Tracking a decade of trends and forecasting the future of CSI in South Africa 16 May 2017 Presented by: CATHY DUFF
10 years of Trialogue supporting social development in South Africa
10 years of social development in South Africa 2015: JSE SRI Index replaced with the FTSE/JSE Responsible Investment Index Series 2016: #Fees must fall protests 2016: King IV published 2009: King III published 2012: National Development Plan approved 2015: SDGs ratified 2016: Revised BBBEE Codes of Good Practice gazetted 2016: Draft NPO Bill released 2007: finalised BEE Codes of Good Practice gazetted 3
Ten years of Trialogue and our CSI conference 2017: 10 th conference renamed Business in Society conference 2013: Trialogue launches CSI forums 2015: Funders Guide launched 2016: Southern Africa partner of CECP s Global Exchange 2014: Strategic CSI award launched 2016: Partner with CLEAR-AA on African research 2016: Trialogue becomes 51% black-owned 2017: 20 th CSI Handbook renamed Business in Society handbook 2017: Launch of the Trialogue Knowledge hub 2007: First Making CSI Matter conference at Indaba hotel 2006: CIDA becomes shareholder of Trialogue 2009: Launch of the Social Map 2012: Trialogue Level 1 BEE score Over 70 blue-chip South African corporates supported with their CSI strategies, implementation, measurement and reporting. Over 200 CSI practitioners trained by Trialogue Over 3 000 delegates at our conferences 4
10 trends over the past 10 years
1. CSI expenditure has grown over the past 10 years CSI expenditure (R billion) 9 8 7 6 5 4 3 2 1 0 Growth in CSI expenditure (2001 2016) Nominal CSI expenditure Real CSI expenditure (adjusted for Base year: 2001 Source: Trialogue CSI Handbook 19 th edition Base year: 2001 6
2. Non-cash giving has increased % total expenditure 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 6 13 94 87 2011 n=97 2016 n=82 non-cash cash Source: Trialogue CSI Handbook 19 th edition; Trialogue CSI Handbook 13 th edition 7
3. Less CSI expenditure going to Gauteng 100% 90% 80% 70% 60% Northern Cape North West Free State Limpopo Mpumalanga Eastern Cape KwaZulu-Natal Western Cape International Northern Cape North West Free State Limpopo Mpumalanga Eastern Cape KwaZulu-Natal Western Cape 50% 40% Gauteng Gauteng 30% 20% 10% National National 0% 2009 n=105 2016 n=82 % CSI expenditure Source: Trialogue CSI Handbook 19 th edition; Trialogue CSI Handbook 12 th edition 8
4. Education has received an increasing share of spend 100 90 80 70 60 50 40 Job creation and enterprise development Training Safety and security Arts and culture Housing and living conditions Other Environment Sports development Health Social and community development Safety Disaster and security relief 1 Arts and culture Housing and living conditions Other Environment Sports development Entrepreneur and small business support Food security and agriculture Health Social and community development 30 20 10 Education Education 0 2006 n=100 2016 n=81 % CSI expenditure Source: Trialogue CSI Handbook 19 th edition; Trialogue CSI Handbook 9th edition 9
Smaller companies also predominantly support education Arts and culture 1% Science and research 2% Disabilities 3% Education 30% Orphans and vulnerable children 19% Skills training 12% Youth 4% Job creation schemes Enterprise development 9% Leadership development 11% Sports development 3% Source: Nation Builder, sample of 85 companies (69% with annual turnover of less than R50 million) 10
Other than an increase in spend on ECD, not much change in the level of education funded 100% 90% 80% 10 11 3 17 Adult basic education and training (ABET) % corporate expenditure 70% 60% 50% 40% 30% 20% 10% 25 28 26 22 28 29 Early childhood development (ECD) General education (Grades 1-9) Further education & training (FET) (Grades 10-12) Tertiary education (universities, technikons) 0% 2007 n=104 2016 n=71 Source: CSI Handbook 19 th Edition; CSI Handbook 10 th Edition 11
5. Expenditure on NPOs has decreased 100% 90% 80% 5 4 5 3 3 2 4 5 7 Other Community trusts % corporate respondents 70% 60% 50% 40% 30% 20% 10% 27 57 34 45 Government departments for their projects / programmes Industry initiatives For-profit service providers Schools, universities, hospitals and other government institutions Non-profit organisations 0% 2011 n=97 2016 n=79 Source: Trialogue CSI Handbook 19 th CSI Handbook 14 th edition edition; Trialogue 12
In line with this, corporates account for less NPO income % NPO respondents 100 90 80 70 60 50 40 30 4 5 1 3 3 18 5 6 12 14 15 18 8 10 10 12 15 Other Debt Investment income Intermediary NPOs The National Lotteries Board Trusts/foundations Private individuals Self-generated Government (South African) 20 Corporates 10 17 23 Foreign donors 0 2011 n=157 2016 n=145 Source: Trialogue CSI Handbook 19 th CSI Handbook 14 th edition edition; Trialogue 13
6. More companies have employee volunteering programmes 100% 90% 80% 70% 54% 30% No Yes % corporate respondents 60% 50% 40% 30% 20% 46% 70% 10% 0% 2007 n=103 2016 n=64 Source: Trialogue CSI Handbook 19 th edition; Trialogue CSI Handbook 10 th edition 14
More companies are organising company-wide volunteering events Company volunteering initiatives 52 84 Fundraising and collection drives 70 78 Time off for individuals to volunteer 58 64 Employee match funding Volunteering matched funding Give as You Earn 28 33 27 30 48 44 2016 n=64 2011 n=73 Other 10 39 0 20 40 60 80 100 % corporate respondents Source: Trialogue CSI Handbook 19 th edition; Trialogue CSI Handbook 14th edition 15
7. The number of corporates that claim to undertake some form of M&E has increased 100% 90% 6% Do not do M&E 80% 70% 55% 60% % corporate respondents 50% 40% 30% 20% 10% 45% 94% Do M&E 0% 2006 n=100 2016 n=82 Source: Trialogue CSI Handbook 19 th edition; Trialogue CSI Handbook 9 th edition 16
8. Many of the same companies are rated highly for CSI Corporates Company ranking of corporates 2007 1 Anglo Number of mentions 31 American 2 ABSA 28 3 SAB 25 4 Telkom 18 5 Nedcor 14 6 Vodacom 13 7 Eskom 12 8 MTN 11 10= Old Mutual Pick 'n Pay 10 Source: Trialogue CSI Handbook 19 th edition Trialogue CSI Handbook 10 th edition Corporates Company ranking of corporates 2016 1 Anglo Number of mentions 18 American 2 Nedbank 16 3 Woolworths 15 4 MTN 11 5=* Old Mutual 10 7 SAB Miller 9 8=* First Rand 6 FNB 10=* Multichoice 5 Telkom Transnet 17
9. CSI has become more strategic 18
10. CSI growing amongst SMEs and in the rest of Africa Reasons behind organisations CSI activities Conviction of founder/ CEO 64% Contribute to SAs social development 56% It s the right thing to do 39% To encourage employees to think broader 36% Strategic business objectives 22% Fulfil compliance & regulatory requirements 10% Tax benefits 4% 0% 10% 20% 30% 40% 50% 60% 70% Source: Nation Builder, sample of 85 companies (69% with annual turnover of less than R50 million) 19
10 trends for the next 10 years
1. Increasing integration of CSI "Companies that are breaking the mould are moving beyond corporate social responsibility to social innovation. These companies are the vanguard of the new paradigm. They view community needs as opportunities to develop ideas and demonstrate business technologies, to find and serve new markets, and to solve longstanding business problems." Rosabeth Moss Kanter, Harvard Business Review. 21
2. More focused CSI "That's been one of my mantras focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it's worth it in the end because once you get there, you can move mountains. Steve Jobs "If you chase two rabbits, both will escape" Unknown 22
3. Involvement in advocacy work Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no help at all. Dale Carnegie 23
4. Greater employee engagement "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) 24
5. More consumer buy-in "People are going to want, and be able, to find out about the citizenship of a brand, whether it is doing the right things socially, economically and environmentally." Mike Clasper President of Business Development, Proctor and Gamble (Europe) 25
6. Increasing collaboration There is great value in diversity when solving complex problems" Barbara Dale-Jones BRIDGE Alone we can do so little; together we can do so much Helen Keller 26
7. More innovative financing The Social Impact Bond shines a spotlight on what works. George Overholser Investor and Social Entrepreneur A crowdfunding platform broadens the funding market and allows investors to finance the project irrespective of location. Prisiliya Madan, Cyclists for Change 27
8. Rise of technology and data Without big data, you are blind and deaf and in the middle of a freeway. Geoffrey Moore, author Hiding within those mounds of data is knowledge that could change the life of a patient, or change the world. Atul Butte, Stanford University 28
9. Greater transparency "Greater transparency is an unstoppable force. It is the product of growing demands from everybody with an interest in any corporation - its stakeholder web - and of rapid technological change, above all the spread of the Internet, that makes it far easier for firms to supply information, and harder for them to keep secrets With greater transparency will come greater accountability and better corporate behaviour. Rather than engage in futile resistance to it, firms should actively embrace transparency and rethink their values and generally get in better shape." Don Tapscott, co-author The Naked Corporation 29
10. Increasing professionalisation The change in the global socio-economic environment and focus on purpose-driven business models has raised the bar for CSR leaders. There is a new demand and reliance on CSR leaders to influence the private sector. Leaders are broadening their skills and influence across human resources, government affairs and branding to align social impact with their company s business strategy, talent pipeline, and policy environment. Many are starting to report directly to the CEO and are held accountable to lead strategic change initiatives from the top like point of entry marketing, market fit and business model innovation. Nicolette van Exel, head of CSR at Intuit 30
What s next
Launch of the Trialogue knowledge hub 32
Thank you for your continued support