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Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
Csr in southern africa
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Csr in southern africa

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  • 1. Africa CEO Roundtable and Conference on Corporate Social Responsibility (AR-CSR) CSR IN SOUTHERN AFRICA AN OVERVIEW AND INSIGHT INTO THE PRACTICE Reana Rossouw Next Generation Consultants
  • 2. An industry at Cross Road or Tipping Point?
  • 3. Cross Roads
    • Companies taking ownership for impact?
    • Companies trying to mitigate negative impact?
      • Mining / oil companies offsetting environmental damage through social responsibility (building schools and clinics)
      • Liquor / tobacco companies offsetting social damage through environmental responsibility (buying carbon credits and planting trees)
  • 4. Tipping Points
    • Legislation – forced responsibility
      • Broad-based Black Economic Act – 1%NPAT
    • Reporting – forced comparability
      • Sustainability and Integrated Reporting – Listing Requirement
    • Pressure – advocacy groups – forced accountability
      • Wal-Mart Deal – R1 billion Entrepreneurs Fund + Rehiring retrenched workers
    • Globalisation – the value chain – forced transparency
      • Suppliers are being watched around the globe – human rights, labour rights, product responsibility rights, corruption and bribery
  • 5. Misunderstanding about terminology
    • Corporate Social Investment (CSI)
      • Philanthropy: percentage of profit that a company donates to social causes
      • Key drivers: Legal and/or ethical obligations
    • Corporate Social Responsibility (CSR)
      • Largely concerned with managing business impacts
      • Key drivers: Corporate reputation, peer pressure (ratings) and/or ethical obligations
    • Sustainability
      • A business approach that seeks to build long-term competitiveness without unduly compromising short-term profitability and cash flows
      • Strongly informed by an appreciation of the radical transition presently underway across the triple bottom-line including governance & ethics
      • Key drivers: Enhanced profitability and long-term competitiveness
      • An approach to creating value that sustains or enhances the systems (e.g. social, environmental, financial and governance) on which that value depends)
    • Southern Africa context – we are lucky!
      • CSI/SED is clearly defined – we have bypassed the CSR definition debate and refer to Sustainability rather than CSR
  • 6. Trends (1) - Regional
    • South to South exchange (vs. North to South)
    • Support regional integration (SADC) – cross boarder investment
    • Growing role of emerging economies (BRICSA) – global partnerships on government level (no trickle down to industry/practice yet)
    • Role of China in African Investment (Infrastructure)
    • Major growth in private philanthropy and its profile and birth of new champions /philanthropists/high net worth individuals
    • Growth in private , community and family foundations – working across borders
    • New market based approaches to Socio Economic Development
  • 7. Trends (2) - Market Based Approaches - Innovation
    • Bottom of Pyramid – BOP - Models
    • Micro credit movement
    • Venture philanthropy – Seed Capital
    • Social entrepreneurs and entrepreneurship
    • Impact Investment
    • New players – outsourced, insourced, hybrid, intermediary solutions
  • 8. Trends (3) – New Influences
    • Greater emphasis on measurement of impact
      • (Sustainability reporting – GRI G3.1)
    • Growth in volunteerism
      • Global networking, social networks/media
      • Recession – leverage and extend funds
    • New patterns in giving
      • Increasing focus on indigenous giving and community development patterns (poor philanthropist), growing diaspora giving
    • Quest for sustainability
      • Definition of sustainability in socio economic development context
    • Issue of stakeholder engagement
      • Social baseline studies, research – evidence based development models to clearly understand impact and requirements of stakeholders
  • 9. Trends (4) - Legislation
    • Motivation has changed
      • Compliance with Broad Based Black Economic Empowerment – BBBEE Act
      • Compliance with industry based regulation
        • SLP, LED (Mining) & ED (BEE) , Financial Access (Financial Charter), Education
      • Impact of Johannesburg Stock Exchange Socially Responsible Investment Index (JSE-SRI)
      • Sustainability Reporting have become Integrated Reporting (King III)
    • Take Out – Southern Africa (all role-players) has become very sensitive to socio economic development – the value, expectations, requirements and impact
  • 10. Trends (5) – Financial Crises
    • Good News
      • Debate about aid / development effectiveness
      • Focus more on trade and investment approaches
      • Policy implementation and systemic reform – focussing on specific issues - education, health, job creation
      • Multi sectoral partnerships
      • New developmental models - social impact investing, cause related marketing, industry based investments, large scale, new innovation in program design
      • More focus on measurement – impact and return
  • 11. Trends (5) Financial Crises
    • Bad News
      • More pressure on developmental assistance
      • Donors not living up to pledges
      • Even though growth in community foundations numerous NGO’s closing doors
      • Project based no operational support
      • Fewer international donors and development agencies in Southern Africa
      • Realisation that development takes a long time – which might be a luxury for some
      • Realisation that development requires many players and includes many facets
      • More isolated development – less collaboration
      • More focus on sustainability
  • 12. Trends (6) - Business
    • Movement by business into unconventional funding areas
      • Policy, advocacy, human rights, gender, climate change
      • Partnerships with government and civil society
      • Longer term investment and support
      • Increase in cross boarder giving and global philanthropy – as African companies became more global
      • Emphasis on ROI and impact
      • Challenges in enabling environment – compliance focus investment and giving
  • 13. Trends (7) – Focus Areas
    • Job Creation
      • More for Enterprise Development, SME Development, Skills development
    • Environment
      • More funding – renewable energy, mitigate impact, carbon off setting/trading, water
    • Education
      • Less funding for ECD, Schools, Bursaries, FET and subject specific (Science, Maths, Technology)
    • Health
      • Less for HIV/Aids – government refocusing and business follows
    • Overall
      • Industry specific funding – Mines – Infrastructure (Schools, clinics), Pharmaceutical – Health/Primary health care, Petroleum – Environmental, FMCG – BOP
  • 14. Issues
    • Impact of government funding – social grants
      • Greater dependency creation, less sustainability, less developmental approaches
    • Quest for impact and sustainability
      • How do we define sustainability in SED
    • Scalability and Collaboration
      • How do we move from less than $1 to self sufficiency and give hope to the youth
    • New issues – food security, water scarcity, impact of climate chance
      • How do we deal with future challenges if we are not meeting today’s requirements and issues
  • 15. Towards the Future
    • Innovation and Creativity to solve Africa’s problems
    • Responsiveness and Responsibility of everyone to solve Africa’s problems
    • Scalability and Focus to solve particular problems endemic to the African Continent
  • 16. Thank You Questions Please note: This presentation is part of a larger body of research and knowledge. For more information: www.nextgeneration.co.za [email_address]

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