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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
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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
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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
9Source: Trialogue CSI Handbook 19th edition; Trialogue CSI Handbook 9th edition
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
12Source: Trialogue CSI Handbook 19th edition; Trialogue CSI Handbook 14th edition
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
13Source: Trialogue CSI Handbook 19th edition; Trialogue CSI Handbook 14th edition
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
14Source: Trialogue CSI Handbook 19th edition; Trialogue CSI Handbook 10th edition
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
15Source: Trialogue CSI Handbook 19th edition; Trialogue CSI Handbook 14th edition
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
16Source: Trialogue CSI Handbook 19th edition; Trialogue CSI Handbook 9th edition
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
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10. CSI growing amongst SMEsand in the rest of Africa
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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.
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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
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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
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4. Greater employee engagement
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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)
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)
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6. Increasing collaboration
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“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
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8. Rise of technology and data
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“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
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"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
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Thank you for your continued support