THE EVOLUTION OF CSI IN SOUTH AFRICA · The Trialogue CSI Conference was launched, convening...

A TRIALOGUE PUBLICATION 33

THE E

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I IN SO

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34 THE BUSINESS IN SOCIETY HANDBOOK 2017

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The Broad-Based Black Economic Empowerment Act was signed into law, placing BEE firmly on the corporate agenda.

The Act mandated the Department of Trade and Industry to issue explanatory codes of practice to give companies guidance on implementing the BEE legislation and on drafting (or finalising) their own industry charters.

The finalised BEE Codes of Good Practice were gazetted in 2007, and were later revised and re-gazetted in 2015.

2004

The Urban Foundation was established as the first large-scale corporate commitment to the plight of the disadvantaged, focusing primarily on housing and education.

The Sullivan Principles were introduced as a voluntary code of conduct for US companies operating worldwide, comprising eight values to promote social, economic and political justice.

The term ‘corporate social responsibility’ was used by signatory companies to denote corporate-community giving.

19 77The notion of corporate-community giving was introduced by Meyer Feldberg, then professor of business administration at the University of Cape Town.

He called on business leaders to emulate their US counterparts and get involved in the communities that surrounded their operations or from which they drew their employees.

1972

The Corporate Social Investment Handbook was launched, providing in-depth information about CSI and estimating annual CSI expenditure at R1.5 billion.

2017 marks the 20th anniversary of the publication, which has been renamed The Business in Society Handbook, in celebration of its two-decade milestone and in recognition of the broad and integral corporate role in development.

1998

The Trialogue CSI Conference was launched, convening development practitioners from companies and NPOs to share lessons and ideas on how the impact of CSI could be improved.

The conference has grown into an annual event, attracting more than 450 delegates from various sectors. The tenth conference, held in 2017, was, like the Handbook, renamed in celebration of its decade milestone and in recognition of the broad and integral corporate role in development.

2007

Tshikululu Social Investment, a non-profit management consultancy, was established as a specialist donor support agency to manage the CSI activities of corporate grantmakers, including Anglo American, Anglo Platinum, De Beers, AngloGold Ashanti, FirstRand Group and the Ernest Oppenheimer Memorial Trust.

The Business Trust, supported by 140 companies and with more than R1 billion in funding, was established as a partnership between business and government to accelerate the achievement of national objectives for job creation and poverty alleviation.

1999The Non-profit Organisations Act superseded the Fundraising Act of 1978, seeking to create an environment conducive to a flourishing non-profit sector.

A draft NPO bill was released in 2017, following a review of the 1997 NPO Act, with a view to better regulation of the NPO sector.

1997

The National Development Plan (NDP), a strategic framework for addressing the socioeconomic and developmental challenges facing South Africa, was approved by government.

The NDP contains a series of proposals to eliminate poverty and reduce inequality by 2030. One of the objectives is to reduce the number of South Africans living below the lower-bound poverty line, from 39% in 2009 to 0% by 2030.

2012

The Investing in the Future Awards were launched by the Mail & Guardian newspaper to recognise South African corporate, foundation and NPO contributions to social development.

19 89

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The Joint Education Trust (JET) was spearheaded by the Private Sector Initiative (a consortium of 20 leading companies) with a commitment of over R500 million to support existing educational initiatives.

Over approximately 10 years, JET disbursed funding to more than 400 NPOs involved in early childhood development, youth development, adult basic education and training, and teacher development.

19 92

CIDA City Campus, funded by the corporate sector, was established as the only open-access higher education facility in the world.

Based in Johannesburg, the campus was granted full accreditation for its Bachelor in Business Administration and students received tuition scholarships. In 2012, CIDA City Campus became financially distressed and was put under the control of a business rescue firm. Corporates also went on to support the Maharishi Institute, another free educational body established in 2007 by Taddy Blecher, CIDA co-founder.

2000

The Trialogue Strategic CSI Award was launched, recognising projects that epitomise best practice CSI in South Africa, and aiming to encourage CSI practitioners to think more strategically when planning and implementing their initiatives.

For CSI to be strategic, it must have positive developmental impact that is aligned with and contributes to the priorities of the business, beyond reputational impact.

2014

The National Business Initiative (NBI), with a mandate of 150 member companies, arose as a NPO that uses business leadership and resources to address socioeconomic challenges.

The NBI’s initial focus on skills and enterprise development has broadened to encompass school education, FET colleges, tourism and environmental issues.

19 95The South African Grantmakers Association (SAGA) was launched, supported by about 60 companies and other funders, including the Kagiso Trust, Interfund, the Ford Foundation and the Charles Mott Foundation.

Although it folded in 2006, SAGA played a valuable role in mobilising corporate support and providing guidelines for grantmaking.

19 94

The JSE/FTSE Responsible Investment Index Series replaced the JSE SRI Index, as the JSE partners with global index provider FTSE Russell, to help progress its work around promoting corporate sustainability practices in South Africa.

Prior to this, the JSE had been the first emerging market and first stock exchange to form a Socially Responsible Investment Index (SRI Index) in 2004. In its first round of assessment, the top 160 listed companies were eligible for evaluation, of which 74 companies applied and 51 were accepted onto the Index in April 2004.

2015

The Broad-Based Socioeconomic Empowerment Charter for the South African Mining Industry (‘the Mining Charter’) was introduced, committing the mining industry to reflect the promise of a non-racial South Africa within its operations.

The Charter was revised in 2010 with specific targets to be achieved by December 2014, and was further reviewed in 2015 to ensure alignment with BEE. The final revised charter was gazetted in June 2017, but has since been suspended due to inadequate consultation with the Chamber of Mines.

2003

The Trialogue Knowledge Hub was launched as a freely and easily accessible online body of knowledge, aimed at companies and other roleplayers that invest in socioeconomic developement.

2017

The King Report on Corporate Governance for South Africa was launched, superseding the 1994 King Report.

Importantly for CSI, the report recommended that social and environmental reporting (as part of the triple bottom line) be afforded priority equal to that of regular financial reporting. This report was replaced by the 2009 King III Report, which integrated governance, sustainability and strategy, and later the 2016 King IV Report, which sought to enhance the accessibility of the report to all types of entities across sectors.

2002

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Overview of 2017 CSI research

I n 2017, Trialogue conducted its 20th round of annual research into the state of corporate social investment (CSI), adding to an extensive database of information from which emerges a comprehensive picture of two decades of CSI in South Africa.

This year’s corporate and non-profit questionnaires asked about the history and anticipated changes in organisational CSI. However, in recognition of business’s increasingly holistic role within society, and in line with the publication’s change of name – from The Trialogue CSI Handbook to The The Business in Society Handbook – the questionnaires encapsulate but are not limited to CSI. They also delve into broader responsible business issues, such as company approaches to community engagement.

In this chapter, we outline the most noteworthy results from the 2017 primary research. Note that ‘2017’ refers to data from the 2016/17 financial year, which differs across organisations, depending on the month of financial year-ends.

Corporate respondentsBetween June and September 2017, professional researchers conducted face-to-face interviews with CSI representatives from large South African companies. For the third consecutive year, companies also had the option of self-completing the questionnaire, which was then verified.

●● There were 92 participating companies. Of these, 63 (68%) also participated in 2016.

●● As in the previous year, financial services was the best represented sector in the corporate respondent sample (18%), followed by retail and wholesale (15%), and mining and quarrying (13%).

●● More than 81% of companies had an annual income of over R1 billion in their latest full financial year.

●● Half of the companies (50%) employed less than 5 000 people, while 16% had more than 20 000 staff members.

Trialogue is the Southern Africa Local Authority of the CECP Global Exchange, uniting country-based, mission-driven corporate social engagement organisations to advance the corporate sector as a force for good around the world. We once again aligned our corporate questionnaire with the CECP Giving Around the Globe report, available at www.cecp.co, which includes data from 12 South African companies.

1998 R1.5 billion 2017 R9.1 billion

CSI EXPENDITURE


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NPO respondentsInformation was collected from non-profit organisations (NPO) between July and August 2017, using the online survey tool, Survey Monkey.

●● A total of 198 NPOs participated in the 2017 research. Of these, only a small portion (30%, or 59 organisations) also participated in 2016.

●● Nearly one-third of NPOs (32%) had an income of over R5 million in 2017, while just over a quarter (28%) were small organisations with an income of less than R500 000.

●● The majority of NPOs (61%) employed between one and 30 staff members.

CORPORATE RESPONDENTS BY INDUSTRY SECTOR 1

2017 n=92

18 Financial services15 Retail and wholesale13 Mining and quarrying

8 Information technology and telecommunications7 Agriculture, forestry and fishing7 State-owned and public enterprises5 Other manufacturing4 Other services4 Oil and petroleum3 Media and entertainment3 Pharmaceutical and health2 Building and construction2 Motor vehicle manufacturers and assemblers9 Other

% corporate respondents

TOTAL ANNUAL INCOME 2

2017 n=79

13 More than R50bn35 R10bn – R50bn10 R5bn – R10bn23 R1bn – R5bn

4 R500m – R1bn15 Less than R500m


NUMBER OF EMPLOYEES 3

2017 n=79

4 More than 50 00012 20 000 – 50 00014 10 000 – 20 00020 5 000 – 10 00029 1 000 – 5 00021 Less than 1 000


CORPORATE

CORPORATE

CORPORATE

TOTAL ANNUAL INCOME 4

2017 n=147

12 More than R20m20 R5m – R20m17 R2m – R5m23 R500k – R2m24 Less than R500k

4 R0 or loss-making

% NPO respondents

NPO

NUMBER OF EMPLOYEES 5

2017 n=198

26 More than 50 people13 31 – 50 people27 11 – 30 people34 1 – 10 people

% NPO respondents

NPO


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CSI expenditure in 2016/17 ●● Almost two-thirds of companies (62%) reported increased CSI expenditure in 2017, up from the 51%

that reported increases in 2016.

●● The most common reason given for increased CSI expenditure was an increase in corporate profits (34%). Similarly, decreasing profits was the most cited reason for declining CSI budgets (58%).

Estimate of total CSI expenditure

This estimate is based on analysis of the CSI expenditure of large South African companies and state-owned enterprises; a broader sample than our primary research component. Our analysis takes into account:

●● Year-on-year changes in the CSI expenditure of 120 companies, using publicly reported data●● Year-on-year changes in the CSI expenditure of companies that participated in Trialogue’s primary research●● A comparison of the combined CSI expenditure of the top 100 companies●● An extrapolation of total expenditure based on estimated numbers of smaller companies.

Total estimated CSI expenditure in 2017 was

R9.1 billion This represents a 6% nominal and 0% real increase

from the R8.6 billion estimated spend in 2016.

DecreasedStayed the sameIncreased

2016

2017


62

51

19

35

19

14

CHANGES TO CSI EXPENDITURE 6

2017 n=90 / 2016 n=80CORPORATE

Other

Policy or focus change

More inclusive definition of social investment being applied

Inflationary adjustment

Project requirements/recipients’ needs

Increase in corporate profits 3440231318131282

101116

% corporate response

REASONS FOR INCREASED CSI EXPENDITURE 7

Multiple responses ■ 2017 n=56 ■ 2016 n=40CORPORATE

Companies in South Africa contributed

R137 billionto social development over the past 20 years.


Zero growth in total CSI expenditure●● Until 2013, Trialogue consistently found that the total annual estimated CSI expenditure was growing

in real terms. In 2014 and 2015, CSI expenditure experienced negative growth in real terms (-2% and -6% respectively) and in 2016, growth in real CSI expenditure was flat.

●● In 2017, our CSI estimate revealed a 6% increase from the previous year, to R9.1 billion. This growth is in line with inflation over the review period, reflecting zero growth in real terms.

CSI spend across top 100 companies●● CSI expenditure remains concentrated among larger companies. The top 100 companies (by CSI

spend) invested R6.6 billion, or 78% of the total CSI expenditure.●● Just 15 companies accounted for over half (62%) of the total amount spent by top 100 companies.

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0123456789

10

20172016201520142013201220112010200920082007200620052004200320022001200019991998

Nominal

Real(adjusted for inflation)

CSI e

xpen

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re (R

bill

ion)

NOMINAL VERSUS REAL GROWTH IN CSI EXPENDITURE 8

Base year: 1998

Less than R25m per company

R25 – R50m per company

R50 – R100m per company

More than R100m per company

No. of top 100 companies % CSI expenditure by top 100 companies

50

17

15

18

11%

9%

62%

18%

R6.6 billion

CSI EXPENDITURE ACROSS TOP 100 COMPANIES 9

CORPORATE

CORPORATE


CSI spend across sectors●● The mining, financial and retail sectors together accounted for just under two-thirds (62%) of total

CSI expenditure, with mining alone accounting for over 30% of total CSI expenditure.

●● The oil and petroleum sector made up the biggest portion of the ’other sectors’ category.

Average CSI expenditure of corporate sample●● Over two-thirds of sample companies (70%) spent more than R10 million on CSI in 2017, with 11

companies (15%) spending more than R100 million.

●● Average CSI spend increased from R49 million in 2016 to R64 million in 2017. The median also rose, from R19 million in 2016 to R22 million in 2017.

Non-cash giving ●● The proportion of companies (45%) that reported non-cash giving in 2017 was significantly higher

than in 2016 (35%).

●● However, the value of non-cash giving, as a proportion of total CSI spend, decreased from 13% in 2016 to 10% in 2017.

●● Product and service donations accounted for the vast majority of non-cash giving. Thirty companies reported figures for these donations, equating to 9% of their total giving, and 83% of their total non-cash giving. By comparison, 16 companies quantified the value of employees’ volunteering time, which accounted for 1% of total giving.

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More than R100mR50m – R100mR30m – R50mR10m – R30mR5m – R10mR1m – R5mLess than R1m


2017 Median: R22m

5 6 9 8 15 15 32 32 14 17 11 6 14 15

AVERAGE DISTRIBUTION OF CSI EXPENDITURE 11

■ 2017 n=71 ■ 2016 n=74CORPORATE

Other sectors

Information technology and telecommunications

State-owned and public enterprises

Retail and wholesale

Financial services

Mining and quarrying 3236171613137533

2826

% CSI expenditure

DISTRIBUTION OF CSI EXPENDITURE BY INDUSTRY SECTOR 10

■ 2017 n=134 ■ 2016 n=134CORPORATE


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2017 201620152014201320122011

% co

rpor

ate

resp

onde

nts

81 87 73 60 66 65 55

19 13 27 40 34 35 45 NoYes

COMPANIES REPORTING NON-CASH GIVING 12

2011 n=110 / 2012 n=103 / 2013 n=99 / 2014 n=99 / 2015 n=82 / 2016 n=82 / 2017 n=83CORPORATE

2017201620152014201320122011

% C

SI e

xpen

ditu

re

6 5 12 12 10 13 10

94 95 88 88 90 87 90

CashNon-cash

NON-CASH GIVING AS A PROPORTION OF CSI SPEND 13

2011 n=97 / 2012 n=83 / 2013 n=88 / 2014 n=88 / 2015 n=77 / 2016 n=82 / 2017 n=83CORPORATE

NON-CASH GIVING INCREASED AS A PROPORTION OF CSI SPEND

6%

10%

non-cash giving

non-cash giving

2011

2017


CSI budget decisions●● Almost half of companies (45%) used a percentage of net profit after tax (NPAT) to determine their

CSI budgets. The majority (72%) of those that used NPAT based their calculation on 1% of NPAT. The second most common method was company decision/board approval, used by 27% of companies.

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45392627967820111601019

11


Other

% of payroll

% of dividends

% of pre-tax profit

Fixed budget with fixed % annual increase

% of turnover/revenue

Fixed budget with variable % annual increase

Based on existing expenditure

Company decision/board approval

% of NPAT

METHOD USED TO DETERMINE CSI BUDGET 14

*This question was last asked in 2014 ■ 2017 n=92 ■ 2014* n=99CORPORATE

NPAT MOST COMMON METHOD FOR DETERMINING CSI BUDGETS

Board/committee decision most consistent method for determining CSI budgets

10%

45%

of companies used NPAT in 1998

of companies used NPAT in 2017

1998 2017

29% 26%


CSI budget categories●● Direct project expenditure accounted for the majority of CSI budgets (91%).

●● Employee volunteering and staff events (33%) and monitoring and evaluation (30%) were the next most common categories included in CSI budgets. However, these components accounted for a small portion of the budget, at about 2% each.

●● Despite 16% of companies conducting some form of development sector research, less than 1% of CSI expenditure was invested in this category.

●● Fifty-seven percent of companies spent over half of their CSI budget on their flagship CSI projects.

Other

Membership-based organisation fees

Development sector research

Employee match funding

CSI governance costs

CSI marketing and communication costs

CSI administrative costs

Monitoring and evaluation of projects

Employee volunteering and staff events

Direct project expenditure 9187262221111011010100

100973056332622262225135

1618169

111233

% corporate response % CSI expenditure

BREAKDOWN OF CSI EXPENDITURE BY BUDGET CATEGORY 15

Multiple responses * This question was last asked in 2015 ■ 2017 n=89 ■ 2015* n=77CORPORATE

PERCENTAGE OF CSI BUDGET SPENT ON FLAGSHIP PROJECTS 16

2017 n=79

24 Over 75%33 50% – 75%14 25% – 50%

7 10% – 25%22 0 – 10%


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CORPORATE


Business rationale for CSI ●● The majority of companies (86%) rated moral imperative as one of their top three business reasons

for undertaking CSI. Over half of companies (53%) rated it their top reason.

●● More than half of the companies (52%) indicated that they supported CSI projects for reputational reasons. Licence-to-operate obligations (42%), and the BBBEE Codes (39%) were the next most popular motivations.

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Stakeholder pressures 16

Industry sector charter 2

Competitive advantage/strategic reasons 31

BBBEE Codes 39

Licence-to-operate obligations other than BBBEE Codes 42

Reputation 52

Moral imperative/the right thing to do 86 53 20 13

7 22 22

14 14 14

9 19 11

7 11 13

8 9 9

4 4 9

% corporate response321Ranking

BUSINESS RATIONALE FOR CSI 17

Multiple responses 2017 n=85CORPORATE

MORAL IMPERATIVE REMAINED THE TOP MOTIVATION FOR CSI

BBBEE TRANSFORMATION AGENDA

REPUTATIONMORAL IMPERATIVE

2013 2013 2013

2017 2017 2017

84%60%

86%53%

39%

44%


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Geographic distribution of funding

Corporate●● Companies have become more geographically focused, supporting projects in an average of 3.4

provinces in 2017, down from 4.2 in 2015.

●● National projects (those operating in two or more provinces) continued to receive the largest portion of CSI expenditure (41%), followed by Gauteng (20%) and the Western Cape (10%).

% corporate support % CSI expenditure

Northern Cape

Free State

North West

International

Mpumalanga

Limpopo

Eastern Cape

KwaZulu-Natal

Western Cape

Gauteng

National 4137201910116768423434212312

53594960404635443443303327351113232621271522

DISTRIBUTION OF CORPORATE SUPPORT AND CSI EXPENDITURE BY REGION 18


MAJORITY OF CSI SPEND CONTINUED TO GO TO SOUTH AFRICA’S ECONOMIC HUBS: GAUTENG, WESTERN CAPE AND KWAZULU-NATAL

18%12%

% SPEND

1998

2017% SPEND

35%

17%

36%

KWAZULU

-NATA

L

GAUTENG

WESTERN CAPE

11%


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NPO●● NPOs operated projects in an average of 2.3 provinces. ●● Only 11% of the sample operated projects nationally.●● The distribution of NPO resources was similar to that of companies, with South Africa’s economic

hubs (Gauteng, Western Cape and KwaZulu-Natal) receiving the greatest share of resources.

North West

Northern Cape

Mpumalanga

Limpopo

Free State

Eastern Cape

KwaZulu-Natal

Western Cape

Gauteng

National1119535247423031242415121814171812101515

1013333227241114853233231211

% NPO support % NPO expenditure

DISTRIBUTION OF NPO SUPPORT AND EXPENDITURE BY REGION 19

Multiple responses ■ 2017 n=198 ■ 2016 n=183NPO

PROPORTION OF CSI GOING TO RURAL VERSUS URBAN PROJECTS HAS BECOME MORE BALANCED

18% 41%

82% 59%URBAN URBAN

RURAL RURAL

1999 2013


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Development sector funding

Corporate ●● Companies supported projects in an average of 4.6 sectors, up slightly from 4.5 in 2016.

●● Education was the most popular corporate cause, supported by 91% of companies, and accounting for almost half of CSI spend (48%) in 2017.

NPO●● NPOs were involved in an average of 2.5 development sectors, slightly up from 2.4 in 2016. Social and

community development (65%) was supported by more NPOs than education (54%).

Other

Social justice and advocacy

Non-sector specific donations and grants

Safety and security

Disaster relief

Arts and culture

Housing and living conditions

Environment

Sports development

Entrepreneur and small business support

Food security and agriculture

Health

Social and community development

Education919476705154364139333531283318192125232311168

1511

1016

484815151297765332322121111010

22


not measured not measured

DISTRIBUTION OF CSI FUNDING BY DEVELOPMENT SECTOR 20


Other

Housing and living conditions

Disaster relief

Safety and security

Environment

Sports development

Arts and culture

Social justice and advocacy

Food security and agriculture

Entrepreneur and small business support

Health

Education

Social and community development

% NPO response

6560546627312320222014

811797

1156541

101821

not measured

31

29

12

5

4

3

3

2

2

1

1

1

6

% NPO expenditure

NPO INVOLVEMENT BY DEVELOPMENT SECTOR 21


▶ See Chapter 2 for more information on development sector support.


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Funding channels ●● NPOs remained the most popular channel through which companies directed their CSI expenditure,

with the percentage of corporates giving to NPOs increasing from 82% in 2016 to 89% in 2017. Nonetheless, this decreased from a peak of 100% in 2014.

●● The proportion of CSI funding that went to NPOs was half of total spend (50%), down from a peak of 56% in 2014.

●● Corporate funding of, and expenditure on, government institutions (including schools, universities, hospitals and clinics) decreased in 2017, while funding of, and expenditure on, government departments increased. Government departments were funded by 26% of companies, receiving 8% of funds.

●● Funding of for-profit service providers also increased in 2017, to 9% of total CSI expenditure.

Governance

Corporate structureFifty-one percent of companies managed CSI as a department within the company. A further 25% managed CSI through a registered trust, over half of which were described as pass-through trusts (i.e. funds come in from the corporate and get disbursed in the same year).

Other

Political parties

Religious institutions

Industry initiatives

Community trusts

Government departments

For-profit service providers

Government institutions

Non-profit organisations8982748042342619171616205613

20

5045253497832324000044


CSI FUNDING CHANNELS 22


GOVERNANCE STRUCTURE OF CSI FUNCTION 23

2017 n=91

51 CSI department within the company25 Registered as a trust16 CSI responsibility within another department of the company

8 Registered as a non-profit company


CORPORATE

▶ See page 229 for key findings on changes in and sources of NPO income.


NPO structure●● The most common forms of registration were as an NPO with the Department of Social

Development (88%) and as a public benefit organisation (PBO) with SARS (88%).

King IV and risk ●● Over a third of respondents (38%) indicated that King IV impacted the governance of their CSI

programmes by increasing the CSI oversight role of the Social and Ethics Committee. ●● Over half (59%) of companies managed CSI risks in the company risk function.

Don’t know

South African branch of an international organisation

Registered as a for-profit social enterprise with the CIPC

Registered trust

Established as a voluntary association of persons, with a founding document

Registered as a NPC with the Company Intellectual Property Commission

Registered as a PBO with Section 18a status with SARS

Registered as a PBO with SARS

Registered as an NPO with the Department of Social Development 8880888082682937271718165

3102

% NPO response

NPO REGISTRATION STATUS 24


46

38

33

11

2


Other

Don’t know

Increased engagement with communities, NPOs and other stakeholders

Increased the CSI oversight role of the Social and Ethics Committee

No impact

IMPACT OF KING IV ON CSI PROGRAMME 25


CSI RISK MANAGEMENT 26

2017 n=91

57 Risks associated with the CSI programme are incorporated into the company’s risk register and managed by the company’s risk function

34 Risks associated with the CSI programme are managed by the CSI function, independently of the company risk function

7 Risks associated with the CSI programme are not identified or managed

2 Don’t know


CORPORATE

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Staffing of CSI function●● Just under one-third of companies (32%) had one person and just over one-third of companies (34%)

had more than five people to manage and administer CSI.

●● Staff tenure is varied. Just under half of CSI staff (48%) were employed at their companies for less than five years, and just over half (52%) were employed by their companies for more than five years.

Outsourced CSI functions●● Forty-five percent of companies did not outsource any CSI functions. ●● Monitoring and evaluation (M&E) was the most commonly outsourced service, outsourced by more

than a third of companies (37%). This was followed by CSI marketing and communications (18%), development sector research (17%), and the coordination of employee volunteer programmes and staff events (16%).

NUMBER OF EMPLOYEES TO MANAGE CSI 27

2017 n=92

32 One7 Two8 Three

10 Four9 Five

34 More than five


CORPORATE

NUMBER OF YEARS CSI STAFF EMPLOYED 28

2017 n=91

4 Less than one year11 1 – 3 years33 4 – 5 years

7 6 – 7 years10 8 – 9 years23 10 – 11 years12 More than 11 years


CORPORATE

Other

Secretarial/administrative functions

Fund management

Reviewing of grant applications

Coordination of employee volunteer programmes and staff events

Development sector research

CSI marketing and communications

Monitoring and evaluation of projects

None 45

37

18

17

16

8

8

7

13


OUTSOURCED CSI FUNCTIONS 29



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Community engagement

Reasons for community engagement ●● The most common reasons that companies engaged with communities were to establish

community needs (86%), prioritise (72%) and get feedback (71%) on CSI projects. Thirteen percent of companies did not engage with comminities.

Frequency of community engagement●● The majority of companies (71%) engaged communities before investing in new projects. Forty

percent of companies engaged quarterly and over a third (36%) engaged once a month, or more frequently.

Other

Community engagement is not conducted

Identify business opportunities

Determine the community’s issues with/perceptions of the company

Enhance public perception of the company

Establish trust among project stakeholders

Get feedback on existing CSI projects/social investments

Prioritise CSI projects/social investments

Establish community needs 86

72

71

70

52

49

25

13

8


REASONS FOR COMMUNITY ENGAGEMENT 30


Never

Only when requested by the community

Less than once a year

Annually

Bi-annually (every six months)

Once a month

More than once a month

When exiting or ending a project

Quarterly (every three months)

Before investing in any new projects 71

40

33

20

16

13

11

2

1

6


FREQUENCY OF COMMUNITY ENGAGEMENT (FLAGSHIP PROJECTS) 31



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Community engagement structures ●● Almost half of companies (49%) used local government structures for community engagement and

36% used community forums.

●● When engaging with communities, the CSI function worked with a range of company departments; most commonly communications (44%), corporate affairs (43%) and stakeholder engagement (36%).

Monitoring and evaluation ●● Two-thirds (66%) of companies and 61% of NPOs claimed that they measured impact (the broader

long-term consequences of the project) of one or more of their projects. Furthermore, 55% of companies reported measuring project outcomes for all grants, regardless of size (down from 61% in 2015).

Other

Community trusts

No formal structures

Community liaison officers

Community forums

Local government structures 49

36

33

27

22

20


STRUCTURES USED FOR COMMUNITY ENGAGEMENT 32


Other

Community engagement

None, CSI department does its own community engagement

Sustainability

Stakeholder engagement

Corporate affairs

Communications 44

43

36

29

29

18

19


DEPARTMENTS WORKED WITH FOR COMMUNITY ENGAGEMENT 33


Not measured

Inputs

Activities

Outputs

Outcomes

Impacts61527469808175797072138

6662817689838480858936

% corporate response% NPO response

LEVEL OF MEASUREMENT FOR ALL CSI PROJECTS 34

■ 2017 n=142 ■ 2016 n=143 Multiple responses ■ 2017 n=91 ■ 2016 n=82NPO CORPORATE

▶ See page 219 for more information on the programme logic model – a tool used to gauge the results of social investments.


●● Performance indicators were the most popular monitoring and evaluation (M&E) approach used by companies (91%) and NPOs (72%). These were followed by impact evaluations (59% of companies and 38% of NPOs) and the LogFrame (47% of companies and 40% of NPOs).

●● Only 8% of companies and 6% of NPOs used randomised control trials.

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Only grants larger than a specific threshold and in a specific sector

Only grants made in certain development sectors

No measured or recorded outcomes for any projects

Only grants made for a specific strategic CSI project

Only grants larger than a specific threshold

All grants, regardless of size 556126151212492310


TYPE OF PROJECTS FOR WHICH OUTCOMES ARE MEASURED AND RECORDED 35

*This question was last asked in 2015 ■ 2017 n=85 ■ 2015* n=74CORPORATE

Other

Randomised control trials

Public expenditure tracking surveys

Theory-based evaluation

Social return on investment (SROI)

Cost-benefit and cost-effectiveness analysis

Rapid appraisal methods

Participatory methods

Formal surveys

The logical framework (LogFrame) approach

Impact evaluation

Performance indicators72

38

40

37

34

35

19

11

18

8

6

9

91

59

47

45

43

33

32

26

20

9

8

3


M&E TOOLS AND APPROACHES USED 36

2017 n=142 Multiple responses 2017 n=76NPO CORPORATE


CHAP

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Use of M&E data●● Most commonly, companies used the data gathered from M&E to report project findings to the

board (91%), followed by the revision of strategies and projects (79%). M&E data was used least for attempts to influence public policy or government funding choices (22%), indicating a missed opportunity for sharing lessons and influencing change beyond the company.

●● Similarly, NPOs most commonly used M&E data to report to the board (80%) and, although the majority (66%) shared findings with grantmakers, less than half (43%) shared them with other NPOs.

Data not used

Influencing public policy/government funding choices

Shared findings with grantmakers

Shared findings with NPOs

Planned/revised programmes or projects

Planned/revised strategies

Reported to the board80

70

66

43

66

20

12

91

79

62

43

43

22

3


USE OF M&E DATA 37


MORE COMPANIES CLAIM TO DO MONITORING AND EVALUATION

94%60%20162006


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Employee volunteerism●● The majority of companies (68%) had formal employee volunteer programmes (EVP) in 2017. Almost

two-thirds (63%) had volunteering policies and more than half (53%) had designated full- or part-time staff to manage volunteering.

●● Only 38% of companies quantified and included employee volunteering time as part of their total CSI spend.

YesNo

70 68

30 32

% co

rpor

ate

resp

onde

nts

20172016

COMPANIES WITH FORMAL EVPs 38

2017 n=81 / 2017 n=90CORPORATE

▶ See page 172 for more on effective employee volunteerism.

MORE COMPANIES ORGANISED VOLUNTEERING EVENTS

77% 71%68% 95%2012 20122017 2017

Companies with employeevolunteer programmes

Company-organised volunteering events


Types of EVP support ●● The majority of companies (95%) ran company-organised volunteering initiatives in 2017. Despite

these type of initiatives being the least popular among NPOs, this was the most common form of volunteerism support received by NPOs (59%).

●● NPOs most liked fundraising drives and give-as-you-earn schemes, which were offered by 73% and 23% of companies, respectively.

Other

Family volunteering

Retiree volunteering

Volunteer sabbatical

Board leadership programmes

Volunteer matched funding

Give as you earn

Pro bono

Employee matched funding

Time off for individuals to volunteer during work hours

Fundraising and collection drives

Company-organised volunteering initiatives59

55

30

18

44

9

4

8

6

16

20

14

95

73

58

40

26

23

15

5

5

2

0

3


EMPLOYEE VOLUNTEER INITIATIVES OFFERED BY COMPANIES/RECEIVED BY NPOs 39


CHAP

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NE


Retiree volunteering

Time off for individuals to volunteer during work hours


Family volunteering

Company-organised volunteering initiatives



Pro bono

Give as you earn

Company-organised fundraising/collection drives 26

21

13

13

8

6

4

4

3

2

0

8

9

4

1

16

29

11

5

9

8

0

% NPO respondents –most popular

% NPO respondents –least popular

MOST AND LEAST DESIRABLE CORPORATE EVPs 40

2017 n=141NPO


Employee participation ●● Time off for individuals to volunteer during work hours had the highest employee participation rate,

at an average of 20% of staff, followed by company-organised volunteering initiatives (17%) and fundraising drives (16%).

EVP measurement ●● Almost half (49%) of companies did not measure the results of their EVPs.

●● Community and/or beneficiary benefits were the most commonly measured benefit of EVPs, measured by 83% of companies with measurement tools in place. This was followed by the measurement of benefits to NPOs and the impact on company reputation and brand value.

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Team grants




Pro bono

Give as you earn


Employee volunteer recognition awards

Fundraising and collection drives

Company-organised volunteering initiatives

Time off for individuals to volunteer during work hours 202017211625120

1011766950303810

% employee participation

TYPES OF PARTICIPATION IN CORPORATE EVPs 41

■ 2017 n=62 ■ 2016 n=64CORPORATE


49

42

29

24

21

13

10HR development

HR retention

Brand value

Company reputation

NPO benefit

Community/beneficiary benefit

No measurement tools in place

TYPES OF EVP BENEFITS MEASURED 42



CSI communications●● The CSI communications budget was most commonly housed within the corporate communications

or CSI department (31% of companies in each case). Responsibility for CSI communications was most commonly managed by the marketing (29%) and corporate communications (27%) departments.

●● Over half of companies (56%) stated that their CSI work was integral to their corporate brand messaging.

LOCATION OF CSI COMMUNICATION BUDGET 43

2017 n=91

31 Corporate communications31 CSI department14 Marketing department

1 PR company23 Other


CORPORATE

CHAP

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DEPARTMENT RESPONSIBLE FOR CSI COMMUNICATIONS 44

2017 n=86

29 Marketing department 27 Corporate communications22 CSI department

1 PR company21 Other


CORPORATE

CSI ALIGNMENT WITH CORPORATE BRAND MESSAGING 45

2017 n=86

56 The company’s CSI work is integral to the corporate brand messaging

26 The company’s CSI work is communicated separately from the corporate brand

18 A selection of flagship CSI projects is integral to the corporate brand messaging


CORPORATE


Social media ●● Facebook was used by 61% of companies and 97% of NPOs. Over half of companies and NPOs also

used Twitter (52% and 61% respectively).

●● The most common reasons that companies used social media to communicate CSI programmes were to facilitate easy sharing of information (80%) and to encourage the general public to engage with the company’s CSI work (78%).

●● The most common reason that NPOs used social media to communicate CSI programmes was to attract potential donors (85%).

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Other

Snapchat

Google+

Instagram

LinkedIn

None

YouTube

Twitter

Facebook97

61

52

1

42

38

27

1

0

61

52

33

27

23

20

10

1

14


SOCIAL MEDIA PLATFORMS USED TO COMMUNICATE CSI INITIATIVES 46


Corporate PR and marketing purposes

Reach specific target audiences

Encourage the public to engage with/comment on CSI work

Facilitate easy sharing of information 80

78

61

59


CORPORATE RATIONALE FOR USE OF SOCIAL MEDIA 47


Other

Attract potential beneficiaries

Communicate with existing beneficiaries

Advocacy

Communicate with existing donors

Facilitate easy sharing of information

Reach specific target audiences

Attract potential donors 85

78

77

74

70

59

53

4

% NPO response

NPO RATIONALE FOR USE OF SOCIAL MEDIA 48

Multiple responses 2017 n=59NPO

▶ See pages 212–215 for more on the importance of developing a multipronged digital communication strategy.


Trends●● The majority of companies (79%) have been practicing CSI for over 10 years, and 33% have been

practicing for more than 25 years.

●● CSI has become more strategic over the past 10 years; it is more closely aligned with the business, has greater executive oversight and investment, and is better measured and communicated. Over two-thirds of respondents indicated that their company’s approach to the following aspects had increased over the past decade:- Level of governance oversight of CSI (67%)- Level of oversight by executive management (69%)- Alignment between CSI programme and the business (68%)- Real expenditure (67%)- Number of strategic or collaborative partnerships (68%)- Monitoring and evaluation of CSI projects (67%)- Communication of CSI (69%).

●● Over two-thirds of companies (74%) also indicated that their company factored ‘shared value’ thinking into their CSI strategy.

CHAP

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NUMBER OF YEARS COMPANIES HAVE BEEN DOING CSI 49

2017 n=90

1 0 – 2 years2 3 – 5 years

15 6 – 10 years19 11 – 15 years21 16 – 20 years

6 21 – 25 years33 More than 25 years

3 Don’t know


CORPORATE

Number of developmental focus areas supported

Number of CSI projects supported

Cost of administering the programme, relative to CSI spend

Formal structures and management of the CSI function

Real expenditure

Monitoring and evaluation

Level of governance oversight of CSI

Alignment between CSI programme and business

Number of strategic or collaborative partnerships

Level of oversight by executive management

Communication of CSI 69 27 3 1

69 28 3 0

68 26 4 2

68 29 1 2

67 31 2 0

67 30 2 1

67 17 16 0

57 41 2 0

46 40 10 4

45 26 29 0

29 49 22 0


DecreasedStayed the sameIncreased Don’t know

CHANGES IN CORPORATE APPROACHES TO CSI OVER THE PAST 10 YEARS 50

2017 n=90CORPORATE


●● Governance and management practices within NPOs have also improved. Over the past 10 years, more than two-thirds of NPOs indicated increases in their organisations’ approaches to communication of programmes; monitoring and evaluation; level of governance oversight of the organisation; formal structures and management of the organisation, and number of projects supported. ■

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Number of corporate donors

Number of developmental focus areas supported

Real income of the organisation

Number of strategic or collaborative partnerships

Number of projects supported

Formal structures and management of the organisation

Level of governance oversight of the organisation

Monitoring and evaluation

Cost of administering the organisation (relative to total spend)

Communication of programmes

% NPO respondents

DecreasedStayed the sameIncreased Don’t know

74 20 5 1

72 18 8 2

70 26 3 1

69 25 4 2

69 26 5 0

66 23 10 1

63 23 11 3

61 8 27 4

60 31 7 2

42 22 33 3

CHANGES IN NPO APPROACHES TO CSI OVER THE PAST 10 YEARS 51

2017 n=198NPO

Fighting hunger, one R2 coin at a time.Add Hope started 8 years ago with the belief that, given the chance, our customers wouldn’t hesitate to join the fight against hunger. By simply paying an extra R2 on their bill at KFC, they have helped us raise more than R387 million. Every cent goes to 137 beneficiaries who provide nutritious meals for over 120 000 kids across South Africa.

JHB

605

84

60584-60584 Add Hope Trialogue Print ad.indd 1 2017/09/22 11:17 AM

R ealising that no single firm can address the many socioeconomic challenges which exist in South Africa,

Investec has opted to adopt a focused approach to social investment. Aimed at facilitating opportunities that enable people to become active economic participants in society, Investec’s CSI strategy focuses largely on education and entrepreneurship. The intention in education is to contribute towards an increase in the number of those who matriculate with a decent pass in maths and science with an aspiration to proceed beyond matric. Understanding that, for many, the aspiration to have a university qualification will remain just an aspiration, our educational focus extends towards facilitating access to quality tertiary education, supporting and celebrating academic achievements at university.

Stimulating an entrepreneurial mindsetInvestec’s focus on entrepreneurship revolves largely around stimulating entrepreneurial thinking among high school learners and championing growth through global exposure among young entrepreneurs already in business. The focus on entrepreneurship, just like that on education, is aimed at enabling people to become active economic participants in society. It is clear that in the growth of entrepreneurs lies the growth of others in the form of job creation and possible services delivered through socially orientated businesses.

Although very focused in approach, Investec has a degree of flexibility. Hence the 90%:10% budget split where 90% is intended for flagship projects in education and entrepreneurship, and 10% is allocated towards staff volunteerism and other philanthropic initiatives. The significance of volunteerism cannot be emphasised enough.

In an attempt to live and give true meaning to one of Investec’s key values,

A focused yet flexible approach to corporate social investment (CSI)

that of unselfish contribution to society and others, we have recognised the significance of collaborating not only with external parties, but also placing equal importance on partnering with our fellow staff members and colleagues. It is only through the power of collaboration from like-minded individuals that seemingly insurmountable challenges can be overcome.

Staff volunteering opportunitiesIn a country such as ours, characterised by so many socioeconomic challenges, it is too easy to fall into a state of despair and be overwhelmed by what needs to be done to make a difference in the lives of others. With the view that every little effort counts, we look forward to joining hands with more of our colleagues to uplift, inspire and positively impact those less fortunate, hence the creation

of a platform for staff volunteering opportunities that take the following format:

• Giving money – facilitated mainly through our payroll giving programme where occasionally we match all employee donations rand for rand.

• Giving time – giving staff a number of options through which they can give time. For example, staff members can give their time through the mentorship programme where they become mentors to Investec bursary recipients at high school and university.

• Giving goods – enabling staff to donate goods that are in decent condition but which they no longer require. Such goods can be books, clothes, furniture and the like.

The creation of the above opportunities and platform enables staff to get involved in developmental initiatives in partnership with the CSI division. Our experience is that far more can be achieved by using our knowledge, expertise and influence than by limiting our contribution to cash grants. We believe this is possible through successful partnerships with staff, hence the effort to encourage and promote staff volunteerism.

Soccer League

In addition to this, we have been running an Investec Soccer League since 2008 where over 300 learners participate year after year. The prize money can be utilised only for the winning school’s sports and educational development initiatives as no cash is paid to the school. The prize categories are as follows.

First prize R90 000Second prize R60 000Third prize R40 000Fourth prize R30 000

In addition, this flexible approach enables us to make smaller once-off ad hoc donations to worthy causes not necessarily aligned with our key strategic focus. This budget allows us to allocate small but meaningful grants in response to the many different calls

for help received on a daily basis. For example, we have been able to make donations to crèches, township soccer clubs, the elderly, environmental organisations and others. While no guarantee of funding can be made, organisations wanting to be considered for such one-off donations can send an

email for a donations request form to [email protected].

So while it is important to focus our CSI efforts, we appreciate that there are a number of worthy causes and initiatives that fall outside of our area of focus and the 90%:10% split has worked well for us and the communities we seek to assist.

Field Band Foundation

Understanding the significance of development through sports and music, we are glad that our partnership with the Field Band Foundation has formed part of our philanthropic initiatives for well over eight years. This has seen us contribute to the establishment of the Alex and Soweto Field Band aimed at developing well-rounded responsible citizens and leaders through music. Over 200 learners benefit from our association with the Field Band Foundation every year. The field bands provide a valuable opportunity for youth to learn essential life skills while learning to play a musical instrument. We continue to get inspirational stories from the Field Band Foundation.


CHAP

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Corporate and NPO reputations

A s part of its annual research, Trialogue asks corporate and non-profit organisation (NPO) respondents to list three companies and three NPOs that they perceive to be having the greatest developmental impact. Rather than a gauge of actual impact, these rankings – based on the number of respondent mentions – tend to favour companies and NPOs that are better known,

either because of good communication or widespread reach.

Corporate developmental impact

●● Vodacom was ranked number one by companies – with 24 mentions – for the first time in 2017, and has been ranked in the top five since 2012. The company’s ranking by NPOs also improved, from fifth place for three consecutive years, to third place in 2017, with 12 mentions.

❛❛ At Vodacom our core belief is that, through our social investments and providing relevant information, communication and digital technology solutions, we can help empower and transform the lives of people in our communities.

Takalani Netshitenzhe – Chief officer of Vodacom Corporate Affairs, on the company’s commitment to developmental impact

●● Nedbank was ranked second by companies – with 20 mentions – for the third consecutive year, and has been ranked in the top three since 2012. NPO rankings of the company peaked, from second place in 2014 and 2015, to first place in 2016 and 2017.

❛❛ CSI is no longer just about philanthropy, grants and donations. Our commitment to sustainable developmental impact forms part of our business strategy, not only creating value for the business bottom line, but shared value creation to benefit our greater society. We continue to use our expertise to do good in our communities and we continue to inspire all our stakeholders to embrace the culture of giving back to society.

Lindiwe Temba – Executive head of the Nedbank Foundation, on the company’s commitment to developmental impact

●● Woolworths leapt from ninth place in 2015 to third place in 2016 as ranked by companies, a position which it retained in 2017, with 13 mentions.

Table 1: RANKED BY COMPANIES

Ranking (n=88) Company

1 Vodacom

2 Nedbank

3 Woolworths

4= Anglo AmericanMTN

6= Discovery Old Mutual

8= FirstRandSAB Miller

10= InvestecSasolStandard BankTiger Brands

= Denotes equal ranking

Table 2: RANKED BY NPOs

Ranking (n=137) Company

1 Nedbank

2 Old Mutual

3 Vodacom

4 Anglo American

5 Woolworths

6= DiscoveryPick n Pay

8= InvestecMMI Holdings

10 Absa


CORP

ORAT

E AND

NPO R

EPUT

ATIO

NS

●● This was the first year that Anglo American was not ranked in the top three positions by other companies. Apart from 2002, when the company was ranked third, it has consistently been ranked in the top two positions since 1999. The company’s ranking among NPOs also dropped; from first place in 2014 and 2015, and second place in 2016, to fourth place in 2017.

●● MTN’s corporate ranking has improved slightly, from fifth position in 2014 and 2015, to fourth position in 2016 and 2017. The company last ranked in the top 10 by NPOs in 2014, when it held the sixth position.

●● Old Mutual’s ranking by companies climbed from ninth place in 2013 to fourth place in 2014 and 2015, and dropped to fifth and sixth place in 2016 and 2017, respectively. However, the company’s reputation among NPOs has steadily grown, from fifth place in 2015 and third place in 2016, to second place – with 20 mentions – in 2017.

NPO developmental impact

●● While there are slight year-on-year variations in how companies are ranked, there is a degree of consistency in the companies that make the annual list. Unsurprisingly, the NPO rankings (introduced in 2015) show far more significant year-on-year changes, telling of the breadth and scope of the NPO landscape in South Africa.

●● Despite new entries on the NPO lists every year, Gift of the Givers and Afrika Tikkun have alternated first and second positions, as ranked by companies, since 2015. Gift of the Givers has been ranked first by companies for two out of the three years that this question has been asked. ■

Table 4: RANKED BY COMPANIES

Ranking (n=89) NPO

1 Gift of the Givers

2 Afrika Tikkun

3= Doctors Without BordersFood ForwardNational Education Collaboration Trust

6= CHOCFood and Trees for AfricaNelson Mandela Children’s FundRed CrossSECTION27

= Denotes equal ranking

Table 5: RANKED BY NPOs

Ranking (n=138) NPO

1= CHOCGift of the GiversSPCA

4 CANSA

5 The Smile Foundation

6= Afrika TikkunBRIDGEDG Murray TrustNelson Mandela FoundationSANCA National

Table 3: COMPANIES PERCEIVED AS GOOD CORPORATE GRANTMAKERS IN 1999

Ranking Company

1 Anglo American

2 SA Breweries

3 Nedcor

4 Liberty Life

5 Old Mutual

6 Absa

7 Coca-Cola

8 Barlow

9 Rembrandt

10 Richards Bay Minerals

▶ See page 82 for more on Anglo American’s role in shaping CSI in South Africa.

▶ Read more about Gift of the Givers on page 66.


VIEW

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BUILDING RELATIONSHIPS, REBUILDING COMMUNITIES

As part of its annual research, Trialogue asks companies and non-profits to rank organisations that are perceived to have the most developmental impact. Since 2015, when this question was first posed, Gift of the Givers has consistently ranked in the top two positions. Founder and chairman, Dr Imtiaz Sooliman speaks about the principles that have propelled his organisation to provide R2.3 billion in aid to millions of people in 43 countries, over 25 years.

DR IMTIAZ SOOLIMANFounder and chairman of Gift of the [email protected]

What do you think contributes to the widely positive perception of your organisation?

People are intrigued by the diversity of our projects. We are a world-class disaster response agency, but we also build housing villages; support agricultural sustainability; drill boreholes and send water to the remotest areas in cases of drought; build and run hospitals in war zones; provide local hospitals with infrastructure, equipment and medical supplies; support primary, secondary and tertiary education; offer

lifeskills services; provide wheelchairs, food parcels, detergents, sanitary pads, blankets, new clothing, animal fodder and pet food; are involved in the rehabilitation of bees; have our own entrepreneurship programme, and a range of other projects.

Our recent success negotiating the release of hostages under the most difficult circumstances has also raised our public profile substantively.

Donors love our efficiency, preparedness, speed of delivery, transparency, report back and the visible impact of our interventions.

Our assistance transcends race, religion and culture, and our aid is unconditional.

What is your organisation’s approach to community engagement?Relevant customs and culture should be understood, and communities must be treated with dignity and respect. It is important to serve with humility, kindness and compassion, understanding that you are only a conduit of assistance and that aid is given through you, and not by you. The quality of aid, the way we package and present it and the method of distribution are key factors in winning over people’s hearts, paving the way for success for our entire operation.

How do you build relationships with governments across the world?We enjoy excellent relationships with various tiers of government, including the presidency, parliament and several ministers. Our relationship with DIRCO gives us diplomatic leverage, as the South African Government negotiates with disaster-affected communities on our behalf, serving as an endorsement of our credibility.

Commendations in parliament for our interventions have captured the attention of various diplomatic missions in our country and we’ve reached a level of diplomatic acceptance that has governments of other countries calling us directly when they require interventions. Where possible, South African ambassadors receive us in affected countries, which carries a lot of weight.

Our greatest selling point is the character of our teams. We have

200 medical and search and rescue volunteers of the highest integrity and capability on standby. When governments and civil servants see our approach to community engagement, the quality of our service, our unconditional assistance and neutrality, they open doors of cooperation in the widest possible way.

The refugee camps that we set up during the xenophobic attacks in South Africa assisted people from many countries. High-level government officials from these countries visited our camps to convey their gratitude. It is these types of interventions that have built our profile within the diplomatic community over the years, making it so much easier when next we have to respond to an international disaster.

Our research shows that disaster relief does not receive a large proportion of CSI spend. How have you managed to build relationships with companies that support your work?

With buzz words like ‘sustainability’, many funders want to invest in building the future, and sometimes forget about the immediate needs. We established corporate partnerships around our education and health initiatives, for example, which receive more corporate support. That way, when there is a disaster, it’s easier to call on our existing partners to join us.

When companies give us money or items for distribution, we invite them to witness the suffering of the people and the impact that they are actually making. We also build up our own resources so that we can respond to disaster crises independently. We get the ball rolling and companies can see that there is already work being done, and what they will be contributing to.

How and why should companies contribute to disaster prevention?

Nothing destroys a human more than a disaster because the effect is physical, material, emotional and psychological. There needs to be an intervention that will inspire hope, self- esteem, encouragement and positivity. Intervening rapidly and restoring the person back to their previous state is the most dignified approach. ■

see money differently

Nedbank’s largest CSI focus is in early-childhood development (ECD) and primary, secondary and tertiary education. We regard education as the foundation of job creation, career progression, overcoming poverty and advancing the country’s future economic development. In 2016 Nedbank invested R141 million in CSI initiatives, and of this, R72 million or 51,3% was invested in education.

Other areas that received CSI support in 2016 were: community development (6,2%); skills development (3,2%); health (7,5%); volunteerism (3,9%); and the Green, Children, Sport and Arts Affinity Programmes (27,9%).

Our CSI is facilitated through the Nedbank Foundation and varioustrusts and funds within the bank. The main ones are:

The Nedbank Eyethu Community Trust

The Nedbank Private Wealth Foundation

The Nedbank External Bursary Fund

The Nedbank Affinities Programme

CSI CONTRIBUTIONS FOR 2016

Education 51,3%

Community development 6,2%

Skills development 3,2%

Health 7,5%

Volunteerism 3,9%

Affinity Programmes 27,9%

At Nedbank we know our success is inseparable from the wellbeing of the people and communities we serve. This is reflected in our long-term corporate social investment (CSI) projects throughoutSouth Africa. The primary CSI arm of the Nedbank Group is the Nedbank Foundation, established25 years ago in 1992.

EducationR141m

THE NEDBANK FOUNDATIONThe Nedbank Foundation plays a pivotal role in the Nedbank Group to advance education, health, skills development, job creation and community development in South Africa’s under-resourced, disadvantaged and rural communities. Over the past 10 years the Nedbank Foundation has donated R366 million to a range of carefully selected, sustainable projects.Investment in 2016: R30,3 million in 91 projects

THE NEDBANK EYETHU COMMUNITY TRUSTThis trust supports institutions of higher learning, as well as institutions focused on research, skills development and entrepreneurship.Investment in 2016: R18,9 million

THE NEDBANK PRIVATE WEALTH FOUNDATIONThis foundation is aimed at youth between the ages of15 and 25 years, focusing on skills-based learnerships and programmes for the development of maths, sciences and entrepreneurial skills.Investment in 2016: R8,8 million for 23 organisations

THE NEDBANK EXTERNAL BURSARY FUNDThis fund provides a number of bursaries through theNedbank Education Trust.Investment in 2016: R11 million to 104 students

THE NEDBANK AFFINITY PROGRAMMESThe Green, Children’s, Sport and Arts Affinity Programmesfund a range of projects and organisations on behalf of our clients and at no cost to them whenever they use their Nedbank Affinity-linked products. Since the inception of the programme in 1990 the four affinities have contributed more than R350 million to over 1 200 projects.Investment in 2016: R39,3 million across the four affinities

STAFF VOLUNTEERISMNedbank encourages a culture of volunteerism among staffmembers. They invest their time, skills and talents to improve the lives of others. This funding provides financial support to organisations where our staffmembers volunteer. Investment in 2016: R5,6 million for staff volunteerism

cannot startearly enough TOTAL EDUCATION: R72 million

A TOTAL OF 51,3% OF NEDBANK’S CSI BUDGET IS INVESTED IN EDUCATION AS FOLLOWS:

BASIC EDUCATIONECD R2,2 millionPrimary school R12,1 millionSecondary school R26,2 million

Total: Basic education

R40,5 million

TERTIARY EDUCATION

Undergraduate bursaries

R14,3 millionPostgraduate bursaries

R2,9 millionOther R4,1 millionStudent assistance R8,2 millionResearch R2 millionTotal: Tertiary education

R31,5 million

10090_SCI ADVERTORIAL final.indd 3 2017/10/16 4:09 PM


EARLY-CHILDHOOD DEVELOPMENTThe HeronBridge Training and Resource CentreBoosting early-childhood developmentThe communities in the Gauteng townships of Diepsloot and Rhenosterspruit have hundreds of small day care centres or crèche facilities that provide an income for residents, but are largely run by practitioners with little or no qualification in ECD. The HeronBridge Training and Resource Centre (HTRC) educates, trains and mentors these and other practitioners in under-resourced communities.

In 2017 the Nedbank Foundation contributed R300 000 towards the national qualifications framework (NQF) Level 5 training of 37 ECD practitioners from 25 preschools in Diepsloot and Rhenosterspruit. This followed the Foundation’s 2016 contribution of R200 000 towards the NQF Level 4 training of ECD practitioners. They are all doing well, and over 1 773 preschoolers are benefitting from greatly improved standards of care and a far stronger foundation from which to enter the schooling system.

PRIMARY AND SECONDARY EDUCATIONThe Nedbank Mobile Library ProjectImproving literacy in South AfricaThe Nedbank Foundation initiated the Nedbank Mobile Library Project in 2009 and has annually funded this project to the value of more than R1 million, providing quality reading and study material to learners in under-resourced communities, particularly in rural schools. Literacy levels are critically low in these communities and there is no culture of reading. There is also a high teacher-to-pupil ratio, which accentuates the need for teacher and learner support.

In 2016 the Nedbank Foundation funded nine mobile libraries in North West, Limpopo, KwaZulu-Natal, Eastern Cape and Mpumalanga. This project is exponentially improving learning and literacy in our schools.

SECONDARY EDUCATIONThe Maths and Science Leadership Academy (grades 7 to 12)Growing maths and science achievement in our schools The Maths and Science Leadership Academy (MSLA) directly responds to South Africa’s maths and science educational challenges, focusing on the Northern Cape’s Kimberley area. The Nedbank Foundation has been funding the MSLA since 2010, and in 2016 it contributed R300 000 towards the MSLA’s Maths Pi-oneers Programme, which develops maths problem-solving skills and a passion for the subject in learners, and empowers teachers to improve their knowledge and teaching methods. The funding has enabled the MSLA to grow its Maths Pi-oneers Programme to over 440 grade 7 to 12 learners and 20 teachers from 38 Kimberley schools in 2016. The matric results of the learners participating in the programme have been outstanding, producing some of the province’s top students

in maths and science. Since 2013 over 60 students have gone on to study in engineering fields at tertiary institutions around South Africa. Their progress at tertiary level is also tracked.

STAFF VOLUNTEERISMNedbank Systems Analyst Benedict MashileNedbank staffmembers are active citizensNedbank recognises its employees for being active citizens through its Local Hero Programme, and supports them by donating prize money to organisations where they have been assisting throughout the year.

One of Nedbank’s many local heroes is Systems Analyst Benedict Mashile, who has a BSc in Computer Science from the University of Cape Town. He tutors, motivates and mentors over 500 grade 8 to 12 learners annually in Gauteng and Mpumalanga.

I am passionate about maths and have always wanted to transfer my knowledge to learners, so I started tutoring learners while I was still at university,’ says Benedict, adding: ‘I am following in my mother’s footsteps, as she has been doing volunteer work all her life.

Nedbank encourages all of its employees to contribute to social upliftment, and over 1 700 employees make use of the two days of CSI leave that Nedbank provides annually for volunteer work.

TERTIARY EDUCATIONSolar Water Heater ProjectBuilding the capacity of technical and vocational education and training colleges to deliver green skills Solar water heater programmes in technical and vocational education and training (TVET) colleges are offering South Africans increased opportunities for employment and self-employment. From 12 June to 21 July 2017, 27 candidates (15 female and 12 male) completed their theoretical and practical training in the installation and maintenance of solar water heaters, including basic plumbing principles. The training took place at the Central Johannesburg TVET College.

Following this, the candidates participated in work-readiness training from 24 July to 18 August at Harambee – a youth employment accelerator initiative. This was followed by a five-day entrepreneurship boot camp designed to prepare candidates to start and run their own basic plumbing business. Phase 2 will be to track the candidates’ progress over time and offer ongoing support. The Nedbank Foundation is supporting the college in securing the required accreditation and the delivery of the training.

For more information about the Nedbank Foundation please email Lindiwe Temba, Head of the Nedbank Foundation, at [email protected].

THE PROJECTS FEATURED HERE OFFER INSIGHT INTO THE RANGE OF EDUCATION-

FOCUSED INITIATIVES WE SUPPORT.

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THE NEDBANK FOUNDATION – EDUCATION FOR ALL



EARLY-CHILDHOOD DEVELOPMENTThe HeronBridge Training and Resource CentreBoosting early-childhood developmentThe communities in the Gauteng townships of Diepsloot and Rhenosterspruit have hundreds of small day care centres or crèche facilities that provide an income for residents, but are largely run by practitioners with little or no qualification in ECD. The HeronBridge Training and Resource Centre (HTRC) educates, trains and mentors these and other practitioners in under-resourced communities.

In 2017 the Nedbank Foundation contributed R300 000 towards the national qualifications framework (NQF) Level 5 training of 37 ECD practitioners from 25 preschools in Diepsloot and Rhenosterspruit. This followed the Foundation’s 2016 contribution of R200 000 towards the NQF Level 4 training of ECD practitioners. They are all doing well, and over 1 773 preschoolers are benefitting from greatly improved standards of care and a far stronger foundation from which to enter the schooling system.

PRIMARY AND SECONDARY EDUCATIONThe Nedbank Mobile Library ProjectImproving literacy in South AfricaThe Nedbank Foundation initiated the Nedbank Mobile Library Project in 2009 and has annually funded this project to the value of more than R1 million, providing quality reading and study material to learners in under-resourced communities, particularly in rural schools. Literacy levels are critically low in these communities and there is no culture of reading. There is also a high teacher-to-pupil ratio, which accentuates the need for teacher and learner support.

In 2016 the Nedbank Foundation funded nine mobile libraries in North West, Limpopo, KwaZulu-Natal, Eastern Cape and Mpumalanga. This project is exponentially improving learning and literacy in our schools.

SECONDARY EDUCATIONThe Maths and Science Leadership Academy (grades 7 to 12)Growing maths and science achievement in our schools The Maths and Science Leadership Academy (MSLA) directly responds to South Africa’s maths and science educational challenges, focusing on the Northern Cape’s Kimberley area. The Nedbank Foundation has been funding the MSLA since 2010, and in 2016 it contributed R300 000 towards the MSLA’s Maths Pi-oneers Programme, which develops maths problem-solving skills and a passion for the subject in learners, and empowers teachers to improve their knowledge and teaching methods. The funding has enabled the MSLA to grow its Maths Pi-oneers Programme to over 440 grade 7 to 12 learners and 20 teachers from 38 Kimberley schools in 2016. The matric results of the learners participating in the programme have been outstanding, producing some of the province’s top students

in maths and science. Since 2013 over 60 students have gone on to study in engineering fields at tertiary institutions around South Africa. Their progress at tertiary level is also tracked.

STAFF VOLUNTEERISMNedbank Systems Analyst Benedict MashileNedbank staffmembers are active citizensNedbank recognises its employees for being active citizens through its Local Hero Programme, and supports them by donating prize money to organisations where they have been assisting throughout the year.

One of Nedbank’s many local heroes is Systems Analyst Benedict Mashile, who has a BSc in Computer Science from the University of Cape Town. He tutors, motivates and mentors over 500 grade 8 to 12 learners annually in Gauteng and Mpumalanga.

I am passionate about maths and have always wanted to transfer my knowledge to learners, so I started tutoring learners while I was still at university,’ says Benedict, adding: ‘I am following in my mother’s footsteps, as she has been doing volunteer work all her life.

Nedbank encourages all of its employees to contribute to social upliftment, and over 1 700 employees make use of the two days of CSI leave that Nedbank provides annually for volunteer work.

TERTIARY EDUCATIONSolar Water Heater ProjectBuilding the capacity of technical and vocational education and training colleges to deliver green skills Solar water heater programmes in technical and vocational education and training (TVET) colleges are offering South Africans increased opportunities for employment and self-employment. From 12 June to 21 July 2017, 27 candidates (15 female and 12 male) completed their theoretical and practical training in the installation and maintenance of solar water heaters, including basic plumbing principles. The training took place at the Central Johannesburg TVET College.

Following this, the candidates participated in work-readiness training from 24 July to 18 August at Harambee – a youth employment accelerator initiative. This was followed by a five-day entrepreneurship boot camp designed to prepare candidates to start and run their own basic plumbing business. Phase 2 will be to track the candidates’ progress over time and offer ongoing support. The Nedbank Foundation is supporting the college in securing the required accreditation and the delivery of the training.

For more information about the Nedbank Foundation please email Lindiwe Temba, Head of the Nedbank Foundation, at [email protected].

THE PROJECTS FEATURED HERE OFFER INSIGHT INTO THE RANGE OF EDUCATION-

FOCUSED INITIATIVES WE SUPPORT.

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THE NEDBANK FOUNDATION – EDUCATION FOR ALL


CSI E

XPEN

DITU

RE PE

R COM

PANY

CSI expenditure per company

Company name2016/17¹

published CSI spend

2015/16² published CSI spend

2016/17 focus areas Source of 2016/17 data

(RSA, unless otherwise

mentioned) Rm³


mentioned) Rm³

(not in order of investment)

ABI 24.0Not available

at time of going to print

Youth empowerment, environment, enterprise development, philanthropic ad hoc projects www.abi.co.za/sustainability/

ACSA 54.9 56.4Community development, youth development, education, skills and enterprise development, environment, sport, disability

ACSA Annual Integrated Report 2016, p70

Adcorp Holdings 1.84 5.3 Education, social development, environment Adcorp Holdings Integrated Annual Report 2017, pg30

ADvTech 112.0 102.0 Education ADvTech Sustainability Report 2016, p4

AECI 21.0 18.0 Education, skills development, environment, community development, OVC

AECI Integrated Annual Report 2016, p69

African Rainbow Minerals 106.05 169.0

Economic development, women and youth development, OVC, community development, enterprise development

African Rainbow Minerals Integrated Annual Report 2016, p16

Afrimat 6.0 5.3Education, art, sports and culture, infrastructure, community development, skills development, basic needs, health

Afrimat Integrated Annual Report 2017, p52

Alexander Forbes 5.5 5.0 Education, early childhood development, OVC, community development

Alexander Forbes Integrated Annual Report 2017, p86

Altron Group 8.4 10.4 Education, skills development Altron Group Integrated Annual Report 2017, p42

Anglo American 1 237.06 1 581.1

Community development, education, training, water and sanitation, health and welfare, sports, arts, culture and heritage, institutional capacity development, environment, disaster and emergency relief, environment

Anglo American Sustainability Report 2016, p50

Anglo American Platinum 331.0 547.0

Education and training, health and welfare, water and sanitation, institutional capacity development, community development

Anglo American Platinum Supplementary Report 2016, p17

AngloGold Ashanti 88.07 79.3 Enterprise development, infrastructure, health, education, skills development, gender equality

AngloGold Ashanti Integrated Annual Report 2016, p71

ArcelorMittal SA 17.4 12.6 Skills development, training, education ArcelorMittal Integrated Annual Report 2016, p6

Aspen Pharmacare Holdings 13.9 13.4 Health, education, training, sport, community

upliftmentAspen Pharmacare Integrated Annual Report 2016, p66

Assmang 180.98 107.2 Education, enterprise development, community upliftment, poverty alleviation

Assore Sustainability Report 2016, p22

Assore 33.29 15.3 Education, enterprise development, community upliftment, poverty alleviation

Assore Sustainability Report 2016, p22

The following table contains published figures on CSI expenditure during the period 1 July 2016 to 30 June 2017, 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 the average exchange rate for the month of each company’s financial year-end. 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.


CHAP

TER O

NE


published CSI spend




mentioned) Rm³


mentioned) Rm³


Astral Foods 56.3 48.2Education, skills development, adult basic education, health, HIV/Aids, basic needs, welfare, enterprise development

Astral Foods Integrated Annual Report 2016, p85

Aveng Group 12.3 11.6 Education Aveng Integrated Annual Report 2016, p11

AVI 22.8 20.8 Education, skills development, health, welfare, environment

AVI Integrated Annual Report 2017, p42

Barclays Africa Group 18410 186 Education and skills, enterprise development, financial education

Barclays Africa Group Limited, Integrated Annual Report 2016, p35

Barloworld 16.8 16.6Education, skills development, job creation, environment, health, leadership, youth development, sport development, crime prevention

Barloworld Integrated Annual Report 2016, p95

Basil Read Holdings 6.0 7.5 Education, job creation, health Basil Read Holdings Integrated Annual Report 2016, p26

BHP Billiton 2 593.211 2 576.2 Enhancing livelihoods, health, education, training, social inclusion

BHP Billiton Integrated Annual Report 2016, p50

Bidvest 105.0 100.0 Community development, environment, enterprise development, training

Bidvest Integrated Annual Report 2016, p47

Blue Label Telecoms 6.5 5.3 Youth, sports development, technological development Blue Label Telecoms Integrated Annual Report 2016, p71

BMW 1 413.912 536.2 HIV/Aids, community development, education, sports development

BMW Integrated Annual Report 2016, p62

BP 898.713 856.8 Education, enterprise, development, energy sustainability BP Sustainability Report 2016, p29

British American Tobacco 166.014 216.4 Sustainable agriculture, environment, empowerment,

civic life www.bat.com/csi

Calgro M3 Holdings 7.2 6.1 Education, skills development, social development Calgro M3 Integrated Annual Report 2017, p63

Capitec Bank Holdings 13.4 10.6 Community development, education, skills development, enterprise development

Capitec Bank Integrated Annual Report 2017, p110

Cashbuild 141.4 133.0 Education, community development, enterprise development

Cashbuild Integrated Annual Report 2016, p4

Chevron 2 735.815 68.9 Education, health, community and economic development

Chevron Integrated Annual Report 2016, p3

Clicks Group 15.116 11.1 Health, skills development Clicks Group Integrated Annual Report 2016, p52

Clover Industries 4.7 5.2 Skills development, community development, food security, infrastructure development

Clover Industries Integrated Annual Report 2017, p123

Coronation Fund Managers 19.817 19.7 Education, skills development, entrepreneur

development, financial educationCoronation Fund Managers Integrated Annual Report 2016, p76

Curro Holdings 43.0 27.0 Health, environment, community development Curro Holdings Integrated Annual Report 2016, p25

Datatec 7.0 7.0 Education, skills development Datatec Integrated Annual Report 2017, p58

De Beers Group 9.918 9.1Health and HIV/Aids, sports, education, arts, culture and heritage, institutional capacity development, emergency relief, housing, environment, community development, small business development

De Beers Report to Society 2016, p17

Denel 7.2 5.0Education, training, skills development, community development, enterprise development, sports development

Denel Integrated Annual Report 2017, p39 - 40

Discovery Holdings 57.0 68.4 Health, education, environment, enterprise development

Discovery Holdings Sustainable Development Report 2016, p39


CSI E

XPEN

DITU

RE PE

R COM

PANY


published CSI spend




mentioned) Rm³


mentioned) Rm³


Distell Group 19.1 17.3 Alcohol abuse-related harm reduction, youth and entrepreneurship development, arts and culture

Distell Group Integrated Annual Report 2017, p143

DRD GOLD 25.0 17.3 Health, safety and security, environment, skills development, training

DRD GOLD Integrated Annual Report 2017, p3

Eskom 225.319 103.6 Education, health, community development, enterprise development

Eskom Integrated Annual Report 2017, p70

Exxaro Resources 49.0 63.0Education, skills development, infrastructure, health and welfare, sport and recreation, enterprise development, environment, agriculture

Exxaro Resources Integrated Annual Report 2016, p66

Famous Brands 18.420 15.9 Education, sport, health Famous Brands Integrated Annual Report 2017, p7

FirstRand 354.021 171.0 Education, community development FirstRand Annual Integrated Report 2017, p9

Glencore Xstrata 1 157.622 1 039.8 Education, enterprise development, economic diversification, health, environment

Glencore Xstrata Integrated Annual Report 2016, p35

Gold Fields 58.823 47.2 Education, social and community development, skills development, infrastructure, health

Gold Fields Integrated Annual Report 2016, p12

Grindrod 11.9 7.3 Education, environment Grindrod Integrated Annual Report 2016, p40

Growthpoint Properties 21.8 15.1 Education, enterprise and supplier development, social

infrastructureGrowthpoint Properties Integrated Annual Report 2016, p108

Harmony Gold Mining 9.0 6.0 Education, community development, entrepreneurial and skills development, sport and recreation

Harmony Gold Mining Integrated Annual Report 2016, p56

HCI Foundation (Hosken Consolidated Investments )

Not available at time of going

to print27.0

Education, training, development and enrichment, environment, safety, human rights and advocacy, arts and culture

Illovo Sugar Not available


10.5Education, health, environment, capacity building, infrastructure support, enterprise development, sport, arts and culture

Impala Platinum Holdings 106.0 105.0 Community development Impala Platinum Sustainable

Development Report 2017, p43

Imperial Holdings 32.0 29.0 Health, community development, safety Imperial Holdings Integrated Annual Report 2017, p7

Industrial Development Corporation of SA

58.0 40.0 Education, training, skills development, community development, entrepreneur development

Industrial Development Corporation of SA Integrated Annual Report 2017, p25

Investec 85.9 62.8 Education, entrepreneur development Investec Integrated Annual Report 2017, p132

Invicta 5.824 11.5 Training, education, skills development Invicta Integrated Annual Report 2017, p34

JSE 8.3 8.2 Education, financial literacy JSE Integrated Annual Report 2016, p3

Kumba Iron Ore 67.025 175.0Education, skills development, health and welfare, enterprise development, poverty alleviation infrastructure, institutional capacity development, sports, arts and culture, heritage

Kumba Iron Ore Sustainability Report 2016, p51

Lewis Group 8.0 10.0 Education, OVC, health, community development, training

Lewis Group Integrated Annual Report 2017, p85

Liberty Holdings 37.0 45.6 Education, community development, enterprise and supplier development

Liberty Holdings Integrated Annual Report 2016, p8

Life Healthcare Group 68.9 76.8 Health, skills development, environment Life Healthcare Group Integrated Annual Report 2016, p95


CHAP

TER O

NE


published CSI spend




mentioned) Rm³


mentioned) Rm³


Lonmin 71.8 62.5 Enterprise and skills development, education, community health, social infrastructure, sports, arts and culture

Lonmin Sustainable Development Report 2016, p69

Massmart Holdings 24.1 23.7 Food security, early childhood development, school maintenance and infrastructure

Massmart Holdings Integrated Annual Report 2016, p98

Media 24 54.0 60.0 Education, digital media training, enterprise development

Media 24 Integrated Annual Report 2017, p24

Mediclinic International 12.3 11.8 Health, training, education Mediclinic International Integrated

Annual Report 2017, p66

Merafe Resources 23.7 30.0 Education, health, agriculture, food security, community development

Merafe Resources Integrated Annual Report 2016, p33

Mercedes-Benz SANot available


10.9 Education, skills development

Metair Investments 13.5 21.4Education, health, basic needs and social development, skills development, arts and culture, sport, job creation, infrastructure development

Metair Investments Integrated Annual Report 2016, p60

MMI Holdings 29.126 32.9 Education, health, disability, sports development MMI Holdings Integrated Annual Report 2017, p41

Mondi Group 128.627 99.0 Education, health, infrastructure, enterprise development

Mondi Group Sustainable Development Report 2016, p59

Mpact 5.6 6.3 Education, health, entrepreneur and enterprise development Mpact Integrated Report 2016, p64

Mr Price Group 22.3 27.6 Education, skills development Mr Price Group Integrated Annual Report 2017, p41

MTN Group 295.4 335.4 Education, health, entrepreneur development MTN Group Integrated Annual Report 2016, p17

MultiChoice Africa Not available


56.0 Education, skills development, sport, arts and culture, environment, health and welfare

Murray & Roberts Holdings 20.5 23.1 Education, safety, health, community development Murray & Roberts Holdings

Sustainability Report 2017, p9

Nampak 8.5 10.7 Education, health and welfare, environment http://www.nampak.com/About/Sustainability/Social-Investment

Nedbank Group 141.0 136.0 Education, environment Nedbank Group Integrated Annual Report 2016, p79

Netcare 23.0 25.0 Health Netcare Integrated Annual Report 2016, p36

Oceana Group 6.6 4.9 Food security, education Oceana Group Integrated Annual Report 2016, p51

Old Mutual 324.028 325.5 Financial education and financial literacy Old Mutual Integrated Annual Report 2016, p8

Pan African Resources 21.0 20.8 Education, community development, housing, arts and culture

Pan African Resources Integrated Annual Report 2016, p25

Peermont Global 42.0 23.1 Education, entrepreneurship and community development

Peermont Global Corporate Social Investment and Responsibility Report 2016/2017, p2

PetroSA 8.7 10.3 Education, health, community development, environment

PetroSA Integrated Annual Report 2016, p80

Pick n Pay 38.7 41.5Food security, job creation, skills development, environment, community and enterprise development, promoting healthy living

Pick n Pay Integrated Annual Report 2017, p21

Pioneer Foods Group 9.3 13.5 Education, food security, community development Pioneer Foods Group Integrated Annual Report 2016, p85

This year Nedbank Private Wealth is celebrating 20 years of leveraging its financial expertise to do good for communities across South Africa.

Established in 1996, the business founded two charitable trusts, namely the Nedbank Private Wealth Educational Foundation and the Nedbank Private Wealth Charitable Foundation, endowed with the primary objective of enhancing social transformation.

Through expert philanthropic advice and specialist investment services, Nedbank Private Wealth has professionally managed the assets of both foundations,

enabling them to deliver the best results in terms of making a meaningful and sustainable difference to the wellbeing of communities.

The success of these foundations is built on investment growth, which has consistently outpaced inflation and maximises the value of assistance to the causes and charitable organisations they support. As a result and despite the challenges of the 2008 financial crisis, the amounts these foundations have

disbursed over the past 11 years have more than doubled, with contributions in real terms of R65 million and capital doubling in the same period.

Noxolo Hlongwane, Head of Nedbank Private Wealth Philanthropy, attributes the success of both foundations to a combination of expert advice, proven investment skills and an absolute commitment to robust governance and oversight by a dedicated board of trustees.

‘Our proven expertise in philanthropic advice has enabled us to fully harness our skills and experience to do good,’ she

explains, ‘and, as a result, our foundations tangibly demonstrate to our clients the positive impact that can be achieved by following the advice we give.’ Both foundations invest in communities across the country, with the primary aim of empowering mainly young people and giving them opportunities to build brighter futures. The Educational Foundation supports Maths and Science at secondary-school level and has programmes that provide teacher

development, extra tuition and science lab equipment.

The Charitable Foundation works to address the challenge of high youth unemployment in South Africa by supporting accredited training programmes that enhance the employability of the nation’s young people, enabling them to become economically active.

The value that can be unlocked by the combination of professional advice, investment expertise and a strong philanthropic commitment in partnership with clients has been repeatedly affirmed. For the third consecutive year Nedbank Private Wealth Philanthropy was internationally recognised for excellence in the 2017 Euromoney Private Banking and Wealth Management Survey, which placed Nedbank Private Wealth first in the category of Philanthropic Advice for both South Africa and Africa.

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 a member of JSE Ltd through Nedgroup Wealth Stockbrokers (Pty) Ltd (NCRCP59).

DOING WELL AT DOING GOOD

Nedbank Private Wealth celebrates 20 years of effective social investment

Our success is a result of a combination of expert advice, proven investment skills and an absolute commitment to robust governance and oversight by a dedicated board of trustees.

If you would like to speak to Nedbank Private Wealth about how our Philanthropy office can assist you or obtain a free electronic copy of the Nedbank Private Wealth Giving Report III, please email [email protected]. visit us at

nedbankprivatewealth.co.za

@

Philanthropy4.indd 1 2017/10/02 2:23 PM

This year Nedbank Private Wealth is celebrating 20 years of leveraging its financial expertise to do good for communities across South Africa.

Established in 1996, the business founded two charitable trusts, namely the Nedbank Private Wealth Educational Foundation and the Nedbank Private Wealth Charitable Foundation, endowed with the primary objective of enhancing social transformation.

Through expert philanthropic advice and specialist investment services, Nedbank Private Wealth has professionally managed the assets of both foundations,

enabling them to deliver the best results in terms of making a meaningful and sustainable difference to the wellbeing of communities.

The success of these foundations is built on investment growth, which has consistently outpaced inflation and maximises the value of assistance to the causes and charitable organisations they support. As a result and despite the challenges of the 2008 financial crisis, the amounts these foundations have

disbursed over the past 11 years have more than doubled, with contributions in real terms of R65 million and capital doubling in the same period.

Noxolo Hlongwane, Head of Nedbank Private Wealth Philanthropy, attributes the success of both foundations to a combination of expert advice, proven investment skills and an absolute commitment to robust governance and oversight by a dedicated board of trustees.

‘Our proven expertise in philanthropic advice has enabled us to fully harness our skills and experience to do good,’ she

explains, ‘and, as a result, our foundations tangibly demonstrate to our clients the positive impact that can be achieved by following the advice we give.’ Both foundations invest in communities across the country, with the primary aim of empowering mainly young people and giving them opportunities to build brighter futures. The Educational Foundation supports Maths and Science at secondary-school level and has programmes that provide teacher

development, extra tuition and science lab equipment.

The Charitable Foundation works to address the challenge of high youth unemployment in South Africa by supporting accredited training programmes that enhance the employability of the nation’s young people, enabling them to become economically active.

The value that can be unlocked by the combination of professional advice, investment expertise and a strong philanthropic commitment in partnership with clients has been repeatedly affirmed. For the third consecutive year Nedbank Private Wealth Philanthropy was internationally recognised for excellence in the 2017 Euromoney Private Banking and Wealth Management Survey, which placed Nedbank Private Wealth first in the category of Philanthropic Advice for both South Africa and Africa.

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 a member of JSE Ltd through Nedgroup Wealth Stockbrokers (Pty) Ltd (NCRCP59).

DOING WELL AT DOING GOOD

Nedbank Private Wealth celebrates 20 years of effective social investment

Our success is a result of a combination of expert advice, proven investment skills and an absolute commitment to robust governance and oversight by a dedicated board of trustees.

If you would like to speak to Nedbank Private Wealth about how our Philanthropy office can assist you or obtain a free electronic copy of the Nedbank Private Wealth Giving Report III, please email [email protected]. visit us at

nedbankprivatewealth.co.za

@

Philanthropy4.indd 1 2017/10/02 2:23 PM


CHAP

TER O

NE


published CSI spend




mentioned) Rm³


mentioned) Rm³


PPC 8.0 7.2 Education, health, skills development, infrastructure, sport, arts and culture, job creation, OVC

PPC Integrated Annual Report 2016, p122

PWC 9.4 5.4 Education, enterprise development, community development

PricewaterhouseCoopers Integrated Annual Report 2016, p11

Raubex Group 5.2 4.3 Education, health, community development, sport Raubex Group Integrated Annual Report 2017, p71

RCL Foods 12.8 10.0Education, food security, early childhood development, welfare, entrepreneur development, community development

RCL Foods Sustainable Business Report 2017, p63

Remgro 24.0 18.0Community development, cultural development, entrepreneurship, training, education, environment, health, sports development

Remgro Sustainable Development Report 2016, p9

Reunert 14.0 14.0 Education, childhood development, community development

Reunert Integrated Annual Report 2016, p82

Rio Tinto 2 441.729 2 346.1 Education, health, environment, community development, agriculture, business development

Rio Tinto Integrated Annual Report 2016, p27

Royal Bafokeng Holdings 6.4 7.0 Enterprise and supplier development, education, sports

developmentRoyal Bafokeng Holdings, Integrated Review 2016, pg49

Royal Bafokeng Platinum 287.130 74.6

Skills development, education, health, housing, community infrastructure, poverty alleviation, job creation

www.bafokengplatinum.co.za/reports/integrated-report-2016/social-and-relationship-capital.php

Samsung 5 259.731 6 181.6 Education, health, employment, environment Samsung Sustainability Report 2017, p30

Sanlam 68.0 74.0 Education, health, skills development Sanlam Integrated Annual Report 2016, p60

Santam 21.0 19.7 Community development and empowerment, job creation

Santam Integrated Annual Report 2016, p51

Sappi 56.932 46.3 Education, early childhood development, youth development, enterprise development

Sappi Integrated Annual Report 2016, p39

Sasol 594.9 577.0 Education, job creation, community development, small business enablement, environment

Sasol Integrated Annual Report 2017, p8

Sekunjalo Investments 14.8 12.4 Arts and culture, education, sports development, enterprise development, social development, OVC

Sekunjalo Investments Integrated Annual Report 2016, p151

Shoprite Holdings 143.533 125.1 Food security, community development, skills development

Shoprite Holdings Integrated Annual Report 2017, p47

Sibanye Gold 656.034 691.0Education, training, sport, conservation and environment, health, enterprise development, infrastructure, local economic development/social and labour plans

Sibanye Gold Integrated Annual Report 2016, p84

Spar Group 15.7 14.1 Community development, education, health, OVC, food security, enterprise development

Spar Group Integrated Annual Report 2016, p43

Standard Bank Group 95.7 97.5 Education Standard Bank Report to Society 2016, p11

Sun International 17.535 26.0 Education, health and welfare, HIV/Aids, sport, arts and culture, heritage

Sun International Integrated Annual Report 2016, Community, p2

Super Group 5.6 7.8 Education, food security and nutrition, welfare Super Group Integrated Annual Report 2016, p56

Telkom SA 38.436 47.0 Education, social development Telkom SA Integrated Annual Report 2017, p93

TFG 8.537 7.0 Education, community development, employment in local communities

TFG Integrated Annual Report 2017, p160



published CSI spend




mentioned) Rm³


mentioned) Rm³


Tiger Consumer Brands Ltd 35.0 24.0 Nutrition and food security, capacity building,

community enterprise developmentTiger Brands Integrated Annual Report 2017

Tongaat Hulett 16.738 17.1Job creation, education, training, access to healthcare, basic amenities, food security, infrastructure development

Tongaat Hulett Integrated Annual Report 2017, p48

Transnet 234.0 248.0 Education, health, sport, socioeconomic infrastructure development, community upliftment

Transnet Sustainabilty Report 2017, p28

Truworths International 4.8 2.6 Healthcare, education, social development, sport, arts

and cultureTruworths Social and Environmental Report 2017, p5

Tsogo Sun Holdings 65.0 52.0 Education Tsogo Sun Integrated Annual Report 2017, p39

Vodacom Group 93.0 86.0 Education, health, entrepreneurship Vodacom Sustainability Report 2017, p36

Wesizwe Platinum 40.2 29.0Education, enterprise development, community development, skills development, infrastructure development, health, sports

Integrated Annual Report 2016, p53SR 2016 / pg 24

Woolworths Holdings 757.0 693.0 Education, food security, child vulnerability, safety, health

Woolworths Holdings Integrated Annual Report 2017, p 143

York Timber Holdings 10.8 9.5 Health, enterprise development, basic needs, entrepreneurship, environment

York Timber Holdings Integrated Annual Report 2016, p 115

1 Incorporating data from 1 July 2016 to 30 June 20172 Incorporating data from 1 July 2015 to 30 June 20163 Where exchanges have been applied, these rates have been converted at the

average exchange rate for the month of each company’s financial year end4 Global spend5 Includes Local Economic Development (LED) and Social and Labour Plan

(SLP) projects6 Group spend, 2016/17 spend $84m @ $14.7 (including expenditure relating

to enterprise development - Zimele - $2.3 million), 2015/16 spend $124m @$12.8 (including expenditure relating to Zimele - $15.9m). Funding reduction due to efficiency measures balanced with stronger focus on partnerships and co-funding

7 2015/16 spend $6.2m @ $12.88 Excludes Assore Operations9 Excludes R180.9 million invested by Assmang Operations10 Group Africa Spend11 Group spend, 2016/17 spend $178,7m @ $14.5, 2015/16 spend $225m @ $11.412 Group spend, 2016/17 spend €87.8m @ €16.1, 2015/16 spend €39.1m @ €13.7 13 Group spend, 2016/17 spend $61.1m @ $14.7, 2015/16 spend $67.2m @ $12.814 Group spend, 2016/17 spend £8.3m @ £20.0, 2015/16 spend £11.1m @ £19.515 Group spend, 2016/17 spend $186m @ $14.7, 2015/16 spend $54m @ $12.816 Includes product donations17 Group spend18 SA = 2.7% of Group spend, 2016/17 spend $24.9m x 2.7% @ $14.8, 2015/16

spend $28.2m x 2.7% @ $12.0 19 2016/17 increase in spend due to a number of interventions with a national

footprint20 75% sports sponsorship, 2% food donations21 CSI spend includes FirstRand Foundation (including RMB Fund, FNB Fund

and WesBank Fund) and FirstRand Empowerment Fund22 Group spend, 2016/17 spend $84m @ $13.8, 2015/16 spend $94m @ $11.1

23 2016/17 spend $4m @ $14.7, 2015/16 spend $3.7m @ $12.8. Includes spending from the South Deep Community and Education Trusts and SLP commitments

24 2015/16 figure includes dividends to BBBEE trusts25 Drop from 2015/16 due to decline in export iron ore prices26 Includes consumer education (43%). Momentum and Metropolitan included

in the MMI Foundation27 Group spend, 2016/17 spend €7.9m @ €16.3, 2015/16 spend €7m @ €14.1 28 Group spend, 2016/17 spend £16.2m @ £20.0, 2015/16 spend £16.7m @ £19.529 Group spend, 2016/17 spend $166m @ $14.7, 2015/16 spend $184m @ $12.830 2016/17 spend includes housing31 Global Spend @ 445 billion KRW (South Korean Won) @.012/ZAR32 Southern Africa spend, 2016/17 spend $3.85m @ $14.8, 2015/16 spend

$3.86m @ $12.033 Includes food donations34 Group spend, 2016/17 amount: R59m = LED/social and labour plans and

R181m for infrastructure, 2015/16 amount: 27m = LED/social and labour plans and R197m for infrastructure

35 Excludes: Sun International CEO SleepOut initiative which raised R31.2m in 2016/17 and R26.2m in 2015/16

36 Includes: Telkom Foundation, BCX and Trudon37 The Fochini Group - excludes merchandise donations (R25.2m in 2016/17 and

R27.4m in 2015/16)38 Group spend @ R186.3m (2016/17) and R190.5m (2015/16) of which

operations in Zimbabwe, Mozambique and Swaziland accounted for 91% of the total and SA 9%

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F CSIW ith pressing social and economic challenges facing our nation, it

is clear corporations have a vital role to play, above and beyond day-to-day business. As an active corporate citizen in South Africa, MMI is involved in driving well-structured, impactful corporate

social investment (CSI) that contributes to nation building and achieves positive change.

Our business is driven by a fundamental purpose to enhance the lifetime financial wellness of people, their communities and their businesses. It serves as a guiding light for how we approach business; beyond that, it confers on us a broader responsibility to be a force for good in society.

MMI’s belief in the importance of enhancing financial wellness drives the creation of shared value by combining the core capabilities of our business with the imperative to address financial inequality, one of South Africa’s most pressing challenges. The main thrust of our CSI activities is delivered through the MMI Foundation, which works with government, non-profit organisations and communities to oversee, guide and support projects that provide measurable impact. As an undisputed national priority, the MMI Foundation is involved in a number of key projects in consumer financial education.

Over the last five years, we have run a collaborative research project with Unisa on an annual index to assess the financial wellness of South Africans: the Momentum Unisa Household Financial Wellness Index. This Index has repeatedly emphasised the importance of developing the financial resilience of households, and the need for financial education to grow financial capability.

To play our part in meeting this urgent need, MMI has invested over R30 million in consumer financial education to date. Various programmes focus on increasing financial literacy of individuals and communities by coaching key principles of financial wellness, with the ultimate aim to unlock their potential and break the cycle of debt or poverty.

Findings from the Momentum Unisa Household Financial Wellness Index also demonstrate that specific, basic behavioural changes can have a significant impact on financial wellness, irrespective of financial standing. By leveraging the skills and capabilities we have built in our business, and the lessons we have learnt in supporting our clients in managing their financial wellness, we are helping to develop the financial literacy of many South Africans.

We are achieving this through learning interventions that grow an understanding of the financial principles of budgeting and planning for the future or unforeseen events by managing variables that are within the control of individuals, communities or organisations. Inspired by the MMI values of diversity and teamwork – where openness, cooperation and respect provide the basis for building our future, together – these interventions combine the understanding that the participants have of their circumstances and goals, with fundamental principles of financial wellness to encourage real learning and realistic action.

In helping to build capabilities to manage their financial wellness, we are achieving incremental but meaningful shifts in enabling South Africans to change their economic realities. We are proud of our successes; but in the face of structural inequality and grinding poverty which continue to affect too many South Africans, we know that more needs to be done. MMI will continue to play our part as an active corporate citizen, through the excellent work of our MMI Volunteers and the MMI Foundation. We will continue to work with individuals, communities and organisations that believe in the power of collective action in building a strong and just nation. ■

United by a clear purpose to achieve real change

CEO M

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Nicolaas KrugerGroup Chief Executive Officer

Read more about the work of the MMI Foundation on pages 148 and 149.

The South African State is overburdened. It needs constructive

private sector partnerships to cope. If not properly managed,

the burden could impose a risk to democracy. Increase in

unemployment, poverty, inequality and expanding demand for basic

services are weighing heavily on the state.

What makes matters worse is that the resources available to the state

to tackle these problems are dwindling in an economy that is registering

low growth.

Unfortunately, the little growth that is recorded is punctuated by

a technical recession. The result is that the challenges have almost

become a feature of the country’s unhealthy socio-economic fabric that

needs to be broken.

For the poor, inequality translates to a lack of access to quality

education and healthcare. The often tense political debates about

the causes of the problems and possible solutions can easily dampen

the nation’s spirit. In some cases, the debates are characterised by a

destructive blame game among stakeholders.

While most of these debates are no doubt healthy and necessary,

they can also have a demoralising effect, especially when there is too

much focus on describing the problems, merely recording government

failures and saying little about solutions.

Society and the government should however accept that the state

is overburdened and cannot solve all the problems, notwithstanding

protestations to the contrary by the ill-informed. This simultaneously

presents an opportunity for the private sector to find solutions.

It is not in the interest of the country for the state to be overloaded.

In fact, it could be dangerous. In their book “The Fourth Revolution:

The Global Race to Reinvent the State”, John Micklethwait and Adrian

Wooldridge refer to the impact of an overloaded state. The more

responsibilitiy it assumes, the worse it performs them and the angrier

the people get, which only makes them demand more.

The explosion of such anger could result in confrontation between

citizens and a state that is anxious to maintain order. South Africa

shouldn’t have reached that point. Violent service delivery protests

which in their wake burden the state with the responsibility to mop up

the streets and repair damage, are not a good sign.

The state and the private sector should partner to find solutions to challenges in our society. The need for cooperation has never been

greater. The South African state may not have taken too much on

its shoulders to the point where it risks total failure. But we have a

responsibility to ensure that what we dread doesn’t happen. It’s in our

collective interest to do so.

When communities are empowered through

technology, the economy grows

Connecting for Good.

Reducing the burden of the state means bringing

into the public sector the latest innovation to assist

in the modernisation of infrastructure.

It is, of course, tempting for the state to continuously seek to swallow

more than it can chew. Those in the state leadership should be

reminded of the consequences of swallowing more than you can chew:

constipation and puking.

The private sector must, therefore, act to unburden the state. In so

doing, it can help South Africa achieve what is envisaged in the country’s

national vision – the National Development Plan: building a capable and

efficient state. The private sector is overloaded with technical and innovative

capacity, intellectual leadership and global networks that can

complement state capabilities. All these should be channelled to

tackle some of the challenges in a commercially viable and sustainable

manner,

For example, Vodacom’s Connected Farmer digital solution, which is

aimed at helping small holder farmers to access real time information

about market prices, weather and their entire agricultural value chains.

The cloud-based web and mobile software solution is a product of a

collaboration between Vodacom and Gesellschaft für Internationale

Zusammenarbeit, a German company. Farmers can get all the

information they need via SMS.

Lindiwe Dlamini and Festus Katuna Mbandeka during the CRASA

Conference ICT demonstration at Umbilo Teacher Centre in KZN

While the government tackles other challenges in the agricultural

sector, such as land reform, negotiating international trade deals and

providing seed capital for emerging farmers, the private sector can focus

on other areas to ensure that our farmers remain competitive.

Although the focus for this product is small holder farmers who are

also the government’s target for assistance, it would be unfair to expect

the government to create such products. It would be great if it could,

however, we should be realistic in the context of the heavy load the

state is already shouldering in many respects. It is therefore important

that private sector partnerships are brought to bear to ensure innovation

and cooperation.

The same applies to the provision of education and health in the

public sector. While the growth of private education and healthcare

provision assists in reducing the burden on public sector infrastructure,

the truth is that most of our people depend entirely on public facilities.

Vodacom Chief Officer Corporate Affairs, Takalani Netshitenzhe with learners Nikitha Shongwe and Qaphela Nogcantsi

Under such circumstances, reducing the burden of the state means

bringing into the public sector the latest innovation to assist in the

modernisation of infrastructure. In the Eastern Cape, Vodacom has

partnered with the provincial government to provide a digital solution

to manage 5000 sparsely distributed and remote schools. Suddenly, the

schools the government had been perceived to have neglected are part

of the mainstream.

Now provincial education managers don’t have to undertake site

visits to manage issues that can be resolved from a distance through

state-of-the-art technology. The solution enables the department to

communicate with each school, collect information about the various

activities such as attendance, grade tracking and asset management. In

addition, the technology allows schools that do not have laboratories to

conduct virtual experiments.

The partnership with the Eastern Cape essentially provides education

services in a manner that will eliminate inequalities of access to high-

quality education. It enables an otherwise predominantly rural province

to join the most advanced schools in the world who use “edtech” to

access lessons tailored to suit the individual learner. This system has

revolutionised teaching methods.

It is service delivery mechanisms such as these, as well as the

Vodacom’s mHealth Solutions used to capture real time information

on medicines stock levels in healthcare facilities, that help lessen the

burden on the state. With a centralised mobile system, it also allows

healthcare workers to improve their access to patients. They are

therefore able to better respond to their needs. This is done through

secure, realtime data collection, information processing, management

and reporting, using mobile phones.

The long-term effect of this innovation is that the government’s job

of managing the provision of public sector health care is becomes less

daunting. The ultimate beneficiary are the millions who depend on government’s provision of healthcare services.

This goes to show that the private sector innovation can help

government lessen the burden of the state and help it to perform its

functions better. A less burnt out, capable and efficient state is in the interest of all South Africans.

For more information, visit vodacom.co.za

In the Eastern Cape, Vodacom has partnered with

the provincial government to provide a digital

solution to manage 5000 sparsely distributed

and remote schools.

Vodacom Foundation empowers Vuvu Primary School learners in the Eastern Cape with a computer center

3886V-Business Foundation_New_v2.indd 1 2017/10/24 4:11 PM


SA’S CORPORATE SOCIAL INVESTMENT STORYAt Nation Builder’s In Good Company 2017 conference, Paul Pereira, editor at CSI communications hub WHAM! Media, described how Anglo American created and defined CSI, how this later spread across our private sector, and then went global. The following is a summary of his talk.

For formal CSI, we must go back to the second year of De Beers Consolidated Mines in 1889 Kimberley, and its annual report that same year, in which chairman Cecil John Rhodes argued the case for philanthropy being part and parcel of the company’s duty. The Anglo American Corporation, founded in 1917 by Ernest Oppenheimer, started its community giving two years later to help assuage the devastating Spanish Flu. It would be through what was the Anglo American Corporation (for most of its life incorporating De Beers) that the defining choices would be made about how South Africa’s private sector should behave in relation to broader society – especially towards those excluded in our long night of apartheid.

Like all private sector companies, especially in mining and agriculture, Anglo American benefited from migrant labour law and included some labour practices that were, to today’s eyes, dodgy.

Benefiting from the flexibility of movement that came with it enjoying enlightened leadership in the Oppenheimer owner/management set-up, Anglo American nevertheless also made some extraordinary decisions that went beyond its immediate business concerns or interests. It did so in speaking to a duty to a broader South Africanism that was in direct conflict with the ruling politics of the time.

In 1954 Sir Ernest Oppenheimer defined Anglo American’s purpose:

❛❛ The aims of the Group have been – and they still remain – to earn profits, but to earn them in such a way as to make a real and permanent contribution to the wellbeing of the people, and to the development of southern Africa.”

The scale of this commitment became stunningly clear in 1956 when armed police descended in their hundreds on Johannesburg’s black residential area of Sophiatown, tearing down and levelling

the entire suburb (to be renamed ‘Triomf’). Subsequently, Oppenheimer provided finance for the building of 15 000 new houses in the fledgling urban black settlement south west of the city; the start of Orlando in Soweto.

The Treason Trial, also in the 1950s, saw Anglo put all the trialists onto the company payroll, helping their families to survive the ordeal economically.

Through the apartheid years, Anglo published its Chairman’s Statement annually across the media; double-page spreads that dealt hardly at all with the company’s fortunes, and rather dwelt on the local political and economic crisis, with calls for reform and specific suggestions. It became a sort of alternative state of the nation address.

The English press were supported, bought, and secured for opposition voices, which were kept alive in other ways too, most notably through the financial and other support given to the liberal Progressive Party for its entire existence, forerunner of today’s official opposition Democratic Alliance.

The premier anti-apartheid research house, the SA Institute of Race Relations, received substantial support and, with the collaboration of others in the private sector, the Urban Foundation was set up in 1977 to work on township development in areas regarded by government as temporary localities.

Anglo’s setting up in 1976, under Stellenbosch Professor S P Cilliers of the Institute for Industrial Relations, began the professionalisation of industrial relations in South Africa and, importantly, did so with trustees drawn from both employer and employee trade union ranks.

Indeed, years before the Wiehahn Commission’s liberalisation of black trade union activity, Anglo’s Harry Oppenheimer was calling on business to simply recognise and negotiate with black trade unions. When it was set up in the early 1980s, the National Union of Mineworkers found itself with offices provided by Anglo American.

Intertwined with all these choices – for you cannot properly separate it out – was Anglo’s corporate social investment work, which formed the basis of what we do in that arena across the South African business community today. This started ramping up in the 1950s with the formation of a Chairman’s Fund, followed by a decision in the early 60s, remarkable for its time, that at least half of the company’s social spend should directly benefit black people.

In 1974, a momentous decision was made that would shape South African CSI as we know it today.

Uniquely among South African companies, Anglo created a formal, well-resourced department, headed by a person with executive rank, to develop and carry out social investments across the country. Led by Michael O’Dowd, the Anglo American and De Beers Chairman’s Fund saw the start of a massive infrastructure development rollout called the Rural Schools Programme, which exists to this day. It established thousands of welfare, educational and agricultural activities across southern Africa.

Later headed by the intellectually and ethically superb Margie Keeton, the Anglo American and De Beers Chairman’s Fund became a stand-alone in the country, and moreover developed what became a uniquely relevant South African approach to best practice CSI operating systems, philosophies, and community partnership protocols. This then evolved into Tshikululu Social Investments, expanding significantly this past decade under Tracey Henry, another from that original, remarkable CSI team at Anglo American.

SA’s now-ubiquitous Anglo CSI model may also be at work in more than 40 countries today – South African mining’s unique gift to humanity. ■

Full talk: www.whammedia.co.za

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With a rich history and heritage spanning over more than 60 years in South Africa, Mercedes-Benz South Africa (MBSA) group of companies strive to remain a socially responsive and responsible corporate citizen every day by living its values of passion, integrity, discipline and respect. MBSA aims to play its part in ensuring that South Africa continues to grow economically and socially and want its employees to be proud of the type of company that they dedicate their time and passion to.

MBSA’s Corporate Social Responsibility strategy focuses on three pillars: ▸ Education and Youth Development, ▸ Community Upli"ment and ▸ Employee Volunteerism.

Under each of these pillars the group of companies actively support the communities in which it operates and where its employees live.

One of the flagship projects under Education and Youth Development – the School Transformation and Empowerment Project (STEP) – aims to support the teaching bodies in supported schools to ultimately improve the quality of pass rates in Maths, Science, Accounting and English.

Another flagship project that MBSA supports is the Laureus Sport for Good Foundation South Africa (LSGFSA). The Laureus Sport for Good Foundation uses the concept of facilitating development and empowerment of youth through sport. Children from previously disadvantaged areas are given tools to change their lives by participating in sporting activities, while being equipped with life skills. The Foundation currently supports 25 projects nationwide and as country patron, MBSA is exceptionally proud of this partnership. In a concerted effort to increase its impact footprint within communities through this project, MBSA joined forces with its Dealer Network partners nationwide through various initiatives. One such successful initiative is that, with every purchase of a Mercedes-Benz passenger car vehicle, an amount from the sale is donated toward the Laureus Foundation. As an extension of its corporate social investment portfolio, MBSA offers a platform for socially-conscious employees to become increasingly involved in its existing Corporate Social Responsibility projects in a sustainable manner. Through employee volunteerism initiatives, such as Mandela Day, Sanitary Drives, and Winter Collection drives, employees are able to provide

further support to, and build good rapport with the company’s project beneficiaries. The ultimate goal of the employee volunteerism pillar is to ensure that Mercedes-Benz South Africa group of companies remain a great place to work.

“At Mercedes-Benz South Africa (MBSA), we don’t only build cars, we build people and communities. We believe that as a responsible corporate, we need to put the correct building blocks in place to increase the economically active sector of the population – so that everyone has an opportunity to make a living and contribute to this great country that operate and live in,” states Andreas Engling, CEO of Mercedes-Benz South Africa and Executive Director of Manufacturing.

Mercedes-Benz South Africa - Building more than just vehicles


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The future of CSIDrawing from two decades of extensive research into the state of CSI in South Africa, Trialogue outlines the top 10 trends likely to shape the sector, and responsible business more broadly, in the coming years.

❛❛ Companies that are breaking the mould are moving beyond corporate social responsibility to social innovation. These companies are the vanguard of the new paradigm. They view community needs as opportunities to develop ideas and demonstrate business technologies, to find and serve new markets, and to solve long-standing business problems.

Rosabeth Moss Kanter – Harvard Business Review

1. INCREASED INTEGRATION

The trendCSI will become more integrated with other divisions and functions, to collectively represent business’s interaction with society. Boundaries between developmental and business agendas will become blurred. For example, marketing will utilise CSI in corporate brand messaging; human resources will drive volunteerism and draw on CSI activities to entrench a culture of caring among staff; and operations will interact with society in product and service development. CSI will naturally align with the core business and its operating footprint. Companies will support communities with a blend of cash and non-cash contributions.

ConsequencesThe structure of the CSI department will change and the term ‘CSI’ may be lost altogether. Stand-alone CSI appointments will be replaced by an approach where the responsibility for aspects of CSI are devolved across the business. NPOs will need to form strategic relationships with businesses in order to secure ongoing support.


THE F

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SI

❛❛ That's been one of my mantras: focus and simplicity. Simple can be harder than complex: you have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.

Steve Jobs – Co-founder of Apple Inc

2. GREATER FOCUS

The trend Companies will scale back on the number of initiatives that they support, to just one or a few flagship programmes, aligned with the business and supported for extended or indefinite periods. These flagship initiatives may be rolled out in different geographical areas or supported across business divisions.

Consequences Greater focus will lead to a business investing in specialist skills in the developmental areas of its involvement, deeper engagement, longer timeframes, cross-departmental participation and senior executive attention to project outcomes. For NPOs, corporate support will be less frequent but more significant where it is secured. Support will tend to be dependent on a strategic fit between corporate interests and the NPO service offering and, as such, sectors such as education and enterprise development will benefit.

❛❛ In Africa there is a concept known as ‘ubuntu’: the profound sense that we are human only through the humanity of others; that if we are to accomplish anything in this world, it will in equal measure be due to the work and achievement of others.

Nelson Mandela – First president of democratic South Africa

3. SUPPORT FOR SOCIAL JUSTICE

The trendCompanies will increasingly be expected to take a stand on the social and political issues of the day. This will take the form of leaders voicing their companies’ positions, either individually or through business alliances. There will also be increasing support for social justice initiatives. Funds will be channelled to the ‘thinking’ and the ‘voice’ of social development, often as a component of the flagship initiative and therefore within the field of development supported.

ConsequencesSupport for social justice will see increased leadership involvement, as well as resources being channelled to research, networking and the convening of thought leadership. Companies will come to regard these activities as essential for systemic change. NPO implementing partners will therefore be required to integrate such activities into their offerings.


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❛❛ In my view, the successful companies of the future will be those that integrate business and employees’ personal values. The best people want to do work that contributes to society with a company whose values they share, where their actions count and their views matter.

Jeroen van der Veer – Committee of Managing Directors, Shell

4. EMPLOYEE ENGAGEMENT

The trendEmployees are a company’s biggest asset and the more engaged they are in its mission and values, the better off the company and the communities where they live and work will be. Employees increasingly expect to work for companies whose values they can identify with and the upward trend in corporate volunteering programmes will continue. Volunteering will become more sophisticated, with increased matching of company skills, resources and opportunities to the skills and desires of individual employees.

Consequences Volunteering programmes will become more strategic, with increased alignment with CSI across the business, and diverse opportunities and types of support offered. Companies will need to invest more in the management and measurement of volunteering programmes, as well as in initiatives such as matched funding (when a company matches charitable donations made by its employees). NPOs should consider what skills they need in order to complement their work and develop structured volunteering opportunities that they can proactively offer to corporate partners.

❛❛ Helping convene global stakeholders to establish a set of measurable, actionable and consensus-built goals focused on extreme poverty is invaluable.

Bill Gates – Co-founder of Microsoft Corporation

5. STAKEHOLDER INTERACTION

The trendCompanies will support ongoing and robust engagement with external stakeholders who are included in, or affected by, both business and developmental activities. Buy-in from critical stakeholders (such as government), on whom long-term success is dependent, will be sought before and as a condition of funds being committed to a project. CSI will be represented during discussions with regular business stakeholders, such as staff, customers, suppliers and investors, to uncover common developmental interests.

ConsequencesThere will be a more integral relationship between CSI and the corporate stakeholder relations function. Customer-giving programmes and cause-related marketing will increase.

searing summer heat. The halls are used as exam venues and offer space for large-scale teaching programmes.

And in a survey conducted among school communities, the overwhelming response from principals and teachers was that without a hall, their work to provide a holistic education was well-nigh impossible.

John Matthews, Group CEO of Garden Cities whose Board voted for the establishment of the Foundation said: "From the beginning, an improvement has been noticed in the academic performance and morale of the children attending schools where Archway halls have been built."

Garden Cities’ objective is to help towards eventually equalising the opportunities for all Western Cape schoolchildren. The Foundation also participates in a UWC programme providing science laboratories at Cape schools similarly lacking resources.

The Archway Foundation welcomes the participation of other Cape companies in the funding of the halls. "Education is the key to stability and financial security for everyone in South Africa, and as corporate citizens it’s our responsibility to help redress the inequalities of the past and give all the children we possibly can, the opportunity to reach their full potential." said Matthews.

John Matthews can be contacted on 021 558 7181.

D uring the nearly 13 years since its establishment, the Garden Cities Archway Foundation has been

fighting a massive backlog of essential education tools in the Western Cape. The lack of science laboratories and halls in particular has had a negative impact on children attending hundreds of schools.

When the Foundation began its work, more than one million children did not have a school hall. Now, the number of halls has been reduced by more than 80 from the original 700. But, at a cost of over R6 million each, the pace is relatively slow.

Educators throughout the region have gone on record as saying that school halls are essential to a holistic education and there is general consensus that the lack of laboratories is to blame for academic under-performance in science subjects.

While the Archway was concentrating on providing as many school halls as possible to redress the shortfall, the University of the Western Cape (UWC) Professor in Science Education, Shaheed Hartley had begun the equally enormous task of providing similarly under-resourced schools with science learning centres. Science subjects, Prof. Hartley had recognised, were lagging behind in the Western Cape because of a lack of practical demonstration of the theory children were being taught.

Recognising the equally essential need, the Archway threw its weight behind the science centre initiative and has since participated in the construction of nearly 60 science centres, each costing in the region of one million rand. The Archway is one of the major corporate participants in the programme.

When the science centres started making their presence felt, Prof. Hartley said that "the change in results and enthusiasm at schools that now have SLCs through this new initiative, is remarkable".

The Archway’s pace of providing the school halls through its own funding has been accelerated since the Western Cape Education Department (WCED) started to partner the foundation with the provision of funds to help finance the halls.

With 80 halls done, the Foundation

aims to have completed 100 halls when its founding company, Garden Cities celebrates its centenary in 2019.

The halls, currently costing more than R6 million each have been given to previously disadvantaged schools throughout the greater Cape Town area and as far afield as De Doorns, Oudtshoorn and Plettenberg Bay. Others are in Mitchells Plain, Lavender Hill, Grassy Park, Philllippi, Langa and Steenberg.

In a year of high activity for the Foundation, 10 schools at a total value of over R65 million were completed and handed over during the past financial year.

Principals and teachers, children and their parents, and entire communities have benefited from the halls that have become the pride of every school where they have been built. The children have revelled in the opportunities that the halls offer them. Indoor sports, dancing, theatrical productions and musical events have all become possible, along with the more obvious benefits of school assemblies in the shelter of the hall against the cold, wet Cape winter and the

GARDEN CITIES

www.gardencities.co.za

The Archway Foundation’s mission is to improve the quality of education for the children of the Western Cape by helping to provide halls and laboratories.

John Matthews, Group CEO of Garden Cities

GARDEN CITIES ARCHWAY FOUNDATION – MAKING A DIFFERENCE IN EDUCATION WITH SCHOOL HALLS AND SCIENCE LEARNING CENTRES


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❛❛ Alone we can do so little; together we can do so much.

Helen Keller – American author and political activist

6. COLLECTIVE IMPACT

The trend

Companies will channel funds to collaborative initiatives in which various organisations with complementary agendas and unique capabilities will partner to achieve common goals. A single person will be responsible for managing the collaborative, coordinating contributions from the various parties, measuring impact and refining processes.

ConsequencesOrganisations will emerge that specialise in acting as the backbone to coordinate and represent the interests of collective investors. There will be a shift away from company-centric social development initiatives, where recognition and branding are prioritised ahead of sustainable outcomes, towards more collective initiatives.

❛❛ Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionised the fishing industry.

Bill Drayton – Author of Leading Social Entrepreneurs Changing the World

7. INNOVATIVE FINANCE

The trend Alternative and blended financing models for development will become commonplace, with combinations of social enterprise, impact bonds, loan financing and crowdfunding, in addition to traditional grant funding. This will be accompanied by a results-orientated mindset, whereby investors will favour organisations that are able to demonstrate the achievement of significant outcomes from investments.

ConsequencesA growing gap will emerge between NPOs that have the capacity to target and meet the requirements of alternative providers of funds, and those that remain stuck in a grantmaking mindset.


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❛❛ The number one benefit of information technology is that it empowers people to do what they want to do. It lets people be creative. It lets people be productive. It lets people learn things they didn’t think they could learn before and so, in a sense, it is all about potential.

Steve Balmer – Former CEO of Microsoft

8. APPLICATION OF TECHNOLOGY AND DATA

The trendTechnology and data-driven solutions, either to advance existing solutions or as delivery mechanisms in their own right, will increasingly be applied to address social issues. Data recorded at beneficiary interaction level will become the norm and beneficiaries will provide feedback on products, services and programmes via mobile technology. Monitoring and evaluation frameworks will be integrated with data systems in order to enable the interpretation of outcomes, as well as to identify trends.

Consequences Opportunities for the development of mobile applications and customised solutions will lead to a proliferation of specialist ICT service providers offering developmental solutions. Processes will become more efficient, leading to clerical jobs being displaced by technology-led solutions. Those NPOs not able to adapt and apply data-driven systems will have limited growth prospects. Increased transparency and accountability will come from the improved collection and quality of data.

❛❛ To learn and not to do is really not to learn. To know and not to do is really not to know.

Stephen R Covey – Educator, author and businessman

9. APPLIED MEASUREMENT

The trendMeasurement of developmental outcomes, rather than activities, will become an accepted norm and a condition of funding. Information will be freely available and shared on open-source platforms. Benchmarking and qualitative analyses of outcomes and processes will drive ongoing innovation and refinement of lead-practice thinking.

ConsequencesBudgeting for monitoring and evaluation (M&E) will be accepted as standard practice by funders and NPOs and incorporated as part of the implementation process. NPOs unable to measure and interpret outcomes will be marginalised or engaged as subcontractors, in favour of organisations that take responsibility for M&E. Insight emerging from measurement processes will be used to benchmark and refine practice. At a macro level, lessons learnt will be used to inform policy.


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GLOBAL TRENDS Trialogue’s US-based partner, CECP, identified the following trends in its Investing in Society 2017 report:Purpose driven Leading companies have recognised that purpose is the path to energising and reaching vital stakeholders, for more resilient markets and society.

Long-term thinking Companies’ health and value-creation for all stakeholders require planning with a time horizon beyond the quarter.

Employee engagement 2.0 Trailblazers are refining and focusing their work to create unique value for employees, based on the business’ skills and passions, and each employee’s distinct needs and values.

Leveraging assets Social strategy is going deeper into the company and crossing all business units, based on a strong business case.

Global challenges and collaboration All companies and countries need to work together to solve the global challenges at hand.

Advocacy as strategyDespite global unrest, businesses are committed to their social investments. The most impactful companies implement strategic programmes that persevere.

❛❛ Professionalism is not a label you give yourself – it is a description you hope others will apply to you.

David Maister – Author of True Professionalism

10. PROFESSIONALISATION

The trend

Acknowledgement of the importance of CSI in supporting business’ interaction and relationship with society will result in CSI becoming a more senior advocacy and coordination position, with clear terms of accountability for delivery. Career opportunities that address specialised elements of the CSI landscape (e.g. M&E and stakeholder interaction) will also unfold. Management systems will be incorporated into mainstream corporate procedures for accountability and reporting.

ConsequencesAccredited courses or education options will be developed. Practitioners will either be high-level social advocates and coordinators within the company, or specialists and advisers in the focused topics which serve both a CSI and business purpose. A professional body may be established to register and accredit skills in the sector and facilitate continual learning platforms.


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For example, if the organisation is a beverage manufacturer, it should build the conservation of water into its business strategy, in order to ensure the long-term health of that organisation.

What key recommendations does the King IV supplement for non-profit organisations contain? The basic premise is that the principles in the fourth iteration apply equally to non-profit organisations. However, the principle of proportionality applies to non-profit companies.

What governance advice would you offer business and non-profit executives? The best advice is to ensure that you approach governance as a mindful value-add, by constantly asking yourself whether the manner in which you are making decisions or managing the business will impact adversely or positively on effective controls within the business, sustainable value creation, trust and confidence in the entity, and legitimacy of operations. ■

How would you define good governance?

Good governance is about quality and not about a mindless quantitative checklist exercise. It becomes mindful when practitioners are striving to achieve principles which will result in the four good governance outcomes of ethical and effective leadership required by King IV: adequate and effective controls and oversight; value creation in a sustainable manner; trust and confidence in the entity; and legitimacy of operations. An organisation which achieves those outcomes must have been practising quality governance.

What is the primary objective of King IV, and how does it differ from previous versions of the Code? King IV moves away from a compliance mindset about governance, to being a value-add in the business model, shifting from ‘apply or explain’, to ‘apply and explain’. It has reduced the 75 principles in King III to 17 basic principles, one of which applies to institutional investors only. Sixteen of these principles can be applied by any organisation, and all are required to substantiate a claim that good governance is being practised. The required explanation allows stakeholders to make an informed decision as to whether or not the organisation is achieving the four good governance outcomes of ethical and effective leadership required by King IV. Notwithstanding, complete flexibility is given to the organisation to choose practices which are apposite for its business, while striving to achieve the principles.

How does the King IV Code impact corporate social investment practitioners? Corporate social investment has, erroneously, been practised as a tick-box exercise based on the belief that once an investment has been made, the company has discharged its duty to all three dimensions in which it operates, namely; economic, social and environmental.

Following the principles of integrated thinking and reporting, corporate social responsibility should be built into the business strategy of that organisation.

KING IV: REINFORCING GOOD GOVERNANCE

The King IV Report on Corporate Governance for South Africa 2016 is an update of King III, aligning it with international governance codes, best practice and shifts towards inclusive and integrated capitalism. It includes a Code with supplements for small and medium-sized enterprises, non-profit organisations, state-owned entities, municipalities and retirement funds. International expert on corporate governance and sustainability, and chair of the King Committee, Professor Mervyn King, explains how King IV reinforces good corporate governance as a lever for value creation.

PROF MERVYN KINGChair of the King [email protected]

Download the full King IV Report on Corporate Governance for South Africa 2016: https://goo.gl/JfaY1p

the shortage of skills in the financial sector at postgraduate level, with a focus on increasing the number of black professionals in the industry.

Skills Development and Financial Literacy Our skills development programme provides learnerships and bursaries to students studying undergraduate degrees in commerce such as actuarial science and accounting. To make financial freedom possible, we invest in financial literacy programmes in communities and places of work.

THE REST OF AFRICA Our CSI programmes for other African countries support the group’s focus on education where possible, but are tailored to localised contexts to ensure the programmes are relevant to the needs of the communities in the respective countries

OUR FLAGSHIP PROGRAMMES IN SOUTH AFRICA ARE:Primary SchoolOur primary school programme focuses on teacher development and the provision of educational content and resources to more than 18 000 pupils and more than 400 teachers in 20 selected schools in the Western Cape, Gauteng and KwaZulu-Natal.

Secondary SchoolOur high school programme focuses on the teacher training and development of maths and science. Through the programme, we support extra tuition for more than 900 grade 10 to 12 pupils. The project supports pupils in more than 20 high schools in the Ekurhuleni District and 17 schools in the Umlazi District, KwaZulu-Natal.

Some of the top 10 performers from this programme received full tuition bursaries in 2016, to study commercial related courses at various universities in South Africa.

Tertiary education our tertiary programme supports the University of Cape Town’s African Institute of Financial Markets and Risk Management, which aims to address

Liberty has a centralised approach towards community involvement, with a series of flagship initiatives managed in partnership with like-minded non-profit organisations. Projects undertaken include primary, secondary and tertiary education.

This year Liberty celebrates its 60th anniversary of changing people's realities through helping them achieve their financial freedom. Not only that, but we pride ourselves on changing the realities of those who are also less fortunate through our CSI community development projects. This includes our employee volunteerism projects, through which we encourage employees to get involved in social development initiatives.

Our most notable employee volunteerism project is our annual support for the International Nelson Mandela Day, in partnership with Rise Against Hunger, and our Winter School Shoe Drive campaign, aimed at benefitting previously disadvantage pupils in grade 0 and grade 1. The objective of the winter shoe drive campaign is to encourage youth to love education while they are still young.

❛❛ The bursary has given me the opportunity to study Actuarial Science at the University of Witwatersrand. I believe that this is a critical and rare degree in South Africa, and that it will open many doors for me, and even help me to start my own business.❞Sisikelo Mabaso, first year Actuarial Science student at the University of Witwatersrand

CONTACT DETAILS | Tel: 011 408 3209 | Email: [email protected] | www.libertyholdings.co.za

LIBERTY GROUP CSI DEVELOPING YOUNG MINDS THROUGH EDUCATION

In 2016, the Liberty Group invested

R37M IN CSI PROGRAMMES

in South Africa, which represents the combined social investment of Liberty’s R31.2m and STANLIB’s

R5.8m. This translates to an investment of

R24.4m in socioeconomic development and R11.4m in

consumer education. CSI investments in the rest of

Africa amounted to R3m.

ABOUT MTN SA FOUNDATION The MTN SA Foundation is the corporate social investment (CSI) department for MTN SA and assists in addressing the socioeconomic needs identified as challenging South Africa communities. The overarching social investment mandate of the MTN SA Foundation is to connect communities for greater self-reliance. It does so through a focus on education, entrepreneurship, health, and arts and culture, which accounts for the bulk of the Foundation’s budget, while employee volunteerism and special/ad hoc projects make up the remainder.

The MTN SA Foundations’ integrated approach to social investment places a strong emphasis on whole-community development and ongoing measurement to ensure the delivery of meaningful, relevant and sustainable impact. It invests in some of South Africa’s most remote rural areas where the need for intervention is greatest.

The promotion of entrepreneurship and small business skills development remains an important priority in addressing unemployment and poverty facing South Africa in particular among young people

SMALL, MEDIUM AND MICRO ENTERPRISES (SMME SECTOR)MTN CONTINUES TO GROW Skills development and sustainability is key to the MTN SA Foundation’s selection of interventions aimed at uplifting individuals and benefiting the broader communities. In partnership with the University of the Free State and Dreams Development Hub, the MTN Foundation offers training in enterprise development.

MTN SA Foundation continues to implement entrepreneurial interventions to encourage entrepreneurship in young people in schools and universities and supporting SMMEs in Gauteng and Free State. The Entrepreneurship Development programme has shown its success through an increasing number of SMMEs

ENTERPRISE SKILLS DEVELOPMENTIn South Africa, the role, importance and inculcation of an entrepreneurial culture in the economic and social development of society cannot be overstated.

that have completed the extensive 12-month theory and practical business support course in partnership with the University of the Free State and Dreams Development Hub. To date, 204 participants have completed the training and have been equipped with knowledge and skills to grow and sustain their own businesses.

The programme also offers 20 learners from various schools in the Free State province the opportunity to participate in a youth entrepreneurship development programme: SAGE South Africa which is an affiliate to SAGE international. Learners attend lectures, receive mentorship, and undertake a business initiative showcased at the annual national competition. In 2017, the national winning team represented South Africa at the SAGE World Cup in Ukraine. This partnership further enhances the Foundation’s ability to contribute towards creating sustainable enterprises that will be the engine of growth and job creation.

“The MTN SA Foundation has always strived to create an enabling environment that allows entrepreneurs as well as SMMEs to thrive and use their businesses to empower themselves and alleviate poverty in communities in which they operate. The respective partnerships we have in place is a meeting of the minds and we are pleased to work with entities that share our philosophy and ethos of creating sustainable enterprises that will be the engine of growth and job creation,” said Kusile Mtunzi-Hairwadzi, general manager of the MTN SA Foundation.

ENTERPRISE SKILLS DEVELOPMENT PROGRAMMESMTN SA Foundation has always been intent on establishing enabling environments that allow entrepreneurs as well as small, medium and micro enterprises (SMME) to thrive within the communities they operate. The enterprise skills development programmes the Foundation is involved in, all support its mission to develop entrepreneurs who have the right skill set to grow their business, contribute to the growth of the economy and create much-needed jobs.

The Foundation works with its partners to inspire an entrepreneurial culture and the development of SMMEs for schoolgoing youth and university students. However, for SMMES to make a meaningful difference in the country’s unemployment rate, they need effective support, specifically focusing on business skills development and capacity building.

The Foundation supports a number of programmes that encourage self-reliance in individuals and communities. This idea is promoted through programmes which inculcate entrepreneurship amongst three tiers namely school going youth, university students and SMMEs.

MTN SA FOUNDATION

SCHOOL GOING YOUTH STEP UP 2 A START UP ENTREPRENEURIAL PROGRAMMEFor the MTN SA Foundation, Step Up 2 a Start Up exemplifies its strategic imperative to support projects which engage youth in a way that provides knowledge and skills to access economic opportunities. The programme is geared to teach high school learners from disadvantaged communities in grades 10, 11 and 12 how to become successful entrepreneurs.

UNIVERSITY STUDENTS ENACTUS: CHALLENGING STUDENTS TO ACHIEVE ENTREPRENEURIAL EXCELLENCEEntrepreneurs transform ideas into economic opportunities – bringing to market new technologies, services and solutions – creating new avenues of employment. They are the risk-takers, rule breakers and innovators, and South Africa needs lots of them.

MTN SA Foundation has collaborated with Enactus South Africa with the aim of fostering effective entrepreneurial activities among the youth. The programme provides meaningful, measurable and sustainable changes in communities that lay the groundwork of self-reliance and forms the backbone of this constructive partnership. Enactus is an international non-profit organisation that collaborates with university students globally to improve the societies through entrepreneurial action.

Enactus provides a platform for teams of outstanding students to create and implement sustainable community development projects aimed at improving their livelihoods. Students receive guidance from lecturers, faculty advisers and business leaders, to select appropriate entrepreneurial interventions that empower people to be a part of their own success.

The Foundation in partnership with Enactus SA reaches some 2 839 students in 26 universities who support 74 projects nationally. Once a year, a select group of business, student and academic leaders from across the country gather together to highlight how entrepreneurial action and shared innovation is transforming lives and creating a better future at the Enactus National Competition.

Since 2014, MTN SA Foundation has collaborated with Enactus on its programmes that brings together students, academic

and business leaders committed to using entrepreneurial action to implement community empowerment projects. To this end, the development, encouragement and support of young entrepreneurs are critical to sustainable economic development in South Africa.

Recognising this, the MTN SA Foundation proudly sponsored the Enactus South Africa National Competition and, in 2015, introduced the ICT Challenge Award in the national Enactus competition. The competition recognises and rewards teams which use technology-driven solutions that are relevant and sustainable to address socioeconomic challenges in communities.

The results of the projects contribute to the Foundation’s strategy to foster effective entrepreneurial activity among the youth. This programme provides a platform and an opportunity for young people to transform both the lives of the communities and those of students as they gain skills to develop into more effective, values-driven leaders of tomorrow.

The partnership between the MTN SA Foundation and Primestars Marketing in the Step up 2 a Start Up project takes enterprise development and entrepreneurship to school learners encouraging them to develop their own business start-ups. The programme uses cinemas throughout South Africa as Educational Theatres of Learning and offers 15 000 learners from 116 schools access to relevant processes and guidance from experts in the field of entrepreneurship.

Learners also receive social entrepreneur toolkits: a practical step-by-step guide on entrepreneurship and they watch an educational feature film with a start-up social entrepreneurship message. The second part of the programme provides an opportunity for learners to enter the national social entrepreneur’s competition. They are required to identify an environmental or social problem in their schools or communities and develop a product or service to resolve the dilemma. Learners from all nine provinces are encouraged to send applications for their businesses to be shortlisted to participate in the national competition.

THE EVOLUTION OF CSI IN SOUTH AFRICA · The Trialogue CSI Conference was launched, convening...

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