CSI needs to be measured as a ROI

Rossouw is of opinion that the CSI industry has reached a tipping point. She believes the heightened requirement by business and regulatory bodies to know the direct impact of CSI on beneficiary communities and the measurable return on investment for a company is steering the industry to excellence - away from simply spending to adhere to legal requirements and social guilt.

No dramatic shift in community wellbeing evident

"There are several best practice examples emerging in multiple sectors across South Africa. The mining industry, specifically, invests approximately R 1.5 billion of the country's total CSI spend in the communities in which they operate. Best practice case studies, specifically about small- to medium enterprise development, indicate that mining companies are making a significant difference to the lives of the people who are affected by their operations. Unfortunately there are still too many ineffective examples," she said.

"Despite the private sector's R50 billion-injection in 2010 into initiatives aimed at upliftment, no dramatic shift in community wellbeing is evident in South Africa. At some point, one needs to ask: if R 50 billion is not lifting people out of poverty, how much will? Are companies doing it wrong? Are the developmental challenges just too severe? Or does the industry simply apply poor measurement techniques to gauge the impact of their CSI efforts to instigate true social change?

"CSI stands for corporate social investment, not corporate social giving. The word 'investment' by default implies that there must be a business return. The days of 'feel good' programmes are over. Boards want to know how CSI will benefit business. Similarly, regulatory requirements demand proof that programmes are making a substantial and notable difference to beneficiary communities and these must now be encapsulated in an integrated report."

Support and promote projects

She highlighted the importance to support and promote projects with a specific relevance to an organisation. "The development focus area and the core business needs of the organisation must be integrated and aligned - in that lies true sustainability."

She also shared practical tips for CSI practitioners such as the provision of operational support to NGOs to enable effective service, the critical significance of stakeholder engagement, social baseline studies and employee participation, and the value in strategic CSI communication.

"Organisations have entered a new era of doing business in communities to whom they sell their products and services and on whom they depend for their own future sustainability and profitability. CSI forms an integral part of the sustainable organisation of the future. This means that CSI practitioners must critically evaluate where they are, and where they are heading to ensure that they implement best practice programmes which give them a competitive business edge," Rossouw concluded.