Tracking a decade of trends and forecasting the future of ... · Tracking a decade of trends and...

Tracking a decade of trends and forecasting the future of CSI in South Africa 16 May 2017

Presented by: CATHY DUFF

10 years of Trialogue supporting social development in South Africa

10 years of social development in South Africa

2007: finalised BEE Codes of Good Practice gazetted

2012: National Development Plan approved

2015: SDGs ratified

2016: Revised BBBEE Codes of Good Practice gazetted

3

2016: Draft NPO Bill released

2009: King III published

2016: King IV published

2016: #Fees must fall protests2015: JSE SRI Index

replaced with the FTSE/JSE Responsible Investment Index Series

Ten years of Trialogue and our CSI conference

2007: First ‘Making CSI Matter’ conference at Indaba hotel 2009: Launch of the

Social Map

2014: Strategic CSI award launched

2017: 10th conference renamed ‘Business in Society’ conference

2017: Launch of the Trialogue Knowledge hub

4

2017: 20th CSI Handbook renamed ‘Business in Society’ handbook

• Over 70 blue-chip South African corporates supported with their CSI strategies, implementation, measurement and reporting.• Over 200 CSI practitioners trained by Trialogue

• Over 3 000 delegates at our conferences

2016: Southern Africa partner of CECP’s Global Exchange

2016: Trialogue becomes 51% black-owned

2012: Trialogue Level 1 BEE score

2015: Funders Guide launched

2013: Trialogue launches CSI forums

2006: CIDA becomes shareholder of Trialogue

2016: Partner with CLEAR-AA on African research

10 trends over the past 10 years

1. CSI expenditure has grown over the past 10 years

6Source: Trialogue CSI Handbook 19th editionBase year: 2001

0123456789

CSI e

xpen

ditu

re (R

bill

ion)

Growth in CSI expenditure (2001 – 2016)

Nominal CSI expenditure

Real CSI expenditure(adjusted for

Base year: 2001

2. Non-cash giving has increased

7Source: Trialogue CSI Handbook 19th

edition; Trialogue CSI Handbook 13th edition

94 87

6 13

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 n=97 2016 n=82

non-cash

cash

%to

tal e

xpen

ditu

re

3. Less CSI expenditure going to Gauteng

8Source: Trialogue CSI Handbook 19th edition; Trialogue CSI Handbook 12th edition

NationalNational

Gauteng Gauteng

Western Cape Western Cape

KwaZulu-Natal KwaZulu-Natal

Eastern Cape Eastern CapeMpumalanga Mpumalanga

Limpopo LimpopoFree State Free State

North WestNorth West

Northern CapeNorthern CapeInternational

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 n=105 2016 n=82

% CSI expenditure

4. Education has received an increasing share of spend


Education

Education

Social and community development

Social and community development

Health

Health

Food security and agriculture

Entrepreneur and small business support

Sports development

Sports development

Environment

Environment

Other

Other

Housing and living conditions

Housing and living conditions

Arts and culture

Arts and culture1Disaster relief

Safety and security

Safety and security

Training

Job creation and enterprise development

0

10

20

30

40

50

60

70

80

90

100

2006 n=100 2016 n=81% CSI expenditure

Smaller companies also predominantly support education

10

Arts and culture

1%

Science andresearch

2%Disabilities

3%

Sports development

3%Youth

4%

Job creationschemes

Enterprise development

9%Leadership

development11%

Skills training12%

Orphans and vulnerable

children19%

Education30%

Source: Nation Builder, sample of 85 companies (69% with annual turnover of less than R50 million)

Other than an increase in spend on ECD, not much change in the level of education funded

Source: CSI Handbook 19th Edition; CSI Handbook 10th Edition 11

26 29

2828

25 22

1117

103

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 n=104 2016 n=71

Adult basic education and training(ABET)

Early childhood development (ECD)

General education (Grades 1 - 9)

Further education & training (FET)(Grades 10 -12)

Tertiary education (universities,technikons)

% co

rpor

ate

expe

nditu

re

5. Expenditure on NPOs has decreased


57

45

27

34

57

2 45 3

35 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 n=97 2016 n=79

Other

Community trusts

Government departments fortheir projects / programmes

Industry initiatives

‘For-profit’ service providers

Schools, universities, hospitalsand other governmentinstitutions

Non-profit organisations

% co

rpor

ate

resp

onde

nts

In line with this, corporates account for less NPO income


1723

1815

15 12

14 10

1210

18

8

6

1

533

4 5

0

10

20

30

40

50

60

70

80

90

100

2011 n=157 2016 n=145

Other

Debt

Investment income

Intermediary NPOs

The National Lotteries Board

Trusts/foundations

Private individuals

Self-generated

Government (South African)

Corporates

Foreign donors

% N

PO re

spon

dent

s

6. More companies have employee volunteering programmes


46%

70%

54%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 n=103 2016 n=64

No

Yes

% c

orpo

rate

resp

onde

nts

More companies are organising company-wide volunteering events


10

30

33

44

64

70

52

39

27

28

48

58

78

84

0 20 40 60 80 100

Other

Give as You Earn

Volunteering matched funding

Employee match funding

Time off for individuals to volunteer

Fundraising and collection drives

Company volunteering initiatives

2016 n=64

2011 n=73

% corporate respondents

7. The number of corporates that claim to undertake some form of M&E has increased


45%

94%

55%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 n=100 2016 n=82

Do not do M&E

Do M&E

% co

rpor

ate

resp

onde

nts

8. Many of the same companies are rated highly for CSI

17Source: Trialogue CSI Handbook 19th editionTrialogue CSI Handbook 10th edition

Corporates’ ranking of corporates

2007

Company Number of mentions

1 Anglo American

31

2 ABSA 283 SAB 254 Telkom 185 Nedcor 146 Vodacom 137 Eskom 128 MTN 11

10= Old MutualPick 'n Pay

10

Corporates’ ranking of corporates

2016

Company Number of mentions

1 Anglo American

18

2 Nedbank 163 Woolworths 154 MTN 11

5=* Old Mutual 107 SAB Miller 9

8=* First Rand 6FNB

10=* Multichoice 5TelkomTransnet

9. CSI has become more strategic

18

10. CSI growing amongst SMEsand in the rest of Africa

19

4%

10%

22%

36%

39%

56%

64%

Tax benefits

Fulfil compliance & regulatory requirements

Strategic business objectives

To encourage employees to think broader

It’s the right thing to do

Contribute to SAs social development

Conviction of founder/ CEO

0% 10% 20% 30% 40% 50% 60% 70%

Reasons behind organisations CSI activities

Source: Nation Builder, sample of 85 companies (69% with annual turnover of less than R50 million)

10 trends for the next 10 years

1. Increasing integration of CSI

"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

longstanding business problems."Rosabeth Moss Kanter, Harvard Business

Review.

21

2. More focused CSI

"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

"If you chase two rabbits, both will escape"

Unknown

22

3. Involvement in advocacy work

“Most of the important things in the world have been accomplished by

people who have kept on trying when there seemed to be no help at all.”

Dale Carnegie

23

4. Greater employee engagement

24

"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)

5. More consumer buy-in

"People are going to want, and be able, to find out about the citizenship of a

brand, whether it is doing the right things socially, economically and

environmentally."Mike Clasper President of Business Development, Proctor and Gamble

(Europe)

25

6. Increasing collaboration

26

“There is great value in diversity when solving complex problems"

Barbara Dale-JonesBRIDGE

“Alone we can do so little; together we can do so much”

Helen Keller

7. More innovative financing

“The Social Impact Bond shines a spotlight on what works.”

George OverholserInvestor and Social Entrepreneur

“A crowdfunding platform broadens the funding market and

allows investors to finance the project irrespective of location.”

Prisiliya Madan, Cyclists for Change

27

8. Rise of technology and data

28

“Without big data, you are blind and deaf and in the middle of a freeway.”

Geoffrey Moore, author

“Hiding within those mounds of data is knowledge that could change the life of

a patient, or change the world.”Atul Butte, Stanford University

9. Greater transparency

29

"Greater transparency is an unstoppable force. It is the product of growing demands from everybody

with an interest in any corporation - its stakeholder web - and of rapid technological change, above all the spread of the Internet, that makes it far easier

for firms to supply information, and harder for them to keep secrets…With greater transparency will

come greater accountability and better corporate behaviour. Rather than engage in futile resistance to it, firms should actively embrace transparency and

rethink their values and generally get in better shape."

Don Tapscott, co-author The Naked Corporation

10. Increasing professionalisation

“The change in the global socio-economic environment and focus on purpose-driven business models has

raised the bar for CSR leaders. There is a new demand and reliance on CSR leaders to influence the private

sector. Leaders are broadening their skills and influence across human resources, government affairs

and branding to align social impact with their company’s business strategy, talent pipeline, and policy

environment. Many are starting to report directly to the CEO and are held accountable to lead strategic change initiatives from the top like point of entry

marketing, market fit and business model innovation.”Nicolette van Exel, head of CSR at Intuit

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What’s next

Launch of the Trialogue knowledge hub

32

Thank you for your continued support

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