Corporate Social Investment Policy Rev.: 1 CORPORATE SOCIAL INVESTMENT POLICY. number. CSMU Manager
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1 Corporate Social Investment Policy Rev: 1 CORPORATE SOCIAL INVESTMENT POLICY Approval Process Position or meeting number Date Originator: Approved by Acting Company Secretary & CSMU Manager EXCO Approval: 245 th EXCO 22 nd May 2012 Recommended by Audit Committee 27 th June th June 2012 Board approval: 18 th July 2012 Effective: Review frequency: Annually from date of Board approval 1
2 Corporate Social Investment Policy Rev: 1 Table of contents 1 Definitions 3 2 Purpose 4 3 Policy Statement 4 4 Category of CSI Projects 5 41 Education and Training 5 42 Job Creation 6 43 Public health, Community development and support 6 44 Environmental conservation 6 45 Arts, Culture and Sport 7 5 Project structure 7 6 Financial and other resources 8 7 Management and administration structure 8 8 Measuring and reporting 9 9 Communication 9 2
3 Corporate Social Investment Policy Rev: 1 1 Definitions 11 Board - The Board of Directors of Umgeni Water Board 12 Community Outreach Programme - Community awareness initiatives on a range of water-related issues through targeted community activities The activities are better served and would be more effective through community participation 13 CSI - Corporate Social Investment 14 Corporate Social Investment - Activities that, although they do not form part of day to day core business of Umgeni Water, ensure that the organisation plays a good corporate citizenship role by, inter alia, investing financial and other resources towards the development of communities within which it operates to sustain its survival and that of the community 15 Stakeholder - Any organisation, institution or person that can be affected by or can influence, directly or indirectly, the activities of Umgeni Water 16 Umgeni Water - A water board established in terms of the provisions of the Water Services Act, 108 of 1997, as amended The word company shall, where the context indicates, refer to Umgeni Water 3
4 Corporate Social Investment Policy Rev: 1 2 PURPOSE The purpose of this CSI Policy is: 21 To provide guidelines and assistance in the funding and implementation of CSI projects; 22 To ensure that CSI projects funded or implemented by Umgeni Water are in line with its strategic objectives and suit its operational needs; 23 To ensure that the resources (financial and otherwise) invested by Umgeni Water in CSI projects are regulated and properly monitored; 24 To ensure that Umgeni Water plays a role as a good corporate citizen in the economic and social transformation of stakeholders and communities within which it operates; 25 To ensure that Umgeni Water s CSI projects have a logical fit with its business activities; 26 To ensure that Umgeni Water invests in CSI projects that enhance its image of one of care towards its stakeholders and communities within which it operates, and also build good relations with these stakeholders; 27 To ensure that Umgeni Water contributes to Government s poverty alleviation programmes and to help stabilise the economic and social environment to ensure its long-term survival 28 Umgeni Water, will in its Capex, oblige service providers to invest in CSI 3 POLICY STATEMENT Umgeni water shall:- 31 Focus its CSI funding on and involvement in those communities within which it operates or will operate in the future 32 Approach CSI projects with a view to facilitating sustainable wealth creation and self-sufficiency in the communities within which it operates; 33 Use CSI projects to manage relations with the communities within which its operates; 4
5 Corporate Social Investment Policy Rev: 1 34 Shall measure the effectiveness and sustainability of its CSI projects against its strategic goals and objectives; 35 Shall become involved in CSI projects in a responsible and innovative manner based on principles that benefit both itself and the beneficiary 36 Ensure that CSI projects are implemented in such a manner as to ensure that the beneficiaries are able to sustain the ongoing viability of the project 37 Not, directly or indirectly, provide financial or other support to activities aimed at or intended to propagate religion, religious philosophies and religious denominations 38 Not, directly or indirectly, provide financial or other support or participate in activities of a political nature or activities that are aimed at or intended to propagate the philosophies and/or policies of a political party or political movement 4 CATEGORIES OF CSI PROJECTS Umgeni Water may invest in or implement CSI projects falling within the following categories, provided that the Executive Committee may use its discretion in funding or implementing projects falling outside these categories: 41 Education and Training Projects under this category may include, but not limited to: 411 Information technology skills development, 412 Engineering, Maths and Science skills development, 413 Water services-related skills development, 414 Programmes aimed at improving skills levels in communities, 415 School building and equipping 416 Community outreach programmes 5
6 Corporate Social Investment Policy Rev: 1 42 Job Creation Projects under this category may include, but not limited to: 421 Support for SMMEs, including co-operatives, that do not form part of Umgeni Water s procurement processes 422 Support for new entrepreneur development 423 Community projects that are of a self-help nature and are sustainable and will improve the knowledge and skills of the community 43 Public Health, Community Development and Support Projects under this category may include, but not limited to: 431 Health and social welfare Projects under this category may include medical, primary health care and welfare projects (eg, food schemes) within communities in which Umgeni Water operates In some projects, Umgeni Water s involvement may be non-monetary in nature, such as organisational and administrative support, time spent by staff members to help organise an event or training community members 432 Community health and diseases awareness 433 Support for security and public safety programmes 434 Leadership development 44 Environmental Conservation Projects under this category may include, but not limited to: 441 Environmental awareness projects (eg cleaning of local rivers, land adjacent to servitudes and general awareness campaigns) 442 Support for conservation initiatives and programmes 6
7 Corporate Social Investment Policy Rev: Involvement in disaster relief programmes (eg community assistance during floods, drought relief, etc) 45 Arts, culture and sport Projects under this category may include, but not limited to: 451 Support of developmental programmes 452 Training of new arts and sporting talents 453 Development of historically disadvantaged individuals or teams 453 Projects aimed at promoting all aspects of South African culture, including performing talents, in the field of art, dance and music 5 PROJECT STRUCTURE Umgeni Water acknowledges that, in most cases, the way in which a CSI programmes is structured determines its ability to achieve set objectives and, therefore, the following models may be considered in determining project structure:- 51 a defined and documented structure - this model entails a planned CSI strategy with well-defined structures forming an integral part of running and managing programmes 52 the number and size of grants - this model entails a choice of investing in many small projects, or to support a few larger projects, or a combination of large and small investments 53 focus areas - this model entails the selection of few focus areas in which to invest in order to ensure that a base of expertise is established within the 7
8 Corporate Social Investment Policy Rev: 1 beneficiary community and it allows for closer alignment to the company s core business 54 partnerships - this model entails the establishment of partnerships with communities and/or other investors (eg, customers, suppliers, other parastatals, etc) to enhance the effectiveness of the project 55 non-cash contribution - this model entails elements, such as human hours spent managing or co-ordinating a community project; skills transfer, such as assisting a school with its administrative procedures; material or equipment supply 6 FINANCIAL AND OTHER RESOURCES 61 Funds and non-cash resources should be invested in projects that are possible to monitor, realistic and achievable 62 The budget for CSI projects should form part of the annual corporate budget and it must be based on an amount determined by the Board 63 The benchmark budget figure should include financial, as well as non-financial, contribution to projects 7 MANAGEMENT AND ADMINISTRATION STRUCTURE 71 Ownership and control of CSI lie with the Executive Committee 72 It is the responsibility of the Executive Committee, supported by CSI Task Team, to ensure the successful running of projects 73 The Executive Committee must establish a CSI Task Team, whose duty it shall be, inter alia, to evaluate CSI project proposals and the allocation of funds or resources to such proposals and make a recommendation to the Executive 8
9 Corporate Social Investment Policy Rev: 1 Committee for approval in line with Umgeni Water s current Delegation of Authority limits The CSI Task Team may, on its own, identify and recommend projects to the Executive Committee for approval 74 The Executive Committee shall approve the Terms of Reference of the CSI Task Team 75 The Executive Committee shall determine CSI project evaluation criteria and shall approve project implementation plan recommended by the CSI Task Team 8 MEASURING AND REPORTING The Executive Committee should:- 81 Measure the success or progress of CSI projects by undertaking regular reviews of budget spent to determine the benefit to both Umgeni Water and the beneficiaries 82 Ensure that project evaluations are carried out quarterly and evaluation methods could include: project beneficiary reporting, on-site visits, collection of relevant statistics and formal research 83 Compile quarterly CSI reports and submit same to the Audit Committee and to the Board The quarterly reports contemplated herein will culminate in an annual CSI report which will form part of Umgeni Water s Annual Report 84 Carry out project audit at the completion of each project in order to gauge the success of the project, its impact and long-term sustainability 85 Commission stakeholder surveys, both internal and external, in order to determine the success or otherwise and impact of CSI projects undertaken by Umgeni Water and also measure the extent of return to Umgeni Water 86 Endeavour to measure the social dividend derived as part of efforts to highlight the impact of the activities undertaken 9 COMMUNICATION 91 The Executive Committee must ensure that there is effective communication of Umgeni Water s CSI activities in order to portray and position the organisation as a caring and socially responsible citizen among its stakeholders 92 The objectives of communicating CSI activities are:- 9
10 Corporate Social Investment Policy Rev: To promote community participation in projects 922 To communicate appropriate information about projects to all relevant stakeholders 923 To build Umgeni Water s CSI profile and to demonstrate Umgeni Water s commitment and contribution to Government s developmental objectives 924 To enhance the brand and reputation of the organisation in the public domain Cross Reference CSI Task Team Terms of Reference 10
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