Corporate social investment is a dynamic, responsive arena.
Remaining flexible while consistently striving for deep, systemic impacts is part of the CSI challenge.
Not only are needs on the ground constantly shifting, but funding companies come under pressure from challenges in their industries, the economy and among their stakeholders. The global recession has seen social spending contract internationally.
Trialogue research has shown South African CSI spending actually grew in 2009, due in part to drivers in the local economy and legislation that encourage social spending as well as from more inclusive accounting of CSI by companies.
But at the same time, South African companies are following the global trend — away from cheque-book CSI to more strategic alignment with company goals and strengths. Companies are leveraging infrastructure and internal resources to create more integrated, more sustainable CSI programmes.
Each industry sector has different priorities, different infrastructure and skills sets, and different perceptions of where their products or services impact on or intersect with social issues. Many of them have industryspecific regulation agreements or business coalitions that will guide their strategic decisions.
For NGOs working with specific sectors it is imperative to have an understanding of how companies are constructing their CSI strategies and the factors that influence their funding decisions.
At the same time, NGOs are operating in developmental sectors, and companies will often align themselves with these sectors, supporting a handful of projects in areas they have identified as CSI priorities.
In 2009, the top three sectors according to Trialogue research were education (38.1% of expenditure), health and HIV/Aids (19.3% of expenditure), and social and community development (9.5% of expenditure).
However, development sectors such as the environment, arts and culture, and sports development play an important part in the CSI mix for particular industry sectors and, in some cases, specific companies.
Matching the characteristics of industry and developmental sectors can support the achievement of objectives of both corporate and service provider, but it also raises its own issues. One of the challenges that these close partnerships raise is how developmental priorities are affected and shaped by industry developments.
Another is how NGOs are impacted when industry conditions change. Through transparent dialogue and long-term CSI horizons, many industry and development sectors forge strong relationships, to the benefit of partners and beneficiaries.
What is clear is that communication of expectations, strategies and future visions is necessary throughout the collaboration process.
Dr Nomsa Masuku, Director of CSI for Standard Bank, agrees: ‘There are too many interventions that are not talking to each other. Each one is brilliant in isolation, but not when they come together. Like an orchestra, where all of the instruments are incredible as solos, but not when they play together. We need perfection as single entities, but we have to talk to each other to create shared value.”
At the Trialogue Making CSI Matter Conference we’ll be looking at how lead practice is being adopted in select developmental sectors, viewing what is working and examining the inherent challenges that need to be addressed by the various approaches adopted.
A panel session will unpack how the interpretation of CSI differs across industry sectors, how the utilisation of service providers varies according to the nuances of the different sector characteristics and how future developmental priorities are likely to unfold within the different areas.
Economic sectors addressed by the panel include financial services, mining, state-owned enterprises and manufacturing and speakers include Dr Nomsa Masuku from Standard Bank, Eric Ratshikhopa of Xstrata, Chris Bornman of Eskom and Nonkqubela Maliza of Volkswagen.
Key session: Differences in CSI across economic sectors: Wednesday 5 May: 14h00 – 15h30. See the programme for more details. www.trialogue.co.za