46 Western Cape 11
57 11
44 KwaZulu-Natal 7
58 9
43 Eastern Cape 8
49 9
35 Mpumalanga 4
41 3
33 Limpopo 2
32 2
27 Free State 3
30 1
26 North West 1
28 2
22 Northern Cape 2
25 2
13 International 4
11 3
NPO
zzNPO respondents operated projects in an average of 2.3 provinces.
zzThe distribution of NPO resources corresponded with that of companies, with national projects
receiving the greatest share of resources, followed by Gauteng, Western Cape and KwaZulu-Natal.
zzSimilar to the corporate trend, the share of resources going to projects in Gauteng decreased from
30% in 2015 to 20% in 2016. This was offset by increases in expenditure on national projects and
those in Mpumalanga, North West, Limpopo, Free State, and Northern Cape.
14 DISTRIBUTION OF NPO SUPPORT AND RESOURCES BY REGION
21 National 20
18 15
55 Gauteng 20
49 30
45 Western Cape 18
37 21
34 KwaZulu-Natal 14
33 14
27 Eastern Cape 6
29 8
22 Mpumalanga 5
14 2
19 North West 2
14 2
18 Limpopo 5
19 2
18 Free State 5
17 2
16 Northern Cape 4
17 3
sectors in 2015.
zzEducation was the most popular cause, supported by over 90% of companies and receiving almost
half of the total CSI spend (48%) – up from 43% in 2012.
zzSocialand community development and health were the second and third most commonly
supported sectors, although support and expenditure both declined marginally from 2015.
zzThe proportion of companies supporting food security and agriculture, housing and living
conditions, and disaster relief increased from 2015. The increased support was accompanied by
marginal increases in proportional expenditure in each of these sectors.
zzDisaster relief efforts were supported by almost a quarter of companies, yet received less than 1%
of expenditure.
94 Education 48
92 47
70 Social and community development 15
74 17
54 Health 9
58 12
41 Food security and agriculture 7
37 7
33 Entrepreneur and small business support 5
33 5
33 Environment 3
33 3
31 Sports development 3
31 4
25 Arts and culture 2
26 2
19 Housing and living conditions 2
13 1
23 Disaster relief 1
17 0
16 Safety and security 1
10 0
15 Non-sector specific donations and grants 1
17 1
16 Other 2
18 1
NPO
zzNPO respondents were involved in an average of 2.4 development sectors, down from 4.5 in 2015,
most likely due to sample differences.
zzSimilar to companies, education was the most common area of NPO work.
66
Education 60
60
Social and community development 62
% NPO respondents
Funding channels
zzAlthough NPOs remained the favourite channel through which companies directed their CSI
expenditure, the proportion of respondents giving to NPOs declined from a high of 100% in 2014 to
82% in 2016.
zzFor the first time, the proportion of funding going to NPOs was below half of total spend (45%),
significantly down from the previous year.
zzCorporate support for Government institutions (including schools, universities, hospitals and clinics)
increased in 2016 with 80% of companies giving to these organisations, which received over a third
of total CSI spend (34%). Such support includes scholarships and bursaries.
zzSupport for, and funding of, community trusts increased to 16% and 3% respectively, in 2016.
82 Non-profit organisations 45
90 52
80 Government institutions 34
75 29
34 For-profit service providers 7
39 8
20 Industry initiatives 4
19 3
19 Government departments 3
16 3
16 Community trusts 3
5 1
6 Religious institutions 0
3 0
3 Political parties 0
0 0
20 Other 4
18 4
CORPORATE 2016 n=65
14 One
23 Two
19 Three
38 More than three
6 Don’t know
% corporate respondents
CORPORATE 2016 n=80
CORPORATE 2016 n=81
No, not at all Yes, we would consider doing this Yes, we have done this
2016 59 14 27
Increased
Stayed the same
Decreased
2015 65 5 30 % NPO respondents
NPO 2016 n=148 / 2015 n=108
79 SA companies 15
70 18
46 Foreign independent donors 13
46 10
50 SA Government 12
63 20
70 Private individuals 10
59 11
19 Foreign state donors 10
20 6
52 Self-generated 10
52 8
61 SA trusts/foundations 8
63 13
27 The National Lotteries Board 6
34 6
14 Intermediary NPOs 5
24 4
2 Debt 3
2 0
36 Investment income 3
38 2
16 Other 5
17 2
Self-generated 56 20 24
Foreign independent donors 49 32 19
47 30 23
NPO 2016 n=8–119 depending on category
79
Socioeconomic development 82
24
Skills development 31
13
Enterprise and supplier development 25
18
Don't know 12
% NPO respondents
4
More than three years 6
8
One – three years 4
16
Six – 12 months 17
16
Three – six months 27
14
Less than three months 18
12
Don't know 5
30
No reserves 23
% NPO respondents
NPO 2016 n=148 2015 n=98
(51%). Almost a quarter (24%) used their CSI programmes as a feed-in to their skills programmes,
providing them with a targeted pipeline of talent from which to ultimately draw employees.
zzMost companies anticipated no change to the relationship between skills development and CSI
(66%). Among those that anticipated a change, it was most commonly expected that it would result
in greater integration between CSI and skills development (19%).
zzOver half of companies reported no linkage between their CSI and enterprise development (ED)
programmes (56%). In addition, most companies anticipated no change to the relationship between
ED and CSI (57%). Among those that anticipated a change, it was most commonly expected that it
would result in greater integration between CSI and ED (23%).
The Department of Trade and Industry’s BBBEE Codes of Good Practice are designed to encourage
transformation of the country’s business sector through a number of practices, including investment
in socioeconomic development.
The following key changes to the three elements most closely related to CSI have resulted from the
revised Codes, which came into effect in May 2015:
■■SED: Companies must spend 1% of net profit after tax (NPAT) to obtain the five points assigned to
this element. Seventy-five percent of the beneficiaries must be black for maximum recognition of
SED spend, otherwise SED spend is apportioned based on the number of black beneficiaries.
■■Skills development: The spend target doubled to 6% of total payroll for training of black
people and points increased to a maximum of 20 (+5) points. Bonus points were introduced
to cater for the number of black people absorbed at the end of a learnership programme. For
maximum recognition of points, training must be accredited and companies must now train both
employees and unemployed persons. The 5% requirement of total employees’ participation in
learnership-type programmes has been amended to 2.5%.
■■Enterprise and supplier development: Companies must spend 1% of NPAT on enterprise
development and 2% of NPAT on supplier development to receive the maximum score for this
element, which has increased to 40 points.
% corporate respondents
CORPORATE 2016 n=77
No linkage 51
56
CSI projects feed into the skills development/ED programme 24
23
Managed by the same people 17
18
Use the same service providers 4
3
Other 4
0
% corporate respondents
CORPORATE Skills development 2016 n=76 Enterprise development 2016 n=75
66 No change anticipated
19 Greater integration between CSI and skills development
3 Less integration between CSI and skills development
3 Expenditure on skills development through CSI will increase
1 Expenditure on skills development through CSI will decrease
8 Don’t know
% corporate respondents
CORPORATE 2016 n=75
57 No change expected
23 Greater integration between CSI and ED
13 Expenditure on supporting small businesses through CSI will increase
1 Less integration between CSI and ED
1 Expenditure on supporting small businesses through CSI will decrease
5 Don’t know
% corporate respondents
CORPORATE 2016 n=92
As part of the 2016 CSI research, companies were asked how the SDGs would impact their CSI strategies,
and to which of the SDGs their programmes were most closely aligned.
zzAlmost half of the companies and NPOs indicated that their strategies already responded to the
SDGs, and did not need to be adapted. Around a third of companies planned to use the SDGs to
adjust their strategy now, or in the future.
zzSDG 4 (quality education) was most aligned to corporate and NPO programmes. This is in line with
the research finding that the majority of companies and NPOs support education programmes.
zzThe least aligned SDGs were those relating to the environment.
48 Our strategy already responds to the SDGs and does not have to be adapted 46
19 The SDGs will be used for future strategic planning 23
18 We have honed/will hone our existing strategy to respond to the SDGs 22
15 Our strategy is clear and relevant and will not be adapted because of the SDGs 9
CORPORATE NPO Corporate 2016 n=73 NPO 2016 n=173
CORPORATE NPO Multiple responses Corporate 2016 n=71 NPO 2016 n=191
CORPORATE 2016 n=82
CORPORATE
2016 n=81
NPO
zzThe most common form of registration was as an NPO with the Department of Social Development (80%).
zzThemajority of NPOs (59%) in the sample were registered as public benefit organisations (PBO) with
SARS and 68% were registered as PBOs with Section 18A status. Fifty-one percent of NPOs had both
NPO and PBO status.
80
Registered as an NPO with the Department of Social Development 83
68
Registered as a PBO with Section 18A status with SARS 71
59
Registered as a PBO with SARS 70
37
Registered as a NPC with the Companies and Intellectual Property Commission 40
17
Voluntary association of persons, with a founding constitution 15
16
Registered trust 18
1
South African branch of an international organisation 2
2
Don't know 3
% NPO response
zzCorporate and NPO respondents indicated a surprisingly high rate of M&E for flagship projects. More
than half of the companies and NPOs claimed that they measured impact: the broader long-term
consequences of the project. Furthermore, 42% of corporate respondents stated that they have been
measuring project outcomes for more than five years. These findings are not in line with Trialogue’s
experience.
zzMore than half of companies (55%) allocated a portion of their CSI budget to M&E, with the vast
majority (87%) allocating up to 10% of their budget to M&E. The same proportion of NPOs have a
budget for M&E.
zzFifty-two percent of companies paid all the costs associated with M&E, while a third did not pay
anything for M&E. Twenty-seven percent of NPOs paid all the costs associated with M&E, while a third
did not pay anything for M&E.
zzOver half of companies (54%) put M&E processes in place prior to investing in a project. Nearly half of
NPOs did the same.
zzMost corporate (89%) and NPO (87%) respondents used data gathered through M&E to report project
findings to the board. Around three-quarters of corporate and NPO respondents used M&E data to
plan or revise their strategies, programmes or projects. Few corporate (22%) and no NPO respondents
used their M&E data to attempt to influence public policy or government funding choices, indicating a
missed opportunity for sharing lessons and influencing change beyond the organisation.
zzSimilarly,NPOs most commonly used the M&E data to report to the board and, although the majority
shared the findings with funders and potential funders, less than half shared them with other NPOs.
89 Inputs 72
80 Activities 79
83 Outputs 81
76 Outcomes 69
62 Impact 52
6 Don’t measure 8
CORPORATE NPO Multiple responses Corporate 2016 n=82 NPO 2016 n=143
55 Yes 55
4 Don't know 5
52 All costs 26
32 None of the costs 34
12 Variable portion of the costs 22
4 Share of the costs (based on support provided) 18
CORPORATE NPO Corporate 2016 n=66 NPO 2016 n=124
CORPORATE NPO Corporate 2016 n=70 NPO 2016 n=125
CORPORATE NPO Multiple responses Corporate 2016 n=74 NPO 2016 n=137
41 COMPANIES WITH EMPLOYEE VOLUNTEER PROGRAMMES 42 COMPANIES WITH EMPLOYEE VOLUNTEER POLICIES
70 Yes 52 Yes
30 No 46 No
2 Don’t know
% corporate respondents
% corporate respondents
CORPORATE 2016 n=64
CORPORATE 2016 n=64
43 INDIVIDUAL TO MANAGE EMPLOYEE VOLUNTEERISM 44 VOLUNTEER TIME INCLUDED AS PART OF SOCIAL INVESTMENT
CORPORATE 2016 n=64
CORPORATE 2016 n=64
84
Company website 71
81
Company annual report 71
Intranet 65
56
64
Staff publications 67
58
Sustainability report 62
46
Posters in workplace 23
33
Company brochure 28
33
CSI-specific annual report 27
32
Customer publications 26
28
CSI-specific brochure 23
28
External exhibitions 14
23
CSI-specific website 22
% corporate response
53 CSI department 61
60 Corporate communications 38
25 Marketing department 17
13 PR company 1
5 Advertising agency 0
9 Other 6
% corporate response
CORPORATE Multiple responses Communication responsibility n=80 Location of communication budget n=71
CORPORATE 2016 n=78
zzAnglo American (18 mentions) and Nedbank (16 mentions) retained their first and
second corporate ranked positions respectively, from 2015.
zzNedbank overtook Anglo American’s top ranking among NPOs, to claim first place
in 2016, with 27 mentions.
zzWoolworths jumped from ninth position in 2015, to the third most highly ranked
by other companies in 2016, with 15 mentions. However, it dropped in NPO
ratings, from third in 2015, to eighth position in 2016.
zzFNB was not ranked in the top 10 by companies or NPOs in 2015, but claimed
eighth position in company rankings and fifth position in NPO rankings, in 2016.
zzInvestec and Discovery were not ranked in the top 10 among NPOs in 2015, but
claimed fifth and tenth position, respectively, in 2016.
zzAfrika Tikkun (eight mentions) and Gift of the Givers (six mentions) swap positions
this year, but remain in the top two as ranked by companies.
zzOut of the 20 NPOs ranked highly by companies, 15 of them were new entries,
not featured on the list in 2015: Smile Foundation, Stop Hunger Now, CANSA,
Doctors Without Borders, Protec, Tshikululu, Buffelshoek Trust, Enactus, Inyathelo,
LovetoGive, Nelson Mandela Children’s Fund, Sparrow Schools, SPCA, Time for
Change and WESSA.
zzOut of the 12 NPOs ranked highly by other NPOs, eight are new entries: Ilifa
Labantwana, Reach for a Dream, BRIDGE, CHOC, GreaterGood SA, IkamvaYouth
and JAM International. ■
Vodacom
Power to you
Vodacom is dedicated to making a positive impact on the quality of ■■Vodacom is concerned about the costs associated with access
lives of South Africans. The mobile giant believes its technology can to information which advances the employability of South
be used for the benefit of humanity, to help alleviate social problems. Africans, such as education and job searching. The e-Schools
As a global company, it seeks to find ways of delivering societal value portal was launched in January 2015. It provides curriculum-
by making a meaningful difference in communities through the work aligned content for grades 4 to 12 learners including daily
of the Vodacom Foundation. lessons, videos, assignments and personalised progress
reports. This is free to Vodacom customers. Already there are
Collaborating to make a difference
more than 175 000 learners registered on the portal which
The Vodacom Foundation is committed to building solid relationships can be accessed by visiting www.vodacom.co.za/e-school from
with like-minded private sector companies and respected non-profit cellphone, tablet or laptop.
organisations which helped invest more than R1 billion into many
■■Vodacom launched Vodacom NXT LVL Careers in June 2016. It is
worthy causes. Without its customers, Vodacom would not have
aimed at job-seekers and the youth, providing a platform where
managed to support these causes to such an extent.
people can browse for jobs, upload CVs and apply for available
Education is one of the Foundation´s key priorities. Through the positions. Again, this is free for Vodacom subscribers.
use of mobile technology, the focus is on improving information ■■In order to improve literacy development, a critical element in
and communication technology (ICT) connectivity in disadvantaged the education value chain, Vodacom introduced e-Libraries;
communities across the country. an educational content application, freely available on Huawei
Vodacom Foundation’s social educational investment tablets at the 81 Vodacom ICT resource centres situated across
programmes the country.
■■The Mobile Education programme is Vodacom’s holistic approach ■■In a bid to help address skills development and job creation
to ensuring sustainable benefit to educators and learners by within the ICT sector, Vodacom embarked on a drive to empower
providing Internet connectivity, ICT equipment, content and unemployed youth with skills training. The partnership with
teacher training through 81 ICT centres across the country. MICT-Seta, IDT and CISCO aims to train unemployed youth in
ICT and develop them into entrepreneurs. The training seeks to that can be accessed by women at risk anytime of the day at 0800
equip them with relevant skills to assist with the installation of IT 428 428 or *120*7867#.
equipment, as well as provide instruction in high-end computer Employees changing lives and their outlook
skills to other youth and community members visiting the centres.
Every year, for the past six years, Vodacom has selected around 20
Other initiatives include volunteers to work for a non-profit organisation of their choice for
■■The Vodacom External Bursary Scheme supports learners by a year. There is no cost to the individual or the host organisation.
providing bursaries in the science and technology fields. Eighty-one volunteers have been through the programme, which
■■Vodacom Millionaires donates up to four computer centres to grants them the unique opportunity to dedicate themselves to a
public schools in South Africa every month. cause close to their hearts, while sharing their skills and expertise.
Past and present volunteers have transformed the lives of those
■■Vodacom also supports the Department of Basic Education in its
around them and, in turn, changed their own outlook.
food security programme to help enhance learner nutrition in
schools during Mandela Month.
For more information
■■School Connectivity is aimed at providing Internet connectivity
foundation@vodacom.co.za
to schools across the country. www.vodacom.com/about-us/foundation
Using technology for beneficial outcomes Vodacom Foundation, Private Bag X99904, Sandton 2146
T
he following table contains published figures on CSI expenditure during the period 1 July 2015 to 30 June
2016, where available. As far as possible, Trialogue has focused on South African expenditure on CSI. However,
it is not always possible to discern South African versus multinational expenditure. Reported figures are also
not consistent in how CSI is defined but where possible we have excluded expenditure on non-CSI related
activities. Where global figures are reported in dollars, pounds or euros, Trialogue has converted these to rands using
standard rates of R14 to US$1, R18 to £1, and R15 to €1. Notes are included to provide clarity in instances where
reported numbers do not accurately represent South African CSI expenditure. Trialogue does not take responsibility
for inaccuracy of published figures.
2015/161 2014/15
published published
CSI spend CSI spend 2015/16 Focus areas
Company name (RSA, unless (RSA, unless Source of 2015/16 data
(not in order of investment)
otherwise otherwise
mentioned) mentioned)
Rm2 Rm
Rm2 Rm
Rm2 Rm
1 15
Incorporating data from 1 July 2015 to 30 June 2016. US$184 000 000 – global spend. .
2 16
Dollars converted at R14 to US$1; Pounds converted at R18 to £1; Includes training spend.
Euros converted at R15 to €1. 17 An amount of £740 000 000 was disclosed for a flagship tuition
3 US$230 0000.
programme only.
4 US$85 485 000. 18 US$2 800 000 – global spend.
5 US$400 000. 19 Spend in South Africa and Mozambique.
6 Africa spend. 20 Includes training spend.
7 $178 700 000 – global spend. 21 R109 million on donated food represents 88% of claimed CSI
8 €561 7500 – includes corporate citizenship expenditure and expenditure.
22 Includes spend for Aquarius Platinum.
donations; global spend.
9 £11 100 000 – global spend. 23 Includes CSI spend and sponsorships.
10 US$28 200 000 – global spend. 24 Global spend.
11 US$500 0000 . 25 Southern Africa spend. Includes spend on occupational health.
12 US$3 700 000. 26 Excludes goods and food donations.
13 Global spend. 27 Includes goods and food donations.
14 £16 700 000 – global spend.
ENCOURAGING RESPONSIBLE
CITIZENSHIP
The ADvTECH Group has a strong culture of
volunteerism that enables staff and students to
give back to communities in need. Volunteerism
programmes aim to ensure that both volunteers
and beneficiaries gain and grow from meaningful
developmental exchanges.
9 965
FROM UMLAZI TO HARVARD
UNIVERSITY
Mfundo Radebe was raised by his single mother in the
BURSARIES AWARDED DURING 2015 KwaZulu-Natal township of Umlazi. Despite numerous
to the value of socioeconomic challenges, he was a high-achieving
R102 million
student who longed to attend Crawford College in the
affluent area of La Lucia. Since his family could not afford
the fees, this determined young man wrote several
letters to the school’s management, sharing his dreams
about the difference he wanted to make in South Africa.
CELEBRATING ACADEMIC EXCELLENCE Impressed by his vision and perseverance, the board of
Crawford College awarded Mfundo a full compassionate
We recognise education as imperative for the transformation scholarship. He excelled at his new school and quickly
and realisation of equality in our society. In 2015, more than racked up the accolades, including national debating
R100 million of our R103.3 million CSI budget was allocated champion, speaker at the national Mandela Day gala, and
to 9 965 bursaries and scholarships, awarded to previously first-ever national young social cohesion advocate. He
disadvantaged students, on a merit basis. was also named the international grand champion of the
My Magna Carta Award – a creative essay competition in
which young people are invited to produce a document
describing how they would safeguard and promote the
rights, privileges and liberties of their country.
While waiting for his first year at Harvard to commence,
Mfundo worked as a library assistant at Crawford College
and coached the junior debating team.
“I have always known that
I could achieve great things
and refused to let anything
stand in my way, especially the
obstacles that stood between
me a great education. I am
very proud of what I have
achieved, but I still have a long
and exciting road ahead. I’m a
TRAINING TEACHERS young man from Umlazi and
if I can overcome financial and personal odds and achieve
There is consistent evidence that teachers are the most
international acclaim, there is great hope for others in South
important school-based factor in determining learning
Africa to do the same.”
outcomes, second only to what children bring to school.
High quality teaching by well-qualified teachers can close Mfundo Radebe
the achievement gap between economically disadvantaged
students and their more affluent peers.
Recognising this, ADvTECH launched a teacher bursary ADvTECH welcomes opportunities to partner with
scheme nine years ago, aimed at producing a sustainable other organisations and corporates.
supply of quality teachers. The bursary programme is
ADvTECH Head Office
enhanced through our Teacher Trainee Development
011 676 8000
(Mentorship) Programme; giving bursary holders the
opportunity to practically apply their acquired skills while info@advtech.co.za
they are training – either within the ADvTECH Group’s schools, www.advtech.co.za
(for specific information on CSI projects, see http://www.
or in other schools linked to our Adopt-a-School outreach
advtech.co.za/Pages/Sustainability/Corporate-Social-
programme. Investment.aspx)
the economic impact of CSI in South Many companies spend far beyond the
Africa? minimum 1% on their social development
In our business, we are often asked about initiatives. I believe that this shows
the real impact of social investment. that they genuinely want to be part of
We commissioned this research from the solution in our country. Within the
the BER as an introductory study – the business community, there is a lot of
first of many – to show businesses and passion for addressing South Africa’s
non-profits in a broad way that social development challenges.
investment can, and does, have large,
measurable impact. Please comment on the ethical obligation
and opportunities of CSI in South Africa.
It is also important to show that if CSI
In First World countries, I think there is
is inefficiently spent, it makes little
more pressure to be seen as a socially
difference; but effective social investment
responsible person. But in South Africa,
can have an exponentially large impact
there are so many developmental
on society.
challenges, and we all see the need
This year, the Bureau daily. It is simply a question of everyone
What were some of the key findings of
of Economic Research the economic impact assessment? realising that they need to step up and do
(BER), in partnership The main and most exciting finding was
their bit, and companies respond to that.
with Nation Builder The inherent opportunities of CSI are what
that if the existing CSI spend in South people, and companies, latch on to. This is
Trust and Trialogue, Africa were efficient, it would have a what is beautiful and unique about South
produced a research strong positive impact on the South Africa: it is fertile ground for innovative
report entitled The African economy. The research used solutions and there are opportunities all
Case for Corporate Trialogue’s ‘big figure’, which estimated around us to see beautiful stories unfold.
total CSI spend in 2015 at R8.1 billion. If Often, just a little bit of assistance has a
Social Investment in used effectively, the report determines
South Africa. Keri-Leigh massive impact on society.
that it has the potential to increase
Paschal, executive South Africa’s gross domestic product What are some of the success factors
director of the Nation (GDP) by R12.5 billion, and stimulate a characteristic of successful strategic CSI
Builder Trust, discusses total economic output of R25.6 billion. In programmes?
addition, the same value of CSI spend –
findings from the report, provided it is effective – could support
No one company or organisation is able
as well as how effective to address social issues on its own, and
almost 63 000 jobs and generate the Nation Builder Trust is founded on the
social investment can R7.7 billion in labour remuneration. At the value of partnership. To ensure that we
have exponential social very worst, the effect of CSI on a business invest in quality partnerships in our social
impact. is neutral. programmes, we have designed and
implemented a very thorough process
According to the report, what are the
main reasons for CSI? to assess and monitor potential partner
organisations and projects. This means
The report used local and international that if we do invest in a programme,
trends to highlight four main reasons as we are confident that it will be effective
part of the business case for CSI. These and sustainable.
are: cost and risk reduction; competitive
advantage and improved innovation; As a company, if you ensure that your
reputation and legitimacy; and insight internal due diligence processes are
into strategic planning that leads to win- effective, so that you choose good social
win outcomes for business and society. investments and partnerships from the
The broader context is that a better start, your selected projects are more
society creates a better environment for likely to be well implemented and you will
business. There are also, of course, various succeed in maximising the social impact
regulatory requirements. of your CSI. ■
My own experience is that CSI is
Keri-Leigh Paschal fundamentally about people. I have FURTHER READING
Executive director found that the businesses we work
Nation Builder Trust and with tend to engage in CSI from a more The Case for Corporate Social
Muthobi Foundation Investment in South Africa can
heartfelt place. Some businesses make
Mergon Group be downloaded from
021 816 1061
their CSI spend purely for the sake of www.proudnationbuilder.co.za/
keri-leigh@muthobi.co.za regulatory compliance, but the majority ber-report
are very aware that they are surrounded
Nedbank's award-winning approach 2015 CSI investment split for each focus area
to corporate social investment (CSI) Education 49%
is rooted in its aspiration to be a Nedbank Affinity Programme 33%
green and caring bank. The bank
has recognised that the attainment Community Development 6,1%
of this objective rests heavily on its Skills Development 5,7%
involvement in communities. Volunteerism 4%
Health 2,2%
With this in mind, Nedbank's CSI programmes
and investments target four areas: education,
2015 CSI investment split for each business unit
skills development, community development,
health, and volunteerism. The bank also responds Nedbank Affinity Programme 44,9m
to topical issues and societal challenges; for The Nedbank Foundation 38,1m
example, in 2015 the bank invested R1 000 000
Eyethu Community Trust 21,3m
to assist drought-stricken farming communities
in affected areas. Nedbank Business Units 13,3m
In 2015 the bank's total expenditure on Nedbank External Bursary Fund 11,2m
R7,5 million The bank also invested in learning resources and mobile classrooms
provided for research chairs by providing 100 early-childhood development centres and 22 mobile
in universities laboratories to primary and secondary schools.
Importantly, around 63% of Nedbank's health budget was Although the School of Accountancy at the University
ring-fenced for improving access to healthcare in rural areas. of Limpopo was keenly aware of this, for many years it
This represents an effort to alleviate the inadequate and grappled with the challenge of producing undergraduate and
overburdened public healthcare infrastructure. postgraduate qualifications accredited by the South African
Institute of Chartered Accountants (SAICA).
COMMUNITY DEVELOPMENT
Nedbank believes that social cohesion and economic growth are That is until Nedbank came on board to sponsor the Chair
only possible if poverty and economic inequality are addressed. of Accounting in 2009. With an initial planned sponsorship
of R3 000 000, the bank's total investment now stands
In aid of this the bank focuses on projects that may improve at R11 900 000.
access to basic services in rural areas. A flagship initiative in
2015 was the Nedbank Hippo Roller Project, which saw 150 Professor Cosmos Ambe reflects that this sponsorship has
hippo rollers donated to 150 families in Mpumalanga. These literally changed the lives of students in Limpopo. 'Nedbank's
90-litre drums facilitate the transportation and storage of water. investment made it possible to develop and implement a
turnaround strategy that enabled us to secure the coveted
VOLUNTEERISM SAICA accreditation for our undergraduate degree. We have
The spirit of volunteerism underlies all of Nedbank's CSI projects, since improved our accreditation rating from 2 to 1 and achieved
as it is the bank's ambition to inspire active citizenship among accreditation for the Certificate and the Bridging Certificate in
South Africans. Theory of Accountancy. Our staff complement has increased
from 11 to 72, including 25 chartered accountants. We have
Several programmes have been established to encourage active also supported 1 700 academically deserving and financially
employee participation, with the Local Heroes Programme being needy students with bursaries, and R364 000 000 has been
among the most impactful. The programme supports individual raised by the Chair to improve infrastructure. In short, it has
employees who roll up their sleeves and regularly volunteer at been an accountancy revolution, which would not have been
organisations of their choice. possible without Nedbank.'
For information about Nedbank's CSI activities visit nedbank.co.za, call 011 294 444,
or send an email to nedbankfoundation@nedbank.co.za.
ISTOCK IMAGES | MONKEYBUSINESSIMAGES
70
THE TRIALOGUE CSI HANDBOOK 2016
2
FOCUS ON DEVELOPMENT
CHAPTER 2
G
overnment spent R31.8 billion on education in 1994. In 2016 this figure had
Education was supported
FOCUS ON DEVELOPMENT
grown to R297.5 billion. On average, education receives 33% of provincial
by 94% of companies
government expenditure and has received more than 40% of CSI spend since
and received 48% of CSI
2012. Despite considerable investment in this sector, challenges regarding expenditure in 2016
the quality of and access to education persist, with student protests having gripped
South Africa for much of 2015 and 2016.
Big picture figures
zzGovernment’s budget for basic education increased by 8%, from R191.1 billion in
2015 to R205.8 billion in 2016.
zzUniversity subsidies increased by 7%, from R26.2 billion in 2015 to R28 billion in 2016.
zzAccording to Statistics South Africa (Stats SA), enrolment rates for five-year-olds have
quadrupled over the last two decades, from 23% in 1996 to 91% in 2016. Enrolment
rates among six-year-olds nearly doubled over the same period, from 49% to 96%.
zzIn 2013, the Minister of Basic Education reported that South Africa had the highest
teacher absenteeism rate of all Southern African Development Community
countries, with about 10% of teachers absent for an average of 19 days annually.
zzThe National Education Infrastructure Management System (NEIMS) June 2016
report shows that 59% of ordinary schools do not have computer centres. The
Eastern Cape and Limpopo have the most schools without computer centres:
89% and 85% respectively.
zzThe same NEIMS report finds that 71% of ordinary schools do not have libraries.
zzThe World Economic Forum’s Global Competitiveness Report 2015–2016 ranked
South Africa 138th out of 140 countries for the quality of its overall education, and
last for the quality of maths and science education.
zzThe 2015 National Senior Certificate overall pass rate of 71% decreased from the
2014 pass rate of 76%.
zzAccording to Equal Education, a non-profit organisation that works to improve the
See Lessons from the #FeesMustFall
quality and equality of South Africa’s education system, only about half of learners movement on page 62
enrolled in grade two reach matric. Most learners drop out of the school system
between grades 10 and 12.
zzThe director of The Academic Development Centre at the University of
Johannesburg reports that between 50% and 60% of students at higher learning
institutions drop out during their first academic year.
zzIn September 2016, Higher Education and Training Minister Blade Nzimande said
that the cost of destruction to property, as a result of recent student unrest, had
reached R600 million.
See page 157
Sustainable Development Goal 4 – Quality education
The fourth of the SDGs places renewed emphasis on the need for quality education. In
order to ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all, the following targets have been set for 2030:
The most obviously related
zzEnsure that all girls and boys complete free, equitable and quality primary and
SDGs have been flagged for
secondary education leading to relevant and effective learning outcomes. each development sector.
zzEnsure that all girls and boys have access to quality early childhood development, However, interrelatedness
care and pre-primary education so that they are ready for primary education. of the Goals must be taken
into account. For example,
zzEnsure equal access for all women and men to affordable and quality technical, Goals 16 (peace, justice
vocational and tertiary education, including university. and strong institutions)
and 17 (partnership)
zzSubstantially increase the number of youth and adults who have relevant skills, are not specified, but
including technical and vocational skills, for employment, decent jobs and are relevant across all
entrepreneurship. the sectors, as peaceful
societies and partnerships
zzEliminate gender disparities in education and ensure equal access to all levels
serve as cornerstones for
of education and vocational training for the vulnerable, including persons with development.
disabilities, indigenous peoples and children in vulnerable situations.
2016 n=71
2016 n=73
FOCUS ON DEVELOPMENT
28 Maths and science Corporate support for
13 Specialised subjects
13 Life skills information technology
12 Information technology Ç from 8% in 2015
10 Language and literacy to 12% in 2016
8 Vocational and technical education
16 Other
% CSI education spend
increased from 25% in the second quarter of 2015 to 27% in the same period
in 2016.
zzThe 55- to 64-year age group consistently accounts for the smallest
unemployment rate, reported at 10% in the first quarter of 2016. The 15- to
24-year and 25- to 34-year age groups consistently account for the largest
unemployment rates at 55% and 31% respectively for the same period.
54 TYPE OF SUPPORT
Support for welfare
organisations
È from 45% in 2015
to 35% in 2016
35 Support for welfare organisations
27 Job creation programmes
Support for job 21 Infrastructure, facilities and equipment
creation programmes 7 Awareness programmes
Ç from 21% in 2015 10 Other interventions
to 27% in 2016
% CSI social and community development spend
2016 n=57
55 TARGET BENEFICIARIES
Orphans and vulnerable
children continued to receive
the most support, despite a 23 Orphans and vulnerable children
È from 29% in 2015 19 Youth
to 23% in 2016 10 Unemployed
9 People with disabilities
7 People with HIV/Aids
5 Victims of violence and abuse
4 Non-specific beneficiaries
4 The aged
3 Homeless people
0 Prisoners and former prisoners
0 Animals
16 Other beneficiaries
% CSI social and community development spend
2016 n=54
FOCUS ON DEVELOPMENT
increased by 12%, from five million in 2014 to 6.2 million in 2015. As the country with
54% of companies
the highest rate of HIV infections, but also the biggest treatment programme, South
and received 9% of CSI
Africa was a fitting host for the 21st International AIDS Conference (AIDS 2016), held in expenditure in 2016
Durban in July 2016. The conference emphasised that while progress has been made,
much work remains, with an urgent need for resources to match the global will to
address the epidemic.
Big picture figures
zzGovernment’s budget for health increased by 7%, from R157.3 billion in 2015 to
R168.4 billion in 2016. The Public Health
Enhancement Fund was
zzStats SA’s Mid-year population estimates 2015 showed that average life expectancy established by Health Minister
increased from 59 years in 2014 to 60 years in 2015 for males, and from 63 years to Dr Aaron Motsoaledi in
64 years for women for the same period. 2012, as a means for private
zzThe infant mortality rate, which was estimated at 34.4 per 1 000 live births as health sector organisations to
at July 2015, remained unchanged, according to the Mid-year population assist government in priority
estimates 2015. healthcare initiatives. Twenty-
three participating companies
zzThe number of Aids-related deaths increased by 8%, from 151 040 in 2014 to contribute, based on a funding
162 445 in 2015, according to the same estimates. formula. The Fund’s three key
zzAccording to SouthAfrica.info and World Bank’s Global Atlas of the Health Work projects are the expansion of
Force, in 2013 South Africa’s doctor to patient ratio was 0.8 per 1 000 patients. the intake of medical students,
Apart from India, which had a ratio of 0.07 per 1 000, South Africa was behind the academy for leadership and
other BRICS countries; Brazil (1.9 per 1 000) and Russia (4.3 per 1 000). management in healthcare and
the national health scholars
zzIn South Africa, there are 500 nurses per 100 000 people and 246 professional programme.
nurses per 100 000 people (excluding enrolled nurses and nursing assistants).
These figures exceed the World Health Organisation standard of 200 nurses for
every 100 000 people. However, the South African Nursing Council statistics show
that 62% of nurses work in Gauteng, KwaZulu-Natal and the Western Cape, with
the remainder spread across the other six provinces.
zzAccording to the 2015 General Household Survey, only 18% of South Africans are
covered by medical aid. Between 2002 and 2015, individuals who were covered by
a medical aid scheme increased by 30%, from 7.3 to 9.5 million people.
2016 n=43
57 TYPE OF INTERVENTION
% of CSI health spend on
HIV/Aids nearly halved
since 2010 (52%), even
though HIV/Aids-related
deaths in South Africa 23 HIV/Aids
Ç between 2014 and 2015 23 Healthcare education, training, capacity building
21 Infrastructure, facilities, equipment
18 Wellbeing initiatives
5 Non-specific general donations
10 Other
% CSI health spend
2016 n=43
FOCUS ON DEVELOPMENT
according to The State of Food and Agriculture 2015 report, South Africa is able to boost
agriculture was supported
national food sufficiency through a combination of own production and food imports.
by 41% of companies
The Government has prioritised several national policies and programmes which and received 7% of CSI
contribute to raising nutritional levels, particularly for vulnerable people. Relevant expenditure in 2016
policies include the Integrated Food Security Strategy developed in 2000, the National
Development Plan, the Comprehensive Agricultural Support Programme, and the
Food Security Production Intervention Programme, introduced in 2012.
Big picture figures
zzThe 2016 national budget for agriculture, rural development and land reform was
R26.4 billion – a 147% increase from the R10.7 billion budget specified in 2015.
zzRecent drought resulted in sector losses worth R16 billion across South Africa.
zzStats SA’s Community Survey 2016 showed that about 20% of households ran out
of money to buy food in the last year. The number of households that skipped a
meal in the last year decreased from 17% in 2015 to 13% in 2016.
zzAccording to Trading Economics, food price inflation is expected to decrease from
11% in Quarter 2 of 2016 to 7% by 2020.
zzWWF South Africa’s Integrated Annual Report 2015 showed that 95% of the
country’s locally produced food is produced by commercial farmers. The report
also estimates that there are 38 000 large-scale commercial farms and two million
farming households.
zzAccording to WWF SA, only 1% of South Africa has the right climate and soil
combinations for rain-fed crops, and only 3% of the country has truly fertile soil.
zzDespite the drop in the number of farm units since 1993, WWF SA says gross farm
income has increased by more than 300%.
zzBased on the Quarterly Labour Force Survey, Quarter 2, 2016, the number of people
employed in the agricultural sector decreased by 5%, from 869 000 in June 2015,
to 825 000 in June 2016.
32% in 2015
29% in 2014
41 Food relief/feeding schemes
22 Small-scale farming/commercial agriculture
20 Survivalist farming
12 Infrastructure, facilities and equipment
5 Non-specific general donations
0 Other
% CSI food security and agriculture spend
2016 n=29
FOCUS ON DEVELOPMENT
SDG 8 – Promote sustained, inclusive and sustainable economic growth, full and
productive employment and decent work for all. This Goal includes a target
which calls for the promotion of development-oriented policies that support
productive activities, decent job creation, entrepreneurship, creativity
and innovation, and encourage the formalisation and growth of SMMEs,
including through access to financial services.
SDG 9 – Build resilient infrastructure, promote inclusive and sustainable
industrialisation and foster innovation. This Goal includes a target to increase
the access of small-scale industrial and other enterprises, in particular in
developing countries, to financial services, including affordable credit, and to
increase their integration into value chains and markets.
Environment
Many large companies have implemented recycling and water and electricity saving
schemes. While all efforts count, for significant environmental impact to be made, Environmental initiatives
were supported by 33% of
businesses must be willing to develop more holistically sustainable operations.
companies and received
Companies should analyse each link in their value chains – from supply chains,
3% of CSI expenditure in 2016
operations and the physical workplace, all the way through to how returned goods are
used, and whether more sustainable products and services can be developed.
Big picture figures
zzA recent study of industry stakeholders in 13 countries by US-based construction
think-tank Dodge Data and Analytics, showed that South Africa currently has the
highest share of green buildings.
zzThe study also found that about 41% of South Africa’s construction activity in 2015
was green – the highest of the countries surveyed. South Africa also has the third-
highest level of biodiversity in the world.
zzAccording to Plastics SA, South Africa mechanically recycled 292 917 tons of
plastic in 2015, a 3% increase from 2014.
zzCompared to 2014, in 2015 formal employment in the recycling sector increased
to 6 234 permanent employees and informal employment grew to an estimated
48 820 collectors, according to Plastics SA.
zzDue to a significant reduction in the export of recyclable waste, Plastics SA
reported that the amount of plastic diverted from landfill in South Africa
decreased by 1.6%, to 310 641 tons in 2015.
2016 n=26
Sports development
As South Africa experienced first-hand during the 1995 Rugby World Cup and 2010
Sports development Soccer World Cup, sport is a powerful tool for uniting people from all walks of life.
was supported by 31% of Through its universal language, it has the ability to transcend differences and promote
companies and received equality. However, participation in formal and professional sport in South Africa can be
3% of CSI expenditure in 2016
expensive, and government and the private sector must continue to find ways to help
create inclusive sporting opportunities for talented youth.
Big picture figures
zzThe budget of the national Department of Sport and Recreation increased by
5%, from R979.4 million in 2015/16 to R1.028 billion for 2016/17.
zzStatisticsfrom the National Education Infrastructure Management System found
that 42% of schools had sports facilities in 2015 and 2016.
zzIn both years, Gauteng and the Western Cape consistently had the least number
of schools without sports facilities (less than 25%) while the Eastern Cape and
KwaZulu-Natal consistently had the most schools without sports facilities, at
over 50%.
FOCUS ON DEVELOPMENT
of sports in social progress, as well as its growing contribution “to the realisation of
development and peace in its promotion of tolerance and respect and the contributions
it makes to the empowerment of women and of young people, individuals and
communities as well as to health, education and social inclusion objectives”.
2016 n=26
2016 n=20
FOCUS ON DEVELOPMENT
the most support, despite a
significant decrease over the
past three years:
23 Building houses
19 Water and sanitation È from 73% in 2014
17 Materials supply to 23% in 2016
17 Facilitating housing development
16 Energy-efficiency initiatives
1 Non-specific general donations Significant Ç in support for
7 Other water and sanitation from
0% in 2014 to 19% in 2016
% CSI housing and living conditions spend
2016 n=14
Disaster relief
South Africa is a water-scarce country that has recently experienced severe drought.
The country also experiences floods which often lead to loss of lives and the Disaster relief was supported
by 23% of companies
displacement of communities. South Africa must be prepared for such eventualities
and received 1% of CSI
and implement sustainable initiatives to minimise resultant damage. expenditure in 2016
Big picture figures
zzIn 2015, Government declared the North West, KwaZulu-Natal, Mpumalanga,
Limpopo and the Free State drought disaster areas, threatening food security in
the country.
zzAccording to the Minister of Rural Development and Land Reform, recent drought
resulted in losses worth R16 billion across the agricultural sector. Government’s
response to the drought crisis as at March 2016 amounted to over R1 billion.
zzTo mitigate the effects of the drought on water users, the Department of Water
and Sanitation reported spending over R500 million on emergency and short-
term interventions in KwaZulu-Natal, Free State, North West, Eastern Cape,
Mpumalanga, Limpopo, Western Cape and Northern Cape.
of CSI expenditure in 2016 levels of serious crime remain high. It is paramount for both police and private security
companies to work together to maintain law and order.
2016 n=14
BY THE NUMBERS
R2.1m
DISABILITY
PROGRAMMES SUPPORTED IN 2015
21 419
Total number of Harnessing the
youths supported across (cap)abilities of
all MMI Foundation projects disabled people
7 762
Youth supported through
education projects youth reached with
(bursaries, teacher and
learner support) 8324 HIV/Aids Awareness
(Afrika Tikkun)
www.mmifoundation.org.za
ISTOCK IMAGE | STEVE DEBENPORT
The Eskom Development Statistics South Africa announced that, owned small and medium enterprises
Foundation is committed in the second quarter of 2016, South that have been in operation for at least 24
to increasing participation Africa’s gross domestic product grew by months and fall into the manufacturing,
3.3% quarter on quarter, and 0.6% year construction and engineering, agriculture
in the South African
on year. These numbers, coupled with the and agro-processing, and trade and services
economy and helping economy’s overall performance in the last categories. Altogether, the competition
to drive sustainable five years, prompted the McKinsey Global offers R1.3 million in prize money to the
growth. Through Institute to categorise South Africa as a winners, runners-up and finalists, to invest
programmes that “slow grower”, noting the country’s low in their businesses.
focus on empowering economic growth and high unemployment
The 2016 overall winner of the R150 000
small businesses rates as major deterrents to enhanced
grand prize was Nomcebo Sibanyoni, based
development, with a great deal of
and developing in Lydenburg, Mpumalanga. Her business,
unrealised potential.
entrepreneurial education Nomcebo Printers, offers a wide range of
and skills, the Foundation These worrying trends, amplified by printing and graphic design services. From a
contributes to job the threat of a possible credit rating humble start, focusing on a handful of small
downgrade, further underpin the urgency business customers, Nomcebo Printers has
creation and poverty
for all sectors of society to make a grown to a 20-person operation, and has
alleviation. concerted effort to help realise the potential secured a number of contracts within the
that exists in this country. local mining industry.
The Eskom Development Foundation’s
various CSI programmes, which are centred PARTNERING FOR SUCCESS:
on economic growth and development, THE SMALL BUSINESS EXPO
aim to foster a culture of entrepreneurship, All BIC finalists were invited to exhibit
support small business development and their businesses at the 2016 Small
sustainability, enhance robust economic Business Expo, at the Ticketpro Dome
activity and improve people’s lives. in Johannesburg. The Expo, staged in
partnership with Thebe Reed Exhibitions,
The Eskom Business Investment gives small and medium enterprises the
Competition opportunity to market themselves and
The annual Eskom Business Investment interact with corporates, investors and
Competition (BIC) – one of the Foundation’s potential clients. Beyond providing a
venue to showcase and announce the
flagship programmes – was founded
winners of the BIC, this Expo partnership
in 2007 to acknowledge and reward assists the Foundation to achieve its own
small businesses that are significantly goals of developing entrepreneurial skills
contributing to economic growth by and connecting prospective partners in
creating jobs and fighting poverty. The small business.
competition is open to registered black-
www.eskom.co.za/csi
Eskom Business Investment Competition - Overall Winner exhibits at Small Business Expo
CORPORATE PRACTICE
Rooted in its commitment to the
development of young entrepreneurs,
the annual Eskom Simama Ranta
Entrepreneurship Education
Competition is aimed at identifying
and celebrating secondary schools that
demonstrate leadership and successful
implementation of entrepreneurship
education that prepares learners to
become job creators rather than job
seekers. All South African intermediate
and secondary schools are eligible
to enter the competition. To qualify,
schools must have an enterprise club
that teaches learners the basics of
running a business through practical
application, while responding to their
communities’ socioeconomic needs.
Eskom Simama Ranta Competion - Overall Winner Welkom High School
This year’s winner was Welkom High
School from Lejweleputswa District in
the Free State. Their club, WHS Yes Club,
produces various decorative and useful
items from papier mâchè and recycled
goods. To raise funds, this highly
motivated group hosts cake sales that
easily raise R800 in one day. The school
received a R100 000 cash prize for
their club, and provincial winners each
received a R50 000 prize for their clubs.
The Eskom Contractors’ Academy
Research shows that up to 80% of
new small businesses fail within the
first two years of operation. For most Eskom Contractors’ Academy graduates, 2015
of these, failure results from a lack of
basic business skills. In 2008, the Eskom students have successfully completed Jeleni’s company Vukona Byayena
Development Foundation partnered the training. One of the Academy’s Trading, which sets up electrical
with Edupark (a non-profit organisation beneficiaries and star graduates is connections, grew from 10 to 42
founded by the University of Limpopo) Mikateko Jeleni from Malamulele in employees, and monthly turnover
to found the Eskom Contractors’ Limpopo. As a result of her training, increased from R300 000 to R1.5 million.
Academy, with the aim of providing
support to small business owners. The
academy develops and empowers AWARDS
Eskom contractors and suppliers to
The Eskom Contractors’
become sustainable through skills Academy has won various
development and job creation. international awards for its work
in socioeconomic development.
Academy graduates gain skills in
Most recently, in September 2016,
developing business plans, budgets, at the International Partnership
safety management systems, safety, Network in Oslo, Norway, the
health, environment, risk and quality Academy was awarded both
plans (SHERQ), project and people the Africa Gold and the Overall
management, and tender contract Global Thematic awards for
processes. Upon successful completion entrepreneurship and enterprise
skills development.
of the programme, participants are
awarded a certificate by the University From left to right: Steph Prinsloo, programme manager; Professor Jo Nel, CEO
of Limpopo. Since its inception, Edupark, Cecil Ramonotsi, acting CEO Eskom Development Foundation
1 014 students have enrolled and 991
CORPORATE PRACTICE
in renewable energy technologies –
specifically the installation and maintenance
of solar water heaters. Ten students were
enrolled in the pilot.
As a result of lessons learnt in the first
phase of implementation, phase two will
see a larger cohort of students rigorously
CORPORATE PRACTICE
1. Donations to learners in need
The Foundation donated R250 000 worth
of uniforms, stationery and other school
necessities to children at each of the
identified schools. In total, 350 learners
benefited from the donation and became
better equipped to attend school.
CORPORATE PRACTICE
the bottom of a catchment, and how
we can protect and even improve them.
CORPORATE PRACTICE
matriculants who wanted to spend a
year in the workplace through Go for
Gold. The students, selected at the end
of their matric year, spend a year on site,
which places them in a good position
to decide if this is a career path they
would like to follow. They then apply for
bursaries in their chosen field.
In addition, Murray & Roberts has been
funding Go for Gold Gauteng for the last
two years. During the 2015 financial year, GO FOR GOLD’S SHINING STARS
AT M&R
the organisation disbursed R400 000 in
full programmatic support of 10 grade 11 While there have been many success
students, and in the 2016 financial year, stories that have emerged from this
programme, there are three stand-
it disbursed R700 000 in support of 10 out achievers that Murray & Roberts
grade 11s and 10 grade 12s. highlights as examples of how
When they complete grade 12, well the programme has worked in
the built environment,” says Donique practice in the Western Cape.
learners will commence with a gap
de Figueiredo, Group corporate social After his internship, Brent Matthews
year or internship at Murray & Roberts
investment executive at Murray & entered the Murray & Roberts Cadet
Construction in order to expose them Programme where he achieved
Roberts. to the world of work; to expose them his NQF5 – Management of
While the Go for Gold programme to careers in the built environment; Construction Processes. He is now a
naturally supports participating and to enable the business to carry out supervisor on the Merriman Square
more comprehensive assessments of project.
students, as De Figueiredo points
out, it also synergistically benefits the the learners’ potential and interest in Khanyiso Swaphi completed his
this sector. internship in 2009, then decided
sponsoring companies. to pursue a career in quantity
During the 2017 academic year, the first surveying. He completed his national
“We found that there was a disconnect
group of 10 students will commence diploma, and then his BTech at the
between the investments and impact end of 2015, and is now the quantity
their experiential working year at
of our CSI spend at secondary school surveyor on the Bridge Park project.
Murray & Roberts Construction and, by
level and the talent identification and Monique Mentoor completed
mid-year, the business unit will confirm
skills development requirements at phase two in 2015, working on
the number of bursaries that they will
business unit level,” she says. “While we Portside and the Roeland Park
award to this group. Where learners
were able to attract bursary students Project. She has now received a
decide not to study at university level, bursary to study civil engineering
from the general talent pool, we were they will be supported in participating and completed her practical year at
unable to retain these students once in alternative technical training aligned the Grosvenor Park project.
they were employed by us. However, to Murray & Roberts Construction.
through the partnership with Go for
Gold, we expect our retention rate of
candidates to improve considerably.
This remains to be seen. We know
that our retention rate, particularly in
construction and the built environment
is low. Go for Gold has reported a
70% retention rate for students who
participated in their programme and
were placed by them.
“The project demonstrates the value
of partnerships not only between
corporate and the NGO sector in
terms of broader socioeconomic
development, but the success of the
partnership between CSI and business
units, and shows how the CSI strategy
can ultimately support the business
strategy.”
CORPORATE PRACTICE
and identify where there is room for
capacity building. The Fund offers
mentorship, training and upskilling
in business management, aligning
in-house and external technical experts
to the needs of each enterprise. For
example, the Masisizane Fund provided
a business mentor to work with the
founder of Incapeace on business
management and strategy building.
“We understand ‘development
finance’ in the very broadest
sense of the term. We view
ourselves not simply as bankers
to our clients, but as their
partners.” Lessons learnt
Khanya Okumu (Post-investment Associate: Often, in the first few years of a
Manufacturing and Supply Chain, business’s operations, the actual capital
Masisizane Fund)
requirement fluctuates from what
was initially predicted, and things
CASE STUDY: INCAPEACE generally do not go as planned. This is
Anele Peti, of Qumbu in the Eastern particularly true in the agriculture sector.
Cape, established Incapeace in 2013, Grant funding enables the supported
manufacturing concrete blocks. In businesses to withstand unexpected
selecting Incapeace, the funding challenges, where a straight loan facility
partners considered two elements: would be far less flexible.
sustainability and profitability.
Peti had proved his viability by For example, Incapeace started
establishing market outlets with five producing its bricks in winter. The cold
local Build-It stores who committed weather meant that the bricks did not
to purchasing his product. He dry as quickly as had been calculated
had secured a production site in and the business did not have sufficient areas. This has the added advantage of
partnership with the local quarry demonstrating to the entrepreneurs the
drying pallets to accommodate
owners as part of their social
the backlog. As a result, the entire importance of record-keeping in their
labour development plan (SLDP),
to generate employment, and had production line was slowed. own businesses.
cleared land permissions.
The Fund and the Foundation have
For Incapeace, the hybrid funding Looking ahead
also both learnt that a good working
model has been critical to the The Foundation is still finding its feet
relationship and regular contact are
success of the business. The start-up in the ED space, but it is proud of the
critical. It is important to keep abreast of
funding required would not have impact from its investments with the
been affordable had it been sourced how each business is performing. That
Masisizane Fund. The partners are
from loan funding only. The loan to way, the entrepreneurs feel comfortable
now working towards more effective
Incapeace consisted of two facilities asking for assistance to address
monitoring and evaluation methods
over 60 months: R3.6 million in asset difficulties as they arise.
finance for machinery, and R731 000 – to ensure that the impact and
in working capital. The Foundation Regular contact also enables the Fund beneficiation of the investments are
provided R822 645 in grant funding. to obtain information that allows it sufficiently broad based – and towards
The Foundation and the Fund saw to better measure the broad-based encouraging the supported enterprises
a potential star: a small business impact of its investments, although themselves to become community-
run by a young black man who is this can be difficult, particularly in rural focused, responsible businesses.
enthusiastic and passionate about
what he does, and is committed http://dogreatthings.co.za/foundation/2016/03/building-blocks-of-business
to growth and learning. Incapeace
currently employs 18 people,
which Peti plans to grow to 26 as
soon as the staff are trained. Daily
production will then be increased
from 6 000 to 10 000 blocks, and
finally to full capacity of 12 000.
CORPORATE PRACTICE
or provide regular progress reports.
level. This provides a welcome space
Nonetheless, partnerships are key
for Santam to enter into strategic
to the implementation of projects,
partnerships with local government
and CSI has the most reach when
disaster response units, as well
all stakeholders are engaged and
as collaborating with NGOs and
committed to the process.
intermediaries.
Santam’s approach to risk aligns to Leveraging business expertise their risk, Santam is able to collect
the National Disaster Framework. and aligning to core business important research data and to
The framework contains four key goals: a virtuous circle minimise its own business risks, while
performance areas: building integrated Santam’s expertise lies in risk contributing to the socioeconomic
institutional capacity for disaster risk management and cover. Through its development of society.
management; establishing a uniform own business operations, as well as
approach to assessing and monitoring through its CSI programmes, the insurer Looking ahead
disaster risks; reducing disaster risk has learnt valuable lessons about the Going forward, Santam’s goal is
through proper implementation of risks that vulnerable communities to leverage its experience and
plans; and ensuring effective and face, where they lack capability its partnerships, and expand its
appropriate disaster response and and resources, and where Santam’s CSI interventions into vulnerable
recovery. The key focus areas of intervention would be most useful. The communities in 10 district
Santam’s CSI programme are intended company is able to use its business municipalities throughout South Africa
to support each of these four pillars. skills to find innovative solutions to by the year 2020 and, where possible,
empower and mobilise communities extend its reach to other vulnerable
Lessons and challenges through a holistic implementation of communities outside of the specified
Santam has found that, while working disaster and risk reduction initiatives. districts. This will directly and positively
with local municipal structures is Furthermore, by assisting vulnerable affect many South Africans by making
necessary to achieve maximum impact, communities to manage and mitigate them risk aware and resilient.
1 2 3
PARTNERSHIPS Companies NGOs Employees
Drive community Increase Assist with
TO BUILD RESILIENT
risk awareness capacity for early warning
disaster response systems and
Schools First aid Building Provision of Provision of Clearing alien Disaster risk Response and
disaster training firefighting fire detection early vegetation
awareness capacity equipment warning reduction recovery
programme systems
technology
CORPORATE PRACTICE
In order that the Foundation’s ICT
investments are sustainable, it has been
deemed critical that an integrated
approach is taken to the resourcing of
schools, educators and learners with
ICT capability, and that the beneficiary
schools and learners are properly and
holistically exposed to, and equipped to
address, the risks inherent in socialising,
playing and communicating online.
The Foundation has therefore refined its
CSI strategy to ensure that, in addition
to providing focused, customised ICT
solutions to schools, it delivers on these
educational gaps and commits to
providing continuous, relevant training
and support to its beneficiaries.
M
ichael Porter first coined the phrase in 2011, in the Harvard Business Review,
defining shared value as corporate practices and policies that enhance
the competitiveness of the company, while simultaneously advancing
economic and social conditions in the communities in which the company
operates. He has since emphasised the necessity to reconceive the way that we do
business, so that companies do not only contribute to the development of society
through CSI projects, but through their core business, too.
Shared value requires a shift in ideology, away from pure profit-driven priorities,
towards acknowledgement of the interconnectedness and mutual dependence that
exists between shareholders, customers, suppliers, employees, and society at large. This
approach places greater emphasis on how all stakeholders can benefit from initiatives,
and how capitalist ventures that strengthen the economy can also strengthen the
social fabric and uplift society.
Key factors for fostering shared value include:
zzA sense of consciousness filtered through the company, starting at a leadership level
zzAn understanding, among various stakeholders, about the bigger picture purpose
FURTHER READING and collective passion that drives the company – beyond its business mandate
https://hbr.org/2011/01/the-big- and financial contributions
idea-creating-shared-value zzAn honest review of every aspect of the business, with consideration of how
http://sharedvalue.org/about- existing resources, such as money and people skills, can best be used to
shared-value
strengthen the communities in which the business operates. ■
A
social enterprise is broadly understood as an organisation that seeks to address
social issues using sustainable business models; is involved in trading activities,
with profit always or mainly reinvested into the enterprise; converges social and
I
mpact investing is defined by the Global Impact Investing Network (GIIN) as
investment made into companies, organisations and funds, with the intention
of generating social and environmental impact alongside a financial return. GIIN
CHAPTER 4
D
evelopment practitioners are coming to understand that tracking and,
importantly, understanding the impact of their activities is crucial to secure
sustained support for their projects. But more than a tool for public relations
204 400
SCHOOLS NEW FACILITIES
ADOPTED F O U N D AT I O N CONSTRUCTED
410 121
SCHOOLS NEW FACILITIES
ADOPTED CONSTRUCTED
900+ 6 783
TOTAL BUSINESSES BUSINESSES ON
INCUBATED 6 118 1 051 SHANDUKA BLACK
TEMPORARY JOBS PERMANENT JOBS PAGES
CREATED CREATED *Up to August 2016
Social impact bonds
A
well-established model in the USA and UK but relatively new to South Africa,
social impact bonds fund the outcomes, rather than activities, of a project.
The donor identifies a set of outcomes that they are willing to pay for; job
CHAPTER 4
By Dr Susan de Witt of the Bertha Centre for Social Innovation and Entrepreneurship – www.gsb.uct.ac.za
I
n the ongoing effort to address challenges in the South African education system,
information and communication technology (ICT) has often been tagged as a
panacea. However, experts agree that while ICT has the potential to significantly
enhance learning, an understanding of the learning context and teaching
pedagogy are essential for a well-rounded and successful digital learning experience.
In order for ICT to make a meaningful difference to the quality of education, the
following points need to be considered:
zzThe user-friendliness of the technological device
zzHow well content is tailored for technological devices, and whether the delivery of
content is enhanced through ICT
zzThe reliability and quality of the hardware and software, ensuring that it is
relatively up-to-date
zzThe availability of maintenance and support services
zzThe affordability and reliability of internet connectivity.
While it can be easy to get learners excited about using technology, teachers play a
crucial role in how ICT is integrated into classroom learning and emphasis should, as a
result, be placed on teacher training.
Common practice in the financial services sector in South Africa leans towards software
development of maths and science teaching tools. In addition to providing connectivity
FURTHER READING
in line with regulatory requirements, telecommunications companies tend to invest in
http://www.unesco.org/new/en/ software development, as well as infrastructure and training. Technology companies,
unesco/themes/icts
expectedly, invest in this space as part of their normal business practice, selling
http://trialogue.co.za/delivering-
richer-learning-experience-ict hardware and educational software (often adapted for the South African context) to
schools at discounted rates. ■
D
espite receiving considerable government and corporate investment,
education remains one of the most challenging sectors in which to affect
systemic and sustained development in South Africa. The magnitude
R COLLAB
F DONO OR
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PE IO
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LINK
FURTHER READING
http://trialogue.co.za/art-
collaboration-education
http://bit.ly/DonorCollab
Written in collaboration with Barbara Dale-Jones, former CEO of BRIDGE – www.bridge.co.za
C
harities Aid Foundation Southern Africa (CAFSA) defines employee community
involvement (ECI) as a “freely-given contribution of employee time, skills and
CHAPTER 4
S
outh Africa has set a target of 17 800 megawatts (MW) of electricity from
renewable sources by 2030. This is the equivalent of almost four Medupi-sized
coal-fired power stations. The Renewable Energy Independent Power Producer
Procurement Programme (REIPPPP) is a licensing programme intended to
encourage and enable foreign and private sector investment to provide power from
renewable sources such as wind, solar energy and biomass, among others. REIPPPP is
being rolled out through a set of bidding rounds as part of a phased approach.
Part of the evaluation criteria for bidders is the inclusion of enterprise development (ED)
and socioeconomic development (SED) programmes, funded through a committed
percentage allocation from the successful bidders’ total project revenue spread over 20
years of operations. The benefits are applied to local communities within a 50-kilometre
radius of individual power projects. What these requirements do mean is that there is
significant funding available to implement projects that will benefit communities
across the country and in support of a wide spectrum of development opportunities.
Funding spend does have to meet a strict set of timing and reporting requirements.
There are various mechanisms for providing benefits to the communities that include
sharing ownership with an entity representing the local communities and the initiation
of various ED and SED projects. Community trusts are a popular vehicle in response
DEBBIE SNOEK
zzThe term ‘community’ is often used as a geographic descriptor while, in reality,
differing situations or contexts will give rise to different communities.
zzThere is a very real possibility of duplication of effort and the creation of confusion
as to appropriate ED and SED interventions. This results, in part, from the need to
meet the ED or SED spend deadlines in terms of the licensing agreements, as well
as from the competitive nature of the procurement programme which does not
incentivise collaborative efforts.
zzThere is, however, a strong argument for collaboration once projects have been
awarded and implementation commences. Thus, companies increasingly explore
potential synergies of their community development efforts as well as with other
initiatives and, in particular, the formalised planning structures at the local and
regional levels.
zzLocal and provincial authorities are required by legislation to prepare a Spatial
Development Framework, an Integrated Development Plan and a Local Economic
Development Strategy, which should form part of the contextual analysis that any
responsible community development approach takes.
It is recognised that further work needs to be done in supporting and guiding the
approach and it is hoped that the good work being done through the roundtables
and workshops will lead to a legacy for communities of long-term empowerment and
enablement.
It must also be recognised that, while the young and emerging renewable energy
industry will take time to understand the local context and develop a collaborative
approach, there are many opportunities to initiate interventions in the short term.
Some of these will be in the education and community health sectors for example.
REIPPPP provides a really exciting opportunity for a collaborative approach to CSI
projects to effect both focused and systemic change in many of the underserved
areas of South Africa. The opportunities for collaboration extend beyond just those
organisations directly involved and include local authorities and government, other
CSI-driven initiatives, and academia. A major benefit of such collaboration could be the
development of effective monitoring and evaluation approaches that provide learning FURTHER READING
for all involved in REIPPPP. ■ http://www.sawea.org.za
By Gordon Laing of SEE Sustainability and Holle Wlokas of Energy Research Centre at UCT and the http://www.sapvia.co.za
Transformation Energy Trust
About the FirstRand Foundation CSI that works: building FirstRand encourages the personal
sustainable relationships involvement of the employees
The FirstRand Foundation is a leader of the FirstRand Group in the
in CSI in the financial services sector. The Foundation involves itself in CSI communities we support, through
It is one of the largest corporate programmes that are both strategic our staff volunteer programme. The
donors in South Africa, having and measurable, so that its social programme sources viable non-profit
invested more than R1 billion in CSI investments are approached with organisations and schools to which
projects since 1998. The Foundation the same rigour as the company’s employees are encouraged to donate
embodies the belief of the FirstRand core business. We place an emphasis their time, as well as money and
Group that corporations have a on CSI that works, and experience goods. Through this, many commit
responsibility – beyond creating jobs has shown us that the most real and to long-term personal involvement
and paying taxes – to contribute to measurable social impact is achieved with these projects, often through
the social and economic upliftment through long-term, structured, skills-based volunteering. In addition,
meaningful CSI relationships. The through this programme, FirstRand
of all South Africans.
FirstRand Foundation collaborates matches employees’ own donations
In the year ending June 2016, the with beneficiary organisations that of time and money to registered
Foundation spent R171 million both serve a specific development organisations of their choice,
on social causes within its four need and operate sustainable, R1 for R1. Since its launch in 2003, the
mandated focus areas. efficient programmes. employee volunteer programme has
mobilised over R45 million towards
worthy causes.
TOTAL CSI SPEND Corporates have tangible potential
to enrich and uplift the lives of
Cross-cutting, emergency millions of people. Effective CSI
and discretionary generates opportunities, transforms
communities and creates shared
value for business and society. We
Thought Leadership
and Innovation 9% believe that the success of the nation
depends upon the contribution
8% of all members of society, and the
Education FirstRand Foundation is committed to
40% playing its part in the development of
a better South Africa.
27% Beth van Heerden
Social
Development CSI Executive – FirstRand Limited
16%
Health
I
t can be challenging to find the right balance when communicating CSI. While
it has been argued that CSI should not be used as a public relations tool, it is
necessary for companies to communicate their efforts in social development,
CHAPTER 4
Embedded
in brand
Integrated and
adapted
for company's
communication platforms
Stand-alone holistic
communications strategy and outputs
T
he Edgars UNiTE Orange Day Campaign has seen women Participants were also given an insight into the workings of the
who were previously victims of gender based violence fashion industry by visiting Edcon’s Quality Assurance Facilities
given a new lease on life by teaching them invaluable and attending presentations by the retailer’s buyers, suppliers and
design skills; skills which can be used to foster financial merchants, who provided valuable insights into design and trends.
independence and set them free from their painful pasts.
some innovative funding models that public and private finances makes sense
could be considered for development? for the sector using something like a
The way that I think about grant funding, challenge fund or impact bond.
coming from the philanthropic space,
There are 60 impact bonds that have been
is that in the big scheme of things it’s
launched around the world, raising a total
a relatively small amount, even with
of $216 million social investment capital
the BBBEE component, compared to
and reaching almost 90 000 people. These
how much money government puts
align public and private sector capital
into environmental and social projects.
against a set of outcomes.
For this reason, I believe it’s important
for grantmakers to use their money as Corporate finances are governed by the
catalytically as possible. By this I mean that BBBEE Codes. As such, they have a mix
they should use part of their grant funding of risk capital to invest into enterprises
to attract more money into development preferably in their own supply chains. An
or to increase the effectiveness and example of an enterprise development
impact of existing programmes or fund that has been designed to draw on
Dr Susan de Witt is the approaches to problems. different types of capital is the Vumela
programme coordinator ESD Fund. This R186-million Social Venture
For instance, one of the key areas
for innovative finance we focus on at the Bertha Centre is
Capital Fund has attracted predominantly
at the Bertha Centre for corporate investors with The Jobs Fund
impact investment. This is investment
contributing a significant amount to drive
Social Innovation and finance with clearly identifiable social
job creation. Some SMEs require grant
Entrepreneurship, the or environmental impact. One could
funding for incubation or acceleration,
first academic centre use grant capital to attract money not
while others require patient loans at early
usually spent on traditional investment
in Africa dedicated growth stage, for example.
funding. This could be done by de-risking
to advancing social investments; taking a subordinate Social enterprise and social impact
innovation and position in a loan and providing a first- bonds are buzz terms at the moment.
entrepreneurship. She loss guarantee. Or companies could How are these likely to shake up the
discusses some of the provide technical business development non-profit sector?
innovative models assistance to small- and medium-sized Social enterprise, although a relatively
enterprises (SME), to make it work. new concept in South Africa, is a sector
that her organisation
investigates and the What we want is to crowd in traditional that is starting to see growth in other
investors – banks, pension funds, retail parts of the world. A social enterprise
potential impact that is an organisation that has a particular
investors – to fund projects with social or
this could have on environmental outcomes. The overarching social or environmental impact focus
corporate philanthropy. theme is of catalytic capital. and applies market principles to sustain
that work. Some countries have created
Should corporates or non-profit a bespoke corporate form for social
organisations be responsible for driving enterprise, although locally you will find
blended finance models? traditionally incorporated companies and
Different people understand the term NGOs working in this space. For example,
‘blended finance’ differently. Some if NGOs want to start income-generating
consider it to be a mixture of public and activity, they will often set up a for-profit
private capital. Others use the term to company with a mission-related lock, next
describe a mix of different types of risk to their non-profit structure.
capital, be it grant, loan or equity. In this time of fiscal austerity, it is
Either way, both the supply and demand becoming more and more necessary for
side can be responsible for advocating NGOs to think about generating income
for these models. The reality is that non- in order to survive. They are being forced
profits are seldom equipped to drive the to adapt out of necessity. Because social
Dr Susan de Witt creation of such instruments and thus enterprises are inherently sustainable,
Programme coordinator they may prove to be more resilient than
the impetus should be coming from
Innovative Finance, Bertha
Centre for Social Innovation capital providers. It is certainly clear that traditional grant-reliant NGOs. ■
and Entrepreneurship the way that non-profits currently raise
Graduate School of Business, funding through the public and private
University of Cape Town
083 225 1866 sector is extremely inefficient, with
021 406 1033 contracts running from year to year and
susandew@gsb.uct.ac.za multiple income streams required to keep
Nearly 80 school halls will have current cost, can’t be adjusted until
been completed at the end of the more private sector donors start to share
2017 financial year by the Archway the motivation and funding to provide
Foundation, which was established the halls.
11 years ago to alleviate the chronic In the 11 years of its existence, the
shortage of these essential facilities for Archway has been virtually a lone
under-resourced schools in the Western corporate force working to equalise the
Cape. The halls currently represent a opportunities for the remaining one
total cost of over R300 million. million children who are disadvantaged
Founded by Garden Cities, the province’s by the lack of a school hall.
oldest and biggest residential developer The unanimous opinion of educators,
which celebrates its centenary in 2019, that school halls are essential in
the Archway has steadily been making education still has to be shared by
headway with lowering the number of a wider population of business and John Matthews, CEO of Garden Cities
halls needed - which amounted to 700 government that have the resources
when it started. to quickly change the bleak education
Now, the first 100 halls are in sight. landscape, to include the sturdy whatsoever that our children shouldn’t
By the middle of 2017, another 10 will outline of big, well equipped halls on have the best education the world can
have been built for schools that cover public schoolyards. offer. It’s all in the will of the people
the broad landscape of the province, More recently, the Archway has also who have the power to create the
from the Cape West Coast to as far been partnering the University of change. You can’t sit and wait for good
afield as George, and even Touws River, the Western Cape to provide science things to happen.’
De Doorns and Oudtshoorn in the laboratories for schools in need in the Matthews asks the heads of other
Karoo. The majority of the halls so far province, and so far it has collaborated Western Cape and national business
have been built on the Cape Flats on 32 of these projects. The labs are to collaborate with the Archway
where, historically, schools have been provided complete with the entire Foundation. The upside, he says, is the
disadvantaged and in many cases infrastructure that includes hardware, assurance that the halls are built to a
remain so. equipment and chemicals, as well as the very high standard and all the donated
Nowadays, the halls cost around training of teachers in their use. funds go into the hall. He can be reached
R6 million each, nearly 60% more than The Archway’s efforts result largely from on 021 558 7181
when the programme started, and of the personal experience of Garden Cities’
the total R58.8million spent in 2015/6, CEO John Matthews, who says, ‘I knew,
the Archway has provided R30 million. first hand, what it was like to go to a
While currently, the Western Cape school that lacked all the things that
Education Department partners Garden teachers then, and particularly now,
Cities with financial input, in the past, consider absolutely essential to a holistic
the Foundation has borne the full cost of education. The things we didn’t have,
the halls. There have been collaborations like the halls – which too many kids in
with other corporates but many more the Western Cape still today don’t have
are needed to make a meaningful – are not add-ons or luxuries. Without
change in the medium term. them, it will be an ongoing struggle to
The estimate of nearly a century to achieve world-level education standards.
redress the shortfall, at a R3 billion ‘And there’s actually no reason GARDEN CITIES
Giving around
the globe
CHAPTER 4
North America
North American companies determine where to give internationally based on
various internal and external factors, including employee footprint, engagement and
satisfaction, competitive business advantage, and where growth opportunities are
A comparison of the percentages located. Companies also look at where social needs are greatest in determining how
of total giving that companies they can make a significant social impact.
in the Giving in Numbers Survey
allocated towards programme The median number of countries in a North American company’s geographic portfolio is
areas that align with SDGs: 12. The total number of recipient countries given to by 65 respondent companies was 167.
Programme area Total giving Related SDG In Africa, most companies gave within South Africa (27%), contributing on average
%
$19.25 million. The other popular recipients were Kenya (13% of companies); Egypt
Civic & public affairs 5% 16
(11%); Nigeria (10%); and Morocco (7%). Among the three biggest economies, South
Community & economic 13% 1, 5, 8, 9
development Africa has the most favourable Corruption Perceptions Index rankings, according to
Culture & arts 6% 4 Transparency International.
Disaster relief 2% 11, 13
Education: Higher 13% 4
In Asia, 43% of North American companies gave to social investments within India,
Education: K-12 16% 4
funding on average $39.82 million each. The next top receivers were: China (32% of
Environment 3% 7, 12, 14, 15 companies); Australia (28%); Japan (27%); and Philippines (24%).
Health & social services 26% 2, 3, 6, 10
In Europe, North American companies make societal investments in the United
Other 16% 17
Kingdom (41%; $100.53 on average); Germany (25%); France (24%); Spain (20%); and
Poland (18%). Poland has continuously been improving its Ease of Doing Business
ranking over recent years through institutional and taxation reforms.
In Latin America, investment went primarily to Mexico, which received on average
$59.06 million each from 34% of the respondents. Thirty percent gave to Brazil; 22% to
Colombia; 20% to Argentina; and 19% to Chile. The level of investment in Mexico may
be related to its geographic proximity to North America and to the North America Free
Trade Agreement with the US and Canada.
Africa1
Companies in South Africa allocate a higher proportion of total giving to education-
related causes than any other region. They do not commonly offer pro bono programmes,
but 80% of companies offered domestic paid-release time and a company-wide day of
service. The majority of listed companies support employee volunteering and 50% of
companies offer a corporate match to employees’ personal donations.
The UNGC’s Africa Strategy
More broadly in Africa, entrepreneurship has grown over the past few years, particularly recognises the importance of
youth entrepreneurism (although South Africa has a much lower rate of youth involved the private sector in fostering
in entrepreneurial activity than other African countries: less than 25%). The African economic growth in the region
technology sector specifically has seen growth and innovation, with a notable example and placing special emphasis on
reducing poverty (SDG 1), through
being the rise of Silicon Savannah and the tech hubs in East Africa. CSR programmes
improving current infrastructure
have been shown to play a significant role in supporting enterprise development. (SDG 9), in collaboration with
networks like the New Partnership
Market to watch: Nigeria for Africa’s Development.
Nigeria is the most populous African country and the largest economy (estimated
GDP: $490 billion). Nigerian corporations are increasingly viewing CSR and community
development as imperatives. Nigeria’s four largest companies: Dangote Cement,
Zenith Bank, FBN Holdings and Guaranty Trust Bank, which are listed among the
Fortune Global 2000, are deliberately working to address issues of poverty and
inequality through their CSR initiatives. In 2012, Zenith Bank was recognised as one of
30 outstanding global brands performing highly on CSR indicators.
1 All respondents for this profile are from South Africa, where a majority of the largest African companies
are headquartered. As the study grows, CECP hopes to include more countries in the Africa profile.
Council of the EU, some key EU zzUS$ 479: total giving per employee.
contributions will be related to zz81% of companies give internationally.
SDG 1 (No Poverty) and SDG 17
zz81% of companies report having a foundation.
(Partnerships for the Goals).
zzOn average, 42% of total cash is from the foundation (among companies with
a foundation).
European companies were ahead of other regions in terms of matching employees’
personal donations, with 75% of companies offering this. Eighty-two percent of
companies offer domestic paid-release time and 64% offer it internationally. Sixty-four
percent offer a pro bono programme domestically and 27% internationally.
Brexit may have a negative impact on giving, as the UK stipulates that contributions
can be made only within jurisdictions where a bilateral or multilateral treaty is in place.
Brexit implications for corporate deductions of cross-border giving remain unknown.
Corporates have also responded to the refugee crisis, through job creation, skills
development, integration, donations and volunteering. In Germany in particular,
corporations are supporting local emergency aid programmes, and providing
internships for refugees.
Asia
zz74% of companies gave direct cash, 15% gave cash through foundations and
11% gave non-cash.
zz0.09%: total giving as a % of total revenues.
zzUS$ 1,210: total giving per employee.
zz65% of companies give internationally.
WE’RE IMPROVING
EDUCATION
We work with teachers and learners
throughout South Africa to support and
improve school curriculums with regards to
environmental learning, equipping children
to live sustainably in the future. Through our
Eco-Schools programme alone we have
reached over
learners and 400 000
over 16,000 teachers.
B-BBEE
WE’RE HELPING COMPANIES
BECOME WATER AND
CARBON NEUTRAL
WE’RE SUPPORTING WE’RE FACILITATING We’re partnering with corporates to help
them reduce their environmental footprint
SUSTAINABLE TOURISM SOCIO ECONOMIC by implementing invasive alien plant clearing
We’re actively promoting the development of
DEVELOPMENT and ecological restoration projects in local
communities on their behalf. This leads to
ecotourism in South Africa. Since 2001 we’ve We’re an accredited facilitator of Socio
job creation, water conservation and
managed Blue Flag - the longest running and most Economic Development (SED). More than
75%
climate change mitigation.
recognised tourism eco-label in the world - of the direct beneficiaries of
resulting in improved tourism facilities at over our projects are black South
60 different sites along our country’s coastline. Africans, as defined by current B-BBEE
Through the international Green Key legislation. By supporting us, corporates
programme we’re awarding tourism establishments are able to gain SED points to improve
for their environmentally responsible operations. their B-BBEE scorecard.
A
lthough it is an enticing prospect for Africa’s governments and its people, CSI
on the continent remains underexplored. The few existing research inquiries –
such as by the German aid group GTZ, the analyses by the African Peer Review
Mechanism (APRM) and Trialogue’s own inquiries – provide partial insights at
best. Information gaps notwithstanding, CSI in Africa is a growing phenomenon. In
one of the continent’s most advanced economies, South Africa, it has a long pedigree,
stretching back to charitable work by the Cape of Good Hope Bank in the 1830s. In
other countries too, state-owned enterprises (SOE) undertook a form of proto-CSI in
the post-independence era. Largely an extension of government policy, economic
stresses in the 1980s shut much of this down. Now, in tandem with Africa’s renewed
attractiveness to investors, a new wave of CSI is evident.
”
A strategic alignment of CSI with business objectives remains ideal. Some companies
can certainly claim to have achieved successes in this regard, typically, through CSI third.
interventions in the fields of their business. Pharmaceutical firm Novartis argues that
its business is enhanced when health systems function well, and therefore works to Dr Arnold Smith
corporate responsibility.
Dianna Games, chief executive of Africa@Work, points out that a differentiator between
how CSI is conducted in more and less developed economies may be related to
differing social needs of those societies. In less developed economies, CSI tends
towards meeting the immediate, visible needs of the host societies, while still serving
the purpose of courting customer loyalty and brand visibility. The developmental
deficits in these societies are basic and stark – for education, healthcare infrastructure,
sporting facilities, and so on – and provide companies with ‘low-hanging fruit’. In more
developed economies, expectations of companies are greater. Needs and demands are
more nuanced and varied. While the need for basic developmental work exists in these
societies, companies will face more sophisticated social demands, and CSI plans may
need to be open to such issues as patronage of the arts or small business financing,
especially if they wish to use CSI as a tool to promote and differentiate their brands.
The role of multinationals in driving CSI in relatively undeveloped markets has been
widely noted. For example, Chevron has undertaken numerous initiatives in Angola
in health, education, business development and agriculture. Elsewhere, the same has
been done by established local companies. Sonatrach, Algeria’s hydrocarbons SOE, has
provided food aid, facilitated sports and undertaken environmental protection.
In each case, the firms’ reputations, experience and resources have made this work
possible. As local firms mature, so may their awareness and capacity for CSI.
Another interesting development is the evolution of information sharing and peer
learning in CSI. According to Safaricom, a Kenyan mobile communications company
active in CSI, opportunities for sharing do exist, and have been further underpinned by
the recently instituted SDGs.
Educentre
Our flagship project is Sozo Educentre which
provides a safe space for high school learners to be
equipped and empowered through education and
academic assistance with a vision to see a generation
of young leaders who inspire positive change in their
Since 2011 we have provided
communities. In a community where young people
are negatively impacted by gangsterism, abuse and
crime, the Educentre also provides alternative role
models who support and enable young people to
1234
hours of tutoring to 300 learners
reach their full potential.
20 000+
nutritious meals
500+
hours of Career Inspiring Initiatives
In 2016
Legal Status
The Sozo Foundation Trust is a registered Not for
Profit, Public Benefit (NPO, PBO) organisation. 91%
Donations to The Sozo Foundation Trust are therefore overall pass rate
tax deductible for South African donors, in
accordance with the provisions of Section 18A of the
Income Tax Act, 1962.
100%
matric pass rate
We are a Level 4 BEE Contributor (Exempt Micro
Enterprise) with 100% black beneficiaries according
to the Broad-Based Black Economic Empowerment
Act.
fundraising@thesozofoundation.org.za
036-344-NPO | 930013534-PBO
www.thesozofoundation.org.za
Thembalethu Development is a
registered non-profit company
and non-profit organisation. It
was founded in 2002 with the aim
of becoming the socioeconomic
development agency of choice for
the mining industry, government,
the corporate private sector and
international donors. Through
strategic partnerships, Thembalethu
Development provides development
services and offers community-
focused interventions in South Africa,
Mozambique and Lesotho.
WHAT WE DO
Our work is grouped into three principal areas: Vaal Reefs Disaster Trust: Poultry Farming Project Mozambique
1. Initiate, conceptualise, design, implement, facilitate and coordinate
development programmes.
2. Monitor and evaluate development interventions and assess impact.
3. Report to and engage with all stakeholders.
OUR PROGRAMMES
Thembalethu Development is committed to driving the empowerment and
integrated development of mining and other communities through the
provision of skills and work opportunities, as well as through the provision
of improved food security, health and nutrition. Through our programmes,
we aim to provide access to basic needs; address the individual, social and
environmental drivers to health and economic vulnerabilities; and capacitate
Vaal Reefs Disaster Trust: Skills Development and Training
communities in the long term.
Reckson Luvhengo
Thembalethu Development
p 010 786 0456 | m 082 735 6826 | e reckson@thembalethudev.org
T
his year, 15 companies and corporate foundations submitted a total of
18 projects for consideration. Judges Anthony Wilson-Prangley and Stan
Hardman, who have adjudicated the award since its inception three years ago,
found all the projects submitted to be well-intentioned and indicative of the
diversity of CSI in South Africa.
As can be seen in Trialogue’s CSI Positioning Matrix, strategic projects are those
that deliver a high combination of positive social and business outcomes, impacts
and benefits to their stakeholders. While developmental CSI often offers beneficial
social outcomes, it does not always have significant corporate advantage. Similarly,
commercial grantmaking prioritises corporate benefit over social returns.
CORPORATE BENEFIT
JUDGING CRITERIA
Objectives: Targets need to be practical and realistic. Entries should be specific, measurable, achievable, relevant and
time-bound (SMART).
Outputs: Short-term results that are immediate, visible and concrete (e.g. number of houses built, people trained,
supplies or pamphlets distributed, community members treated, hours of service delivered, and so on).
Beneficial outcomes: Specific changes in behaviour, knowledge, skills or wellbeing. Medium-term developmental
results that are the consequence of achieving a specified combination of short-term outputs (e.g. behaviour change,
attitude change, new knowledge or skills, improved grades, reduced isolation, improved access to health services,
improved self-esteem).
Beneficial impact: Broader long-term (three years or more) consequences of the project. Community, society or
system-level changes that are the logical consequences of a series of medium- and short-term results (e.g. improved
effectiveness of education system, reduction in HIV prevalence, new social norms, more educated/healthier population,
inclusive decision-making, lack of stigma, increased capacity). Government engagement, lesson sharing and advocacy
are also taken into account.
Recognition of contribution: Recognition of the project that improves the company’s reputation. This can include
recognition of expenditure as SED in the BBBEE scorecard, as well as internal and external communications of the
project.
Stakeholder benefit: Meaningful engagement with key stakeholder groups in the funding, design or management
of the project that improves the company’s relationship with that stakeholder group. Stakeholders can include
communities, regulators, government, suppliers, customers or employees.
Competitive benefit: Project benefits that enhance the competitiveness of the business. This can be done by securing a
licence to operate, opening up new markets for the business, introducing new products, reducing costs by developing
suppliers and/or leveraging corporate resources, or securing specialised talent.
strategic CSI, entries demonstrating direct, measurable social and business impact and
benefits were most highly rated. While there can be only one winner, judges made
special mention of the following high-scoring initiatives.
The Hollard Foundation Trust’s Kago Ya Bana ‘Building together for our
Children’ Programme
Kago Ya Bana is a partnership between the Hollard Foundation Trust, the Gauteng
Departments of Health, Social Development and Basic Education, local municipalities
and implementing non-profit organisations. Started in Midvaal in 2009, this project
© THE FOSCHINI GROUP
was extended to the City of Johannesburg and Lesedi municipalities in 2015. It aims
to influence and enable local government to support access to quality early childhood
development (ECD) delivery in vulnerable communities. To this end, the project
supports facilitation of strategy development, resourcing of ECD units, nutritional and
learning outcomes, as well as building the capacity of the non-profit Engaging Parents
Organisation, which it also established.
This is a good example of strategic cross-sector partnership, which has been well
operationalised and documented, and has had a substantial systemic influence. The
project scored well in terms of the social and developmental benefits, but was weaker
with regards to business benefits, which are crucial for this award.
The Foschini Group’s The Feel Good Project
The Feel Good Project (tfgP) is a social enterprise that provides unemployed youth
with skills training and employment opportunities in retail, supply, garment repair
and warehousing. The Feel Good Project stores in Khayelitsha and Claremont sell The
Foschini Group (TFG) merchandise (that have been purchased at competitive prices),
as well as customer-returned merchandise, donated by TFG, making this initiative self-
sustainable. tfgP training programmes run twice per year, over a six-month period.
Of the 54 graduates of the training programme, 41 have been placed in short- and
long-term jobs.
This innovative and sustainable project is an example of best practice CSI, and has clear
social and business benefits. Judges believe that with more data-based evidence, this
entry could do very well next year.
Isibindi Residential
Fostering/ Community Care
Hosting Outreach
Volunteers
Therapeutic
Leliebloem Programme
House
Family Child & Youth Care Centre
Reunification
Programme
Fostering/
Hosting
Adolescent Specialised
Development Behaviour
Programme Management
Leliebloem House was founded in Aftercare Programme
1868 in District Six, Cape Town, as a Services
refuge for women. Registered in 1967
as an NPO, this residential child and
youth care centre moved to Crawford
and caters for 60 children who are in need Besides the physical nurturing, love and security so important to
of specialist care and intervention. The areas in which these children, counselling helps them reach their full potential
the home operates include Athlone, Wynberg, Mitchell’s Plain, and breaks the cycle of abuse and poverty. Outside of its own
Paarl, Strand, Atlantis, Sir Lowry’s Pass and Worcester. resources of in-house social and child and youth care workers,
Some of these young people are from families where substance Leliebloem House calls upon the services of volunteers, NGOs
abuse is prevalent; they have been physically, emotionally or and CBOs such as Rape Crisis, RAPCAN, Safe line, Child and
sexually abused; others are at risk as a result of unemployment, Family Unit, SANCA.
poor parental control, and emotional deprivation; while others Leliebloem’s objective is to bring wholeness and healing to
have been orphaned as a consequence of HIV/Aids. Children are the child and the family. The interests of the child are always of
sent to Leliebloem House by the courts and the centre provides paramount importance.
a nurturing ‘home away from home’ for these children.
Leliebloem consists of six cottages, an administration block,
and the Jean McGregor Centre for Adolescent and Youth
Development. Each cottage accommodates 11 to 14 children
who are enrolled at schools in the local community.
The home’s Residential Care Project focuses on children, the
youth and their families. The project forms a vital component of
the successful running of the other programmes, including:
• Individual treatment care plans of residential children.
• Hosting programme which undertakes the screening and
training of future foster parents. t 021 697 4947 | f 021 696 4174 | www.leliebloem.org.za
• Life skills programmes.
Carla Stewart | Cynthia Slingers
• Family Reunification Programme to restore family bonds and Marketing & Fund Development Department
reintegrate children back into their families. administrator@leliebloem.org.za
• Adolescent Development Programme/youth leadership
equips young adolescents with life skills and mentorship
training in order to make informed choices while
simultaneously providing them with opportunities to interact
with their peers and offer positive peer support to each other.
• Specialised behaviour management caters for 10 children
with severe behavioural challenges.
• Isibindi Grabouw provides comprehensive services to 576
identified orphans and vulnerable children.
Development Foundation WINNER
2016
O
wners of small and medium enterprises participate in an eight-month
991 programme, attending classes for one week a month, during which time they
entrepreneurs are provided with accommodation, transport and computers. Established in
completed the 2007, the programme is run by Edupark, a non-profit company established
programme from by the University of Limpopo and funded by the Eskom Development Foundation
2007 until March 2016 (EDF). There is a low entry threshold, with minimum requirements set at a Matric
certificate or equivalent, South African identity document and proof of business
144 registration. The intensive curriculum emphasises holistic business development that
entrepreneurs can contribute to the country’s economy, with training in business, people, financial,
project, supply chain and SHERQ (safety, health, environment, risk and quality)
from all nine provinces
completed the programme management. In addition, when relevant, the curriculum aims to equip graduates to
in 2015/16 secure procurement opportunities through Eskom.
Ensuring impact
67% Regular monitoring and evaluation processes help to ensure programme quality.
of 2015/16 graduates were Edupark monitors the attendance, results, finances and logistics of the programme and
youth (under 35)
produces an annual Academy report for the Eskom Foundation. Edupark and the EDF
have monthly feedback meetings
Total cost per beneficiary
in 2015/16: to ensure optimal functioning of SUCCESS STORY
the programme and supporting
R88,159 elements.
An estimated 70% of programme
expenditure has benefited black women-
(including training and
facilitation, all material, A beneficiary study, conducted owned enterprises, one of which is a security
laptop, accommodation company, Mulanga, owned by Mumsy
by Eskom’s procurement division Swanepoel who enrolled in the programme
and meals) in 2013, found that 118 Academy in 2009. In 2008 she had a group of 20
graduates had secured R1.2 billion security guards, which has since expanded
Total company expenditure in Eskom contracts. Overall, to 850. “If it hadn’t been for Eskom, my
on the programme. 2007 until beneficiaries rated the Academy business wouldn’t be close to what it is
March 2016: today. I wouldn’t have been able to acquire
well and 96% said that they
R91.142 million would recommend it to others.
the knowledge I now have without the
Contractor Academy.”
Business alignment
There are nine provincial and six local academies located at key Eskom operational
areas, such as the Medupi and Kusile power plants. To ensure consistency in
the quality of teaching, lecturers, who are paid market-related salaries, rotate
between academies.
The Academy has a strong business alignment, working with businesses on
Eskom’s procurement list. It is also strongly linked to the geographic footprint of
Eskom, with six of the 15 academies located at Eskom strategic locations. Eskom
also provides a procurement trainer to teach the Eskom procurement module.
A reasonable portion of beneficiaries are young and female, fulfilling BBBEE
requirements for enterprise and socioeconomic development.
The Eskom brand receives excellent exposure through this initiative, with 89%
of beneficiaries reporting good perceptions of the company. Media coverage
and advertorials have also been used by Eskom to promote the Academy and
its benefits.
External evaluation provides a snapshot of achievements
■■The Academy has been well designed and conceived.
■■The programme is well implemented, with excellent attendance, pass and
retention rates.
■■Engagement, buy-in and organisation is rated highly.
■■Strong management ensures high quality deliverables.
Eskom Contractor Academy graduate advising her team on an electrification project in Soweto
Girl Child Programme maintain good hygiene practices and suffer from poor self-esteem and
Answering the national call to restore women’s dignity self-confidence.
In 2010, the Presidency announced that young girls should not miss
out on getting an education because they don’t have the necessary Changing lives
feminine hygiene products to manage menstruation. This is in line “Transnet has helped us a lot and we are grateful for that.
with the Sustainable Development Goals, which commit to universal If the whole world would think like this company I swear it
access by girls to education, gender equality and the empowerment of would be better. Thank you Transnet for the menstrual cup
women. Positioning itself as a caring corporate citizen, Transnet’s and Dignity Pack.
objective of increasing access to education about good menstrual • T – Trustworthy
health and hygiene practices underscores these goals. Transnet’s • R – Reliable
corporate social investment arm, the Transnet Foundation, has • A – Amazing
implemented a Teenage Health Programme that provides education, • N – Natural
awareness, toiletries and feminine hygiene products to the poorest, • S – Sustainable
mainly rural communities of South Africa. • N – Nice
• E – Energiser
Boy Child Programme • T – Teacher”
Giving young boys a sense of pride Baitshoki Mogapi, Kgamanyane High School, North West Province
In 2015, the Transnet Foundation introduced a ‘boy programme’
focussing on health and hygiene issues pertinent to young men to
complement the ‘girl programme’. Focussing on the boy child aims Giving our youth a future through education
to encourage positive and responsible decision-making amongst Through education, awareness and a Dignity Pack that contains basic
boys. The programme focusses on life skills, health matters such as hygiene products, the Transnet Teenage Health Programme aims to:
medical male circumcision as well as general health and hygiene to
instil a sense of pride and responsibility in our young boys. • Minimise the school dropout rates for girls and boys
• Enable and empower them to participate fully in social and
The challenges of poverty-stricken rural communities academic activities
The Transnet Teenage Health Programme is targeted at poor • Teach them to maintain basic good health and hygiene practices
communities where families get minimal or no income. In these • Improve young girls’ and boys’ quality of life
communities, general hygiene, sanitation and proper self-care has The programme helps teenagers feel comfortable in their own skin.
moved to the bottom of the priority list and there are often no sanitary
amenities or waste management systems. On a financial level, parents, A ray of hope for parents
understandably, use the little money they have to buy food instead The programme also provides much-needed relief for the financial
of toiletries. However, the consequence is that teenage girls stay pressure on parents in poor communities to buy sanitary products and
away from school and other activities when they menstruate because toiletries. Where families live with the bare minimum, these products
they don’t have access to proper sanitation and feel embarrassed are considered an unattainable luxury.
and uncomfortable. Boys are embarrassed due to their inability to
How the Transnet Teenage Health Programme works
The programme involves various groups of people in the community,
including the parents, teachers, school governing bodies and
government officials. It mainly targets children between the ages of 13
and 19.
2 ZERO HUNGER
End hunger, achieve food security
and improved nutrition, and promote
sustainable agriculture
3 GOOD HEALTH
AND WELLBEING
Ensure healthy lives and promote
wellbeing for all at all ages
4 QUALITY
EDUCATION
Ensure inclusive and equitable quality
education and promote lifelong learning
opportunities for all
5 GENDER
EQUALITY
Achieve gender equality and empower
all women and girls
6 CLEAN WATER
AND SANITATION
Ensure availability and sustainable
management of water and sanitation
for all
7 AFFORDABLE AND
CLEAN ENERGY
Ensure access to affordable, reliable,
sustainable and modern energy for all
8 DECENT WORK
AND ECONOMIC
Promote sustained, inclusive and
sustainable economic growth, full and
productive employment and decent
GROWTH work for all
10 REDUCED
INEQUALITIES
Reduce inequality within and among
countries
11 SUSTAINABLE
CITIES AND
Make cities and human settlements
inclusive, safe, resilient and sustainable
COMMUNITIES
12 RESPONSIBLE
CONSUMPTION Ensure sustainable consumption and
production patterns
AND PRODUCTION
14 LIFE BELOW
WATER
Conserve and sustainably use the
oceans, seas and marine resources for
sustainable development
15
Protect, restore and promote sustainable
LIFE ON LAND use of terrestrial ecosystems, sustainably
manage forests, combat desertification,
and halt and reverse land degradation
and halt biodiversity loss
16 PEACE, JUSTICE
AND STRONG
Promote peaceful and inclusive societies
for sustainable development, provide
access to justice for all and build
INSTITUTIONS effective, accountable and inclusive
institutions at all levels
17 PARTNERSHIPS
FOR THE GOALS
Strengthen the means of
implementation and revitalise the
global partnership for sustainable
development
* Acknowledging that the United Nations Framework Convention on Climate Change is the primary international,
intergovernmental forum for negotiating the global response to climate change.
for Sustainable
Development
The 2030 Agenda’s 17 Sustainable Development Goals (SDG) came into effect
on 1 January 2016, aiming to end poverty, protect the planet and ensure
prosperity for all people. This new agenda builds upon the ambition of the
Millennium Development Goals (MDG), but goes further, focusing on the
interconnectedness of all of the Goals and acknowledging that development
solutions must be practical, adaptable and relevant.
I
n 2000, recognising the need for the global community to come together to
create a sustainable future, world leaders adopted the MDGs. These included
quantified, time-bound targets committing the signatory nations to working
individually and together to end extreme poverty and promote development in
developing countries. The deadline for the realisation of these Goals was 2015. Towards
the end of the MDG timeframe, it was clear that to achieve these ambitions, the global
approach had to be refined to better address the systematic and structural barriers to
sustainable development.
As a result, in September 2015, world leaders formed a renewed, revitalised global
partnership: the United Nations 2030 Agenda for Sustainable Development, and
adopted an improved and broader set of goals: the SDGs. Like MDGs, each SDG is
comprised of focused, measurable targets to be achieved within the next 15 years.
Building on the successes and lessons of the MDGs, the SDGs take into account the
practical implementation and interlinkages of each of the Goals and targets. They
address governance and institutional issues, and better balance the three dimensions
of sustainable development: the social, economic and environmental aspects. The
SDGs apply to all states – regardless of their level of development – and recognise
that, in order for any development solution to be sustainable, we must protect the
natural resources upon which our societies and economies are based. Critically, the
SDGs acknowledge that development and poverty reduction can be accomplished
only through partnership and collaboration.
During the formulation of the SDGs, it was acknowledged that all stakeholders –
governments, civil society, and the private sector – must contribute and cooperate to
realise this new agenda. It is only through the active engagement of both the private
and public sectors that the goals can be implemented. This is particularly true in South
Africa, where social and spatial divisions are the root of so much inequality. Businesses
can, and must, play a pivotal role in driving the country towards realisation of its
development goals. Companies are in a unique position to fund and lead systematic
change from grassroots through to national levels.
The SDGs are making sustainable business the operational norm. They will affect all
sectors and levels of society and the economy in the coming years through, among
Goal 1: No poverty
achieved only once this link, between income and access to food, is decoupled.
While agriculture and food-related companies may have a clear role to play in
addressing this Goal, the cross-cutting design of the SDGs means that many businesses
have resources that can indirectly increase production of and access to food. Going
beyond donations, integrated strategies can contribute to building sustainable food
systems, such as investing in rural infrastructure and agricultural research, or working
towards building resilience and capacity to adapt to climate change and disasters.
The issue of access to land can be addressed in numerous ways, most importantly
by encouraging subsistence farming. Companies may be in a position to provide
agricultural support in the form of equipment and training. Other strategies could
address a lack of access to electricity, or to water.
“
in the country. Basic education is the largest allocation in the yearly national budget.
Primary schooling is compulsory for children aged seven to 15 years, and many We cannot have
schools are subject to a no-fee policy to enable access for those most in need. The young people growing up
focus is particularly on pre-primary and primary schooling, and rates of enrolment and without the knowledge,
retention at these levels is high. There is also strong gender equity in school enrolment
skills and attitudes to be
in South Africa.
productive members of
A number of challenges remain, however, in achieving the ambitions of this Goal. our society. Our societies
These include a lack of infrastructure, resources and the poor quality of teaching,
cannot afford it. And
which leads to low performance. The education of many children is interrupted by
irregular attendance and teacher absenteeism. There are also political difficulties and neither can business.
administrative blockages at national and local governance level. Investing in education
creates a generation of
Interventions are required to improve the quality and functionality of our education
system, particularly within vulnerable and disadvantaged communities. Investment skilled people who will
must be made into infrastructure and resource provision, and there is a dire need for have rising incomes and
innovative solutions to strengthen the quality of teaching. Emphasis also needs to be demands for products
placed on integrated early childhood development initiatives and on gender-sensitive and services – creating
life-skills education. new markets and new
Investment in education is essential to developing a skilled and talented future opportunities for
workforce, which will address issues of unemployment, increase productivity, and drive
business and economic growth. By growing the workforce, companies can identify
future talent and customers. Providing basic education is primarily Government’s
growth.
”
UN Secretary-General Ban Ki-moon
responsibility, but business can provide crucial support in accelerating access to and
quality of education for not only children, but also youth and adults.
This Goal should be a top priority for the private sector, and innovative financing
models can be pursued in this space. Investments can take the form of direct
programmes, educator training, infrastructure development or product development.
Many companies are implementing highly creative solutions; for example, Microsoft is
finding ways to use ICT developments to train teachers, and Lego has implemented
a Learn through Play programme. Access to quality education has a direct impact on
future business growth. Business investments in education need to be long-term,
collaborative and coordinated, and must be impact-driven.
T
he Rand Water Foundation (RWF) serves to advance Projects are designed to maximise economic and employment
the quality of life and contribute to the sustainable opportunities through the development of emerging
socioeconomic development of communities within contractors and the use of labour construction methodologies;
and outside Rand Water’s areas of supply. RWF’s to build the capacity of communities and local government
aim is to promote and enable the sustainable provision and structures to ensure sustainable management of water and
management of water, sanitation and environment related sanitation systems; and to promote the integration of water
services, while contributing towards job creation, transfer of and sanitation projects into broader development initiatives.
skills and poverty eradication at community level. Importantly, in a water-stressed country such as South Africa,
RWF is playing an important role in education and promoting
A focus on community based water and sanitation water conservation.
solutions
The Foundation’s main focus areas are: water and sanitation; In this way, RWF delivers on the social imperatives of Rand
environmental conservation; education and training; enterprise Water, but it also plays a key role in driving the broader national
development; health; the NGO support programme, development priorities, and in contributing to the new
and women, youth and children. Many of RWF’s projects international sustainable development agenda.
are based on or themed around water and sanitation Aligning to the Sustainable Development Goals
solutions: this enables RWF to support and leverage the
The Sustainable Development Goals (SDG) and their associated
core business of Rand Water to address broader issues of
targets are the new collaborative international development
poverty, unemployment and skills gaps, and promote the
goals aimed at reducing poverty. The RWF has committed to a
empowerment of communities.
strategic alignment to this post-2015 development agenda.
The work of RWF is closely associated with goal 6: sustainable
water and sanitation supply and goal 11: building sustainable
cities – which it does through supplying basic households
with water and sanitation service delivery. And, through its
many supportive interventions, the Rand Water Foundation is
contributing directly and indirectly to the fulfilment of many
more of the SDGs.
Through its community based projects, RWF is addressing
goals 1 and 2: poverty eradication and food security, and
goal 3: health, through its HIV and Aids initiatives. RWF’s many
education support interventions, such as the Community
Education and Waterwise interventions, support goal 4, and
its community development and sustainable job creation
initiatives touch on goals 8 and 10 – work and economic
growth, and reducing income inequality. RWF’s environmental
conservation and rehabilitation projects not only contribute
towards goal 15, but also create jobs.
Importantly – and a pillar of the overall vision of the 2030
Agenda for Sustainable Development – the Foundation
relies on and leverages its strategic partnerships – with NGOs,
communities, government departments, development
agencies, academia, civil society and other corporates to
achieve its development aims.
Driving the priorities of the National Development
Plan
RWF’s response to the SDGs is further aligned to South Africa’s
National Development Plan (NDP). The NDP highlights the
country’s 2030 vision as guided by the country’s constitutional
commitment to improve the quality of life for all citizens and
free the potential of each person. This plan for achieving the
socioeconomic agenda is articulated in the priority outcomes
of the Medium Term Strategic Framework (MTSF) – similarly to
the targets of the SDGs.
Mohlatleho Sekoaila
General Manager:
Rand Water Foundation
msekoaila@randwater.co.za
www.randwater.co.za
(011) 682 0192
A long and healthy life for all South Health, including HIV and AIDS programme
Africans. interventions
Improving the quality of health care for Home-based care support; school-based health awareness
all citizens. raising initiatives; community-based health infrastructure;
development support.
Decent employment through inclusive Implementation of all the RWF Programmes and Projects by
growth. local communities.
Creation of Jobs. On the job training offered through implementation of
A skilled and capable workforce to programmes and projects and direct skills development
support an inclusive growth path. through Enterprise Development Programme.
An efficient, competitive, and responsive
economic infrastructure network.
An efficient, effective, and development Extended service delivery, and funding partnerships
oriented public service. Good Governance and leadership systems
Social Cohesion and Nation Building
solutions that encourage their customers to turn towards clean, low-impact activities as
part of their core business offerings. A CSI strategy may entail developing a partnership
with local government that improves community support systems, preparedness and
resilience to climate change-related disasters.
POSTGRADUATE STUDIES
The Faculty of Humanities is committed to inspire future generations, make great discoveries and innovate new
approaches. Ideas like democracy are not discovered in a lab. A postgraduate degree in Humanities will enable you to
tackle global challenges and help change the world. We are committed to excellence in scholarship and tuition, and to
the ideals of human dignity, freedom of expression and the pursuit of knowledge, in order to advance our understanding
and to increase the social good.
MASTER’S Counselling Psychology Semitic Languages and Audiovisual Communication Marketing Communication
African Languages Development Studies Cultures Biblical Studies Philosophy
Afrikaans English Strategic Communication Communication Studies Politics
French Social Impact Assessment Corporate Communication Psychology
Anthropology
Greek Social Work Development Studies Semitic Languages and
Applied Linguistics
Historical Studies Sociology English
Audiovisual Communication Cultures
Industrial Sociology Urban Studies French
Biblical Studies Social Work
Journalism Greek
Clinical Psychology Latin DOCTORATE Historical Studies Sociology
Clinical Social work Marketing Communication African Languages Industrial Sociology Urban Studies
Communication Studies Philosophy Afrikaans Journalism
Community Development Politics Anthropology Latin
Corporate Communication Psychology Applied Linguistics
CONTACT
For more information please visit our website
www.uj.ac.za/humanites or email humanitiesreceph@uj.ac.za
THE TRIALOGUE CSI HANDBOOK 2016 165
ESTABLISHING COMMUNITY TRUSTS
When is a community trust appropriate? and then, very importantly, they must gain
VIEWPOINT
One hectare of the land is under shade nets for growing spinach.
In their first week of harvesting they picked almost 500kg of spinach,
which was sold for about R8/kg. Since the first harvest, it has delivered
about 150kg of spinach per week. The spinach is sold to the local
Spar, a food processing company and local hawkers from the
surrounding communities.
The rest of the land is now being prepared for planting a variety of
vegetables such as cabbage, beetroot and tomatoes in spring. In a
few years the fruit trees will also be ready for harvest. The plan is to
have a range of crops for each season so that the farm is producing
all year round.
The cooperative is currently only using 10% of the area of the farm,
so there is a lot more potential to grow vegetables – and even fruit.
The members are now getting ready for full-scale production in the
spring and summer of this year. Earnings generated are currently
being re-invested in the business so as to ensure project sustainability.
When it is in full production, only 60-70% of the earnings will be
ploughed back and members will earn an income from the rest.
They will also be able to use some of the land to plant vegetables for
their own needs.
The Alliance does not take away any of the individual mining
companies’ responsibilities, including those under their statutory
Social and Labour Plans and other environmental, health and
engagement commitments. Both mines established the Alliance on a
voluntary basis - they are dedicated to honouring any commitments
already in place and going beyond compliance.
Creating value through community empowerment,
sustainability and service delivery
• Social infrastructure (e.g. schools, • Rural and urban water • Accredited training programmes in the
clinic, etc.) supply water and sanitation sector
• Community Based Projects • Rural and urban • Non-accredited training programmes
• Management of training programmes sanitation in various sectors
• Management of special projects • Water and wastewater • Project management
• Contract management management • Contract management
• Operations and Maintenance • Operations and • Development of learning material
• Occupational health and safety maintenance • Research
• Job creation projects (EPWP, CWP • Community liaison • Soil and water conservation project
and food security programmes) • Labour facilitation • Food security projects
• Formation of co-operatives • Community training and • Rainwater harvesting
• Solid waste management empowerment • Disaster management projects
• Health and hygiene
education
OUR COMMUNITY
Based Approach Management
Model
The Mvula Trust is known for
championing a community-based
approach (CBA) model for rural
development, capacity building and
sustainability of community projects
throughout South Africa.
We emphasise the empowerment
of residents through planning and
implementation of projects in their
own communities. Community-
based organisations (CBO) are
established and capacitated to
manage projects on behalf of their
communities.
A decision was taken to tap water There are two interconnected low- Post-project mentorship is provided
from the fountain. This meant profile 5 000-litre storage tanks to ensure the sustainability of
building a spring box, approximately connected to the spring box from projects.
15 metres downstream from which the water is pumped by a The Mvula Trust maximises
the fountain eye to discourage solar-powered pump, over a distance local economic opportunities
tampering. The spring box is a of 520 metres and 15 metres and develops local SMMEs and
structure that filters and collects to the 20 000 litres of elevated community members beyond the
the water flowing from the fountain water storage tanks at the school. project at hand.
eye, and it consists of two The water is pumped through a
compartments. chlorinator fitted at the elevated
The first filtration medium is at a water tank stands as the water
one-metre depth of the permeable quality test results revealed that CONTACT DETAILS
microbiological treatment is required. For more information on partnership
sediment in the form of clean sand opportunities and implementation of
placed upstream. Only settled The 5 000-litre storage tanks corporate social responsibility projects,
groundwater is percolated through please contact:
connected to the spring box was Mr Mashao Mohale
this sand into the first compartment provides water to the residents and Marketing and Communications
of the spring box, with holes built is filled through a gravity overflow Coordinator
systematically on the upstream from the school. The spring water Head Office
wall face. Section 22, Block C – IL Piacere
project is still a source of water 49 New Road, Grand Central,
The second compartment works to the school and surrounding Midrand, 1685
households. PO Box 32351, Braamfontein, 2017
as clean water storage, before it
Tel +27 11 403 3425
gravitates into the pumping tanks Email communications@themvulatrust.
that are further downstream, away org.za
from the water course.
A comparison
of development
CHAPTER 5
agendas
The people of South Africa are struggling against poverty, inequality,
unemployment and disease, and the abundant natural resources of the
country are under severe threat. To combat these issues effectively, and to
ensure holistic and sustainable development, it is important for the country
to acknowledge its global interdependence, and to learn from and share with
countries addressing similar issues. An alignment between South Africa’s
National Development Plan (NDP), Africa’s Agenda 2063 and the global 2030
Agenda for Sustainable Development supports a more integrated approach
to development.
A
genda 2063 and the NDP are in many respects a translation of the global
Goals into a continental and national context respectively. Each provides a
useful framework to shape the nature of the domestication of the global
developmental plan, and provides a direct map to realisation of the broader
SDGs. The integration of these frameworks is therefore crucial, and identifying areas of
overlap and convergence will increase the effectiveness of their implementation.
Along with the strategy alignment to address economic, social and environmental
issues to improve the lives of all people, the national and global agendas for
development also share a timeframe for culmination in 2030.
In its broad goals, and in many of its targets and objectives, the NDP
RECREATION
to a high degree is aligned with the SDGs, recognising that the path AND LEISURE
ELEMENTS TRANSPORT
OF A DECENT
to addressing many of society’s challenges lies in inclusive, cohesive STANDARD
economic growth. The priorities of the NDP are orientated around OF LIVING
EDUCATION
EMPLOYMENT
enabling individuals to achieve a decent standard of living by: increasing AND SKILLS
11 Social protection
5 GENDER EQUALITY 12 Building safer communities
4 Economic infrastructure
6 CLEAN WATER AND SANITATION 5 Environmental sustainability and resilience
4 Economic infrastructure
7 AFFORDABLE AND CLEAN ENERGY 5 Environmental sustainability and resilience
17 PARTNERSHIPS FOR THE GOALS 7 South Africa in the region and the world
• Education
• Skills Development
• Community Development
• Enterprise Development and
• Supplier Development
Lessons from
the Millennium
CHAPTER 5
Development Goals
The eight Millennium Development Goals (MDG), together with their targets
and indicators, ranged from halving extreme poverty rates to halting the
spread of HIV/Aids and providing universal education, all by 2015. They were
the result of a long, global effort to build consensus around set targets for
reducing poverty around the world.
G
lobally there was mixed success in achieving the MDGs. Some countries and
ERADICATE EXTREME
POVERTY AND HUNGER regions did better than others: some Goals were achieved, some partially
achieved, and others not achieved at all. However, the global dialogue and
2 concerted action on key developmental challenges that occurred throughout
the MDG process was unique.
ACHIEVE UNIVERAL For its part, South Africa made some good progress towards the MDGs. The extensive
PRIMARY EDUCATION
social security grant system has contributed to decreasing extreme poverty and
3 hunger, and public works programmes have provided skills and jobs. In education,
South Africa introduced universal, compulsory primary education for those aged seven
PROMOTE GENDER
to 15 years. The country has also managed to halt and reverse the incidence of malaria,
EQUALITY AND
EMPOWER WOMEN and achieved some successes in its fight against HIV/Aids. The UN report on the MDGs
in 2015 stated: “It is encouraging that South Africa, the country with the largest number
4 of people living with HIV, recorded the largest decline in the absolute number of new
infections, with 98 000 fewer new infections in 2013 than in 2010”.
REDUCE
CHILD MORTALITY
Nonetheless, Africa as a whole lagged in achieving the MDGs. South Africa – despite
substantial progress – failed to meet many of the set targets. And it is the poorest and
5 most vulnerable people who are being left behind, particularly women and children.
Tellingly, while there were improvements, South Africa did not succeed in meeting the
majority of its targets in respect of maternal health or child mortality. The country was
IMPROVE MATERNAL
HEALTH starting from a very low baseline in respect of these Goals in particular, but that does
not negate the room that exists for better performance in this regard.
6 Overall, the high unemployment rate is the biggest obstacle to the country’s aims to
achieve universal poverty reduction. This, together with low labour force participation,
COMBAT HIV/AIDS,
MALARIA AND OTHER
DISEASES
means that inequality remains a desperate problem. South Africa made significant
progress in achieving the MDGs, but not sufficient to provide a solid foundation for
7 strong national socioeconomic development.
External factors did play a role in hindering the success of the MDGs, particularly in
ENSURE
ENVIRONMENTAL the South African context. The challenging economic climate of the 2008 recession
SUSTAINABILITY
created a severe shortage of finance, hindering economic development and initiatives
to improve access to services. South Africa also faces problems of data and measuring
8 its progress against targets, which results in less performance-positive results than may
have been achieved in reality. This is a challenge that must be addressed in moving
GLOBAL
PARTNERSHIP FOR
DEVELOPMENT
towards implementation of the SDGs.
SDGs
The SDGs explicitly call on all businesses to help in solving long-term
challenges to development, through creativity and innovation. The SDGs
help to connect business strategies with global priorities, creating an
unprecedented opportunity for companies to focus on minimising negative
impacts, maximising positive impacts, and developing business-led solutions
and technologies to solve the world’s most pressing problems.
T
he long-term sustainability of a business is inextricably linked to the
socioeconomic health of the society in which it operates. Business is a powerful
force and should use its position and resources to drive positive change in the
communities in which it operates. The SDGs present a unique opportunity for
private sector involvement, acknowledging that responsible business is vital to job
creation and economic growth.
“ Private business
activity, investment and
innovation are major drivers
Private sector investments and market-based solutions are essential to achieving
sustainable impact, particularly in a country like South Africa which has a number
of governance challenges and public resource constraints. Public sector policy and
cooperation, and philanthropic and donor resources, are necessary and important
of productivity, inclusive but they are not sufficient to accomplish development goals. The private sector has
economic growth and job potential – in terms of financing, innovation, and networks – that must be leveraged in
creation. We acknowledge order to make transformative and lasting change in society.
the diversity of the private
sector, ranging from micro FINANCING THE SDGs
enterprises to cooperatives It is estimated that the annual global cost of financing implementation of the
to multinationals. We SDGs is going to be between $614 and $638 billion (United Nations Conference
on Trade and Development, Economic Development in Africa Report 2016). In the
call on all businesses to least-developed countries, particularly in Africa, national Government resources
apply their creativity and and official development aid are inadequate to meet this, and the external
innovation to solving debt position of most African countries is worsening. Increased private sector
involvement is one way in which this funding gap can be met. Foreign direct
sustainable development investment needs to be replaced with local direct investment to stimulate
challenges.
”
Article 67 of the 2030 Agenda for
sustainable gross domestic product growth.
Sustainable Development Strategic partnerships are key. The SDGs emphasise social cohesion and a collective
approach as the basis of effective implementation of the Goals. In order to accelerate
its development, South Africa needs stable and prosperous communities, and this can
be achieved only through the active support of all citizens and all sectors of society.
Business must realise the enormous benefit and market opportunities inherent in
solving development challenges. Furthermore, with active corporate participation
in the implementation of the SDGs, businesses will begin to be viewed as agents
for positive change and not solely as profit generators. To this end, businesses
should familiarise themselves with the SDGs and begin to assess how these can be
incorporated into its strategies and business models.
“
Integration of the SDGs into core business functions illustrates the interconnectedness Issues of basic service
of the kinds of effective solutions envisaged by the SDGs. For example, by investing in
delivery, including water
education and skills development, a company creates a bigger pool of talented, skilled,
employable workers. This leads to job creation and an increase in potential customers. issues, skills and nation-
building activities present
Businesses that align their priorities with the SDGs can build local market awareness
an opportunity for
and strengthen their engagement with and reputation among customers, employees
and other stakeholders. This may lead to greater buy-in from stakeholders, fewer immediate achievement,
community protests and a growing customer base. Globally, consumers are beginning for companies working
to place more emphasis on perception of a company’s sustainability performance and together and with other
the SDGs will strengthen this trend.
Of course, there are regulatory incentives to adopting a sustainable and socially
responsible attitude towards business. The Global Reporting Initiative and the
stakeholders.
”
Joanne Yawitch, CEO of the National
Business Initiative
International Integrated Reporting Council are working towards similar, development-
orientated outcomes, with the ambition of fostering a norm of transparent, accountable,
socially aware companies. Many companies adhere to these frameworks in preparing
stakeholder communications and reports.
In South Africa, companies are encouraged to adhere to the King Code of Corporate
Governance. The draft King IV Report and Code, which will soon come into force,
is premised on the basis that businesses – as corporate citizens – have a social
responsibility to society, and their practices and reporting must reflect this. Performance
should be assessed in terms of sustainable value creation in the economic, social and
environmental context.
Going forward, it is likely that attention to direct regulation around the SDGs will increase
at a national, regional and international level. Aligning with the Goals is therefore at
the very least a sensible strategy to protect a business’s licence to operate and build its
resilience, particularly in areas where a business is affected or can affect the Goals.
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the
CSI HANDBOOK
19th EDITION 9 780992 177751