Commercialisation of CSI

This move to direct a major share of corporate giving to areas of business interest has, however, brought with it a measure of controversy. In the case of some companies, responsibility for social investment spending has been placed in the marketing department - to the extent that in the case of a major local financial institution, for example, donations are made conditional upon the grant cheque being deposited to an account with that institution and media publicity being arranged at the donor's expense.

It is quite acceptable to put such conditions in the case of sponsorships or promotions. These are done purely for business reasons with a view to obtaining returns in terms of goodwill, publicity and, not least, commercial opportunity linked to the sponsored event. Donations on the other hand should be based primarily on the relevant cause being a deserving one in terms of socio-economic needs in the community and not primarily on commercial considerations.

While it is recognised that a planned CSI strategy enhances a company's image in a competitive environment and there is accordingly a need to increase public awareness of a company's social investment contributions through annual reports, CSI surveys and staff involvement, there is a distinct difference between motivating sponsorships and donations. A danger is seen in treating them on the same basis and subjugating social investment under the marketing umbrella. If that happens, deserving community causes could be ignored because they don't offer the prospect of business returns and high profile publicity.

The genuine commitment to the community of companies using CSI as a marketing tool can be seriously questioned: is not their primary motive no longer altruistic but rather commercial self-interest?

A further, recent, disturbing development is where a very prominent children's charity is accepting corporate donations on the basis of a five year commitment contract being signed. Surely it is reasonable for a corporate donor to expect a charity to submit an annual, up-dated appeal for renewal of funding? A demand for automatic renewal of support should, in the writer's view, be firmly rejected.