Leveraging Social Capital: from social responsibility to creating value for all
According to the Trialogue Business in Society Handbook, released in December 2020, South African corporates cumulatively spent R10,7 billion on corporate social investment (CSI) in that financial year. The philanthropic/NPO sector employs more people than the manufacturing and mining industries. More money is being poured into community upliftment and social development projects than ever before. Yet, the outcomes of these benevolent, concerted efforts are hardly (if at all) noticeable. Companies are working harder but failing, inordinately.
What this means is that the traditional approach to CSI is simply not enough to deliver the desired pr needed, impact.
Conventional CSI programmes tend to offer ongoing financial donations or support, to those in need, thus fostering a culture of dependence, but make no provision for long-term sustainability. If only more corporates were to adopt the ‘teach the man to fish’ philosophy and integrate CSI in their business operating models, I believe the results would be vastly different.
It all starts with the framework and a mind shift
Some companies still perceive CSI as “giving” rather than “investing”, so their focus is on themes that sound great, but seldom leave a legacy, or contribute towards sustainable community development. But CSI is not a handout. It is an investment in a company’s stakeholders to ensure the sustainability of both the company and the community. Thus, a solid CSI strategy starts with a strong business case.
Taking a long-term view
Socio-economic upliftment, with all its complexities, takes a long time. It also requires involvement of many stakeholders. It is often easier for companies to take on isolated development initiatives – ones that fit with the year’s marketing theme and require less input and effort, than it is to develop and implement complex, long-term programmes. But short attention spans kill CSI.
Fail to plan is to plan to fail
Very few CSI programmes are approached with the same rigour, or measured to the same standards, as those applied to the business’ core activities and investments. Yet, as with any other type of project management and implementation, CSI initiatives require a clear business case, project structure, deliverables, timelines, stakeholder engagement plans and good governance. Risk, cost, and benefit analyses are also an integral part of a successful CSI programme. Impact needs to be monitored, measured, and reported on. Consideration should be given to replicability and scalability. AYO goes a step further in this regard and incorporates an ‘exit strategy’ prior to commencing CSI activities, to ensure the benefits for the community outlast the implementation timeline.
Quality vs quantity
While most companies have some form of CSI monitoring and evaluation in place, the focus is more on measuring the value of the spend (input) vs the number of outputs (number of beneficiaries), rather than the actual quality of the outcomes. And this is understandable. Lack of proper baseline data, inconsistent impact studies and the lack of defined theories of change, present challenges for such qualitative evaluation of CSI. Yet, it is important to systematically measure the impact of CSI the same way as any other business activity or expenditure.
The shared value approach
To maximise the long-term impact of its CSI, AYO has developed a “shared value” strategy where the company strives to create measurable business value by identifying and addressing social needs that intersect with our core business. For example, we look at our own business to anticipate the type of skills we will require to implement our business strategy in the next five to ten years, and then develop a bespoke CSI programme to fill this skill gap from our own (previously disadvantaged) community.
The CSI programme, in this case, is multi-faceted, involving facilities development (school science labs, libraries, etc), human development (bursaries for auspicious students) and technology, providing the tools for these learners to fully utilise the opportunity. As a follow up, graduates (beneficiaries of this integrated CSI programme) are then engaged within the group through internship and graduate trainee programmes and eventually assigned to run the CSI initiatives themselves, thus completing the circle of opportunity, development, and empowerment.
Shared value CSI is therefore a business imperative for every company in South Africa – no matter its size or turnover. Creating shared value with communities also drives inclusivity, leading to innovation, a narrowing of the poverty divide, as well as ultimate commercial success.
Vanessa Govender is the Executive Director: Corporate Affairs for AYO Technology Solutions. Her portfolio includes corporate governance, communications, CSI and talent management.With a background in human resources, Vanessa “gets” people. She understands what makes them happy, motivated and effective and how to create an environment that encourages them to thrive. Her genuine passion for sustainability and community development is evident in her approach to corporate social investment, which she herself describes as a domino upshoot: “Think of the ripple effect of when you throw a single stone into the water. The same effect occurs when just one person is at the centre of change – they can trigger many, many circles around them.”, she says.