Companies spent an estimated R9,7-billion on corporate social investment (CSI) in South Africa in 2018 – a 7% year-on-year increase in rand terms (2017: R9,1-billion) and, taking inflation into account, the first real increase in five years.
This is according to CSI and sustainability consultancy Trialogue’s 21st edition of the annual Trialogue Business in Society Handbook, launched today.
The mining, financial and retail sectors together accounted for just under two-thirds (60%) of total CSI expenditure, with mining and quarrying alone contributing a quarter of total CSI spend.
CSI spend remains concentrated among larger companies, says Trialogue MD Nick Rockey. “The top 100 companies (by CSI spend) invested R6,9-billion, or nearly three-quarters of the total CSI spend. Just 17 companies accounted for well over half of the total amount spent by the top 100 companies.”
Nearly two-thirds of companies surveyed by Trialogue reported an increase in their CSI spend in the 2018 financial year.
Education remained the most popular sector, supported by 92% of companies surveyed and receiving 44% of CSI expenditure. This was followed by investment in the social and community development sector (17% of CSI expenditure), health (9% of CSI expenditure) and food security and agriculture (9% of CSI expenditure) sectors.
Projects in urban and peri-urban areas received more support (57%) than those in rural areas (39%). Only 7% of the companies surveyed supported projects beyond South Africa, and these received less than 1% of total CSI spend. Developmental projects that operated in two or more provinces received the largest portion of CSI expenditure, followed by projects in Gauteng and the Western Cape.
Non-profit organisations (NPOs) remained the most popular channel through which companies directed their CSI, with 90% of corporates giving to NPOs in 2018. Half of total CSI spend was directed to NPOs. Corporate spend on government institutions such as schools, universities, hospitals and clinics increased to 27%.
The majority of companies (80%) had formal employee volunteer programmes. NPOs most liked fundraising and collection drives, which were offered by 81% of companies. Companies most commonly held four or more company-organised volunteering initiatives per year, while a fifth limited these initiatives to Mandela Day.
“After two decades of tracking CSI, the Handbook continues to underscore – with greater emphasis each year – the crucial need to work together, across sectors, to enhance the impact and sustainability of developmental initiatives,” says editor Zyaan Davids Anter.
In addition to detailed analysis on the state of CSI in South Africa, the Handbook provides an overview of global trends and insights on the role of business in society; in-depth profiles of corporate approaches to, and lessons in, development; and a range of thought-provoking articles on developmental topics.