The Role of Business in     Development      Making CSI Matter Trialogue Conference 2012                  Sizwe Nxasana   ...
Agenda 1. Structural Challenges 2. Why Corporates must get involved in development and CSI 3. Partnership and Collaboratio...
Agenda 1. Structural Challenges 2. Why Corporates must get involved in development and CSI 3. Partnership and Collaboratio...
South Africas structural challenges                                 g  POVERTY           SA is the world’s most unequal mi...
South Africas structural challenges                                 g  POVERTY       •   Total number of unemployed is cur...
South Africas structural challenges                                 g                 %  POVERTY                          ...
South Africas structural challenges                                 g  POVERTY        •    Illiteracy rates currently stan...
South Africas structural challenges                                 g  POVERTY                       Growth in grants is a...
Agenda 1. Structural Challenges 2. Why Corporates must get involved in development and CSI 3. Partnership and Collaboratio...
Future of Capitalism            p•   Impact of the global financial meltdown     •   Increased social isolation     •   Ci...
Why get involved in development and CSI                       Customer          Employees                                C...
Why get involved in development and CSI   • Meet customer needs   • Establish strong customer                    g    rela...
Why get involved in development and CSI                                                                 • Working conditio...
Why get involved in development and CSI                       Customer          Employees                                C...
Why get involved in development and CSI                                     Customer          Employees                   ...
Types of CSI                               Strategic/                               Partnership/                          ...
Types of CSI                                               Strategic/                                               Partne...
Types of CSI                                        Strategic/                                        Partnership/        ...
Types of CSI                                         Strategic/                                         Partnership/      ...
Significant shift in relationship betweenprivate enterprise and society                                                 Et...
Proper governance and management focuson social and ethical matters                                                       ...
Reputation is key         p             ySource: 2012 Reputation Institute
Agenda 1. Structural Challenges 2. Why Corporates must get involved in development and CSI 3. Partnership and Collaboratio...
Partnership and Collaboration          p                                                       Planet                     ...
Partnership with Communities          p                                                                              Plane...
Agenda 1. Structural Challenges 2. Why Corporates must get involved in development and CSI 3. Partnership and Collaboratio...
Volunteerism-Partnership with Employees                       p        p y•   Doing good must be embedded in the values•  ...
FirstRand Volunteers Programme                        g                                                              Plane...
FirstRand Volunteers Programme                        g                                                            Planet ...
Planet                                                             People                                                 ...
The Role of Business in     Development      Making CSI Matter Trialogue Conference 2012                  Sizwe Nxasana   ...
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Sizwe Nxasana - Making CSI Matter

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FirstRand CEO Sizwe Nxasana shares his thoughts about business's role in social development at Trialogue's Making CSI Matter 2012 conference.

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Sizwe Nxasana - Making CSI Matter

  1. 1. The Role of Business in Development Making CSI Matter Trialogue Conference 2012 Sizwe Nxasana May 2012
  2. 2. Agenda 1. Structural Challenges 2. Why Corporates must get involved in development and CSI 3. Partnership and Collaboration 4. Volunteerism
  3. 3. Agenda 1. Structural Challenges 2. Why Corporates must get involved in development and CSI 3. Partnership and Collaboration 4. Volunteerism
  4. 4. South Africas structural challenges g POVERTY SA is the world’s most unequal middle income country and the trend is increasingUNEMPLOYMENT EDUCATIONDEPENDENCE ON GRANTS 2000 – 2011 average Source: UNDP HDR REPORT 2011 one of the world’s highest gini coefficients
  5. 5. South Africas structural challenges g POVERTY • Total number of unemployed is currently around 4.5 m people • Women are 1.2 times more likely to beUNEMPLOYMENT unemployed than men • SAs labour force participation rate is 54.7% EDUCATION compared with a world average of 64.1%. p g • Youth unemployment rate is 35.9% comparedDEPENDENCE ON GRANTS with a world average of 12 6% 12.6% • Only 1.2 million South Africans are self- employed • By 2015 more than half of the working age adults will still b out of work d lt ill till be t f k
  6. 6. South Africas structural challenges g % POVERTY Lower unemployment rates associated with higher levels ofUNEMPLOYMENT education EDUCATIONDEPENDENCE ON GRANTS The rate of unemployment is worse in Free State, State Mpumalanga and Eastern Cape Source: Stats SA, Q1 2012 Survey
  7. 7. South Africas structural challenges g POVERTY • Illiteracy rates currently stand at around 18% of adults over 15 years old (about 9-million adults are not functionally literateUNEMPLOYMENT • While 65% of whites over 20 years old and 40% of Indians have a high school or higher qualification qualification, this figure is only 14% among blacks and 17% EDUCATION among the coloured population • 1 out of 3 matriculants are unemployedDEPENDENCE ON GRANTS • Student participation rate is almost 20% (proportion of 18- to 24-year olds in higher education • Whites 57% • Indians 45% • Blacks 13.3% • Coloureds 14 8% 14.8% Source : StatsSA
  8. 8. South Africas structural challenges g POVERTY Growth in grants is accelerating • Spending on social grants projected to reach R122bn inUNEMPLOYMENT FY2014/2015 – 3.2% of GDP EDUCATION • 5.9 m tax payers are supporting 15.3 m people who get grants – this is not sustainableDEPENDENCE ON GRANTS • Recipients to reach 16.7 million in next three years • No incentives to work – promoting a culture of dependency d d Source : BUSA
  9. 9. Agenda 1. Structural Challenges 2. Why Corporates must get involved in development and CSI 3. Partnership and Collaboration 4. Volunteerism
  10. 10. Future of Capitalism p• Impact of the global financial meltdown • Increased social isolation • Civic alienation• Flaw of “Everyman for himself” mindset exposed• Image of business fraternity damaged • Investors • Customers • Government • General public• Desperate need for business community to • Repair image • Re-examine value system• Give a “human face” to capitalism
  11. 11. Why get involved in development and CSI Customer Employees Corporate Society Shareholders Profit / People / Planet (Triple bottom line view) What is good for one is good for the others
  12. 12. Why get involved in development and CSI • Meet customer needs • Establish strong customer g relationship • Maintain strong consumer value • Sustainability Customer Employees Corporate Society Shareholders Profit / People / Planet (Triple bottom line view) What is good for one is good for the others
  13. 13. Why get involved in development and CSI • Working conditions • Employee engagement p y g g • Reciprocity •Volunteerism Customer Employees Corporate Society Shareholders Profit / People / Planet (Triple bottom line view) What is good for one is good for the others
  14. 14. Why get involved in development and CSI Customer Employees Corporate Society Shareholders • Sustainability • Corporate Citizenship • Brand image Profit / People / Planet (Triple bottom line view) What is good for one is good for the others
  15. 15. Why get involved in development and CSI Customer Employees Corporate Society Shareholders • Accountability • CSI / Partnerships •Private •NGOs •Government •Society Profit / People / Planet (Triple bottom line view) What is good for one is good for the others
  16. 16. Types of CSI Strategic/ Partnership/ P t hi / Integrated Approach Market DrivenCorporatePhilanthropy
  17. 17. Types of CSI Strategic/ Partnership/ P t hi / Integrated Approach Market DrivenCorporatePhilanthropy • Act of genuine benevolence • Fund causes that touch the heart • No real strategic benefit • May receive favourable publicity
  18. 18. Types of CSI Strategic/ Partnership/ P t hi / Integrated Approach Market DrivenCorporatePhilanthropy • Fund causes that will create good publicity • No or minimal strategic benefit irrelevant • Driven by marketing or corporate affair dept.
  19. 19. Types of CSI Strategic/ Partnership/ P t hi / Integrated Approach Market DrivenCorporatePhilanthropy • Invest in social causes that will enhance long- term strategic position • Design their CSI programmes • Strategic benefits independent of publicity.
  20. 20. Significant shift in relationship betweenprivate enterprise and society Ethical Financial Environmental Social imperative Performance Performance Performance towards investors only i t l
  21. 21. Proper governance and management focuson social and ethical matters Responsible business Financial Environmental Social conduct and Performance Performance Performance good corporatet citizenship• New C N Companies A t 71 of 2008 i Act f • Came into force May 2011 • Approach sourced from King III Report on Corporate Governance pp g p p • Shift from ‘shareowner compact’ to ‘stakeholder compact’ • States that reputation is a company’s most significant asset • Management and effective stakeholder engagement crucial • Company acting in a responsible and ethical manner leads to • Good financial performance in long run • Maintaining productive relationships with government and regulators • Requirement to establish • Social and Ethics Committee • Social and Advisory Panel to assist committee • Ensures proper governance and management focus on social and ethical matters
  22. 22. Reputation is key p ySource: 2012 Reputation Institute
  23. 23. Agenda 1. Structural Challenges 2. Why Corporates must get involved in development and CSI 3. Partnership and Collaboration 4. Volunteerism
  24. 24. Partnership and Collaboration p Planet People• Corporate-to-Corporate level Profit • Not much has happened • CSI viewed as competitive • Failure to distinguish between • sponsorship to benefit business • “right thing to do”• Corporate-to-Government level • Trust, a major factor j • Foundation to build trust • Value importance of relationship • Develop shared and common vision t D l h d d i i together th • Invest in relationship and nurture it • Honesty is vital • Differences must be understood • Focus on commonalities
  25. 25. Partnership with Communities p Planet People• Consultative manner Profit • Greater involvement from company • More sustainable solutions for beneficiaries• Need to talk and listen to communities • Understand intricacies of initiatives • Design solutions for the communities • Avoid imposing company/NGO-created solutions• Takes more time to set up, implement and follow through• Benefits of approach • Ensures beneficiaries receive most suitable and sustainable benefits • Easier to gain deeper understanding of involvement areas • Focus through fewer areas of specialisation
  26. 26. Agenda 1. Structural Challenges 2. Why Corporates must get involved in development and CSI 3. Partnership and Collaboration 4. Volunteerism
  27. 27. Volunteerism-Partnership with Employees p p y• Doing good must be embedded in the values• Employee participation drives better employee engagement• Leadership development tool• If the company contributes 1% of its after tax profits employees can contribute 1% of profits, their work time to volunteerism. At least 3 days per year per employee.
  28. 28. FirstRand Volunteers Programme g Planet People• Falls under the FirstRand Foundation Profit • Launched in 2003 • Includes staff, “heart of the business” • All four divisions participate • Voluntarily donate both time and money • More than R22 million contributed since launch• Charity organizations selected by employees, across a range of sectors: • Orphaned and vulnerable children • Community engagement • Health • Education • Community care • Animal A i l welfare lf • People with disabilities • y The elderly
  29. 29. FirstRand Volunteers Programme g Planet People• Collaboration between the four divisions encouraged Profit• Host annual group drives to • Maintain the momentum • Ensure sustainable difference to the needy• Teams encouraged to share and give feedback on their success stories• Chairman’s Volunteer Recognition Awards Programme • Run every second year • Active volunteer teams and individuals invited to submit entries• Hosts a “Community Conversation” • Run every second year • For charity organizations supported across the group • Forma t of conversation F f ti • Do we help or hinder? • How we can be of better support?
  30. 30. Planet People Profit“... there is ultimately a limit to how much regulation can do In the do.final analysis, you could write all the rules you want, but there hasto be a philosophy of ethical behaviour that comes from humanbeings operating in a professional way” a ”By William H Donaldson
  31. 31. The Role of Business in Development Making CSI Matter Trialogue Conference 2012 Sizwe Nxasana May 2012

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