/ 19 December 2014

Trends in corporate giving

Long-term CSI investment results in people who enhance various industries
Education has consistently remained the biggest social expenditure item

Corporate social investment (CSI) has become an integral part of most companies’ operations. It is not just a chequebook exercise, but forms part of the DNA of the business. 

Long-term CSI investment has become more prominent in recent years, contributing significantly to sustainable, measurable and impactful programmes. 

Social and digital media have changed the way in which companies communicate with the communities where they focus their CSI initiatives. 

This new technology has helped companies communicate more effectively through platforms that people are familiar and comfortable with, and enables companies to “pay it forward” through exponential knowledge sharing. The world is being enhanced through technology and convergence.  

Many companies are continuing and expanding their focus on education and youth development interventions, which have been identified as key priorities for socio-economic growth by government and society.

CSI is no longer seen as just a charitable gesture; there is a strong move towards more robust “developmental” and strategic thinking, including a call for more industry collaborations that align with business objectives and beneficiary needs.  

Business is an integral part of society: companies operate within communities, employ from communities and sell services and products to communities. It is thus crucial to invest in communities, as this symbiotic relationship depends on the welfare of both parties. 

Sustainable development is the cornerstone of CSI. When a company invests in initiatives that address an identified need, it paves the way to implement programmes that provide a sustainable solution for the recipients. This means sufficient research must be done and suitable monitoring mechanisms need to be in place. 

When making first-time investments there is always the risk of not getting it right, but there is often an opportunity to make a huge difference. Constant consultation and communication with key stakeholders is vital. 

Short-term investments may produce immediate, tangible results, but long-term investments are more sustainable. A long-term approach is about investing resources into the future of people who, through years of grooming and exposure, may ultimately start their own businesses, win industry awards, enhance an industry and contribute towards a seasoned talent pool.  

More and more, we are seeing a trend towards companies investing in initiatives focused on the industry of their own operation.

Finally, there is a strong move towards building brand equity through CSI initiatives and industry collaborations with small, medium and micro enterprises, the private sector, government, nongovernmental and non-profit organisations. An ecosystem conducive to sustainability and measurable success is thus created, and CSI efforts are no longer linear. 

Kershnee Govender is M-Net’s corporate affairs director