THE EVOLUTION OF CSI IN SOUTH AFRICA

THE EVOLUTION OF CSI IN SOUTH AFRICA

1

A TRIALOGUE PUBLICATION

33

CHAPTER ONE

1972 The 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.

19 77 The Urban Foundation was established as the first large-scale corporate commitment to the plight of the disadvantaged, focusing primarily on housing and education.

19 89 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.

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.

1997 The Non-profit Organisations Act superseded the Fundraising Act of 1978, seeking to create an environment conducive to a flourishing non-profit sector.

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

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.

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.

2004 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.

34

1998

THE BUSINESS IN SOCIETY HANDBOOK 2017

2007

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

1999 Tshikululu Social Investment, a nonprofit 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.

2012

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

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.

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 lowerbound poverty line, from 39% in 2009 to 0% by 2030.

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.

The 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.

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.

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

2000

2002

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

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

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.

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.

2014 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.

2015 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.

19 95 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.

CSI MILESTONES

19 94

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

2003 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.

2017 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.

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.

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1992


35

CHAPTER ONE

CSI EXPENDITURE

1998 R1.5 billion

2017 R9.1 billion

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 respondents Between 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.

36


1 18 15 13 8 7 7 5 4 4 3 3 2 2 9

OVERVIEW OF 2017 CSI RESEARCH

CORPORATE RESPONDENTS BY INDUSTRY SECTOR Financial services Retail and wholesale Mining and quarrying Information technology and telecommunications Agriculture, forestry and fishing State-owned and public enterprises Other manufacturing Other services Oil and petroleum Media and entertainment Pharmaceutical and health Building and construction Motor vehicle manufacturers and assemblers Other

% corporate respondents 2017 n=92

CORPORATE

TOTAL ANNUAL INCOME

2

13 35 10 23 4 15

NUMBER OF EMPLOYEES

3

More than R50bn R10bn – R50bn R5bn – R10bn R1bn – R5bn R500m – R1bn Less than R500m

4 12 14 20 29 21

% corporate respondents


2017 n=79

CORPORATE

More than 50 000 20 000 – 50 000 10 000 – 20 000 5 000 – 10 000 1 000 – 5 000 Less than 1 000

2017 n=79

CORPORATE

NPO respondents Information 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.

TOTAL ANNUAL INCOME

4

12 20 17 23 24 4

5

NUMBER OF EMPLOYEES

More than R20m R5m – R20m R2m – R5m R500k – R2m Less than R500k R0 or loss-making

26 13 27 34

More than 50 people 31 – 50 people 11 – 30 people 1 – 10 people

% NPO respondents

% NPO respondents

NPO

2017 n=147

NPO

2017 n=198


37

CSI expenditure in 2016/17

CHAPTER ONE

●●

●●

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%). 6

CHANGES TO CSI EXPENDITURE

19

62

2017

14

51

2016

19 35

Increased Stayed the same Decreased % corporate respondents

2017 n=90 / 2016 n=80

CORPORATE

7

REASONS FOR INCREASED CSI EXPENDITURE

34 40 Project requirements/recipients’ needs 23 13 Inflationary adjustment 18 13 More inclusive definition of social investment being applied 12 8 2 Policy or focus change 10 11 Other 16 Increase in corporate profits

% corporate response

CORPORATE

Multiple responses

■ 2017 n=56 ■ 2016 n=40

Estimate of total CSI expenditure Companies in South Africa contributed

Total estimated CSI expenditure in 2017 was

R9.1 billion

R137 billion to social development over the past 20 years.

38

This represents a 6% nominal and 0% real increase from the R8.6 billion estimated spend in 2016.

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.


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. 8

CSI expenditure (R billion)

NOMINAL VERSUS REAL GROWTH IN CSI EXPENDITURE

10 9 8 7 6 5 4 3 2 1 0

Nominal

Real

(adjusted for inflation)

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Base year: 1998

CORPORATE

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. 9

CSI EXPENDITURE ACROSS TOP 100 COMPANIES R6.6 billion 11% 9% 50

18%

Less than R25m per company R25 – R50m per company R50 – R100m per company

17 62% 18

More than R100m per company

15

No. of top 100 companies

% CSI expenditure by top 100 companies

CORPORATE


39

CSI spend across sectors ●●

CHAPTER ONE

●●

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.

DISTRIBUTION OF CSI EXPENDITURE BY INDUSTRY SECTOR Mining and quarrying Financial services Retail and wholesale State-owned and public enterprises Information technology and telecommunications Other sectors

10

32 36 17 16 13 13 7 5 3 3 28 26

% CSI expenditure CORPORATE

■ 2017 n=134 ■ 2016 n=134

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. 11

AVERAGE DISTRIBUTION OF CSI EXPENDITURE 2017 Median: R22m

5

6

Less than R1m

9

8

R1m – R5m

15 15

32 32

14 17

11

6

14 15

R5m – R10m R10m – R30m R30m – R50m R50m – R100m More than R100m

% corporate respondents CORPORATE

■ 2017 n=71 ■ 2016 n=74

Non-cash giving ●●

●●

●●

40

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 noncash giving. By comparison, 16 companies quantified the value of employees’ volunteering time, which accounted for 1% of total giving.



19

13

27

40

34

35

45

81

87

73

60

66

65

55

2011

2012

2013

2014

2015

2016

2017

Yes No

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

CORPORATE

13

% CSI expenditure

NON-CASH GIVING AS A PROPORTION OF CSI SPEND

CORPORATE


12

COMPANIES REPORTING NON-CASH GIVING

6

5

12

12

10

13

10

94

95

88

88

90

87

90

2011

2012

2013

2014

2015

2016

2017

Non-cash Cash

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

NON-CASH GIVING INCREASED AS A PROPORTION OF CSI SPEND

2011

6%

non-cash giving

2017

10%

non-cash giving


41

CSI budget decisions

CHAPTER ONE

●●

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.

METHOD USED TO DETERMINE CSI BUDGET

14

% of NPAT Company decision/board approval Based on existing expenditure Fixed budget with variable % annual increase % of turnover/revenue Fixed budget with fixed % annual increase % of pre-tax profit % of dividends % of payroll Other

45 39 26 27 9 6 7 8 2 0 1 1 1 6 0 1 0 1 9 11


CORPORATE

*This question was last asked in 2014

■ 2017 n=92 ■ 2014* n=99

NPAT MOST COMMON METHOD FOR DETERMINING CSI BUDGETS

10%

of companies used NPAT in 1998

45 % of companies

used NPAT in 2017

Board/committee decision most consistent method for determining CSI budgets

1998

2017

29% 26%

42


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.

BREAKDOWN OF CSI EXPENDITURE BY BUDGET CATEGORY

15

100 Direct project expenditure 97 30 Employee volunteering and staff events 56 33 Monitoring and evaluation of projects 26 22 CSI administrative costs 26 22 CSI marketing and communication costs 25 13 CSI governance costs 5 16 Employee match funding 18 16 Development sector research 9 11 Membership-based organisation fees 12 3 Other 3

% corporate response CORPORATE

91 87 2 6 2 2 2 1 1 1 1 0 1 1 0 1 0 1 0 0

% CSI expenditure

Multiple responses * This question was last asked in 2015

PERCENTAGE OF CSI BUDGET SPENT ON FLAGSHIP PROJECTS

24 33 14 7 22

■ 2017 n=89 ■ 2015* n=77

16

Over 75% 50% – 75% 25% – 50% 10% – 25% 0 – 10%


CORPORATE

2017 n=79


43

Business rationale for CSI

CHAPTER ONE

●●

●●

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.

BUSINESS RATIONALE FOR CSI

17

Moral imperative/the right thing to do

53

86

Reputation 52

7

22 14

Licence-to-operate obligations other than BBBEE Codes 42 9

Competitive advantage/strategic reasons 31

7

11

8

9

2

19

Stakeholder pressures 16 4 4 Ranking CORPORATE

1

2

3

13

22 14

BBBEE Codes 39

Industry sector charter

20

14 11

13 9

9


Multiple responses

2017 n=85

MORAL IMPERATIVE REMAINED THE TOP MOTIVATION FOR CSI

MORAL IMPERATIVE

2013

86%

44


84%

2017

REPUTATION

BBBEE TRANSFORMATION AGENDA

2013

60%

2013

44%

53%

2017

39%

2017


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%).

DISTRIBUTION OF CORPORATE SUPPORT AND CSI EXPENDITURE BY REGION

53 59 49 60 40 46 35 44 34 43 30 33 27 35 11 13 23 26 21 27 15 22

National Gauteng Western Cape KwaZulu-Natal Eastern Cape Limpopo Mpumalanga International North West Free State Northern Cape

% corporate support CORPORATE

18

41 37 20 19 10 11 6 7 6 8 4 2 3 4 3 4 2 1 2 3 1 2

% CSI expenditure

Multiple responses

■ 2017 n=82 ■ 2016 n=91

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

% SPEND

1998 % SPEND

2017

35%

36%

GAUTENG

UL U-

18%

KW AZ

12%

NA TA L

17% 11%

WESTERN CAPE


45

CHAPTER ONE

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

1999 82%

2013 59%

URBAN

URBAN

RURAL

RURAL

18%

41%

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.

DISTRIBUTION OF NPO SUPPORT AND EXPENDITURE BY REGION 11 19 53 52 47 42 30 31 24 24 15 12 18 14 17 18 12 10 15 15

% NPO support

NPO

46

Multiple responses


National Gauteng Western Cape KwaZulu-Natal Eastern Cape Free State Limpopo Mpumalanga Northern Cape North West

19

10 13 33 32 27 24 11 14 8 5 3 2 3 3 2 3 1 2 1 1

% NPO expenditure

■ 2017 n=198 ■ 2016 n=183

Corporate ●● ●●

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

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.

DISTRIBUTION OF CSI FUNDING BY DEVELOPMENT SECTOR

not measured

91 94 76 70 51 54 36 41 39 33 35 31 28 33 18 19 21 25 23 23 11 16 8 15 11

Education Social and community development Health Food security and agriculture Entrepreneur and small business support Sports development Environment Housing and living conditions Arts and culture Disaster relief Safety and security Non-sector specific donations and grants Social justice and advocacy

10 16

20 48 48 15 15 12 9 7 7 6 5 3 3 2 3 2 2 1 2 1 1 1 1 0 1 0

Other


not measured

2 2

% CSI expenditure

Multiple responses

■ 2017 n=92 ■ 2016 n=81

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%).

NPO INVOLVEMENT BY DEVELOPMENT SECTOR

not measured

65 60 54 66 27 31 23 20 22 20 14 8 11 7 9 7 11 5 6 5 4 1 10 18 21

% NPO response NPO

Multiple responses

21

Social and community development

31

Education

29

Health

12

Entrepreneur and small business support

5

Food security and agriculture

4

Social justice and advocacy

3

Arts and culture

3

Sports development

2

Environment

2

Safety and security

1

Disaster relief

1

Housing and living conditions

1

Other

6

% NPO expenditure ■ 2017 n=198 ■ 2016 n=193


47


Development sector funding

CHAPTER ONE

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

●●

●●

●●

●●

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.

CSI FUNDING CHANNELS

22

89 82 74 80 42 34 26 19 17 16 16 20 5 6 1 3

Non-profit organisations Government institutions For-profit service providers Government departments Community trusts Industry initiatives Religious institutions Political parties Other

20


50 45 25 34 9 7 8 3 2 3 2 4 0 0 0 0 4 4

% CSI expenditure

Multiple responses

■ 2017 n=92 ■ 2016 n=79

Governance Corporate structure Fifty-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). GOVERNANCE STRUCTURE OF CSI FUNCTION

23

51 25 16 8

CSI department within the company Registered as a trust CSI responsibility within another department of the company Registered as a non-profit company


CORPORATE

48


2017 n=91

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%).

NPO REGISTRATION STATUS


●●

24

Registered as an NPO with the Department of Social Development 88 80

Registered as a PBO with SARS 88 80

Registered as a PBO with Section 18a status with SARS 82 68

Registered as a NPC with the Company Intellectual Property Commission 29 37

Established as a voluntary association of persons, with a founding document 27 Registered trust Registered as a for-profit social enterprise with the CIPC

17 18 16 5

South African branch of an international organisation Don’t know

3 1 0 2

% NPO response NPO

Multiple responses

■ 2017 n=198 ■ 2016 n=193

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.

IMPACT OF KING IV ON CSI PROGRAMME

25

No impact 46 Increased the CSI oversight role of the Social and Ethics Committee 38 Increased engagement with communities, NPOs and other stakeholders 33 Don’t know 11 Other

2 % corporate response

CORPORATE

Multiple responses

2017 n=92

CSI RISK MANAGEMENT

26

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 respondents

CORPORATE

2017 n=91


49

Staffing of CSI function

CHAPTER ONE

●●

●●

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.

NUMBER OF EMPLOYEES TO MANAGE CSI

32 7 8 10 9 34

27

NUMBER OF YEARS CSI STAFF EMPLOYED

4 11 33 7 10 23 12

One Two Three Four Five More than five


2017 n=92

CORPORATE

28

Less than one year 1 – 3 years 4 – 5 years 6 – 7 years 8 – 9 years 10 – 11 years More than 11 years


2017 n=91

CORPORATE

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%).

OUTSOURCED CSI FUNCTIONS

29 None 45

Monitoring and evaluation of projects 37 CSI marketing and communications 18 Development sector research 17 Coordination of employee volunteer programmes and staff events 16 Reviewing of grant applications 8 Fund management 8 Secretarial/administrative functions 7 Other 13 % corporate response CORPORATE

50

Multiple responses


2017 n=89


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.

REASONS FOR COMMUNITY ENGAGEMENT

30

Establish community needs 86 Prioritise CSI projects/social investments 72 Get feedback on existing CSI projects/social investments 71 Establish trust among project stakeholders 70 Enhance public perception of the company 52 Determine the community’s issues with/perceptions of the company 49 Identify business opportunities 25 Community engagement is not conducted 13 Other 8 % corporate response CORPORATE

Multiple responses

2017 n=79

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.

FREQUENCY OF COMMUNITY ENGAGEMENT (FLAGSHIP PROJECTS)

31

Before investing in any new projects 71 Quarterly (every three months) 40 When exiting or ending a project 33 More than once a month 20 Once a month 16 Bi-annually (every six months) 13 Annually 11 Less than once a year

2

Only when requested by the community

1

Never

6


Multiple responses

2017 n=83


51

Community engagement structures ●●

CHAPTER ONE

●●

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%).

STRUCTURES USED FOR COMMUNITY ENGAGEMENT

32

Local government structures 49 Community forums

36

Community liaison officers

33

No formal structures 27 Community trusts 22 Other 20 % corporate response CORPORATE

Multiple responses

2017 n=85

DEPARTMENTS WORKED WITH FOR COMMUNITY ENGAGEMENT

33

Communications 44 Corporate affairs 43 Stakeholder engagement

36

Sustainability

29

None, CSI department does its own community engagement 29 Community engagement 18 Other 19 % corporate response CORPORATE

Multiple responses

2017 n=84

Monitoring and evaluation ●●

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

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).

LEVEL OF MEASUREMENT FOR ALL CSI PROJECTS

61 52 74 69 80 81 75 79 70 72 13 8

Impacts Outcomes Outputs Activities Inputs Not measured

% NPO response NPO

52

■ 2017 n=142 ■ 2016 n=143


34

66 62 81 76 89 83 84 80 85 89 3 6

% corporate response Multiple responses

■ 2017 n=91 ■ 2016 n=82 CORPORATE

35


TYPE OF PROJECTS FOR WHICH OUTCOMES ARE MEASURED AND RECORDED

All grants, regardless of size 55 61 Only grants larger than a specific threshold 26 15 Only grants made for a specific strategic CSI project 12 12 No measured or recorded outcomes for any projects Only grants made in certain development sectors Only grants larger than a specific threshold and in a specific sector

4 9 2 3 1 0


CORPORATE ●●

●●

*This question was last asked in 2015

■ 2017 n=85 ■ 2015* n=74

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.

M&E TOOLS AND APPROACHES USED

36

72

Performance indicators

91

38

Impact evaluation

59

40

The logical framework (LogFrame) approach

47

37

Formal surveys

45

34

Participatory methods

43

35

Rapid appraisal methods

33

19

Cost-benefit and cost-effectiveness analysis

32

11

Social return on investment (SROI)

26

18

Theory-based evaluation

20

8

Public expenditure tracking surveys

9

6

Randomised control trials

8

9

Other

3

% NPO response

NPO

2017 n=142


Multiple responses

2017 n=76

CORPORATE


53

Use of M&E data

CHAPTER ONE

●●

●●

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.

USE OF M&E DATA

37 Reported to the board

91

70

Planned/revised strategies

79

66

Planned/revised programmes or projects

62

43

Shared findings with NPOs

43

66

Shared findings with grantmakers

43

80

20 12

Influencing public policy/government funding choices 22 Data not used

% NPO response

NPO

2017 n=142

3


Multiple responses

2017 n=89 CORPORATE

MORE COMPANIES CLAIM TO DO MONITORING AND EVALUATION

2006 60%

54


2016 94%

●●

●●

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.

▶ See page 172 for more on effective employee volunteerism.

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


COMPANIES WITH FORMAL EVPs

38

30

32

70

68

2016

2017

No Yes

2017 n=81 / 2017 n=90

CORPORATE

MORE COMPANIES ORGANISED VOLUNTEERING EVENTS

2012

2017

2012

2017

77% 68%

71% 95%

Companies with employee volunteer programmes

Company-organised volunteering events


55


Employee volunteerism

Types of EVP support

CHAPTER ONE

●●

●●

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.

EMPLOYEE VOLUNTEER INITIATIVES OFFERED BY COMPANIES/RECEIVED BY NPOs 59

Company-organised volunteering initiatives

95

55

Fundraising and collection drives

73

30

Time off for individuals to volunteer during work hours

58

18

Employee matched funding

40

44

Pro bono

26

9

Give as you earn

23

4

Volunteer matched funding

15

8

Board leadership programmes

5

6

Volunteer sabbatical

5

16

Retiree volunteering

2

20

Family volunteering

0

14

Other

3

% NPO response NPO

39


2017 n=140

Multiple responses

2017 n=62 CORPORATE

MOST AND LEAST DESIRABLE CORPORATE EVPs

40

8

Company-organised fundraising/collection drives

26

9

Give as you earn

21

4

Pro bono

13

1

Employee matched funding

13

16

Volunteer sabbatical

8

29

Company-organised volunteering initiatives

6

11

Family volunteering

4

5

Volunteer matched funding

4

9 Time off for individuals to volunteer during work hours 3 8

Retiree volunteering

2

0

Board leadership programmes

0

% NPO respondents – least popular NPO

56


% NPO respondents – most popular 2017 n=141

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%).

TYPES OF PARTICIPATION IN CORPORATE EVPs


●●

41

Time off for individuals to volunteer during work hours Company-organised volunteering initiatives Fundraising and collection drives Employee volunteer recognition awards Employee matched funding Give as you earn Pro bono Board leadership programmes Volunteer sabbatical Volunteer matched funding Team grants

20 20 17 21 16 25 12 0 10 11 7 6 6 9 5 0 3 0 3 8 1 0

% employee participation CORPORATE

■ 2017 n=62 ■ 2016 n=64

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.

TYPES OF EVP BENEFITS MEASURED

42

No measurement tools in place

49

Community/beneficiary benefit

42

NPO benefit

29

Company reputation

24

Brand value

21

HR retention

13

HR development

10


CORPORATE

Multiple responses

2017 n=47


57

CSI communications

CHAPTER ONE

●●

●●

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

31 31 14 1 23

Corporate communications CSI department Marketing department PR company Other


2017 n=91

CORPORATE

DEPARTMENT RESPONSIBLE FOR CSI COMMUNICATIONS

29 27 22 1 21

44

Marketing department Corporate communications CSI department PR company Other


2017 n=86

CORPORATE

CSI ALIGNMENT WITH CORPORATE BRAND MESSAGING

45

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 respondents

CORPORATE

58


2017 n=86

●●

●●

●●

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%).

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

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

SOCIAL MEDIA PLATFORMS USED TO COMMUNICATE CSI INITIATIVES

97

Facebook

61

61

Twitter

52

52

YouTube

33

1

None

27

42

LinkedIn

23

38

Instagram

20

27

Google+

10

1

Snapchat

1

0

Other

14


% NPO response NPO

2017 n=137

46

Multiple responses

2017 n=88

CORPORATE RATIONALE FOR USE OF SOCIAL MEDIA

CORPORATE

47

Facilitate easy sharing of information

80

Encourage the public to engage with/comment on CSI work

78

Reach specific target audiences

61

Corporate PR and marketing purposes

59


Multiple responses

2017 n=59

NPO RATIONALE FOR USE OF SOCIAL MEDIA

48

Attract potential donors

85

Reach specific target audiences

78

Facilitate easy sharing of information

77

Communicate with existing donors

74

Advocacy

70

Communicate with existing beneficiaries

59

Attract potential beneficiaries

53

Other

4

% NPO response NPO

Multiple responses

2017 n=59


59


Social media

Trends

CHAPTER ONE

●●

●●

●●

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.

NUMBER OF YEARS COMPANIES HAVE BEEN DOING CSI

49

1 2 15 19 21 6 33 3

0 – 2 years 3 – 5 years 6 – 10 years 11 – 15 years 16 – 20 years 21 – 25 years More than 25 years Don’t know


2017 n=90

CORPORATE

CHANGES IN CORPORATE APPROACHES TO CSI OVER THE PAST 10 YEARS

50

Communication of CSI

69

27

3 1

Level of oversight by executive management

69

28

30

Number of strategic or collaborative partnerships

68

26

4 2

Alignment between CSI programme and business

68

29

1 2

Level of governance oversight of CSI

67

31

20

Monitoring and evaluation

67

30

21

Real expenditure

67

17

16

0

Formal structures and management of the CSI function

57

41

2

0

Cost of administering the programme, relative to CSI spend

46

40

10

4

Number of CSI projects supported

45

26

29

0

Number of developmental focus areas supported

29

49

22

0

% corporate respondents Increased CORPORATE

60


Stayed the same

Decreased

Don’t know 2017 n=90

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. ■

CHANGES IN NPO APPROACHES TO CSI OVER THE PAST 10 YEARS

51

Communication of programmes

74

20

5 1

Cost of administering the organisation (relative to total spend)

72

18

8 2

Monitoring and evaluation

70

26

3 1

Level of governance oversight of the organisation

69

25

4 2

Formal structures and management of the organisation

69

26

5 0

23

10 1

Number of projects supported

66

Number of strategic or collaborative partnerships

63

Real income of the organisation

61

Number of developmental focus areas supported

60

Number of corporate donors

42


●●

23 8

11

31 22

3

27

4 7

2

33

3

% NPO respondents Increased

Decreased

Don’t know 2017 n=198

JHB 60584

NPO

Stayed the same

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.


61

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

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 mindset Investec’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,

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 opportunities In 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 Second prize Third prize Fourth prize

R90 000 R60 000 R40 000 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.

Corporate and NPO reputations CHAPTER ONE

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 Table 1: RANKED BY COMPANIES Ranking (n=88)

Company

Table 2: RANKED BY NPOs Ranking (n=137)

Company

1

Vodacom

1

Nedbank

2

Nedbank

2

Old Mutual

3

Woolworths

4=

Anglo American MTN

3

Vodacom

4

Anglo American

6=

Discovery Old Mutual

5

Woolworths

8=

FirstRand SAB Miller

6=

Discovery Pick n Pay

10=

Investec Sasol Standard Bank Tiger Brands

8=

Investec MMI Holdings

10

Absa

= Denotes equal ranking

●●

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 ●●

64

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.


●●

●●

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.

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

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.

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

NPO developmental impact Table 4: RANKED BY COMPANIES Ranking (n=89)

NPO

1

Gift of the Givers

2

Afrika Tikkun

3=

Doctors Without Borders Food Forward National Education Collaboration Trust

6=

CHOC Food and Trees for Africa Nelson Mandela Children’s Fund Red Cross SECTION27

Table 5: RANKED BY NPOs Ranking (n=138)

NPO

1=

CHOC Gift of the Givers SPCA

4

CANSA

5

The Smile Foundation

6=

Afrika Tikkun BRIDGE DG Murray Trust Nelson Mandela Foundation SANCA National

= Denotes equal ranking

●●

●●

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. ■

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


65

CORPORATE AND NPO REPUTATIONS

●●

BUILDING RELATIONSHIPS, REBUILDING COMMUNITIES VIEWPOINT

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.

DR IMTIAZ SOOLIMAN Founder and chairman of Gift of the Givers [email protected] www.giftofthegivers.org

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?

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.

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

66

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, selfesteem, encouragement and positivity. Intervening rapidly and restoring the person back to their previous state is the most dignified approach. ■

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 throughout South Africa. The primary CSI arm of the Nedbank Group is the Nedbank Foundation, established 25 years ago in 1992.

Education R141m

CSI CONTRIBUTIONS FOR 2016 Education 51,3%

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%).

Community development 6,2%

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

Skills development 3,2%

Ă The Nedbank Eyethu Community Trust

Health 7,5%

Ă The Nedbank Private Wealth Foundation

Volunteerism 3,9%

Ă The Nedbank External Bursary Fund

Affinity Programmes 27,9%

Ă The Nedbank Affinities Programme

see money differently

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

TERTIARY EDUCATION Undergraduate bursaries

R14,3 million

Postgraduate bursaries

R2,9 million

BASIC EDUCATION ECD

R2,2 million

R4,1 million

Primary school

Student assistance

Secondary school

Research

Total: Basic education

Total: Tertiary education

R12,1 million

cannot start early enough

Other

R26,2 million R40,5 million

R8,2 million R2 million R31,5 million

TOTAL EDUCATION: R72

million

THE NEDBANK FOUNDATION

THE NEDBANK EXTERNAL BURSARY FUND

The Nedbank Foundation plays a pivotal role in the Nedbank

This fund provides a number of bursaries through the

Group to advance education, health, skills development, job creation and community development in South Africa’s under-

Nedbank Education Trust. Investment in 2016: R11 million to 104 students

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.

THE NEDBANK AFFINITY PROGRAMMES

Investment in 2016: R30,3 million in 91 projects

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

The Green, Children’s, Sport and Arts Affinity Programmes fund 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

THE NEDBANK PRIVATE WEALTH FOUNDATION

STAFF VOLUNTEERISM

This foundation is aimed at youth between the ages of 15 and 25 years, focusing on skills-based learnerships and programmes for the development of maths, sciences and entrepreneurial skills.

Nedbank 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: R8,8 million for 23 organisations

Investment in 2016: R5,6 million for staff volunteerism

purpleberry 1017/10090

THE PROJECTS FEATURED HERE OFFER INSIGHT INTO THE RANGE OF EDUCATIONFOCUSED INITIATIVES WE SUPPORT.

EARLY-CHILDHOOD DEVELOPMENT

The HeronBridge Training and Resource Centre Boosting early-childhood development The 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 EDUCATION

The Nedbank Mobile Library Project Improving literacy in South Africa The 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 EDUCATION

The 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 problemsolving 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

70


THE NEDBANK FOUNDATION – EDUCATION FOR ALL

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 VOLUNTEERISM

Nedbank Systems Analyst Benedict Mashile Nedbank staffmembers are active citizens Nedbank 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 EDUCATION

Solar Water Heater Project Building 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].

CSI EXPENDITURE PER COMPANY

CSI expenditure per company 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.

Company name

2016/17¹ published CSI spend

2015/16² published CSI spend

2016/17 focus areas

(RSA, unless otherwise mentioned) Rm³


(not in order of investment)

Not available at time of going to print

Youth empowerment, environment, enterprise development, philanthropic ad hoc projects

www.abi.co.za/sustainability/

Community development, youth development, education, skills and enterprise development, environment, sport, disability

ACSA Annual Integrated Report 2016, p70

Education, social development, environment

Adcorp Holdings Integrated Annual Report 2017, pg30

Education

ADvTech Sustainability Report 2016, p4

Education, skills development, environment, community development, OVC

AECI Integrated Annual Report 2016, p69

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

African Rainbow Minerals Integrated Annual Report 2016, p16

5.3

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

Afrimat Integrated Annual Report 2017, p52

5.5

5.0

Education, early childhood development, OVC, community development

Alexander Forbes Integrated Annual Report 2017, p86

8.4

10.4

Education, skills development

Altron Group Integrated Annual Report 2017, p42

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

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

Anglo American Platinum Supplementary Report 2016, p17

ABI

24.0

ACSA

54.9

56.4

Adcorp Holdings

1.84

5.3

112.0

102.0

21.0

18.0

106.05

169.0

Afrimat

6.0

Alexander Forbes Altron Group

ADvTech AECI African Rainbow Minerals

Source of 2016/17 data

Anglo American

1 237.06

1 581.1

Anglo American Platinum

331.0

547.0

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 upliftment

Aspen Pharmacare Integrated Annual Report 2016, p66

180.98

107.2

Education, enterprise development, community upliftment, poverty alleviation

Assore Sustainability Report 2016, p22

33.29

15.3

Education, enterprise development, community upliftment, poverty alleviation

Assore Sustainability Report 2016, p22

Assmang Assore


71

CHAPTER ONE

Company name





2016/17 focus areas



Astral Foods

56.3

48.2

Education, 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

18410

186

Education and skills, enterprise development, financial education

Barclays Africa Group Limited, Integrated Annual Report 2016, p35

16.8

16.6

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

Barloworld Integrated Annual Report 2016, p95

6.0

7.5

Education, job creation, health

Basil Read Holdings Integrated Annual Report 2016, p26

2 593.211

2 576.2

Enhancing livelihoods, health, education, training, social inclusion

BHP Billiton Integrated Annual Report 2016, p50

105.0

100.0

Community development, environment, enterprise development, training

Bidvest Integrated Annual Report 2016, p47

6.5

5.3

Youth, sports development, technological development

Blue Label Telecoms Integrated Annual Report 2016, p71

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

7.2

6.1

Education, skills development, social development

Calgro M3 Integrated Annual Report 2017, p63

13.4

10.6

Community development, education, skills development, enterprise development

Capitec Bank Integrated Annual Report 2017, p110

141.4

133.0

Education, community development, enterprise development

Cashbuild Integrated Annual Report 2016, p4

2 735.815

68.9

Education, health, community and economic development

Chevron Integrated Annual Report 2016, p3

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 education

Coronation Fund Managers Integrated Annual Report 2016, p76

43.0

27.0

Health, environment, community development

Curro Holdings Integrated Annual Report 2016, p25

7.0

7.0


Datatec Integrated Annual Report 2017, p58

9.918

9.1

Health 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

7.2

5.0

Education, training, skills development, community development, enterprise development, sports development

Denel Integrated Annual Report 2017, p39 - 40

57.0

68.4

Health, education, environment, enterprise development

Discovery Holdings Sustainable Development Report 2016, p39

Barclays Africa Group

Barloworld Basil Read Holdings BHP Billiton Bidvest Blue Label Telecoms BMW

Calgro M3 Holdings Capitec Bank Holdings Cashbuild Chevron Clicks Group

Curro Holdings Datatec

De Beers Group

Denel

Discovery Holdings

72






2016/17 focus areas



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

225.319

103.6

Education, health, community development, enterprise development

Eskom Integrated Annual Report 2017, p70

49.0

63.0

Education, skills development, infrastructure, health and welfare, sport and recreation, enterprise development, environment, agriculture

Exxaro Resources Integrated Annual Report 2016, p66

18.420

15.9

Education, sport, health

Famous Brands Integrated Annual Report 2017, p7

354.021

171.0

Education, community development

FirstRand Annual Integrated Report 2017, p9

1 157.622

1 039.8

Education, enterprise development, economic diversification, health, environment

Glencore Xstrata Integrated Annual Report 2016, p35

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 infrastructure

Growthpoint Properties Integrated Annual Report 2016, p108

9.0

6.0

Education, community development, entrepreneurial and skills development, sport and recreation

Harmony Gold Mining Integrated Annual Report 2016, p56

Eskom Exxaro Resources Famous Brands FirstRand Glencore Xstrata Gold Fields

Harmony Gold Mining HCI Foundation (Hosken Consolidated Investments )


27.0

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

Illovo Sugar


10.5

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

Impala Platinum Holdings

106.0

105.0

Imperial Holdings

32.0

Industrial Development Corporation of SA

Community development

Impala Platinum Sustainable Development Report 2017, p43

29.0

Health, community development, safety

Imperial Holdings Integrated Annual Report 2017, p7

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

8.3

8.2

Education, financial literacy

JSE Integrated Annual Report 2016, p3

67.025

175.0

Education, 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

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

JSE

Kumba Iron Ore

Lewis Group


73

CSI EXPENDITURE PER COMPANY

Company name

CHAPTER ONE

Company name





2016/17 focus areas



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

10.9


13.5

21.4

Education, 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

5.6

6.3

Education, health, entrepreneur and enterprise development

Mpact Integrated Report 2016, p64

22.3

27.6


Mr Price Group Integrated Annual Report 2017, p41

295.4

335.4

Education, health, entrepreneur development

MTN Group Integrated Annual Report 2016, p17

Mercedes-Benz SA Metair Investments

Mpact Mr Price Group MTN Group



56.0

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

20.5

23.1

Education, safety, health, community development

Murray & Roberts Holdings Sustainability Report 2017, p9

8.5

10.7

Education, health and welfare, environment

http://www.nampak.com/About/ Sustainability/Social-Investment

141.0

136.0

Education, environment

Nedbank Group Integrated Annual Report 2016, p79

23.0

25.0

Health

Netcare Integrated Annual Report 2016, p36

6.6

4.9

Food security, education

Oceana Group Integrated Annual Report 2016, p51

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

8.7

10.3

Education, health, community development, environment

PetroSA Integrated Annual Report 2016, p80

38.7

41.5

Food security, job creation, skills development, environment, community and enterprise development, promoting healthy living

Pick n Pay Integrated Annual Report 2017, p21

9.3

13.5

Education, food security, community development

Pioneer Foods Group Integrated Annual Report 2016, p85

MultiChoice Africa Murray & Roberts Holdings Nampak Nedbank Group Netcare Oceana Group Old Mutual

PetroSA Pick n Pay

Pioneer Foods Group

74


D O I NG WEL L AT D OING GO OD Nedbank Private Wealth celebrates 20 years of effective social investment

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

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.

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.

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.

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

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

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

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.’

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

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.

@ 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

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).

CHAPTER ONE

Company name





2016/17 focus areas



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

10.0

Education, food security, early childhood development, welfare, entrepreneur development, community development

RCL Foods Sustainable Business Report 2017, p63

Remgro

24.0

18.0

Community 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

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 development

Royal 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

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

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

691.0

Education, 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

17.535

26.0

Education, health and welfare, HIV/Aids, sport, arts and culture, heritage

Sun International Integrated Annual Report 2016, Community, p2

5.6

7.8

Education, food security and nutrition, welfare

Super Group Integrated Annual Report 2016, p56

38.436

47.0

Education, social development

Telkom SA Integrated Annual Report 2017, p93

8.537

7.0

Education, community development, employment in local communities

TFG Integrated Annual Report 2017, p160

Rio Tinto

Samsung

Sekunjalo Investments

Sun International Super Group Telkom SA TFG

76



77

CHAPTER ONE

Company name





2016/17 focus areas



Tiger Consumer Brands Ltd

35.0

24.0

Nutrition and food security, capacity building, community enterprise development

Tiger Brands Integrated Annual Report 2017

Tongaat Hulett

16.738

17.1

Job 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

4.8

2.6

Healthcare, education, social development, sport, arts and culture

Truworths 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

29.0

Education, enterprise development, community development, skills development, infrastructure development, health, sports

Integrated Annual Report 2016, p53 SR 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

Truworths International

1 2 3 4 5 6

7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

78

Incorporating data from 1 July 2016 to 30 June 2017 Incorporating data from 1 July 2015 to 30 June 2016 Where exchanges have been applied, these rates have been converted at the average exchange rate for the month of each company’s financial year end Global spend Includes Local Economic Development (LED) and Social and Labour Plan (SLP) projects 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 2015/16 spend $6.2m @ $12.8 Excludes Assore Operations Excludes R180.9 million invested by Assmang Operations Group Africa Spend Group spend, 2016/17 spend $178,7m @ $14.5, 2015/16 spend $225m @ $11.4 Group spend, 2016/17 spend €87.8m @ €16.1, 2015/16 spend €39.1m @ €13.7 Group spend, 2016/17 spend $61.1m @ $14.7, 2015/16 spend $67.2m @ $12.8 Group spend, 2016/17 spend £8.3m @ £20.0, 2015/16 spend £11.1m @ £19.5 Group spend, 2016/17 spend $186m @ $14.7, 2015/16 spend $54m @ $12.8 Includes product donations Group spend 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 2016/17 increase in spend due to a number of interventions with a national footprint 75% sports sponsorship, 2% food donations CSI spend includes FirstRand Foundation (including RMB Fund, FNB Fund and WesBank Fund) and FirstRand Empowerment Fund Group spend, 2016/17 spend $84m @ $13.8, 2015/16 spend $94m @ $11.1


23

24 25 26 27 28 29 30 31 32 33 34

35 36 37 38

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 2015/16 figure includes dividends to BBBEE trusts Drop from 2015/16 due to decline in export iron ore prices Includes consumer education (43%). Momentum and Metropolitan included in the MMI Foundation Group spend, 2016/17 spend €7.9m @ €16.3, 2015/16 spend €7m @ €14.1 Group spend, 2016/17 spend £16.2m @ £20.0, 2015/16 spend £16.7m @ £19.5 Group spend, 2016/17 spend $166m @ $14.7, 2015/16 spend $184m @ $12.8 2016/17 spend includes housing Global Spend @ 445 billion KRW (South Korean Won) @.012/ZAR Southern Africa spend, 2016/17 spend $3.85m @ $14.8, 2015/16 spend $3.86m @ $12.0 Includes food donations 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 Excludes: Sun International CEO SleepOut initiative which raised R31.2m in 2016/17 and R26.2m in 2015/16 Includes: Telkom Foundation, BCX and Trudon The Fochini Group - excludes merchandise donations (R25.2m in 2016/17 and R27.4m in 2015/16) 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%

United by a clear purpose to achieve real change

W

THE OF CSI CEOEVOLUTION MESSAGE

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.

Nicolaas Kruger Group Chief Executive Officer

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.

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

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. ■


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When communities are empowered through technology, the economy grows

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

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he 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.

Reducing the burden of the state means bringing into the public sector the latest innovation to assist in the modernisation of infrastructure. 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.

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.

In the Eastern Cape, Vodacom has partnered with the provincial government to provide a digital solution to manage 5000 sparsely distributed and remote schools.

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.

Connecting for Good.

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 highquality 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

CHAPTER ONE

SA’S CORPORATE SOCIAL INVESTMENT STORY At 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 setup, 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:

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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

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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

Mercedes-Benz South Africa Building more than just vehicles 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.

CHAPTER ONE

The future of CSI Drawing 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.

1. INCREASED INTEGRATION The trend

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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

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CSI 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.

Consequences The 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.

2. GREATER FOCUS

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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

THE FUTURE OF CSI

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.

3. SUPPORT FOR SOCIAL JUSTICE The trend

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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

Companies 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.

Consequences Support 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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CHAPTER ONE

4. EMPLOYEE ENGAGEMENT The trend

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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

Employees 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.

5. STAKEHOLDER INTERACTION The trend

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

Companies 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.

Bill Gates – Co-founder of Microsoft Corporation

Consequences

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

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

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 underresourced 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.

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.

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

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

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.

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.

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 John Matthews, Group CEO of Garden Cities

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".

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.

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

GARDEN CITIES

www.gardencities.co.za

CHAPTER ONE

6. COLLECTIVE IMPACT The trend

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Alone we can do so little; together we can do so much. Helen Keller – American author and political activist

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.

Consequences Organisations 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 companycentric social development initiatives, where recognition and branding are prioritised ahead of sustainable outcomes, towards more collective initiatives.

7. INNOVATIVE FINANCE The trend

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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

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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 resultsorientated mindset, whereby investors will favour organisations that are able to demonstrate the achievement of significant outcomes from investments.

Consequences A 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.

CHAPTER ONE

8. APPLICATION OF TECHNOLOGY AND DATA The trend

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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

Technology 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.

9. APPLIED MEASUREMENT The trend

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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

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Measurement 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.

Consequences Budgeting 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.

THE FUTURE OF CSI

10. PROFESSIONALISATION The trend

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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

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.

Consequences Accredited 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.

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


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KING IV: REINFORCING GOOD GOVERNANCE How would you define good governance?

VIEWPOINT

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. PROF MERVYN KING Chair of the King Committee [email protected] www.mervynking.co.za

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.

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.

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 does the King IV Code impact corporate social investment practitioners?

Corporate social investment has, erroneously, been practised as a tickbox 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.

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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.


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

LIBERTY GROUP CSI

DEVELOPING YOUNG MINDS THROUGH EDUCATION

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.

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.

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

OUR FLAGSHIP PROGRAMMES IN SOUTH AFRICA ARE: Primary School Our 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 School Our 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.

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

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

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| Email: [email protected] | www.libertyholdings.co.za

MTN SA FOUNDATION

ENTERPRISE SKILLS DEVELOPMENT

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

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

ENTERPRISE SKILLS DEVELOPMENT PROGRAMMES MTN 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.

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.

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

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.

UNIVERSITY STUDENTS ENACTUS: CHALLENGING STUDENTS TO ACHIEVE ENTREPRENEURIAL EXCELLENCE Entrepreneurs transform ideas into economic opportunities – bringing to market new technologies, services and solutions – creating new avenues of employment. They are the risktakers, 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

SCHOOL GOING YOUTH STEP UP 2 A START UP ENTREPRENEURIAL PROGRAMME For 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.

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.