T REND S
The Limpuma Enterprise Development Project in Vhulaudzi, Limpopo, supported by SAFCOL, manufactures wooden furniture.
THE STATE OF NONCASH GIVING
SETTING THE
TREND FOR CSI Corporate social investment can be much more than a handout, writes JAMES FRANCIS
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n parts of KwaZulu-Natal, communities no longer cause fires in the nearby forests. People frequently hunted for wild honey in the forests and used smoke to access it at one stage. Mistakes happened and fires started. Yet rather than punish the communities, forestry companies took a different tack by offering to collect wild honey on behalf of local communities. And in KwaZulu-Natal, a community-initiated collaboration helped people establish beehives in their backyards. It’s one of many stories shared by Norman Dlamini, business development director at Forestry South Africa (FSA), some captured in CSI reports issued by FSA in 2018. With the latest edition due in mid-November, Dlamini can cite more examples. Suffice to say, there is more going on than handouts, which explains why the forestry sector ranks among the most generous for CSI. It’s part of the basic resources sector, which according to Trialogue’s Business In Society 2020 report, represents 25 per cent of CSI spend in South Africa. “We don’t talk enough about the good work of the forestry industry, but I am certainly not surprised that our sector is one of the biggest CSI contributors in the country,” says Dlamini.
Forestry shares the group with several other sectors, including water. For Xylem, a pure water technology company that operates its African operations out of Johannesburg, CSI is crucial. “There is a strong link with CSI,” says Chetan Mistry, Xylem’s strategy and marketing manager for Africa. “Xylem solves water challenges, and our CSI projects always include water. All communities need water; it affects people’s health and their quality of life. We want to assist in providing water to those who don’t have easy access to it.”
CSI WITH PURPOSE CSI as a corporate handout doesn’t support long-term sustainability. Thus many companies that operate in basic resource sectors acknowledge that the welfare of underprivileged communities impacts them Norman directly. “Basic resources Dlamini companies usually operate in rural areas that are neglected,” says Mistry. “We are quietly making a difference and providing long-term solutions to as many underprivileged communities as possible.” Dlamini agrees that within the forestry industry, the same type of commitment exists. “Some projects by FSA members have been
“BASIC RESOURCES ARE OFTEN IN RURAL AREAS THAT TEND TO BE NEGLECTED. WE ARE QUIETLY MAKING A DIFFERENCE AND PROVIDING LONG-TERM SOLUTIONS TO AS MANY UNDERPRIVILEGED COMMUNITIES AS POSSIBLE.” – CHETAN MISTRY, XYLEM
Cash remains the most popular way for companies to express CSI. However, Trialogue’s Business In Society 2020 report reveals that 24 per cent of companies made noncash donations, down from 35 per cent in 2019. During 2020, these companies gave donations – goods, products, and services – to the value of R833-million and R2.5-million in employee time (though most companies do not quantify employee volunteer time). In terms of CSI expenditure, noncash giving rose from 6 per cent (2019) to 16 per cent.
going for over two decades. Over the years, we have seen forestry CSI initiatives evolve from being charity-based – giving when you have a little extra – to an intentional effort to create value and sustainability for those neighbouring our plantations. Many FSA members have actively re-engineered their markets, products and value chains to benefit local economic development by creating new businesses owned and managed by locals.”
CSI AND SOCIAL DEVELOPMENT When the pandemic arrived, such companies used their established CSI networks to distribute food parcels and healthcare products to communities and provide washing stations. Go deeper, though, and you find a great example of how CSI and social development overlaps. “Some communities have shown real resilience during the pandemic, partly due to the entrepreneur schemes our members have helped set up – these include honey harvesting projects, community food gardens and even small businesses. They have enabled community members to generate income during the pandemic, in ways neighbouring communities that do not have these programmes in place have not been able to,” says Dlamini. Synergy, not charity, is the ultimate goal – and that spirit is evident among smaller players. Helping establish food gardens, create businesses, and support schools are all examples of sustainable CSI. The CSI activity of the basic resources sectors sets a great example of meaningful intervention and co-operation. “When you empower communities, you give hope,” says Mistry. “You give opportunities, you remove obstacles, and you enable people to live with dignity.”
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