The Trialogue CSI Handbook 2015 by Trialogue Publishing SA

the

2015

CSI handbook 18th edition

Supporting better business

the

2015

CSI handbook

18th edition

The authoritative guide to corporate social investment in South Africa

the publisher

Published in Cape Town, South Africa November 2015 by Trialogue All rights reserved. The material in this publication may not be reproduced, stored or transmitted, in any form or by any means, without the prior permission of the copyright holder. Any information from The Trialogue CSI Handbook used in other sources must fully and accurately reference the publisher and the title of the Handbook. In some cases, copyright of photographs resides with the photographer.

The Trialogue CSI Handbook team Publishers Cathy Duff, Nick Rockey Managing editor Rose Cohen Copy editor Liz Mackenzie Research and analysis Susie Boshoff, Sandra Makuchete, Hilda Mapungwana, Damian Watson Writers Denise Archer, Erika Bornman, Susie Boshoff, Rose Cohen, Zyaan Davids, Georgina Guedes, Sophie Hobbs, Erica Kleine, Sandra Makuchete, Hilda Mapungwana, Olga Meshoe, Tamara Oberholster, Shona Young Photographer Max Bastard: African Eyes Photography Proofreading Margy Beves-Gibson, Heather de Wet, Liz Mackenzie Advertising sales Karen Petersen Production Gillian Mitri Production administration Mahlo Maku, Kwanele Magwaca, Vanessa Sampson Market research Janice Lee and Associates Design and DTP Solo Graphics Printing Paarl Media, Cape Town

The Trialogue CSI Handbook 2015, 18th edition

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The Trialogue CSI handbook 2015

disclaimer

trialogue

ISBN No: 978-0-9921777-3-7

Although great care has been taken to ensure that all information contained in this publication is as accurate and complete as possible, Trialogue cannot accept any legal responsibility for the information given or the opinions expressed in it.

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contents

The publisher Contents Our sponsors Corporate research respondents NPO research respondents Guest foreword From the editor About the book Figures and tables

2 4 6 12 14 16 18 20 22

Chapter One

the state of CSI Overview of key findings Company and NPO reputations CSI expenditure per company Trends in global corporate philanthropy A spotlight on CSI in Kenya

34 36 60 64 74 80

Chapter two

focus on development Development sector support and spend 2015

86 88

Chapter three

corporate practice Barclays Africa Getting Africa ReadytoWork Distell Foundation Partnering with FASfacts to mentor new parents Edcon Walking a safer and more secure life journey with our communities Exxaro Getting behind education to create a future for its communities Growthpoint Properties Growing learners and enhancing primary education in the Western Cape Hollard Foundation Kago Ya Bana â&#x20AC;&#x201C; significant, sustainable, systemic change in ECD Liberty Group Changing realities Murray & Roberts Contributing to sports development in South Africa NPC â&#x20AC;&#x201C; InterCement NPC builds lasting relationships with communities Old Mutual Foundation Addressing the impact of poverty and HIV on children

110 112 114 115 117 118 120 121 122 124 126

Rand Water Foundation Improving living standards within communities Royal Bafokeng Holdings Investing in communities Santam Providing opportunities for staff to make a difference South African Airways Youth broadens its horizons with SAA Sibanye Gold Delivering on social and labour plan community development projects Telkom Foundation Developing teachers to improve learner results Tiger Brands Nurturing minds Tiger Brands Foundation Nourishing young minds towards a brighter future Transnet Foundation Building a healthy, safe and educated nation

128 132 134 135 136 138 140 142 144

Chapter four

trends and topics in CSI

148

Actively encouraging strategic CSI in South Africa Singita School of Cooking’s recipe for success Trialogue CSI Forums: the outcomes Skills development in the BBBEE Codes Olga Meshoe Making it different at the Trialogue CSI Conference 2015

150 154 156 162 164

Chapter Five

youth focus

170

Spotlight on the youth Youth interventions over time Approaches to youth development Change in the lotteries landscape Sophie Hobbs Government initiatives aimed at youth Operation Phakisa Erika Bornman The Sustainable Development Goals

172 178 184 188 190 191 194

On the cover Our featured photographer for this year’s handbook is Max Bastard, African-Eyes Photography. Max is an award-winning social documentary and humanitarian photographer based in KwaZulu-Natal. Our cover image features a learner in the classroom at Thibane Combined School, Pakkies Farm outside Kokstad in KwaZulu-Natal. Trialogue wishes to recognise the following organisations for allowing us the use of their images, all taken by Max Bastard – Biowatch, DG Murray Trust, Friends in Ireland Trust, Heifer International, Inyathelo, GIBS and Woza Moya.

Q&A Rachael Millson Evolving from NPO to social enterprise Dr Garth Japhet Achieving social impact through storytelling Paul Durrant Building sustainable communities Gabriella Geffen Bringing entrepreneurship into the classroom Ian Ross Innovative ways to insuring social initiatives Achmat Dangor The importance of funding advocacy Marlene Cronje Partnering with industry for impact Shani Kay Exploring the Sustainable Development Goals Noxolo Hlongwane Supporting financial sustainability

69 72 94 98 116 147 180 195 196

The Trialogue CSI handbook 2014

our sponsors 6

Our sincere thanks to the following companies that participated in the 18th edition of The Trialogue CSI Handbook.

Accenture – pages 78, 79

ADvTECH Group – pages 182, 183

AngloGold Ashanti – pages 84, 85, 192, 193

Archway Foundation – page 163

Barclays Africa – pages 112, 113

Barloworld – page 13

Bright Kid Foundation – page 73

Distell Foundation – page 114

Edcon – page 115

Eskom Development Foundation – ifc, pages 62, 63

Exxaro – page 117

Growthpoint Properties – pages 118, 119

Hollard – page 120

Implats – page 19

Investec – pages 70, 71

The Trialogue CSI handbook 2015

Transforming education with technology Seventy percent of MTN SA Foundationâ&#x20AC;&#x2122;s funding is directed towards using technology to enhance the capacity of teachers and improve the knowledge of learners in our schools. From teacher training programmes, equipping computer laboratories, to connecting learners with disabilities, the MTN SA Foundation believes that technology is educationâ&#x20AC;&#x2122;s greatest enabler! We could not have achieved this success without the support of our partners. We invite other likeminded partners to join us as we work together to drive sustainable change in South Africa.

For more information visit www.mtn.co.za/mtnfoundation The Trialogue CSI handbook 2014

JAM South Africa – page 23

Liberty – pages 77, 121

Magwaza Maphalala Foundation – page 169

Mail & Guardiian – page 153

Make a Difference Foundation – page 181

Mercedes-Benz SA – pages 102, 103

MMI Foundation – pages 107, 108, 109

Mondi – pages 32, 33

MTN SA Foundation – pages 7, 26, 27

Murray & Roberts – pages 122, 123

Nadcao – page 93

Nedbank – pages 28, 29, 30, 31, 197

Nedbank Private Wealth – page 21

NPC – InterCement – pages 124, 125

Old Mutual Foundation – pages 126, 127

People Upliftment Programme – page 189

Rand Water Foundation – pages 9, 128, 129, 130, 131

Redefine Properties – page 17

The Trialogue CSI handbook 2015

Supporting women, youth and children In 2015, the Rand Water Foundation adopted an additional focus area to its current suite of six focus areas, namely women, youth and children. Although women, youth and children were previously supported in many of the Foundationâ&#x20AC;&#x2122;s developmental programmes, the Foundation formed a stand-alone programme that offers developmental support to these vulnerable groups as per their needs. The programme focuses on women empowerment for poverty eradication, and creating economic opportunities for women and young people.

The Rand Water Foundation â&#x20AC;&#x201C; advancing the quality of life of communities.

Royal Bafokeng Holdings – pages132, 133

Samsung – page 11

Santam – page 134

Sibanye Gold – pages 136, 137

SAA – page 135

Telkom Foundation – pages 138, 139

Tiger Brands – pages 140, 141

Tiger Brands Foundation – pages 142, 143

Transnet Foundation – pages 144, 145, 146

Ubuntu Community Chest – page 15

Vodacom Foundation – pages 3, 186, 187

VWSA Foundation – pages 58, 59

WESSA – page 99

The Trialogue CSI handbook 2015

Samsung Digital Villages Providing access to world-class, integrated technology solutions for education, healthcare and community development

Africa is home to seven of the 10 fastest-growing economies in the world. It has a number of strong fundamentals in its favour: sustained macroeconomic policies favouring growth, greater economic diversification and a huge wealth of human capital. These factors have helped to ensure an African voice in key international decision-making. In South Africa, we have a robust National Development Plan (NDP), which aims to eliminate poverty and reduce inequality by 2030. According to the plan, South Africa can realise these goals by drawing on the energies of its people, growing an inclusive economy, building capabilities, enhancing the capacity of the State and promoting leadership and partnerships throughout society. Just as the NDP identifies partnerships to be an integral part of the plan, Samsung believes that it can help South Africa achieve its goals through various initiatives. Our focus on improving education, healthcare and rural connectivity in Africa is central to our Corporate Citizenship strategy. Samsung Electronics made a commitment to collaborate with Africa to determine where its greatest development needs lay, and to harness Samsung’s considerable research and development power to help meet those needs. So emerged a multifaceted series of Africa-focused programmes and technologies designed in collaboration with Africa’s researchers, businesses, governments and communities, to deliver to the continent solutions that move communities forward. Designed in collaboration with local communities, the Digital Village concept comprises of solar-powered facilities, including a connected admin centre, which can be configured to serve as the high-tech hub of rural and underserved communities.

Among them are the Solar Powered Internet School, housed in a 40-foot shipping container. Built to withstand harsh African conditions, the solar panels powering the school are made from rubber instead of glass, to ensure that they are hardy and durable enough to survive long journeys across the continent. First piloted in South Africa, the Solar Powered

Internet Schools are scaling up across the continent and are now present in seven countries across the continent. Samsung’s Solar Power Generator eliminates the need for costly nonrenewable fuel resources and takes sustainable power to the most remote regions of Africa. The generator can provide power for up to eight years without any additional maintenance. It is a reliable power solution with a lifespan of up to 25 years. The Samsung Solar Powered Health Centre similarly harnesses solar power to provide professional, qualified medical care to remote rural areas. It is intended to eliminate the economic and geographic barriers that prevent people across Africa from obtaining quality medical treatment.

Extending the work of the Solar Powered Mobile Health Centre, the Samsung Telemedicine Centre harnesses solar power and VSAT connectivity. This empowers healthcare workers in remote areas to consult with expert diagnosticians on patient care using teleconferencing. In addition to delivering desperately needed services to communities, the Digital Village also delivers Wi-Fi access and power to the broader community, often for the first time. This access sparks small business development and information-sharing, e-government service delivery and agricultural progress in areas that have been sidelined in the information age for too long. Positioned at the heart of communities, Samsung’s revolutionary Digital Villages build on the African culture of shared ownership, community togetherness and benefits for all; yet they bring with them access to much-needed infrastructure that serves as a catalyst for socioeconomic development which ultimately creates a better society for all.

corporate research respondents 12

Our sincere thanks to the following companies that participated in Trialogue’s primary research during 2015 for the 18th edition of The Trialogue CSI Handbook.

Ackerman Pick n Pay Foundation ACSA AECI Aecom African Bank Development Trust Afrisam SA Ltd Afrisun KZN Community Development Anglo American Chairman’s Fund AngloGold Ashanti Aspen Pharmacare Astral Foods HO Barloworld BMW SA Cadiz Foundation Capespan South Africa Clicks Group Limited Clientele Clover Mama Afrika Trust Datatec Denel Deutsche Bank South Africa Discovery Distell Ltd Engen Eskom Development Foundation NPC FirstRand Foundation Futuregrowth Asset Management GlaxoSmithKline GM South Africa Foundation Gold Fields Limited Growthpoint Properties HCI Foundation Hollard IDC Italtile JSE Kumba Iron Ore Liberty Holdings Limited Mediclinic Corporation Media 24 Mercedes-Benz SA Momentum Mondi Limited MRP Foundation Murray & Roberts

The Trialogue CSI handbook 2015

Nedbank Netcare Nike SA Oceana Group Limited Old Mutual Parmalat SA Peermont Petro SA Pick n Pay PricewaterhouseCoopers Primedia Rand Water Foundation RCL Foods Reunert SABC SABMiller Sanlam Foundation Santam Limited Sappi Shell SA Refining Sibanye Gold Spier Farm Steinhoff International Holdings Telkom TFG – The Foschini Group Tiger Brands Tiso Foundation Tongaat Hulett Transnet National Ports Authority Tsogo Sun U Bank Unilever SA Vodacom VWSA Woolworths Holdings Yum! Restaurants International (Africa)

Image supplied courtesy of LEAP Science and Maths Intervention Schools

Barloworld’s CSI programmes deliver social value The Barloworld Trust is focused on a holistic CSI programme with the intention of bringing about social change, addressing all the missing links in the education, social innovation and environmental value chain. Over many years, Barloworld has elected to play a role in society beyond profit and compliance, as evidenced by its efforts over several decades to contribute to positive social change, create inclusive opportunities and deliver sustainable value for its key stakeholders. The organisation believes that the very fabric of our society depends on maintaining amenable and inclusive social compacts, robust economies and industrial bases from which jobs can be created for economic growth and development, to ensure social and economic equality for all, now and into the future. The group encourages active citizenship in its people working around the world, both leaders and employees; making an effort to inspire in them a sense of responsibility to make a difference in their communities and spheres of influence.

In the education sector, the group’s current focus is on improving teaching and learning outcomes, particularly in the ECD phase and in improving results in mathematics, science and languages. Efforts to facilitate access to tertiary education are aimed at empowering individuals, addressing the skills shortage and contributing to country competiveness, leading to economic growth and development.

Barloworld’s partners and beneficiaries In ECD: ●● ●● ●●

Afrika Tikkun Ikamva Labantu Ntataise

CSI strategy and spend

Long-term partners in improving learner outcomes:

There are many divisional and regional approaches to CSI across the Barloworld Group engaged with a wide range of philanthropic initiatives, adapted to local norms and practices, the Group’s diversification and inclusion objectives and, in South Africa, the imperatives of broad-based black economic empowerment and socio-economic development. In 2014, the group spent R17 million on CSI, with R15 million of that being spent in South Africa.

●● ●● ●● ●● ●●

The CSI initiatives encompass many other areas, too: ●●

The work of the Barloworld Trust The Barloworld Trust manages a central programme that seeks to add value to South African society as a whole as opposed to individuals only. Its board has adopted a structural approach to effect real change and development; opting for a catalytic role through efforts to build capacity in civil society and partnering with projects that employ innovative solutions to existing societal problems, particularly in the field of education. These approaches can be replicated and taken to scale by the public or private sectors. Barloworld’s ongoing support for the work of the Bridge organisation is evidence of this approach. Through its management of broad-based communities of practice, the organisation focuses on key leverage points in the education system and shared knowledge. It drives collaboration and co-operation among a broad range of stakeholders to increase the impact on the education system and learner performance.

Addressing education and youth empowerment Good practice and plans continue to be shared across areas such as school leadership, maths and science learner support, early childhood development (ECD), the use of information and communication technologies (ICT) in education and through the South African Extraordinary Schools Coalition. Most of Barloworld’s social investment focuses on young people, for the common good: they will need both traditional and new skills, capacity and self-confidence to be the difference they would like to see in the world and craft a better future for all.

PILO Penreach Whole School Development Programme Thandulwazi Maths and Science Academy LEAP Science and Maths Intervention Schools Teach South Africa

●●

●● ●●

●●

The wellbeing and success of many young people is being underwritten through the work of beneficiary organisations such as Girls and Boys Town and the President’s Award for Youth Empowerment. To facilitate access to tertiary education, empower young people and break cycles of poverty, Barloworld has supported the work of the Rural Education Access Programme. Literacy is a fundamental pillar of education, but millions of young South Africans do not have access to books or a culture of reading. To address this, Barloworld supports the Fundza Literary Trust. To inspire social innovation and responsibility, Barloworld supports Enactus and the Africa Leadership Initiative. The current legacy project is the Nelson Mandela Children’s Hospital, adopted in 2012 for the 110 year anniversary of the Barloworld Group's founding. Barloworld also acts externally on environmental concerns by supporting the Endangered Wildlife Trust; the Worldwide Fund for Nature and is a founding partner of the National Business Initiative.

The group’s messaging campaigns and communications to a wide range of stakeholders align CSI objectives with key group values, and endeavour to draw attention to important social issues and the interventions of its NGO development partners in order to increase awareness and create a greater impact.

Contact details: Nolundi Ningi | Barloworld Trust | 011 445 1150 nolundin@barloworld.com | www.barloworld.com

NPO research respondents 14

Our sincere thanks to the following non-profit organisations and social enterprises that participated in Trialogue’s primary research during 2015 for the 18th edition of The Trialogue CSI Handbook.

3L Development Thabiso NGO Abraham Kriel Childcare Africa!Ignite Akhani Social Development Management Arebaokeng Hospice Association for Persons with Physical Disabilities, Nelson Mandela Bay Boys & Girls Clubs of South Africa Bright Kid Foundation Build a Better Society (BABS) Business and Arts South Africa NPC Catholic Health Care Association (CATHCA) Centre for Early Childhood Development Child Care South Africa Children’s Rights Centre Church Alliance for Social Transformation (CAST) City Mission Community Chest of the Western Cape Community Development Resource Association (CDRA) Connect Network CoZa Cares Foundation Cultural Development Trust Daily Bread Child and Youth Care Centre Dinaledi Educational Coaching Dockda Rural Development Agency Dr CL Smith Foundation Education With Enterprise Trust (EWET) Feed the Babies Fund Field Band Foundation Fisantekraal Centre for Development Focus on iThemba Forest Town School for Learners with Special Needs Gauteng Business Development Centre Get Informed Youth Development Centre Girls and Boys Town South Africa Grassroot Soccer South Africa GreaterCapital NPC GreenMatter/Lewis Foundation Grootbos Green Futures Foundation Helping Hand Ifa Lethu Foundation IkamvaYouth Impilo Child Protection and Adoption Services Institute for Justice and Reconciliation Irene Homes Iziko Museums of South Africa Jewels of Hope

The Trialogue CSI handbook 2015

Johannesburg Council for the Disabled (JOCOD) Joint Aid Management Kagiso Shanduka Trust KhethImpilo Kungwini Welfare Organisation Kutullo Stimulation Centre Lambano Sanctuary LifeXchange Little Eden Society Lovelife Trust Mamas Alliance Masikhule Maths Centre Incorporating Sciences mothers2mothers NACOSA National Alliance for the Development of Community Advice Offices (Nadcao) National Institute for the Deaf National Skills Development Programme Oasis Association Operation HOPE PEN (Participate Empower Navigate) Philakahle Well-being Centre Pietermaritzburg and District Community Chest POPUP (People Upliftment Programme) Programme for Technological Careers (PROTEC) Project 90 by 2030 Project for Conflict Resolution and Development Project Gateway Raising Young Productive Generation Rearabilwe Ekurhuleni Community Care Ripple Reading Room to Read South Africa SA Federation for Mental Health SHARE Literacy Project Centre Sinamandla Siyabonga Africa Skomboys Football Club SOS Children’s Villages South Africa South African Guide-Dogs Association for the Blind South African Mathematics Foundation South African Society of Music Teachers South Coast Hospice Association St Anthony’s Education Centre St Bernard’s Hospice Sustainable Livelihoods Foundation Swellendam Tourism Organisation Tape Aids For The Blind

congratulations

Thandulwazi Maths and Science Academy The Amy Biehl Foundation The Cancer Association of South Africa (CANSA) The Centre For Social Development The Durban Chamber Foundation The Family Africa The Mass Media Project The Pietermaritzburg and District Cerebral Palsy Association The Rape Crisis Cape Town Trust The Siyazisiza Trust The South African History Archive (SAHA) The Sozo Foundation The Sports Trust Thusanani Childrenâ&#x20AC;&#x2122;s Foundation Topsy Foundation NPC Touch the Heart of Africa Ubunye Foundation Usiko Stellenbosch Uviwe Child & Youth Services West Coast Youth Orchestra Wildlife and Environment Society (WESSA) Witkoppen Health and Welfare Centre Youth of 90s Development Forum

Congratulations to the National Alliance for the Development of Community Advice Offices (Nadcao), a non-profit organisation committed to the development and longterm sustainability of Community Advice Offices. Community Advice Offices are small, non-profit organisations that offer free basic legal and human rights information, advice and services to people who are marginalised through poverty, social circumstances and geographical location. Nadcao participated in our online NPO research survey and were the lucky winners of our draw for a free full-page advertorial in this edition of The Trialogue CSI Handbook (see page 93).

guest foreword

Challenging business leaders: Look beyond profits to purpose

e live in an era in which it is imperative for individuals to fulfil their responsibility of helping to foster a more equitable society. Lead SA is a civil society movement that encourages South Africans to do just that, by standing up for what they believe in and becoming actively involved in shaping their societies. To support such citizenry, it is equally important for corporations to make a positive impact and play their role in leading South Africa. This can be done through corporate social investment, but also by demonstrating commitment on the ground. The concept of business can sometimes seem vague and even out of reach from a grassroots perspective. That’s why I believe that initiatives such as the 702 Sun International CEO Sleepout is particularly innovative. This South African leg of the global movement challenges business leaders to look beyond profits, to purpose; and for broader society, it begins to give business a human face. In June 2015, some 240 CEOs of leading businesses were invited to spend a night sleeping on a street in Sandton, the economic hub of Africa, as a show of solidarity with homeless people in South Africa, and to back this act with financial donations to the Girls and Boys Town charity organisation. Public response to this initiative was diverse. While some celebrated the movement’s ability to inspire businessmen and women to ‘get their hands dirty’, it was also met with some critique. Few social campaigns are perfect, but much of its power lies in its ability to spark debate and create awareness, in this case about homelessness in South Africa. Having raised over R23 million in one night, the movement demonstrated the impact that a single effort can have when the business community unites for a common cause. However, what remains a challenge is how to sustain such interest and energy. Trialogue’s CSI Handbook is a crucial tool to this end. It offers businesses the unique and sustained opportunity to measure their own efforts towards social development against the ongoing efforts of the rest of the business community. Beyond CSI, corporations can effect positive change through conducting good business and by speaking out when responsible practices are subverted. Business also has other valuable offerings for social development, including mentorship of youth in particular. Chapter four in this handbook focuses on the youth and identifies needs which could be addressed, in part, through CSI spend. Importantly, it also contextualises the tremendous challenges that the youth of South Africa have to contend with at various vulnerable and crucial stages, as they navigate an all too often rocky path from childhood into adulthood. While the needs and social ills in our country can seem overwhelming, this handbook fulfils a vital role in making them somewhat measurable by providing an overview of challenges, accompanied by valuable insights into investment in the social development sphere. In the spirit of Lead SA, I encourage all people in South Africa to play their part. Organisations and individuals should continue to call on leaders for support in addressing their needs.Business leaders should become ever-more receptive to calls to action and remain open to innovating their social spend, to ultimately ensure impact. Let’s build South Africa together!

Yusuf Abramjee @Abramjee Lead SA activist, Head of Crime Line, social cohesion advocate and Play Your Part ambassador

The Trialogue CSI handbook 2015

PHOTOGRAPHY GRAHAMDELACY.COM CHARLIE BRAVO #361-13

A MAESTRO IN THE MAKING. Buskaid was founded in 1997 to provide all township children with the opportunity to channel their creative drive into learning and playing classical music to the highest international standards. The Buskaid Ensemble has an enviable reputation, having performed before two former South African presidents, Her Majesty, Queen Elizabeth II and senior members of the Royal Family, and the First Lady of the USA, Michelle Obama. Redefine Properties is a proud sponsor of Buskaid and shares its vision and objectives. We wish them many encores.

from the editor

❛

What gets measured, gets managed." Peter Drucker

The Trialogue CSI Handbook is no newcomer to the reading list of South Africa’s CSI and social development practitioners and contributors, but working to put it together has been a first-time experience for me in my role as recently appointed managing editor. The level of detail and team dedication that goes into providing readers with meticulous current, relevant and valuable information exceeds expectations. I am in awe of this handbook, in much the same way a mother would be in awe of her child. The 18-year-old Trialogue CSI Handbook has grown into a fine young thought leader; however, this personification opens the door to thinking about the youth. South Africa’s youth is in crisis. As I write this, proposed fee increases at South African universities are a hot topic for protest, debate and political finger-pointing. No doubt universities are expensive to run and ours are underfunded and unsustainable in their current form, but the situation is merely the tip of the iceberg. The youth chapter of this handbook gives a voice to the difficulties beleaguering South Africa’s young people and highlights some of the programmes and policies designed or already in place to address them. But the statistics are staggering. The Department of Higher Education and Training reported the graduation rate among undergraduate students at South Africa’s 23 public universities as 15% in 2013. Drill further to the national matric bachelor’s pass rate of 30.6% in 2014 – alongside South Africa’s education system ranking 140th out of 144 countries in a 2012 World Economic Forum report – and one begins to see some of the reasons why almost 50% of South Africa’s 6.86 million unemployed individuals represent youths under the age of 30. How is the private sector responding? For the second year in a row, Trialogue’s research into CSI spending patterns revealed education to be the biggest development sector to benefit from corporate funding, at close to half of every CSI rand spent. And at a time when tertiary education is in the limelight, it is pertinent that approximately 27% of CSI education expenditure goes towards tertiary level interventions. Peter Drucker, a management consultant and advocator for corporate social investment, once said, “What gets measured, gets managed.” While the numbers are vital, they provide only half the picture. The description of projects, the people affected and their stories are equally important to understanding this complex and emerging developmental field. Improving the lives of people is the ultimate goal of CSI and these individuals must never be forgotten. We hope that we have lived up to this responsibility and that what we have measured, analysed and published will inform and enhance your planning and methods into managing your company’s CSI initiatives.

Rose Cohen Managing Editor rosemary@trialogue.co.za @TrialogueSA facebook.com/trialogueconsulting

The Trialogue CSI handbook 2015

655 current beneficiaries of bursaries and apprenticeship programmes

2400

homes to be built at a cost of R1 billion over the next 5 years

3900

homes built in local communities

about the book

❛

We make a living by what we get, but we make a life by what we give.” Winston Churchill

This year we’re publishing the 18th edition of The Trialogue CSI Handbook with a focus on youth and the social challenges they face. Over the years, The Trialogue CSI Handbook has become an invaluable resource filled with research, case studies and best practice in the field of corporate social investment in South Africa. Here’s how to navigate the 18th edition of The Trialogue CSI Handbook. Chapter one: The state of CSI 2015 Insight into the spending patterns of corporates investing in social development is presented, analysed and explained, based on our annual primary research with companies and NPOs. Comparisons to previous years have been made and expanded upon where relevant. The South African research is put into a global context in an article that compares corporate giving in South Africa to the United States and giving around the globe. The United States and global evaluation is based on two reports by the CECP (Committee Encouraging Corporate Philanthropy). For the first time, Trialogue has also looked further afield at CSI practices in Africa, starting in 2015 with the East African powerhouse, Kenya. Primary research was conducted with six Kenyan corporates in partnership with Fanaka Consulting. Chapter two: Focus on development This chapter takes a closer look at corporate funding per development sector, including support for the various types of interventions and beneficiaries. A new sector has been introduced in 2015: disaster relief. In addition to publishing the findings from our primary research, the bigger picture is also illustrated for each sector, based on statistics that are publically available. Chapter three: Corporate practice In-depth case studies of corporate programmes and projects are showcased in this section to shine a light on companies’ approaches to CSI. This is a space for sharing learnings and experiences. The full list of corporate practices is available on the contents page to assist in finding particular donors and non-profit organisations. Chapter four: Trends and topics in CSI We announce the winner of the Trialogue Strategic CSI Award and give an outline of the winning project, as well as the criteria applied to determine strategic CSI. A roundup of the year’s quarterly CSI forums as well as reports from the most popular sessions at the annual Trialogue CSI Conference 2015 completes the chapter. Chapter five: Youth Focus This chapter provides an overview of the challenges facing youth as well as government interventions and corporate initiatives aimed at youth. It includes stories told by South African youth to give their plight a voice. National and international policies which affect youth, such as the National Development Plan, Operation Phakisa and the Sustainable Development Goals, are also put under the spotlight.

The Trialogue CSI handbook 2015

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figures and tables 22

The backbone of The Trialogue CSI Handbook is our extensive primary and secondary research. To help you navigate this information, we present an index to the graphic representations of data in the handbook.

Figures Figure 1 Corporate respondents by industry sector, page 36 Figure 2 Total annual income, page 37 Figure 3 Corporate: Number of employees, page 37 Figure 4 NPO: Number of employees, page 37 Figure 5 Total annual income, page 37 Figure 6 Nominal versus real growth in CSI expenditure, page 38 Figure 7 CSI expenditure across top 100 companies, page 39 Figure 8 Distribution of CSI expenditure, page 39 Figure 9 Changes to CSI budgets, page 40 Figure 10 Distribution of CSI expenditure, page 40 Figure 11 Corporates reporting non-cash giving, page 41 Figure 12 Non-cash giving as proportion of CSI spend, page 41 Figure 13 Breakdown of CSI expenditure by cost category, page 41 Figure 14 Distribution of corporate support and CSI expenditure by region, page 42 Figure 15 Distribution of NPO support and resources by region, page 43 Figure 16 Distribution of corporate support and CSI expenditure by development sector, page 43 Figure 17 NPO support by development sector, page 44 Figure 18 CSI funding channels, page 45 Figure 19 Number of organisations supported and grants made, page 45 Figure 20 Relative importance of CSI success factors to corporates, page 46 Figure 21 Discussion topics, page 46 Figure 22 Changes in NPO income, page 47 Figure 23 NPO income by source, page 47 Figure 24 Sources of growth or decline in NPO income, page 48 Figure 25 Months of operating costs in reserve, page 49

The Trialogue CSI handbook 2015

Figure 26 Funding overhead costs, page 49 Figure 27 BBBEE Scorecard elements as a source of NPO funding, page 49 Figure 28 Management activities undertaken and/or planned by NPOs, page 50 Figure 29 Governance structure of CSI function, page 51 Figure 30 Location of African countriesâ&#x20AC;&#x2122; CSI strategy and budgets, page 52 Figure 31 SED score, page 52 Figure 32 Linkages with CSI programme, page 53 Figure 33 Anticipated impacts on relationship between CSI and skills development, page 53 Figure 34 Anticipated impacts on relationship between CSI and enterprise development, page 53 Figure 35 Registration status of NPOs, page 54 Figure 36 Corporates with employee volunteer programmes, page 54 Figure 37 Employee volunteerism type and participation, page 55 Figure 38 Levels of measurement for all CSI projects, page 56 Figure 39 Measurement of outcomes, page 56 Figure 40 Use of M&E data, page 57 Figure 41 Distribution of CSI funding by development sector, page 88 Figure 42 Education: Level of education, page 90 Figure 43 Education: Type of intervention, page 90 Figure 44 Education: Subject area, page 90 Figure 45 Education: NECT contribution, page 91 Figure 46 Social and community development: Type of support, page 92 Figure 47 Social and community development: Target beneficiaries, page 92 Figure 48 Health: Type of healthcare, page 95 Figure 49 Health: Type of intervention, page 96 Figure 50 Food security and agriculture: Type of support, page 97

Figure 51 Entrepreneur and small business support: Type of intervention, page 100 Figure 52 Sports development: Type of intervention, page 101 Figure 53 Arts and culture: Type of intervention, page 104 Figure 54 Housing and living conditions: Type of intervention, page 105 Figure 55 Safety and security: Type of intervention, page 106

Tables Table 1 Median number of donor relationships, page 48 Table 2 Companies’ ranking of corporate developmental impact, page 60 Table 3 NPOs’ ranking of corporate developmental impact, page 60 Table 4 Companies’ ranking of NPO developmental impact, page 61 Table 5 NPOs’ ranking of NPO developmental impact, page 61

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www.jam-southafrica.org JAM South Africa The Trialogue CSI handbook 2014

23 23

Trialogue CSI services Trialogue has more than 18 years’ experience in the CSI sector in South Africa, having worked with many leading South African companies on their CSI strategies and projects. When done effectively, corporate social investment (CSI) can generate great benefits for companies as well as social causes. Trialogue supports clients in making their CSI more effective through an end-to-end consulting process, which covers CSI strategy development and implementation, project selection, and programme and project measurement and evaluation.

Strategy development and implementation Trialogue specialises in the development of company-specific CSI strategies and uses a proprietary framework to guide the process. The framework covers objectives, focus areas, alignment, structures, resources, communication, and monitoring and evaluation. Once a strategy has been developed and approved, Trialogue can provide assistance with the implementation of the strategy in a number of ways, including the identification or development of flagship projects, the compilation of budgets and exit plans, and the development of tools and monitoring and evaluation frameworks.

Programme benchmarking Trialogue can benchmark your CSI programme against competitors and peers across a number of areas, including: expenditure; structure and number of staff; development and geographic focus areas; projects; volunteerism; monitoring and evaluation; marketing; and awards and ratings. The benchmarking is based on publicly available information and supplemented with information from Trialogue database of CSI practices incorporating years of research.

CSI project positioning Leading CSI practice advocates shared value, whereby positive development outcomes are accompanied by a business return from CSI expenditure. Trialogue has developed a diagnostic tool that scores CSI projects on both a development and business scale and locates them on a strategic positioning matrix. Each quadrant of the matrix has defining characteristics and accompanying criteria, which are used to score CSI projects.

Clients Trialogue has assisted with CSI consulting

Why do it? To provide guidance for all your CSI activities ●● To ascertain the objectives of the programme, how to achieve them and how to measure them ●● To achieve more focused and effective CSI that is aligned to business objectives ●●

Why do it? To compare and position your CSI programme relative to your peers ●● To identify strengths as well as areas requiring attention ●● To identify potential areas for differentiation or collaboration ●●

Why do it? To inform strategic decisions, such as how to change the positioning of projects and whether to expand or exit projects ●● To identify project elements that conform to, or fall short of, lead practice ●● To report CSI performance to internal or external stakeholders and to track changes in strategic project positioning over time ●●

M&E framework development

Why do it?

Trialogue can work with you and your implementing partners to develop monitoring and evaluation (M&E) frameworks for your CSI projects. The process includes facilitated workshops to agree on the objectives, activities, outputs, outcomes and intended impact of the project. The indicators for each are agreed, together with data collection methods, frequencies and responsibilities. A high-level M&E framework for the project as well as tools for gathering information and reporting templates is provided.

●●

CSI project reviews Trialogue has developed a process for reviewing the performance of CSI projects. The methodology involves scoring project performance across a number of predetermined elements, enabling a comparative performance rating for different projects. An overall score of project performance as well as a score against each of the elements is provided. This is followed by a detailed report on performance in each area and the quantification of outcomes and impact where supporting evidence exists.

CSI reporting

Johannesburg

T 021 671 1640 F 021 671 0119

T 011 026 1308 F 011 447 0276

Why do it? To determine whether CSI funding is achieving positive outcomes ●● To identify areas of suboptimal or dysfunctional performance so that remedial action can be taken, and areas of success, which can be shared or expanded on ●● To allow a comparison of performance across projects ●●

Why do it?

Trialogue offers a full CSI reporting service, from information gathering and writing to design, print and delivery. This varies from project case studies for different audiences and platforms (brochures, websites, annual reports and posters) to published foundation reports.

Cape Town

To determine the impact your CSI projects are having on society and on the company, and to share this with stakeholders ●● To provide information that helps to adjust and improve projects while they are under way ●● To ensure that project partners have the same objectives

info@trialogue.co.za www.trialogue.co.za

To communicate your CSI strategy and activities, and the impact of these on society ●● To promote your commitment to South Africa’s socio-economic development and keep important stakeholders informed ●●

Education receives a massive digital boost There is no doubt that education is the most vital element in creating productive and self-reliant societies. In South Africa, however, massive inequalities still remain in the field of education that Government cannot address single-handedly. Fortunately, through the CSI initiatives of the private sector, much is being done to give future generations the educational kick-start that they deserve.

needs. Already five schools and a community centre have received MTN SA Foundation laboratories with Braille printers and specialised computers, impacting 1500 learners with special needs. MTN SA Foundation also recognised a need to go beyond helping disabled learners at school level alone and donated R1.3 million to Optima College, which provides further skills training to blind educators.

The successes of the MTN SA Foundation’s education programmes, stem from its focus on using technology to enhance lives. The MTN SA Foundation isn’t content to simply write a cheque and consider its job done; it proactively develops and implements education projects that use technology to facilitate learning and teaching in disadvantaged schools and communities. This is achieved by partnering with key relevant stakeholders such as government, NGOs and private companies.

It is clear that education is more than just a strategy adopted by the MTN SA Foundation; it is a passion close to the hearts of all within the MTN family. The MTN’s 21 Days of Yello Care, an employee volunteerism programme , also took on a strong educational slant in 2015. The MTN 21 Days of Y’ello Care campaign has proven to be a phenomenal success with participation by both employees and members of the public. The campaign allows both groups to be more involved in their communities and to make a difference.

The Compujector is just one example of the MTN SA Foundation’s forward-thinking educational tech solutions working in partnership with Lesedi Corporate Technology. The Compujector combines a computer, projector and an interactive whiteboard into one versatile teaching tool. The Compujector comes preloaded with the government’s CAPS curriculum-aligned educational material. The provision of up-to-date digital teaching material has proved to be a game-changer in areas where textbook delivery remains a problem. Eighty one (81) Compujectors have been rolled out to date and will continue to provide this versatile teaching tool in the future. With a mandate to reach out to the youth, women and people with disabilities, the MTN SA Foundation last year also spearheaded a programme to provide accessible ICT equipment to learners with special

The theme for the 2015 campaign was “Investing in Education for all” which required engaging with projects within the educational sectors through the provision of infrastructure, ICT Facilities and or education equipment and materials. From grassroots projects taken on by staff members to far-reaching national programmes undertaken in conjunction with NPOs and Government, the MTN SA Foundation is arguably one of the leading forces behind uplifting the country’s education through technology. The MTN SA Foundation, however, is quick to pass on the credit to millions of MTN customers, citing customer loyalty as the key element that enables the Foundation to keep doing what it does best.

DELIVERING A BOLD NEW DIGITAL WORLD NUMBER OF BENEFICIARIES PARTNERED WITH AND SUPPORTED IN 2015

MTN SA FOUNDATION MILESTONES Foundation founded

Focus on ICT in education and communities

Gauteng

North West

2014 - 16

2009

Mpumalanga

National:

2001

Limpopo

KwaZulu-Natal

Free State

Northern Cape

5-year cluster-based strategy launched

Eastern Cape

Programme partners:

Western Cape

TOTAL INVESTMENT 2010 - 2015 60%

R 194 208 826

interventions in periurban and urban areas

40%

interventions in rural areas

WHAT WE DO

R 114 578 879

• Contribute to ICT development in schools and communities • Contribute to socio-economic development of disadvantaged communities • Drive good corporate citizenship

R 100 743 879 Education programmes Community programmes Special projects

CURRENT SNAPSHOT OF OUR EDUCATION PROGRAMMES Computer laboratories in

9 900

educators

330

264 000

schools

learners

1 500

learners with disabilities

compujectors

CURRENT SNAPSHOT OF OUR SPECIAL PROJECTS, INCLUDING 21 DAYS OF Y’ELLO CARE Launched in 2007

2 000

11 12 1 10

MTNers participated in 2015

9 centres for

3 7

16 000

working hours

victims of gender-based violence to date

schools and OVC centres beneﬁted in 2015

3 900 participated in the 21km MTN race in 2015

CURRENT SNAPSHOT OF OUR HEALTH PROJECTS ICT projects in

7 nursing

76 telemedicine workstations in rural clinics

colleges

343 622

people reached through health screening

47 325

people reached through PinkDrive

3 295

PinkDrive mammograms

Above: Staff volunteers helping to build a home in a disadvantaged community.

BETTER COMMUNITIES CSI contributions for 2014 at 31 December*

Nedbank total R140m

HELPING TO BUILD A BETTER SOUTH AFRICA FOR ALL Nedbank’s corporate social investment (CSI) efforts are directed at strengthening the social fabric of South Africa. These efforts are underpinned by its culture of active citizenship and the belief that social upliftment is everyone’s responsibility.

Nedbank Foundation trusts

Nedbank Foundation

R53,2m (38%)

R43,9m (32%) Education | Community development | Skills development and job creation | Volunteerism | Health

Eyethu Community Trust

R9,3m (6%) Education | Community development

Nedbank Private Wealth Charitable Foundation

R8m (6%) Education | Community development

Nedbank Affinity Programme

R33m (23%) Child welfare and protection | Conservation | Sport | Arts and culture

Nedbank External Bursary Fund

R13,8m (10%) Education

Nedbank business units

R32m (23%) Education | Community development | Volunteerism | Environment | Caring for communities * Based on claimable portion of actual spend in accordance with the Financial Sector Code. Note: In 2014 the corporate social investment spend of R32 million in the Nedbank business units included a contribution of R3,2 million to the National Education Collaboration Trust, a once-off contribution of R10,6 million to the Imperial and Ukhamba Community Development Trust from Nedbank Capital, and R5,5 million to the African Union for Ebola Support Fund.

A prosperous, sustainable South Africa requires public engagement and opportunities to work for the betterment of communities. For Nedbank this engagement translates into providing volunteerism opportunities for its staffmembers and clients so that they, in turn, can help build stronger communities. Nedbank’s larger CSI agenda focuses primarily on education, community development, job creation and skills development, health, the environment, child welfare, sport development, and arts and culture. In 2014 Nedbank’s total CSI spend across the group amounted to R140 million. Most of this investment was facilitated through the Nedbank Foundation, Nedbank’s primary CSI arm, which disbursed R44 million over the year. CSI support was also delivered through the Nedbank Affinity Programme, the Eyethu Community Trust, the Nedbank Private Wealth Charitable Foundation, the Nedbank External Bursary Fund and various Nedbank business units. Staff volunteerism is fundamental to Nedbank’s CSI approach. Its wideranging staff volunteerism programme focuses on building a nation of skilled, educated, healthy and socially active citizens. Over the past 12 years the bank has invested more than R30 million in individual and team volunteerism programmes. In 2014 altogether 28% of staffmembers participated in volunteerism programmes, delivering immediate positive impacts to communities across the country. In addition, staff receive two days’ volunteer leave annually, with full pay.

Staff volunteerism programmes Team Challenge The Team Challenge allows staffmembers to form teams and selflessly give of their time and talent for a period of 10 months to support causes that they feel passionate about. Nedbank provides R5 000 in seed funding for every team to help get their projects off the ground. In 2014 an amount of R500 000 was invested, which saw 256 staffmembers assisting 45 community and environment projects across SA.

Payroll Giving Payroll Giving offers staffmembers an effective and regulated means of contributing to several established charities. An agreed amount is deducted from their salaries each month and sent directly to The Giving Organisation in support of 12 charities. The Nedbank Foundation then matches all the funds donated by staffmembers up to R1,5 million. In 2014 a total of 6 194 staffmembers contributed R1,8 million. In addition to these programmes, Nedbank encourages staffmembers to volunteer in support of national initiatives such as: • Mandela Day Nedbank’s theme for 2014 was ‘67 to the power of 10’ – a total of 67 projects with a minimum of 10 volunteers per project. In 2014 altogether 90 projects were supported. • Angel Tree This initiative is Nedbank’s festive season drive to support vulnerable members of society. The drive focuses on causes that support people with disabilities, vulnerable children, senior citizens, and women affected by abuse across the country. • Saturday School Started in 2011 the project enables staff volunteers to provide English and Maths lessons to grade 5 to 7 learners from Zenzeleni Primary School. In 2014 Nedbank invested R200 000 through the initiative, which involved 22 staffmembers and benefited 51 learners. • Nedbank Caring for Communities This programme sees staffmembers educating learners, teachers and communities on all aspects of sustainable living, enabling them to harness the power of sustainable thinking and action. In 2014 a total of 60 vegetable garden tunnels were built across the country with the help of 440 staff volunteers. Other initiatives at the Nedbank Foundation focus on educating our nation, mobilising communities, building a healthy nation, and creating jobs and developing skills. Nedbank volunteers are also given opportunities to become involved in projects and organisations funded by the foundation.

Educating our nation Recognising that education is the bedrock on which a successful South Africa must be built, close to 50% of Nedbank’s CSI spend is directed into educational initiatives. These programmes provide holistic support, filtering across all levels from early-childhood and learner development to tertiary education. Further compelling reasons as to why Nedbank prioritises its educational CSI spend include: • Addressing the inequalities of South Africa’s past by empowering more South Africans to reach their full potential. • Aligning with the South African government’s aim to eradicate poverty. • Fostering a values-driven society. Spell It This initiative aims to promote literacy in South Africa. Run in partnership with the National Department of Basic Education, Spell It provides an opportunity for primary-school learners to achieve a good level of English literacy before they graduate to high school. Since 2010 Spell It has impacted the lives of over 150 000 primary-school learners across South Africa. The programme works to improve literacy through vocabulary building at grade 4 level and spelling bees at grade 5 and 6 levels. This is achieved through coaching and skills transfer. Coaches for Spell It work at schools to assist teachers in improving learners’ literacy skills, such as word and letter recognition. Teachers and coaches are trained in Spell It methodologies, empowering them with literacy skills they can put to use in their communities and beyond. Spell It also runs spelling bees at grade 5 and 6 levels in conjunction with the National Department of Basic Education, which works with national, provincial and district structures. The initial programme was in Gauteng and has since been introduced into the Eastern Cape. My Future, My Career This career guidance programme, aimed at learners from grade 9 to 12, exposes them to more than 100 careers across 16 industries. Learners are taken on behind-the-scenes tours of various career options through professionally produced films, which are screened at select Ster Kinekor theatres countrywide. Staff volunteers coordinate the logistics in each region and assist in facilitating delivery of the different episodes, each focusing on different careers. In 2014 the programme reached more than 40 000 learners.

Left: Mandela Day volunteers packaging food. Centre: Staff volunteers laying down flooring at a crèche in Matjokotja, Limpopo. Right: A Spell It coach working with primary-school learners.

purpleberry 1015/9167

Local Hero Programme Established in 2001 the Local Hero Programme makes donations of R15 000 to encourage and honour individuals who support causes close to their hearts. In 2014 Nedbank invested R935 000 through this programme to support clients and staff.

Back-to-school Nedbank’s Back to School campaign helps learners in rural communities and informal settlements across all nine provinces with basic learning resources, ensuring their basic needs are met so that they can focus on their education. Since Back to School’s inception in 2010 Nedbank has invested over R11 million in the campaign, benefiting over 10 000 underprivileged primary- and high-school learners. In 2014 the bank donated over R2 million to provide at least 2 000 learners with basic school needs, such as school uniforms, shoes and stationery.

and the Sparrow Schools Fluid Power Hose Assembling Skills Programme, which trains unemployed youth to make hydraulic hose assemblies. Learners who complete their training have the opportunity to gain employment at mines or mine-related companies.

Mobilising our communities

The Nedbank Green Affinity supports programmes with a strong community-based conservation focus in partnership with the WWF Nedbank Green Trust. The trust funds innovative projects that focus on marine, freshwater and species conservation, land stewardship, climate change, environmental leadership development and community engagement. The partnership is celebrating 25 years of igniting ‘new ways for people and nature to thrive’.

Many of Nedbank’s community programmes address the immediate needs of the most vulnerable members of society: children, women, the elderly and the disabled. The Hippo Water Roller Project forms part of the bank’s R9 million Water Stewardship Programme. The Hippo water roller, which has a capacity of 90 litres, helps women and children transport more water more easily over long distances, and frees up time for more productive economic and educational activities. In 2014 a total of 300 Hippo water rollers were distributed in Limpopo and the North West. Another community-focused project is the Winter Blanket Campaign, which distributes blankets to vulnerable South Africans during winter.

Building healthy communities Health-focused initiatives include the Nedbank Mobile Clinic, which provides access to health and dental services to rural school children. Nedbank has also made a R1 million donation to the Nelson Mandela Children’s Hospital, which will provide state-of-the-art specialist care to all children – no child will be turned away due to its parents’ inability to pay. The hospital is under construction in Johannesburg.

Job creation and skills development Statistics South Africa reported that South Africa’s unemployment stood at 25% in the third quarter of 2015. Job creation and skills development initiatives include Learn to Earn, which involves training unemployed adults and providing market-relevant skills such as welding and office administration;

The Nedbank Affinity Programme Nedbank also offers clients the means to make a difference in communities through its four affinities:

The Nedbank Children’s Affinity supports orphaned and vulnerable children in partnership with the Nelson Mandela Children’s Fund. To date Nedbank has donated R53 million to the fund. The Nedbank Sport Affinity supports sport development in South Africa in partnership with The Sports Trust. Programmes focus on developing youth in cycling, soccer, road running and golf. The Nedbank Arts Affinity supports the development of South African arts and culture in partnership with the Arts and Culture Trust (ACT). The trust, which celebrated its 20th year in 2014, aims to uplift communities by helping to create job opportunities, improve creative and management skills, foster cross-cultural understanding and generate cultural tourism. Nedbank understands that shaping an equitable, a thriving and a resilient South Africa begins with taking action to contribute actively to the upliftment of all South Africans. Our CSI initiatives and volunteerism programmes seek to inspire and empower clients and staff to become active citizens and help shape a vibrant future. Partner with the green and caring bank, and make a difference. Call 0860 555 111, visit your nearest branch or go to nedbank.co.za.

Left to right: Nedbank donates soccer kits to support soccer development in schools. The Nedbank Green Affinity supports species conservation. The Nedbank Sports Affinity supports cycling development. The Nedbank Children’s Affinity supports children’s causes. The Nedbank Arts Affinity supports the development of South African arts and culture.

Skills development: Could this be the heartbeat of South Africa’s economy? Author: Thabang Chiloane – Divisional Executive: Public Affairs at Nedbank

Students at the Ray Mhlaba Skills Training Centre in Port Elizabeth hard at work.

The hard facts of youth unemployment in South Africa paint a gloomy picture for the future of our economy and labour force. The 2015 Statistics South Africa (‘Stats SA’) first-quarter report revealed that 9,8 million working-age youth (between 15 and 34 years) are economically inactive – a number that continues to increase. Stats SA cited ‘frustration of finding employment’ as one of the major factors that contribute to the deteriorating rate of youth employment, causing despondency that ultimately leads to economic inactiveness by this group. A further analysis revealed that the unemployment rate among youth with tertiary education continues to rise, while that of youth with only a matric qualification has decreased – especially among blacks. In addition 72% of the total employed South African population are semi-skilled or low-skilled – recording a high skills deficit that has a negative effect on employment in the country and has resulted in a desperate outcry for highly skilled workers. To address the escalating unemployment rate and the extent of the skills shortage in South Africa it is critical that the private sector partners with government to identify skills shortages, improve on these, promote entrepreneurship and contribute towards the National Development Plan of increasing employment.

Investing in skills development to create sustainable employment Both the private and the public sector have a significant role to play in the upskilling of all South Africans, especially the youth, to assist in developing entrepreneurs and a highly skilled labour force. As such, enabling programmes that will provide not only skills development but also permanent employment opportunities once skills are acquired need to be designed. These can range from cadet and apprenticeship programmes that provide young graduates with on-the-ground learning and experience to entrepreneurial projects where young professionals are provided with an opportunity to build alliances with a corporate or a government institution as an enterprise development partner. It is, however, critical to understand where the gaps are and where the skills are needed to design programmes that are responsive to the skills set demand.

The importance of partnerships and alliances As a bank that is highly involved in communities and the environment, Nedbank continues to partner with various

institutions in an effort to provide skills development opportunities to South Africa’s unemployed youth and to help these institutions bridge the skills shortage in their industries and create jobs. To create sustainable employment partnerships and alliances are critical. As such we continue to invest in skills development through various partnerships, for example our partnership with the National Economic Education Trust (‘NEET’), which seeks to develop skills in the information and communication technologies (‘ICT’) and marine sectors. Through this partnership NEET aims to equip 40 young individuals with ICT skills and, on graduation, that they be guaranteed permanent employment with Samsung or T-Systems. It is no secret that South Africa has a skills crisis that mirrors global conditions. There is a mismatch between the available pool of employees and market demand, which has been linked to a number of causes such as the state of our education system and a lack of educational funding. Through our alliances with institutions such as NEET, Samsung, T Systems and the South African Maritime Safety Authority, whose objective it is to train six cadets as seafarer through their National Cadet Programme, skills development could indeed go a long way in curbing the country’s unemployment rate. In addition to these efforts, Nedbank has an established five-year association with the Ray Mhlaba Skills Training Centre in Port Elizabeth. In 2014 we contributed R200 000 towards the training of 12 woodwork students at the centre. To date Nedbank has invested over R1 million in entrepreneurship training and mentorship programmes aimed at empowering vulnerable youth to sustain a livelihood in the formal employment sector or as entrepreneurs. Thus, it is clear that collaboration between the private and the public sector is critical in entrenching skills development as the lifeblood of the South African economy. By gaining a deeper understanding of the nature of our country’s skills deficit we will be able to empower young South Africans and help address the escalating rate of unemployment and other social ills, such as increased dependency on grant systems, that may intensify social instability. We urge the private sector to partner with public sector entities to walk this journey towards embedding skills development as a critical solution for improving South Africa’s economy.

The Mondi Zimele Jobs Fund Lekhisa Trading Contractor cc

At Mondi, we believe in being part of the solution to help secure the future prospects of our business and our communities.

After registering his business in 2008, entrepreneur Sakhile Phungula realised that without transport, his business would not be a success. He approached the Mondi Zimele Jobs Fund to help him buy a vehicle. Sakhile’s application was successful and the loan came with a comprehensive package of business support which has taken his business to new heights.

We work closely with our stakeholders to address global sustainability challenges across the value chain. We make sustainability part of the way we work every day. In South Africa, fostering a strong small business sector is key to economic growth and job creation. Given the high levels of unemployment and poverty, we are playing a role in accelerating job creation by promoting the development of sustainable small businesses.

Sakhile’s success story includes a two year contract with the uMhlathuze Municipality to clean and maintain storm water drains in the area.

It is for this reason that we established Mondi Zimele in 2007 as Mondi South Africa’s small business development division. There are three core objectives: •

Develop sustainable small businesses in Mondi’s forestry value chain;

•

Encourage job creation and local economic development through the support of small businesses in surrounding communities; and

•

Facilitate the increased availability of sustainable fibre for Mondi’s mills from private growers with the emphasis on new community forestry businesses.

Delivering Local Solutions – The Mondi Zimele Jobs Fund

The Mondi Zimele Model

Mondi Zimele adds value through making available equity, loans and business development support to employment creating small businesses within Mondi’s value chain and surrounding communities. The word Zimele is translated as “to be independent” or “to stand on one’s own feet” which reflects Mondi Zimele’s overriding ethos of ‘Independence through Enterprise’. With the growing importance of local economic development and job creation, we recently expanded small business development activities to any viable enterprise in areas surrounding our operations. In 2012 together with the Development Bank of South Africa, the Mondi Zimele R140m Jobs Fund was founded.

Business Development Support

Funding

• • • •

Equity Discounted small business loans Asset finance Start-up capital

• • • • • •

Business plan development Management support Technical and legal compliance Administration and systems Industry expertise and skills transfer Business performance improvement

Market

•

Critical linkages to key markets to enable small business access

Independence through enterprise for forestry stakeholders

www.mondizimele.co.za

Mkhwetha Trading Company

Zululand Woodlot Growers

In 2010, ownership of Mondiâ&#x20AC;&#x2122;s Langfontein estate in northern KZN was transferred to the KwaZiqongwana Community Trust in terms of the governmentâ&#x20AC;&#x2122;s land restitution programme. At the same time, an agreement was signed with the Trust to lease the land to continue forestry operations for a period of 20 years with an annual rental and stumpage fee paid by Mondi. With the help of Mondi Zimele, the Mkhwetha Trading Company was registered, a board of directors appointed and a comprehensive business plan developed.

Over many years we have supported in excess of over 3000 Zululand small timber growers. For example, in 2014 we procured over 100 000 tonnes of timber, valued at over R60 million.

Further to the R1.1m low interest start-up capital loan, the company was provided with access to training and assigned a full-time mentor to provide day-to-day management support.

This is an important revenue stream for the rural communities surrounding the Richards Bay mill and makes a significant contribution to improving the livelihoods of local communities. In addition, Mondi provides seedlings and support to the growers valued at R3 million per year.

Mkhwetha Trading Company currently employs 36 people, all from local communities and has secured a contract with Mondi to provide the full range of silviculture operations on the estate.

Our model is not about the provision of discounted capital in isolation. For a number of years we have focused on assisting the entrepreneur to employ the right business management practices with a clear market strategy to develop their business ideas - the funding is an enabler in this process. Mondi is an international packaging and paper Group, employing around 25,000 people across more than 30 countries. Our key operations are located in central Europe, Russia, North America and South Africa. Mondi offers over 100 packaging and paper products, customised into more than 100,000 different solutions for customers and end consumers.

www.mondigroup.com

Chapter one 34

The Trialogue CSI handbook 2015

the state of CSI The Trialogue CSI handbook 2015

Chapter one

Overview of key findings his marks the 18th year of Trialogue’s corporate social investment (CSI) research. To understand what corporates are funding and how they are doing it, as well as how non-profits are using the funds, we updated our two questionnaires: one each for corporates and non-profits. We streamlined some sections and added questions on community trusts, the revised Broad-based Economic Empowerment (BBBEE) Codes and corporate/grantee relationships. Professional researchers then conducted one-on-one interviews with representatives from large South African companies. For the first time, we allowed companies to complete the questionnaire themselves and all self-completed responses were verified by the researchers. Of the 81 companies included in this year’s sample (2014: 99), 63 (77%) also participated in the previous year’s study. In addition, 123 NPOs responded to Trialogue’s online survey (2014: 171) and 28% of these were repeat participants from 2014. Unfortunately this low repeat rate makes year-on-year comparison difficult among the NPO samples, so caution is urged in reading too much into the NPO trends presented. In this chapter, we outline the most noteworthy results from this year’s primary research. For the second year, we aligned our corporate questionnaire with the CECP (Committee Encouraging Corporate Philanthropy) Giving around the Globe report and data from 16 South African corporates was included in these global findings, available at www.cecp.co.

Respondent profiles Corporate respondents continue to represent the diversity of the South African business sector. Financial services was again the best-represented sector in the sample, with 21% of the total response 1

Corporate respondents by industry sector

Financial services Retail and wholesale Mining and quarrying State-owned and public enterprises Agriculture, forestry and fishing Information technology and telecommunications Pharmaceutical and health Media and entertainment Oil and petroleum Motor vehicle manufacturers and assemblers Building and construction Other services Other manufacturing Other 0 2015

2014

Corporate

The Trialogue CSI handbook 2015

% corporate respondents 2015 n=81 / 2014 n=99

The state of CSI

(2014: 22%), followed by retail and wholesale (14%, up from 13% in 2014). As in 2014, more than half (54%) of the sample was characterised by a combination of business-toconsumer (B2C) and business-to-business (B2B) elements. Thirty-one percent followed a B2B model, while 15% followed a B2C model. The research sample included companies of various sizes, as measured by workforce and total annual income. In 2015, more than half (54%) of respondent companies employed less than 5 000 people, whereas 12% had staff complements greater than 20 000. More than three-quarters (78%) of companies in the sample had annual income of over R1 billion in their latest full financial year.

total annual income

12% 34% 13% 19% 6% 16%

number of employees

3% 9% 17% 17% 31% 23%

More than R50bn R10bn – R50bn R5bn – R10bn R1bn – R5bn R500m – R1bn Less than R500m

% corporate respondents

Over 50 000 20 000 – 50 000 10 000 – 20 000 5 000 – 10 000 1 000 – 5 000 Less than 1 000

% corporate respondents

Corporate

2015 n=67

2015 n=78

NPOs were also measured by staff complement and annual income and asked to provide two years of data for both metrics. There were no significant shifts in staff numbers since 2014. More than 50 people were employed by 34% (2014: 34%), 26% employed 11 to 30 and 27% employed one to 10 people. 4

number of employees More than 50 people 31 – 50 people 11 – 30 people 1 – 10 people 0 people 0 2015

2014

% NPO respondents

NPO

2015 n=120

Similarly, annual income has held relatively constant with the greatest proportion (27%) raising between R5 and R20 million in both years.

total annual income

African Ey es Photog raphy / Frie nds

in Ireland

More than R20m R5m – R20m R2m – R5m R500k – R2m Less than R500k R0 or loss-making Don't know 0 2015 NPO

2014

% NPO respondents 2015 n=120

The Trialogue CSI handbook 2015

Chapter one

Overview of key findings

Key findings

CSI expenditure in 2014/15 The total estimated CSI expenditure in 2014/15 was R8.1 billion. This means that for the first time since Trialogue started tracking CSI expenditure in 1998, there has been a decline in both real and nominal terms. The R8.1 billion represents a 1% decline in nominal growth from 2013/14 and a real decline of 6% (when taking inflation into consideration). Giving among the research sample continued to grow. The median giving amount was R16.6 million, up from R14.4 million in 2014. The rise in non-cash giving may be tailing off; approximately one-third (34%) of corporate respondents reported non-cash giving, down from a peak of 40% in 2014. Direct project expenditure continued to receive the lion’s share of corporate funding (87%).

●●

Total CSI expenditure in 2014/15 was R8.1 billion Total CSI expenditure in South Africa was estimated to amount to R8.1 billion in 2014/15 (hereafter referred to as 2015). This estimate is based on Trialogue’s analysis of the CSI expenditure of large South African companies and state-owned enterprises: a broader sample than our primary research component. Our analysis takes into account: ●● Year-on-year changes in the CSI expenditure of 112 companies using publicly reported data ●● Year-on-year changes in the CSI expenditure of 81 corporates that participated in Trialogue’s primary research ●● Year-on-year changes in the CSI expenditure of 191 companies for which we have comparable spend estimates ●● A comparison of the combined expenditure of the top 100 companies (based on the amount spent on CSI) ●● An extrapolation of total expenditure based on estimated numbers of smaller companies and CSI spending.

Total CSI expenditure is declining Until 2013, Trialogue consistently found that the total annual estimated CSI expenditure was growing in real terms. Last year (2014) was the first time that CSI expenditure experienced a negative growth of 2% in real terms, but a slight increase in nominal terms. In 2015, our CSI estimate revealed a 1% decline in nominal growth and a real decline of 6% from 2014. This suggests that the growth that the CSI sector experienced between 2001 and 2013 is beginning to decline. 6

nominal versus real growth in csi expenditure

CSI expenditure (R billion)

9 Nominal

8 7 6 5

Real

(adjusted for inflation)

3 2 1 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Base year: 2001

The Trialogue CSI handbook 2015

the state of csi

Despite a small decline in total CSI expenditure, social investment continued to grow within Trialogueâ&#x20AC;&#x2122;s primary research sample of 81 companies. This increased spend from companies within the primary research sample seems to contradict the total expenditure findings above. However, it should be noted that the primary research group is a smaller, select sample, while the estimated overall CSI spend is extrapolated from a broader range of companies, using publicly available data. The disparity is explained by notably lower expenditure by a few companies with large CSI budgets that did not participate in our research.

CSI spend across top 100 companies CSI expenditure remains concentrated among larger companies. The top 100 companies (by CSI spend) invested R5.4 billion, or 67% of the total CSI expenditure. The distribution of expenditure by the top 100 companies is shown in the chart below. Just 15 companies accounted for close to half (48%) of the total amount spent by top 100 companies, while 30 companies accounted for more than two-thirds (68%). 7

CSI expenditure across top 100 companies

100 80

14%

Less than R25m per company

18%

R25 â&#x20AC;&#x201C; R50m per company R50 â&#x20AC;&#x201C; R100m per company

20% 28

More than R100m per company 15

48%

0 No. of top 100 companies

% top 100 CSI expenditure (R5.4 billion)

Corporate

CSI spend across sectors The mining, retail and financial services sectors together accounted for just over 70% of the total R8.1 billion of CSI expenditure, with mining alone accounting for over 40% of total CSI expenditure. The distribution by sector remains broadly consistent with 2014.

distribution of CSI expenditure

Mining and quarrying Retail and wholesale Financial services Information technology and telecommunications State-owned and public enterprises Other sectors 0 2015

2014

% CSI expenditure

Corporate

The Trialogue CSI handbook 2015

Chapter one

Overview of key findings

Within Trialogue’s corporate primary research sample, giving was on the rise. The majority (59%) of companies reported increased expenditure in 2015, slightly down from the 64% that reported increases in 2014. The most common reason given for increased expenditure was an increase in corporate profits (41%, up from 37% in 2014), followed by growing requirements of the projects funded (26%, up from 25% in 2014). Least common was a more inclusive definition of CSI or policy change, with 7% each. Similarly, decreasing profits were the most often-cited reason for declining budgets (55%), with policy changes (6%) the least common cause.

Changes to CSI budgets Stayed the same Decreased Increased 0 2015

2014

% corporate respondents

Corporate

2015 n=77 / 2014 n=99

The average total CSI spend rose from R51.0 million in 2014 to R57.1 million in 2015. The median – a figure less influenced by outlier companies (for example, the one company claiming to spend over R1 billion on CSI) – rose from R14.4 million to R16.6 million.

distribution of CSI expenditure Median : R16.6 million % corporate respondents

35 30 25 20 15 10 5 0

2014

Less than R1m

R1m – R5m

R5m – R10m R10m – R30m R30m – R50m R50m – R100m More than R100m

2015

Corporate

2015 n=78 / 2014 n=98

In South Africa, the BBBEE Scorecard requires large companies to spend 1% of net profit after tax (NPAT) on socio-economic development (SED). In 2015, our sample again reported giving more than this target, with expenditure averaging 1.7% of the previous year’s NPAT, up from 1.2% in 2014.

Non-cash giving is stabilising In 2015, the trend seen in recent years of increased giving of non-cash donations reversed. Approximately one-third (34%) reported non-cash giving, down from 40% in 2014 (see figure 11). In line with this decline, the overall proportion of non-cash giving decreased marginally to 10% (2014: 12%). Product and service donations accounted for the vast majority of non-cash giving. Twenty-nine companies reported figures for these donations, equating to 5% of total giving and 95% of non-cash giving. By comparison, 14 companies quantified the value of their employees’ volunteering time (less than 1% of total giving and 5% of non-cash donations).

The Trialogue CSI handbook 2015

the state of csi

corporates reporting non-cash giving

% corporate respondents

100

13%

19%

27%

Yes

34%

40%

80 60 40 81%

87%

73%

60%

66%

2011 n=110

2012 n=103

2013 n=99

2014 n=99

2015 n=82

20 0

Corporate

non-cash giving as Proportion of CSI spend

% CSI expenditure

100

12%

Non-cash

10%

Cash

80 60 94%

95%

88%

90%

2011 n=97

2012 n=83

2013 n=88

2014 n=88

2015 n=77

40 20 0

Corporate

Corporate CSI cost structure held constant The breakdown of corporates’ CSI expenditure by cost type remained largely unchanged from the previous year. Nearly all (97%) respondents reported some of their expenditure going directly to the projects they supported (2014: 100%). This direct project expenditure accounted for an average of 87% of companies’ total spend, down slightly from 89% in 2014. The remaining 13% of companies’ CSI expenditure went towards management and support costs. Aside from direct project expenditure, no cost type accounted for more than 3% of total expenditure or was included in the budgets of more than half the respondents.

Breakdown of CSI expenditure by cost category Direct project expenditure Employee volunteering and staff events CSI staff costs CSI marketing and communication costs Monitoring and evaluation of projects CSI administrative costs Employee matched funding Membership-based organisation fees Research CSI governance costs Other

100

% corporate response Corporate

0 2015

2015 n=77 / 2014 n=99 (multiple responses)

2014

100

% CSI expenditure 2015 n=77 / 2014 n=97

The Trialogue CSI handbook 2015

Chapter one

Overview of key findings

Key findings

Geographic distribution of CSI funding and development focus areas ●●

●●

Corporates are most likely to be involved in projects in Gauteng (70%), but gave the greatest proportion of CSI funding to national causes (34%). Education continues to be supported by most corporates (92%) and received the greatest share of corporate funding (47%). Social and community development overtook education as the most common development sector among NPOs (73%). Companies in the sample gave to an average of 4.6 developmental sectors in 2015.

In this section, we outline general findings on the geographic and development footprint of CSI. For more detailed information on the various development sectors, see chapter two.

National projects continue to receive the largest portion of CSI expenditure Companies again gave to an average of four provinces in addition to their national and/or international projects. While projects in Gauteng were the most commonly supported among corporate respondents (70%), the province’s relative share of corporate funding declined slightly from 27% in 2014 to 24% in 2015. By comparison, projects with a national focus were supported by fewer respondents (62%) but garnered a greater portion of budgets (34%, up from 29% in 2014). Corporate support for projects in the Western Cape, Free State, North West Province and Limpopo fell during the year. Nine respondents (11% of the sample) reported international giving in 2015, with the lion’s share (91%) of their giving going to projects in Africa.

distribution of corporate support and CSI expenditure by region National Gauteng Western Cape KwaZulu-Natal Eastern Cape Free State North West Limpopo Mpumalanga Northern Cape International 80

% corporate support Corporate

0 2015

2015 n=76 / 2014 n=99 (multiple responses)

2014

% CSI expenditure 2015 n=76 / 2014 n=92

The NPO funding footprint of our sample is concentrated in Gauteng and the Western Cape. Whereas the proportion of NPOs operating in Gauteng declined marginally from 50% in 2014 to 49% in 2015, 30% of NPO resources went to the province (2014: 26%), with only 15% allocated to national projects (2014: 13%) (see figure 15). Comparing NPO funding with corporate funding, a significantly larger portion of NPO funding was directed to projects in the Western Cape (21% as compared to 11% of corporate funding), but this is most likely due to our NPO sample being drawn predominantly from Gauteng and the Western Cape. NPOs in the 2015 sample reported supporting an average of two provinces, down from three in 2014.

The Trialogue CSI handbook 2015

the state of csi

Distribution of NPO support and resources by region

National Gauteng Western Cape KwaZulu-Natal Eastern Cape Northern Cape Free State Limpopo Mpumalanga North West 60

% NPO support

NPO

0 2015

2014

% NPO resource allocation

2015 n=115 / 2014 n=170 (multiple responses)

2015 n=119 / 2014 n=170

Education continues to receive the greatest share of corporate support Each year Trialogue asks corporate participants which development sectors they support and what proportion of their CSI funding is allocated to each sector. Education was again the most popular sector, with 92% of respondents supporting this sector, followed by social and community development (74%) and health (58%). For the first time, Trialogue added disaster relief as a sector to understand how companies have responded to high-profile events. While a significant 17% of companies reported giving to these types of causes, they accounted for less than 1% of total giving. Causes supported include floods in Cape Town, Mozambique and Malawi, as well as xenophobic attacks, the Ebola crisis and fires in Kya Sands and Cape Town. Education again received the greatest share of total expenditure, however by a slightly smaller margin (47%, down from 49% in 2014). Social and community development and health continued to hold second and third positions, receiving 17% and 12% of CSI spend, respectively. Despite the addition of disaster relief to the research, there was little shift in the distribution of funding across the development sectors; no sector gained or lost more than 5% of funding from 2014. Companies reported giving to an average of 4.6 different development sectors, up slightly from 4.5 in 2014.

Distribution of corporate support and csi expenditure by development sector

Education Social and community development Health Food security and agriculture Environment Entrepreneur and small business support Sports development Arts and culture Non-sector specific donations and grants Housing and living conditions Disaster relief Safety and security Other 100

% corporate support Corporate

0 2015

2015 n=78 / 2014 n=99 (multiple responses)

2014

% CSI expenditure 2015 n=78 / 2014 n=92

The Trialogue CSI handbook 2015

Chapter one

Overview of key findings

NPO respondents follow a similar, but not identical, development footprint to their corporate counterparts. Social and community development overtook education as the most common area of focus, with 73% and 71% of NPO respondents, respectively, supporting these sectors. (2014: 57% and 62%). In 2015, NPO respondents were involved in an average of 4.5 development sectors, more than double the 2014 sample’s average of two sectors. 17

npo support by development sector Social and community development Education Health Entrepreneur and small business support Food security and agriculture Arts and culture Sports development Environment Housing and living conditions Safety and security Disaster relief Other 0

2015 NPO

2014

% NPO support

2015 n=118 / 2014 n=171 (multiple rsponses)

Key findings

Corporate relationships with NPOs ●●

●●

The vast majority of corporate respondents (90% of the sample) channelled a significant proportion of CSI funding (52%) to NPOs. While NPOs are most likely to have corporate donors (66% of the sample), government surpassed companies as the largest source of funding (20%) to NPOs. NPOs are accessing funding allocated to BBBEE Scorecard requirements, most commonly socio-economic development, cited by 82% of respondents. Companies are giving multiple grants (70% gave more than 20 grants during the year) to many organisations (58% gave to more than 20 organisations).

NPOs remain corporates’ preferred funding channel NPOs remained the favourite channel through which corporates directed their CSI expenditure, though the proportion of respondents giving to NPOs (90%) has declined from a high of 100% in 2014. The overall proportion of funding (52%) going to NPOs has also fallen marginally from 56% in the previous year. Government institutions (including schools, universities, hospitals and clinics) and for-profit service providers both gained in 2015 with 75% and 39% of corporates giving to these types of organisations (up from 70% and 28% in 2014), respectively. Least popular were political parties – to whom no respondents reported making contributions – and religious institutions, which received contributions from only 3% of companies, accounting for less than 1% of all giving (see figure 18). In 2015, Trialogue asked respondents about their contributions to community trusts. These structures were supported by 5% of the respondents, amounting to 1% of expenditure. For more on these companies’ management of community trusts, see page 51.

The Trialogue CSI handbook 2015

the state of csi

CSI funding channels

Non-profit organisations Government institutions For-profit service providers Government departments Industry initiatives Religious institutions Political parties Community trusts Other 100

0 2015

% corporate support Corporate

2014

% CSI expenditure

2015 n=79 / 2014 n=99 (multiple responses)

2015 n=79 / 2014 n=97

Companies give multiple grants to many organisations Corporate respondents were more likely to distribute their CSI funding to many organisations than to just a few. Whereas only 11% reported giving to less than five organisations during the year (2014: 10%), 17% gave to more than 100 organisations, up from 12% in the previous year. Most companies gave to between 21 and 50 organisations (28% of companies, up from 24% in 2014). The number of grants followed a nearly identical trend, with the greatest proportion (28%) of companies making between 21 and 50 separate grants in the year (2014: 27%), followed by more than 100 grants (27%, up from 24% in 2014). Eleven percent of companies made less than five grants (2014: 8%). These findings reinforce the notion that corporates continue to embrace CSI strategies that allow for multiple grants.

Number of organisations supported and grants made Number of organisations supported

Number of grants made More than 100 51 – 100 21 – 50 11 – 20 6 – 10 Less than 5 Don't know

% corporate respondents Corporate

0 2015

2014

% corporate respondents

2015 n=76 / 2014 n=99

2015 n=75 / 2014 n=99

Companies prioritise partner selection and strengthening We asked companies how important various factors were to the success of their CSI programmes. Based on their responses, it seems that companies were prioritising the strengthening of grantee organisations (80% rated ‘providing support that will strengthen grantee organisations’ as ‘very important’). Nearly as critical was selecting the right partner, or ‘funding projects that have a high probability of success’ (79% rated ‘very important’). Few companies (12%) believed that providing risk capital (funding untested approaches or organisations) or seeking long-term government commitment for their projects (20%) was very important.

The Trialogue CSI handbook 2015

Chapter one

Overview of key findings

relative importance of CSI success factors to corporates Provide support that will strengthen grantee organisations so that they can achieve greater impact Fund projects that have a high probability of success Fund projects that have an expressed aim of influencing government policy and practice Co-ordinate resources and actions with other companies or funders that are working on the same issue(s) Fund projects where there is a government commitment to take on running costs after exiting Provide risk capital (i.e. fund unproven approaches or emerging organisations) 0

100

% corporate response Not important

Moderately important

Donâ&#x20AC;&#x2122;t know

Very important

Corporate

2015 n=75

Corporate willingness to discuss certain topics varied widely Open and constructive dialogue is an important aspect of maintaining strong working relationships. Corporate willingness to discuss certain topics, however, varied widely. Whereas more than half the respondents were willing to discuss expanding programmes (84%), multi-year funding (71%), general operating support (61%) and acquiring/renovating a new facility (53%), less than 20% were open to discussing paying off loans (5%) or funding reserves for fixed assets (17%) or other non-operational uses (16%). A surprising 9% were not willing to engage in open dialogue on any of these topics. In the NPOsâ&#x20AC;&#x2122; experience, companies were not as eager for discussion. One-quarter (25%) of the NPO sample reported that their corporate partners were unwilling to engage in open dialogue. The most-often discussed topic, according to NPOs, was expanding programmes (61% of respondents), followed by multi-year funding (50%) and general operating support (49%).

discussion topics Expanding programmes Multi-year funding General operating support Acquiring or renovating a facility Working capital (cash flow needs) Flexible capital for organisational change/growth Developing reserves for operating needs Developing reserves for long-term facility or fixed asset needs Reserves for other purposes Not willing to engage in open dialogue with NPOs on any of these topics Paying off loans

100

% corporate response Corporate/NPO

2015 n=75 (multiple responses)

The Trialogue CSI handbook 2015

% NPO response 2015 n=80 (multiple responses)

the state of csi

Most NPOs reported growing income The majority (65%) of NPO respondents reported increased income in 2015. However, the proportion of NPOs whose income decreased has grown from 23% in 2014 to 30% in 2015.

% NPO respondents

Changes in NPO income 100

23%

30%

68%

65%

2014

2015

Stayed the same Decreased Increased

60 40 20 0

NPO

2014 n=171 / 2015 n=108

Government surpasses corporates as the top source of NPO income Within our sample, the NPO funding landscape has changed notably since 2014. Corporates, the most common source of NPO funding in 2014, have been surpassed by the South African Government as the largest source of NPO income. The former dropped from 22% in 2014 to 18% in 2015, whereas the latter nearly doubled from 11% to 20% during the same period. This was likely fuelled by a sharp increase in the proportion of respondents that received funding from government (63%, up from 45% in 2014). It is important to note that these changes may be due to the different sample of NPOs responding to the survey in 2015. NPO income from private individuals and self-generated funding declined by more than 5%, whereas income from trusts and foundations increased from 9% in 2014 to 13% in 2015. Investment income, while only accounting for 2% of total NPO income, was nevertheless relatively common among NPO respondents, with 38% citing it as a source of income. Other sources of income included churches and proceeds from the sale of property.

npo income by source SA Government SA corporates SA trusts/foundations Private individuals Foreign independent donors Self-generated Foreign state donors The National Lotteries Board Intermediary NPOs Investment income Debt Other 80

% NPO response NPO

0 2015

2015 n=93 / 2014 n=170 (multiple responses)

2014

% NPO income 2015 n=93 / 2014 n=170

The Trialogue CSI handbook 2015

Chapter one

Overview of key findings

Self-generated income accounts for most income growth Whereas the year-on-year data presented above shows the difference in income among two different samples, within this yearâ&#x20AC;&#x2122;s sample, the greatest proportion of respondentsâ&#x20AC;&#x2122; incomes grew as a result of increased self-generated income (62%) and funds received from corporates (51%). On the other hand, intermediary NPOs (43%) and the National Lotteries Board (41%) were the most commonly cited sources of income decline. 24

Sources of growth or decline in NPO income Stayed the same

Self-generated SA corporates Investment income Private individuals SA trusts/foundations SA Government Foreign state donors Foreign independent donors The National Lotteries Board Debt Intermediary NPOs Other

Decreased Increased

100

% NPO response NPO

n=13-77 (depending on category)

NPOs maintain many relationships to secure private and corporate funding The number and depth of relationships that NPOs form with donors varied greatly depending on their fundraising approach. Average figures were heavily influenced by outlier organisations claiming to maintain as many as 150 000 relationships with funders. The median figures, less influenced by these outliers, nonetheless show that fundraising from private individuals typically created more relationships to maintain (12 in 2015 and 2014). Table 1: Median number of donor relationships

Private individuals

2015 (n=54-92, depending on category)

2014 (n=32-131, depending on category)

SA corporates

SA trusts/foundations

Foreign independent donors

Foreign state donors

Intermediary NGOs

SA Government

The National Lotteries Board

Other

NPOs hold modest reserves Nearly three-quarters (72%) of NPO respondents held funds in reserve. Most NPOs in the sample had three to six months of reserve funds (27%). Eighteen percent reported less than three months and 6% claimed to hold more than three years of reserve funding (see figure 25).

Overhead costs most often included in project budgets More than half the NPO respondents included overhead costs in project budgets (77%) and used general donations to cover these costs (63%). Less common was using interest from an endowment (15%) or having a funder who specifically agreed to cover overheads (24%).

The Trialogue CSI handbook 2015

the state of csi

Months of operating costs in reserve

More than three years One to three years Six to 12 months Three to six months Less than three months No reserves Don't know 0

% NPO respondents NPO

2015 n=98

funding overhead costs

Overheads included in project budgets General donations Self-generated income Draw on reserves A funder specifically paid for overheads Interest from an endowment Debt Other 0

% NPO response NPO

2015 n=98 (multiple responses)

NPOs are accessing BBBEE Scorecard funding NPOs are capitalising on BBBEE Scorecard requirements in securing their funding from companies. Socio-economic development (SED) was the most common element of the Scorecard for accessing funding, with 82% of NPO respondents; however, nearly a third (31%) of respondents were drawing on skills development funds and a quarter (25%) drew on enterprise and supplier development funding.

BBBEE scorecard elements as a source of NPO funding

Socio-economic development Skills development Enterprise and supplier development Don't know 0

100

% NPO response

NPO

2015 n=83 (multiple responses)

The Trialogue CSI handbook 2015

Chapter one

Overview of key findings

Management activities reflect a dynamic NPO environment Trialogue asked NPO respondents what strategic management activities they undertook during 2015 as well as what they have planned for 2016. The results showed that NPOs were taking a critical look at their financial and strategic direction. More than three-quarters of the NPO sample (76%) claimed to have changed the way in which they raise and spend funds during the year, and two-thirds (66%) expected to do the same in the coming year. This may be guided by the long-term strategic or financial reviews that were conducted by 72% of respondents in 2015 (71% planned to do this in 2016). These results differed substantially from those of a similar 2015 survey undertaken by the Non-profit Finance Fund in the United States, which found that only 17% changed the way they raised money in the past 12 months and 26% planned to do so in the coming 12 months. Similarly, only 29% of the American respondents conducted long-term strategic planning during the year, and 41% expected such reviews in the next year. Trialogue’s NPO respondents appear to be undergoing significant change. One-third (34%) claimed to have undergone organisational restructuring during the year with 38% expecting it in 2016. This is more than twice the proportion of American respondents who underwent restructuring (16% in 2015 and an anticipated 16% in 2016). Fifteen percent of the South African NPOs surveyed had to dip into their reserve funds during the year, and even more (28%) expected to do so in 2016. 28

management activities undertaken and/or planned by npos

Change the ways in which we raise and spend money Conduct long-term strategic or financial planning Advocate to government Use outside help to improve financial knowledge or capacity Upgrade software and/or hardware to improve efficiency Seek funding other than grants Undergo organisational restructuring Collaborate with another to reduce administrative expenses Use reserve funds 0 2015

2016

NPO

% NPO response 2015 n=95 / 2016 n=95 (multiple responses)

Key findings

Governance and structure ●●

●●

Stand-alone departments were the most common management structure for CSI (55%), followed by registered trusts (28%). CSI functions tend to be lean but growing; 19% were staffed by less than two employees, down from 26% in 2014. Only five companies reported establishing community trusts. These received income from company dividends (50%) or investment income (50%). The strategy and budget for CSI outside of South Africa was most commonly set within each country’s head office. NPOs were most often registered with the Department of Social Development (83%).

CSI most commonly managed through a separate department Companies can manage CSI through a number of structures. The most common approach – among more than half (55%) of respondents – was to situate CSI as a separate department within the company. Less common (11%) was the practice of housing CSI within another department. Nearly one-third of corporate respondents (28%) managed CSI through a registered trust, with the remaining 6% establishing a non-profit company for CSI purposes.

The Trialogue CSI handbook 2015

the state of csi

Of the 22 companies that administered CSI through a foundation (in the form of a non-profit company or a trust), most (55%) served as predominantly pass-through structures whereby more than 75% of the annual funding came directly from the company. Less common were endowed structures (19%) or hybrid models (19%). 29

governance structure of Csi function

6% 11% 28% 55%

Registered as non-profit company CSI responsibility within another department of the company Registered as a trust CSI department within the company

% corporate respondents Corporate

2015 n=79

Respondents employed up to 50 staff in their CSI function, with an average of 6.6 employees (down slightly from 6.9 in 2014). The median staff size has remained constant at three employees in 2015 and 2014. On the whole, these functions tend to be lean but growing; 19% are staffed by less than two employees, down from 26% in 2014. The outlier organisations, such as the trust with 50 staff, typically employed project staff members to execute their CSI interventions.

Community trusts are uncommon Only five companies in the sample had established community trusts to fund and implement local interventions. Of these five respondents, four provided detail on their experiences with their largest trust. Three had a single community trust, while one had three such trusts. Two reported that their largest trust received income in the form of company dividends in 2015, whereas the other two earned income from their investments during the same period. Only two distributed funds during the year, with no correlation between the type of income earned and the decision to distribute funds. The trusts were overseen by a combination of local community and company representatives who serve as trustees. The boards of trustees ranged from five to 11 members with an average of seven trustees. Women were well represented on the respondentsâ&#x20AC;&#x2122; largest community trusts, with half the trustees on average being women. One of the trusts had a local government representative as a trustee and none had traditional leaders or outside professionals as trustees. One trust had representatives from academia and BBBEE partners as trustees.

CSI managed and funded independently outside of South Africa More than half (59%) of corporate respondents had operations in at least one African country outside of South Africa and, of these, a further half (51% or 28 companies) had CSI programmes in these other countries. Strategy for these programmes is most often set independently by each countryâ&#x20AC;&#x2122;s own head office (42% of respondents), with an even greater proportion of budgets located in these offices (64%). However, more than a quarter (26%) had their strategy set by the South African head office, with 24% of the budgets also sitting within South African operations (see figure 30). With CSI programmes spanning borders comes various opportunities for taking advantage of synergies, learnings and scale. Most common of these were a shared CSI strategy (76% of respondents), common focus areas (59%), and centralised CSI reporting (28%). While the high prevalence of shared strategy may contradict the finding that strategy is most often set at each countryâ&#x20AC;&#x2122;s home office, the difference can be explained by pointing out that there were some elements of a shared strategy with adjustments at a country level. This approach ensures that strategy benefits from company-established best practice while still maintaining local relevance.

The Trialogue CSI handbook 2015

Chapter one

Overview of key findings

location of African countries’ CSI strategy and budgets CSI strategy

CSI budgets Each country's own head office South African head office Regional head office International head office

% corporate respondents

Corporate

% corporate respondents

2015 n=31

2015 n=25

Weak link between CSI and skills development, enterprise and supplier development with little change expected The Department of Trade and Industry’s (dti) BBBEE Codes of Good Practice are designed to encourage transformation of the country’s business sector through a number of practices, including investment in socio-economic development (SED). In their most recent verifications, 48% of corporate respondents received the full five points for SED, down from 63% in the previous year. Giving among these respondents averaged 1.1% of NPAT.

BBBEE codeS of good practice

SED score

48% 3% 15% 3% 18% 13%

5 4 3 2 Not applicable Don’t know

% corporate respondents

Corporate

Revisions made to the dti BBBEE Codes of Good Practice are expected to raise the compliance bar. The following are the key changes of the three elements most closely related to CSI: Socio-economic development (SED): Largely unchanged in the revised Codes. Companies must spend 1% of net profit after tax (NPAT) to obtain the five points assigned to this element. Seventy-five percent of the beneficiaries must be black. ●● Skills development: Increased targets and points in the revised Codes include a required 6% of payroll allocated for training of black people and 2.5% of total permanent employees to obtain the 20 (+5) points assigned to this element. Training must be accredited to qualify and companies are required to train a combination of employed and unemployed beneficiaries to get full points. ●● Enterprise and supplier development: Companies must spend 1% of NPAT on enterprise development (ED) and 2% of NPAT on supplier development to receive the maximum score for this element, which has increased to 40 points. ●●

2015 n=78

We asked corporate respondents how their CSI activities relate to skills development and enterprise and supplier development, and how changes in the Codes will affect their practices. While the greatest proportion (47%) of companies reported no linkage between their CSI and skills development programmes, nearly the same amount of respondents (42%) used their CSI programmes as a feed-in to their skills programmes. This afforded them a more targeted development of a pipeline of talent from which to ultimately draw employees (see figure 32). Most companies (60%) foresaw no change to the relationship between skills development and CSI as a result of the revised BBBEE Codes. Greater integration between the functions was the most frequently anticipated change (19% of respondents), while a mere 7% expected expenditure on skills development through CSI to increase (see figure 33).

The Trialogue CSI handbook 2015

the state of csi

linkages with csi programme No linkage CSI projects fed into the skills development programme Managed by the same people Used the same service providers Other 0

Skills development

% corporate response

Enterprise and supplier development Corporate

2015 n=66 (multiple responses)

anticipated impacts on relationship between csi and skills development

No change expected Greater integration between CSI and skills development Expenditure on skills development through CSI will increase Expenditure on skills development through CSI will decrease Less integration between CSI and skills development Don’t know 0

% corporate response Corporate

2015 n=54 (multiple responses)

The relationship between CSI and enterprise development closely mirrors that of CSI with skills development. Most respondents (60%) reported no linkage between the programmes; however, the most common linkage was for CSI to feed into companies’ ED programmes (23% of respondents). Two-thirds of companies (66%) did not expect the revised BBBEE Codes to impact this relationship. Among those who did anticipate change, it was most often in the form of greater integration (26% of the sample) and increased ED expenditure (15%).

anticipated impacts on relationship between csi and enterprise development

No change expected Greater integration between CSI and ED Expenditure on supporting small businesses through CSI will increase Expenditure on supporting small businesses through CSI will decrease Less integration between CSI and ED Don’t know 0

% corporate response Corporate

2015 n=69 (multiple responses)

NPOs more formally structured NPOs within our sample were more formally structured than in 2014, with a growing proportion reporting some type of registration. Eighty-three percent were registered as non-profit organisations with the Department of Social Development, and nearly three-quarters were registered as public benefit organisations (PBO) with Section 18A status (71%, up from 65% in 2014) or as a PBO (70%, up from 58%).

The Trialogue CSI handbook 2015

Chapter one

Overview of key findings

registration status of NPOs Registered as an NPO with the DSD Registered as a PBO with Section 18A status with SARS Registered as a PBO with SARS Registered as a NPC with the CIPC

Voluntary association of persons, with a founding constitution Registered trust South African branch of an international organisation Other 0 2015

2014

100

% NPO response

NPO

2015 n=118 / 2014 n=171 (multiple responses)

Key findings

Employee volunteer programmes ●●

●●

The majority of companies had formal employee volunteering programmes, however this proportion continued to decline (70%, down from 73% in 2014 and 78% in 2013). Company volunteering events remained the most common form of volunteering (60% of corporates) and the type with the greatest employee participation (16%).

Employee volunteering programmes popular, but on the decline Through their employee volunteer programmes (EVP), corporates can build employee engagement and support charitable causes. If they are able to track and quantify the value of employee time, they can also include this in their socio-economic development expenditure for BBBEE Scorecard purposes. Despite these clear benefits, the prevalence of EVPs has been on a slow decline. From a peak of 78% of respondents having these programmes in 2013, 70% claimed to have EVPs in 2015.

corporates with employee volunteer programmes

% corporate respondents

100 22%

27%

30%

78%

73%

70%

2013

2014

2015

No Yes

60 40 20 0

Corporate

2013 n=103 / 2014 n=99 / 2015 n=77

Volunteering formats in flux In line with the decline of EVPs in the 2015 sample, the volunteering landscape underwent notable shifts during the year. Company use of organised volunteering events, fundraising and time off for individuals declined notably from 2014 to 2015. Employee participation, on the other hand, showed substantial growth in some areas, namely volunteering matched funding (an average of 11% of the workforce, up from 1% in 2014), give-as-you-earn schemes (8%, up from 3%) and pro bono work (8%, up from less than 1%).

The Trialogue CSI handbook 2015

the state of csi

Company volunteering events, while declining both in use and employee participation, nevertheless remained the most common form of volunteering (60% of corporates, down from 82% in 2014) and the type with the greatest employee participation (16%, down from 18%). 37

Employee volunteerism type and participation

Company volunteering initiatives Fundraising and collection drives Time off for individuals to volunteer Volunteering matched funding Give-as-you-earn schemes Pro bono work Employee matched funding Other 100

% corporate response

Corporate

0 2015

2015 n=53 / 2014 n=72 (multiple responses)

2014

% employee participation

2015 n=53 / 2014 n=72

Key findings

Monitoring and evaluation ●●

●●

NPOs are increasing their measurement at all levels of the programme logic model. More than half (53%) of the sample claimed to track impacts. Companies also increased measurement across all fronts, with more than two-thirds measuring outputs, outcomes and impacts. M&E data is most commonly used for reporting purposes. Nearly all (93%) corporates were reporting findings to their board, and two-thirds (66%) were reporting to other stakeholders.

Through monitoring and evaluation (M&E), companies can gain an understanding of the results of their social investments and NPOs can understand the efficacy of their interventions. M&E should, therefore, form an important part of the working relationship between funders and grant recipients. In 2015, Trialogue again asked corporate and NPO respondents about their approach to M&E. programme logic model The programme logic model is a tool used by funders and fundees alike to gauge the results of social investments. It is comprised of the five levels of measurement outlined below. Inputs: All resources (human, financial and other) that are allocated to specific activities (e.g. staff time, infrastructure, vehicles, funding and supplies). ●● Activities: Purposefully designed actions that transform inputs into specific outputs (e.g. distributing supplies, training people, donating equipment, building infrastructure, counselling patients and feeding learners). ●● Outputs: Direct results of activities. These are short-term results that are immediate, visible and concrete (e.g. number of people trained, supplies distributed or community members treated). ●● Outcomes: Specific changes in behaviour, knowledge, skills or wellbeing. These are medium-term developmental results that are the consequences of achieving a specified combination of short-term inputs (e.g. behaviour change, new knowledge or skills, improved grades, improved access to health services or improved self-esteem). ●● Impacts: Broader long-term consequences of the project. These include community, societal or system-level changes that are the logical consequence of a series of medium- and short-term results (e.g. improved effectiveness of education system, reduction of HIV prevalence, more educated or healthier population, or increased capacity). ●●

The Trialogue CSI handbook 2015

Chapter one

Overview of key findings

Measurement on the rise, perhaps over-reported In 2014, we reported a surprisingly high rate of corporate and NPO measurement for all CSI projects. This trend appears to have continued in 2015, with the rate of measurement generally increasing among both corporate and NPO respondents. The proportion of NPO respondents measuring outputs, for example, nearly doubled from 49% in 2014 to 90% in 2015. The only exception to the upward trend in measurement was when it came to measuring outcomes, with slightly fewer NPOs measuring outcomes in 2015 (72%, down from 77% in 2014). In 2015, we again asked NPOs how they funded their M&E activities. Few NPO respondents (20%) received funds specifically allocated to M&E (2014: 17%). Instead, they included M&E in each projectâ&#x20AC;&#x2122;s budget (58%, up from 45%) and/or funded M&E out of operating costs (57%, up from 54%). 38

levels of measurement for all csi projects

Impacts Outcomes Outputs Activities Inputs 100

0 2015

% corporate response Corporate/NPO

0 2014

2015 n=75 / 2014 n=98 (multiple responses)

100

% NPO response 2015 n=98 / 2014 n=171 (multiple responses)

Although the incremental change among corporates was not as large, the proportion of corporate respondents measuring each aspect of the logic model nevertheless increased during the year. In Trialogueâ&#x20AC;&#x2122;s experience, these rates do not reflect the level of measurement seen among South African corporates and NPOs and are likely to be overstated, particularly for outcomes and impacts, which require relatively robust data collection processes and significant commitment to capture results over time. It is possible that the surprisingly high response can be attributed to a misunderstanding of the logic model terms. Of those measuring outcomes, nearly two-thirds (61%) of the corporates claimed to measure outcomes for all grants, regardless of size (2014: 51%). Even more NPOs (82%) reported measuring outcomes for all projects (2014: 85%). 39

measurement of outcomes All grants regardless of size Only grants larger than a specific threshold Only grants made for a specific strategic CSI project Only grants made in a certain development sector Only grants larger than a specific threshold and in a specific sector Not measured for any projects

% corporate response Corporate/NPO

0 2015

2014

2015 n=74 / 2014 n=99 (multiple responses)

100

% NPO response 2015 n=92 / 2014 n=130 (multiple responses)

Most surprising is that among the corporates making more than 100 grants, 45% claimed to measure outcomes for all grants. In Trialogueâ&#x20AC;&#x2122;s experience, doing so would prove to be prohibitively time- and resource-intensive. Companies are getting more M&E experience under their belt. Nearly half (49%) reported having measured outcomes for more than five years and a further 30% claimed to have been tracking them for between three and four years. A similar proportion of non-profit organisations reported having measured outcomes for the same length of time (52% and 22%, respectively).

The Trialogue CSI handbook 2015

the state of csi

M&E data most commonly used for reporting Companies are using the data gathered through M&E in a number of ways. Nearly all corporate respondents (93%) were reporting findings to their board, and two-thirds (66%) were reporting to other stakeholders. The information was also informing project design among 72% of corporate respondents and strategy formulation among 66%. Less common was sharing findings with government (31%) and other grantmakers (29%), perhaps indicating a missed opportunity for sharing learnings and influencing change beyond their organisation.

Use of M&e data

Reporting to the board Planning/revising programmes/projects Reporting to grantees/stakeholders Planning/revising strategies Influencing public policy or government funding choices Sharing findings with other grantmakers Data not used 0

100

% corporate response Corporate

2015 n=68 (multiple responses)

A 2014 study conducted by the Grantmakers for Effective Organisations (GEO) polled 629 American foundations and found US grantmakers markedly more prepared to share their findings with their peers (49%). This is an important lesson for South African corporates to consider, as sharing findings provides a valuable opportunity to improve on successes and challenges, with the beneficiaries themselves standing to gain the most from the collaboration. ď ş

The Trialogue CSI handbook 2015

Promoting literacy as

(Above: L to R) Minister of Basic Education, Angie Motshekga, Thomas Schaefer, Managing Director Volkswagen SA and Nonkqubela Maliza: Director Corporate & Government Affairs Volkswagen SA, at the launch of the new campaign to promote functional literacy in the first ten years of a childâ&#x20AC;&#x2122;s life.

the cornerstone of all learning S

ince its inception a quarter of a century ago, the Volkswagen Community Trust has had a rich history of responsive and relevant community investment. This has led to a strong focus on education and youth development, specifically in Uitenhage, Eastern Cape. In commemoration of its 25th anniversary, VWSA recently launched a flagship campaign aimed at promoting functional literacy in the first ten years of a child’s life. “VWSA is committed to making a real difference in South Africa,” says Nonkqubela Maliza, Director Corporate and Government Affairs at Volkswagen of South Africa. “In partnership with the community and a wide range of stakeholders and experts, we want to ensure that by the end of grade 3, all the learners in the Uitenhage area are able to read with meaning.”

Few South Africans choose to read In a 2013 NEEDU survey of 214 rural schools in South Africa, 11% of grade 5 students could not read a single word in English. Minister of Basic Education, Angie Motshekga, has admitted that the education sector in South Africa is in poor shape and failing those in need of it most. According to the department’s latest research, pupils are typically performing at least two years below their required level, leading to major problems at a senior phase. The poor culture of reading that exists in South Africa exacerbates this dilemma. World reading rankings and statistics place the country very low, with 65% of South Africans choosing not to read, and fewer than 10% considered advanced readers. “The rationale behind launching a functional literacy programme is to draw attention to the importance of basic literacy skills as the foundation for learning, and to instill a love of reading and writing from a young age,” explains VWSA’s Maliza. “In order to realise the maximum benefit of all educational development interventions, the best investment starts in the children’s formative years of life by promoting early language development and literacy through reading, writing and storytelling.” “The ability to read for meaning and pleasure is arguably the most important skill children learn in primary school,” adds education researcher and lecturer, Dr Nicholas Spaull. “Almost all future learning will depend on this fundamental understanding of the relationship between print and the spoken language.” Initially, a baseline study will be conducted to determine the reading, writing and comprehension skills of learners at the targeted schools in Uitenhage, to identify the primary factors contributing to the learners’ poor performance and inability to read with meaning. It will also set guidelines as to what a ‘functionally literate’ student is, and recognise the tools and resources required to improve literacy levels. Notably, success factors will be used as a critical reference point for the monitoring and evaluation processes, to enable the full impact of the initiative to be assessed throughout the project.

Adds Maliza: “Once the baseline study is completed, VWSA will be partnering with the Department of Basic Education, academic institutions such as Rhodes University and the Nelson Mandela Metropolitan University, as well as leading literacy experts like the Shine Centre and DG Murray Trust, to design a programme to help us reach our ultimate goal. We want to equip the schools and children of Uitenhage with the necessary tools and resources to be able to read with meaning before the end of grade 3.”

“The ability to read for meaning and pleasure is arguably the most important skill children learn in primary school.” Dr Nicholas Spaull

Encouraging the joy of reading The launch took place on 2 – 3 September 2015, coinciding with National Book Week. Two hundred preschool learners from the area were invited to attend a Children’s Book Fair on the first day of the event, celebrating the sheer joy of reading and its endless possibilities. Guests were treated to an interactive programme that included singing, a yoga session, a drama re-enactment by a local troupe and a variety of fun group activities. This was followed by an intensive one-day conference for 180 invited guests, bringing together government, NGOs, literacy partners, and private, public and community stakeholders. An inspiring line-up of speakers included Elinor Sisulu, director of Puku Children’s Literature Fund; the author of May I have this Dance, Connie Ngcaba; poet Madoda Ndlakuse; and a host of language and literacy experts. The day’s proceedings focused on topical issues in the language development and literacy fields, such as the importance of getting reading right from an early age; home language literacy vs English literacy; training teachers who are knowledgeable about the processes involved in learning to read and know practically how to teach reading; and the need for libraries to be centres of excellence for multilingual children’s literature.

Chapter one

Company and NPO reputations or years, Trialogue has measured companies’ reputation for developmental impact through its corporate and NPO surveys. While not a valid gauge of actual impact, it nevertheless illustrates which organisations are communicating their interventions and receiving the reputational benefits as a result. In 2015, we expanded the reputation component of our research to include corporates’ and NPOs’ impressions of the good work that the NPO sector is doing. Similar to the corporate rankings, we asked respondents to list three organisations they feel are having the greatest impact and we ranked top companies/NPOs by the number of mentions they received. This section describes the findings.

Anglo American again tops corporate and NPO rankings Non-profit organisations and corporates alike agreed that Anglo American continues to have the greatest developmental impact. There was a great deal of consensus, as most companies were named on both lists. The exceptions were Pick n Pay, which appeared only on the NPO list, and MTN, Transnet, Telkom and MultiChoice, which did not feature on the NPO list. Nearly all of the names ranking highly for reputation are regular features of this annual exercise; however, 2015 marks MultiChoice’s first time on the corporate list. With a smaller sample of corporates participating in this year’s research, the number of mentions received by top companies declined accordingly. Despite a similar decrease in NPO participation, the number of mentions for top companies on the NPO list remained similar to previous years, suggesting a greater degree of consensus in 2015. Table 2: Companies’ ranking of corporate developmentAL impact Corporates ranking

Company

Table 3: NPOs’ ranking of corporate development impact

Number of mentions

Anglo American

2=*

Vodacom Nedbank

Old Mutual

MTN

Transnet SAB Miller First Rand

Woolworths Telkom Standard Bank MultiChoice Eskom

NPO ranking

Company

Number of mentions

Anglo American

Nedbank

Woolworths

ABSA

Old Mutual SAB Miller Standard Bank Vodacom

Pick n Pay RMB

*= Denotes equal rankings.

Impressions of top NPOs are more varied Corporates and NPOs differed more notably in their impressions of leaders within the non-profit sector. Only three organisations featured on both lists: Gift of the Givers, Afrika Tikkun and the Red Cross.

The Trialogue CSI handbook 2015

the state of csi

Among companies surveyed, Gift of the Givers was most often named as having the greatest impact (nine mentions), followed by Afrika Tikkun with seven mentions. Nationally and internationally oriented organisations featured prominently, possibly reflecting a preference for larger NPOs with proven track records, scale and concerted marketing efforts. Whereas NPO research participants formed somewhat of a consensus around the top corporates (24 mentions for the top company), their rating of NPOs was far more varied, with the top-ranked NPO – Cancer Association of South Africa – receiving only seven NPO mentions. Table 4: Companies’ ranking of NPO developmental impact Corporate ranking

NPO

Table 5: NPOs’ ranking of NPO developmental impact

Number of mentions

Gift of the Givers

Afrika Tikkun

READ

Ilifa Labantwana Maths Centre MES National Education Collaboration Trust Red Cross

NPO ranking

NPO

Number of mentions

Cancer Association of South Africa

Nelson Mandela Foundation

Equal Education Liv Village SOS Children's Villages Wildlands Conservation Trust

Red Cross Shine

Afrika Tikkun Gift of the Givers Inyathelo Nelson Mandela Children's Fund Wordworks Zimele Zoe Life

African Eyes Photography / Heifer Inter national

Ubuntu report The Ubuntu Report was compiled by WhyFive, a consumer insights business focused on syndicated landscape surveys and market reports. Findings of this report were based on survey responses received from 25 599 individuals. These respondents were selected from over two million people contacted through large national corporate databases. They also represent the top 30% of South Africans responsible for more than 86% of all consumer spending in the country. The table alongside shows the results for the question about which company respondents most admired. From WhyFive’s research, consumer-facing brands did well, with retailers and banks topping the list.

Corporate ranking

Sunday times top brands

Social Investment Award – Top 10

Similar to previous years, the 2015 Sunday Times Top Brands Report was compiled by TNS South Africa. This report was based on interviews with 3 493 individuals from metropolitan and non-metropolitan areas, plus surveys conducted with 300 business leaders. Respondents were randomly selected. Questions asked included one on which company was doing the most for community upliftment. Like last year, consumer brands were highly esteemed, with retailers, telecom providers and state-owned enterprises coming out on top.

1 2 3 4 5 6 7 8 9 10

Woolworths Pick n Pay KFC Lead SA Nedbank SA Breweries Shoprite Spar Coca-Cola First National Bank

Coca-Cola Shoprite Eskom Pick n Pay SAB Vodacom MTN Transnet Telkom Spar

The Trialogue CSI handbook 2015

Chapter one

CSI expenditure per company Company name

2014/15 published RSA spend R (million)

2013/14 published RSA spend R (million)

2014/15 focus areas reported (not in order of investment)

Source of 2014/15 data

ADvTECH

84.2

74.0

Education

ADvTECH 2014 Integrated Annual Report, page 19

AECI

10.0

Community development, education

AECI Integrated Report 2014, page 29

African Oxygen (Afrox)

7.0

10.0

Education, job creation, income-generating projects

African Oxygen Integrated Report 2014, page 49

African Rainbow Minerals

282.5

168.5

Poverty alleviation, job creation, education, welfare and healthcare

ARM Integrated Annual Report 2014, page 48

Airports Company SA (ACSA)

42.0

58.8

Mobility, community development, environment and philanthropy

ACSA Integrated Report 2014, page 103

Altron (Allied Electronics)

12.9

11.9

Education, job creation, community development, conservation, arts, culture and sports

Altron Integrated Annual Report 2015, page 159

Anglo American Platinum

236.0

204.0

Education, youth development, infrastructure, enterprise development, health, agricultural support and community development

Anglo American Platinum Sustainable Development Report 2014, page 37

Anglo American (global spend)

1 474.21

1 248.4

Early childhood development, teacher development, infrastructure support, HIV/Aids prevention and healthcare

Anglo American Annual Report 2014, page 17

AngloGold Ashanti

87.82

82.5

Community development and education

AngloGold Ashanti Integrated Report 2014, page 71

Aquarius Platinum

41.0

43.6

Early childhood development, community development

Aquarius Platinum Annual Report 2014, page 33

ArcelorMittal SA

16.3

37.4

Education, health and social development

ArcelorMittal South Africa Annual Integrated Report 2014, page 11

Aspen Pharmacare Holdings

13.6

15.1

Health, education, community development, HIV/Aids and employee volunteerism

Aspen Pharmacare Holdings Sustainability Report 2014, page 45

159.43

100.7

Education, health

Assore Integrated Annual Report 2014, page 43

Astral Foods

31.8

20.5

Education, HIV/Aids and social development

Astral Integrated Annual Report 2014, page 79

Aveng Group

20.7

19.1

Education, skills development and community development

Aveng Group Sustainability Overview, page 38

AVI

11.5

12.7

Education, skills development, sports, arts and culture, environment, health and welfare

AVI Sustainable Development Report 2014, page 41

155.04

103.9

Financial literacy, enterprise development, youth development

Barclays Africa Group Citizenship Factsheet 2014, page 33

Barloworld

16.8

16.9

Youth, education and leadership development

Barloworld Integrated Report 2014, page 11

Bidvest

41.9

33.2

Education, health and community development

The Bidvest Annual Integrated Report 2014, page 27

Assore

Barclays Africa Group (Africa spend)

The Trialogue CSI handbook 2015

the state of csi

Company name

2014/15 published RSA spend R (million)

2013/14 published RSA spend R (million)

2014/15 focus areas reported (not in order of investment)

Source of 2014/15 data

Blue Label Telecoms

5.1

4.2

HIV/Aids, youth development and education

Blue Label Integrated Annual Report 2014, page 83

Business Connexion Group

8.2

4.4

Education

Business Connexion Integrated Report 2014, page 39

Capitec Bank Holdings

5.1

2.2

Education, financial literacy and community development

Capitec Bank Holdings Integrated Annual Report 2015, page 19

Clicks Group

9.5

13.8

Health and wellbeing

Clicks Group Integrated Annual Report 2014, page 48

Coronation Fund Managers

19.0

15.0

Education

Coronation Fund Managers Integrated Annual Report 2014, page 53

Curro Holdings

44.0

33.6

Community development

Curro Integrated Annual Report 2014, page 7

7.0

5.0

Education and ICT infrastructure

Datatec 2015 Integrated Report, page 85

Discovery Holdings

61.2

29.9

Health

Discovery Sustainable Development Report, page 38

DRDGOLD

26.0

16.0

Education, health, job creation, skills development, housing and the environment

DRDGOLD Integrated Report 2014, page 52

6.0

2.0

Education and skills development

Eqstra Holdings Integrated Annual Report 2014, page 45

88.05

57.0

Infrastructure development, education, health, environment, skills development and enterprise development

Exxaro Integrated Report 2014, page 8

128.06

115.0

Health, education, early childhood development, environment

FirstRand Annual Integrated Report 2014, page 73

34.77

24.5

Infrastructure, health and wellbeing, education and training, local environment and economic diversification

The Gold Fields Integrated Annual Report 2014, page 8

8.2

12.1

Education and community welfare

Grand Parade Investments 2014 Integrated Annual Report, page 8

14.9

15.5

Education and environment

Grindrod Integrated Annual Report 2014, page 44

6.1

5.5

Education and social development

Group Five Annual Integrated Report 2014, page 97

13.1

11.6

Education, entrepreneurship, donations

Growthpoint Properties Integrated Annual Report 2014, page 103

8.5

11.4

Education, social development, community support, sports and recreation development

Harmony Gold Mining Company Integrated Annual Report 2014, page 76

Illovo Sugar

26.0

22.7

Education, health, environmental development, capacity building, infrastructure, enterprise development, sports, arts and culture

Illovo Sugar Socio-Economic Impact Report 2014/15, page 14

Impala Platinum Holdings

71.0

102.0

Infrastructure, health, education, sport

Implats Integrated Annual Report 2014, page 65

Imperial Holdings

18.0

42.0

Education and road safety

Imperial Holdings Sustainable Development Report, page 59

Investec

58.6

33.2

Education, environment and entrepreneurship

Investec Sustainability Report 2014, page 17

7.8

10.3

Community development, skills development, education, health and HIV/Aids, wildlife conservation and arts and culture

JD Group Integrated Report 2014, page 28

16.5

12.1

Education, community development, healthcare and financial literacy

JSE 2014 Stakeholder Engagement Report, page 13

202.3

253.7

Education, skills development, health, enterprise development and youth development

Kumba Iron Ore Integrated Report 2014, page 6

Datatec

Eqstra Holdings Exxaro Resources (global spend) FirstRand Gold Fields Grand Parade Investments Grindrod Group Five Growthpoint Properties Harmony Gold Mining Company

JD Group

JSE Kumba Iron Ore

The Trialogue CSI handbook 2015

Chapter one

Company name

Lewis Group

2014/15 published RSA spend R (million)

CSI expenditure per company

2013/14 published RSA spend R (million)

2014/15 focus areas reported (not in order of investment)

Source of 2014/15 data

Education, welfare and health

Lewis Group Integrated Annual Report 2014, page 56

9.7

9.2

Liberty Holdings

44.7

44.9

Education, financial literacy and health

Liberty Holdings Integrated Report 2014, page 98

Life Healthcare Group Holdings

80.2

88.5

Health and education

Life Healthcare Integrated Annual Report 2014, page 71

Lonmin

69.6

73.7

Education, community development, skills development, health, social infrastructure, sports, arts and culture

Lonmin Sustainable Development Report 2014, page 66

Massmart Holdings

41.5

41.0

Infrastructure, education, social development

Massmart Integrated Annual Report 2014, page 98

Media 24

35.0

26.0

Literacy and media training, water, energy, arts, culture and enterprise development

Media24 Holdings 2014 Integrated Annual Report, page 33

Mediclinic International

10.4

9.0

Health

Mediclinic International Integrated Annual Report 2015, page 126

Merafe Resources

18.0

21.5

Health, agriculture, community development, early childhood development, youth development and food security

Merafe Resources Integrated Annual Report 2014, page 33

Metair Investments

16.3

8.4

Education, skills development, infrastructure, health, sports, arts and culture, job creation and social development

Metair 2014 Annual Integrated Report, page 50

Mondi Group

15.3

Education, health and enterprise development

Mondi Group Integrated Report 2014, page 89

Mr Price Group

18.8

16.7

Education and sports

Mr Price Group Annual Integrated Report 2015, page 23

Murray & Roberts Holdings

14.0

13.7

Education and community development

Murray & Roberts Annual Integrated Report 2014, page 43

Nampak

13.5

10.6

Education, health and environment

Nampak 2014 Integrated Report, page 56

112.0

111.0

Education, water, environment and community development

Nedbank Group Integrated Report 2014, page 49

47.2

58.0

Health

Netcare 2014 Annual Integrated Report, page 7

5.9

3.4

Education, food security, maritime safety and environment

Oceana Group Integrated Report 2014, page 63

OUTsurance

29.4

23.6

Road safety, environment and community welfare

Outsurance Holdings Annual Report 2014, page 35

Pan African Resources

19.0

20.2

Education, food and water security and poverty alleviation

Pan African Resources Integrated Annual Report 2014, page 88

Phumelela Gaming and Leisure

12.1

12.5

Skills development, enterprise development, health, community development and youth development

Phumelela Gaming and Leisure Sustainability Report 2014, pages 13 â&#x20AC;&#x201C; 14

Pick n Pay

44.6

36.0

Education, health, small enterprise development and community gardens

Pick n Pay Integrated Report 2015, page 44

Pioneer Foods Group

31.0

34.0

Education, environment, food security

Pioneer Foods Integrated Report 2014, page 20

RCL Foods

11.0

4.2

Education, performance arts and health

RCL Foods Integrated Annual Report 2014, page 15

Remgro

23.0

14.0

Education, health, community development, cultural Remgro Integrated Annual Report development, entrepreneurship, environment and sports 2014, page 87

Reunert

9.0

11.2

Education, health, social and community development, sports development

Reunert 2014 Integrated Report, page 92

10.5

10.7

Enterprise development, education, sport development, OVC and early childhood

Royal Bafokeng Holdings Integrated Review 2014, page 50

Nedbank Group Netcare Oceana Group

Royal Bafokeng Holdings

The Trialogue CSI handbook 2015

The photographs in this publication showcase the work of Max Bastard, an award-winning social documentary and humanitarian photographer based in KwaZulu-Natal. Max specializes in creating visual narratives for local and international NGO, CSI and social activist structures. He is the recipient of the 2015 Global Campusâ&#x20AC;&#x2122;s PRISMA Human Rights Photographer Award.

Max Bastard | 083 688 5817 | max@african-eyes.co.za | www.african-eyes.co.za

Chapter one

Company name

2014/15 published RSA spend R (million)

CSI expenditure per company

2013/14 published RSA spend R (million)

2014/15 focus areas reported (not in order of investment)

Source of 2014/15 data

133.0

105.2

Education, infrastructure, enterprise development, skills development, job creation and health

Royal Bafokeng Platinum Integrated Report 2014, page 128

Sanlam

67.0

64.0

Education, HIV/Aids, economic development and social development

Sanlam Annual Report 2014, page 15

Santam

12.0

11.0

Education, arts and culture, health, youth and security, environment

Santam Integrated Report 2014, page 47

Sappi

23.0

8.1

Education, environment, health welfare and community development

Sappi Integrated Report 2014, page 43

311.08

391.5

Education and skills development

Sasol Integrated Annual Report 2014, page 12

10.4

6.8

Arts and culture, education, sports, enterprise development and social development

Sekunjalo Integrated Report 2014, page 85

118.5

Food security, community development and disaster relief

Shoprite Holdings Integrated Annual Report 2014, page 25

54.9

34.6

Education, enterprise development, health and sport

Sibanye Gold Integrated Annual Report 2014, page 89

115.0

103.8

Education

Standard Bank Group Annual Integrated Report 2014, page 18

Sun International

21.3

19.6

Education, health and welfare, sport, art and culture and community development

Sun International Integrated Annual Report 2014, page 46

Telkom SA SOC

40.0

42.0

Education, health, social welfare

Telkom Integrated Report 2015, page 10

5.3

5.0

Education, disaster relief and social development

The Foschini Group 2014 Annual Integrated Report, page 84

Royal Bafokeng Platinum

Sasol (global spend) Sekunjalo Investments Shoprite Holdings Sibanye Gold Standard Bank Group

The Foschini Group The Spar Group

13.2

11.8

Healthcare, food security, sport and safety

Spar Integrated Report 2014, page 51

Tiger Brands

24.0

22.9

Food security, education, sanitation, hygiene and heritage

Tiger Brands Integrated Annual Report 2014, page 119

140.7

124.4

Healthcare, education, social development, food security, sports, arts and culture

Tongaat Hulett Integrated Annual Report 2015, page 43

Truworths International

11.1

14.5

Healthcare, education, social development, sports, arts and culture

Truworths International Corporate Social Investment Report 2014, page 1

Tsogo Sun Holdings

54.0

35.0

Community development, enterprise development, natural environment

Tsogo Sun Integrated Report 2014, page 39

Vodacom Group

95.5

115.0

Education, health, safety

Vodacom Group Annual Integrated Report 2015, page 21

WesBank

21.6

15.2

Education

First Rand Integrated Annual Report 2014, page 134

Wesizwe Platinum

19.7

9.2

Healthcare, infrastructure, agriculture, SMME support and development

Sustainable Development Report 2014, page 25

Wilson Bayly HolmesOvcon

5.0

4.7

Infrastructure

WBHO Integrated Report 2014, page 15

Woolworths Holdings

518.0

500.0

Food security, child safety, education

Woolworths GBJ 2014, page 28

Tongaat Hulett

1. Estimated figure, converted from US$ for the group global expenditure, annual average exchange rate of R10.84 as at the company’s financial year end, December 2014. 2. Estimated figure, converted from US$ for South Africa spend, annual average exchange rate of R10.84 as at the company’s financial year end, December 2014. 3. Includes all community economic development expenditure for Assmang operations. 4. Africa expenditure figure. 5. Global expenditure figure. 6. Represents combined expenditure for all subsidiaries of First Rand Limited. 7. Estimated figure, converted from US$, annual average exchange rate of R10.84 as at the company’s financial year end, December 2014 8. Global expenditure figure.

The Trialogue CSI handbook 2015

Q&A

Interview by chapter DENISE ARCHER two

What is the difference between an NPO and a social enterprise?

What are the steps an NPO can take towards becoming a social enterprise?

Both NPOs and social enterprises are focused on a social purpose and any funds that come in are invested either directly into that purpose or into the organisation to build capacity. The only real difference is that donors fund an NPO, while a social enterprise is funded, at least in part, by income-generating activities. There is currently no legal definition of social enterprise in South Africa; some are registered as for-profit, some not-for-profit, while others have a hybrid structure.

Some organisations begin incomegeneration activities and evolve organically while others take a more planned approach to transitioning. Here are some suggested steps: 1. Understand what a social enterprise is. Ask: what does it mean and how will it benefit us? 2. Consult with your stakeholders, including your board, to get their buy-in. 3. Identify any income-generation opportunities and perform a thorough market analysis. 4. Decide on your structure and identify your business model. 5. Develop a business plan, including financial modelling. 6. Provide skills development to staff to cultivate a commercial mindset.

Is it realistic to expect NPOs to be able to evolve into social enterprises? A move towards income generation is possible for many organisations wanting to have more autonomy over their funds and sustain or increase their social impact in an ever-changing funding landscape. However, there is still a role for NPOs that are donor-funded, where income generation would not be appropriate or desirable. For example, an organisation like a rape crisis centre may not have any capacity to undertake income-generating activities, nor should it if it means staff won’t be able to focus fully on their primary work.

Do NPOs have to change their legal status in order to become social enterprises? Many NPOs are concerned that if they generate income they will lose their PBO status. This used to be the case. However, the law changed in 2006 and a PBO can now trade and earn income, as long as the business activity is directly related to the principal purpose of the organisation and does not become its primary work. Profits must also be used to further the philanthropic work, and the income shouldn’t be so substantial that it is in direct competition with for-profit businesses. So, no, NPOs do not have to change their legal status to become social enterprises. If their income becomes substantial, NPOs can set up a hybrid model with a for-profit arm that trades and ploughs profit back into the nonprofit arm. This is beneficial if the business activity is very different from the NPO’s core purpose.

Evolving from NPO to social enterprise Rachael Millson is well versed in the subtle differences between NPO and social enterprise. She heads up the South African chapter of the Social Enterprise Academy, an NPO and social enterprise that delivers learning and development programmes to individuals and organisations working for social change. She has more than 15 years’ experience in the non-profit sector in South Africa, Europe and the UK.

RACHAEL MILLSON

Is there a role for corporates in supporting social enterprises? Corporates can offer business support, mentorship and other related skills. They can provide grants, for example, to support the transition to social enterprise, or to fund a scale-and-replication strategy. Loan financing, through an impact-investment fund, is another way significant global social change has been enabled. Finally, corporates can support social enterprise growth by including them in their supply chain.

Can you share an example of a corporate successfully supporting an NPO in this transition? In South Africa, Remgro is selecting NPOs with the potential to transition and has engaged the Social Enterprise Academy and others to support them through the process. In Europe, many CSI programmes support social enterprise incubation programmes or provide funding to umbrella bodies that advocate policy changes to facilitate growth in the sector. In Asia, the Development Bank of Singapore’s (DBS) entire CSI strategy focuses on social enterprise by providing seed funding for start-ups, skills development and funding replication of successful projects. 

Development Manager and Lead Tutor Social Enterprise Academy rachael@socialenterprise.academy www.socialenterprise.academy/za 061 864 6799

The Trialogue CSI handbook 2015

Celebrating 10 years of believing in more

Promaths Awards for the Dobsonville Centre in Johannesburg top performer.

50 students from across the country gathered at the Investec Sandton office for the three day bursary selection process for the 2015 intake.

Top performers of the Promaths matric class of 2014 for the Hammanskraal and Mamlelodi centres.

In 2005, two of Investec’s social investment flagship programmes were established: the Investec CSI Bursary Programme and Promaths. This year, Investec and its key partners in the implementation of these programmes celebrate ten years of making a contribution in South Africa – 10 years of believing in more. Enhancing education efforts Promaths is a partnership between Investec and Kutlwanong Centre for Maths, Science and Technology aimed at improving high school learners’ performance in maths and science. This programme offers extra maths and science tuition for grades 10, 11 and 12 learners in Soweto and other parts of the country. It is important to note that it does not seek to replace the role of maths educators in schools, but rather to supplement their efforts. From a pilot programme with only 100 learners in Soweto in 2005, to one with the capacity to accommodate more than 3 500 learners in various parts of this country, Promaths has grown in many ways. Financial aid for fitting students The Investec CSI Bursary Programme is a partnership between Studietrust, a bursarymanagement NGO; and Investec, which affords bursaries to young students with academic potential and financial need to enable them to pursue commerce-related studies at university. The programme started with only 20 students in 2005 to one with 89 students in 2015 and many other professionals are now counted among the programme’s alumni. What has sustained both these programmes over the past decade? The answer is simple in theory but difficult to achieve in practice: strong partnerships. In both these programmes, Investec was fortunate to find hard-working partners whose social development goals were closely aligned with Investec’s social investment philosophy and intentions: that of facilitating opportunities that enable people to become active economic participants in society. The alignment of values and goals was a good foundation for solid

Students writing their National Benchmarking Test (Qualitative and Quantitative), at our Sandton offices facilitated by the University of Cape Town.

Promaths Awards in Port Elizabeth a celebration of hard work and dedication.

Celebrating with the top performer in the Qwaqwa Promaths centre

relations and, without this, the programmes would not have survived the first two years. Common vision was a necessary ingredient as it provided a basis for exploratory engagement and more frequent interactions that bolstered trust within these partnerships. High trust levels allowed for constructive conversations; chopping and changing these programmes when necessary to build replicable models and solutions to South Africa’s education challenges. Moving from a ‘donor-recipient’ to a ‘partnership’ philosophy and approach was a significant shift in mind set as it appreciated the expertise of both these organisations. Studietrust, for example, had been doing bursary management and distribution for 31 years at the time of entering into partnership with Investec. Tumelo Mabitsela, the champion behind Kutlwanong, our partner on Promaths, was a teacher and school principal for many years. His expertise proved to be invaluable because, while Investec’s social investment aspirations of using education to facilitate societal prosperity were clear, it remains a financial institution and not a bursary management or academic institution. With this in mind, both organisations became active partners, creating the capacity to facilitate broader societal upliftment. Actively improving young lives We celebrate ten years of giving back to society through these programmes because our partners were not silent. They actively guided and shaped the development of these programmes in various ways. We are celebrating ten years of bringing promise through education because our partners embraced the fact that Investec’s approach to social investment was not that of a cheque writer, but one of an active participant in the improvement of people’s lives. On behalf of many of our Promaths and bursary programme beneficiaries, we thank Studietrust and Kutlwanong. Here is to another decade of bringing growth to others through education.

Q&A

Interview by SHONA YOUNG

of local communities using this method to effectively ‘name and shame’.

What is the main aim of HEARTLINES? HEARTLINES employs the use of story to encourage individuals to live out positive values such as trust, courage and integrity. HEARTLINES challenges people irrespective of race, gender, age or religion to live out positive values in a way that will build people, families, communities and the nation.

HEARTLINES uses a multimedia approach to broadcast its message. What do you find is the most powerful medium to get your message across?

What role does storytelling play in development? Storytelling has the power to shift human behaviour because stories impact emotions and emotions influence action. While there is often the need for structural interventions in development, the use of story can be a powerful addition. It is also useful for the organisations involved in social development. If NGOs want to make an impression on donors, they can do it through storytelling. Similarly, if donors want to grab the attention of their boards, they should use stories. Stories resonate with everyone because our brains are wired to receive stories.

How does HEARTLINES use stories to achieve its aims? HEARTLINES uses stories to inspire people to live out positive values such as trust, self-control, courage and integrity. These values are the bedrock of any functional person, family and community. There is often a gap between what we would like to do and what we actually do. Through our programmes, we encourage and support people, irrespective of race, gender, age or religion, to close this gap.

Can you give us an example of how storytelling tangibly brought change to communities? There were many episodes of the Soul City television series that resulted in a direct change in behaviour. One example is the Soul City episode that dealt with domestic violence. A technique was portrayed, where members of a community banged pots together outside homes where domestic violence was taking place. This alerted perpetrators to the fact that the community knew what was happening. At the time, this technique had not yet entered consciousness in South Africa, yet through the series, many South Africans learnt about it and within months of screening the episode there were reports

The Trialogue CSI handbook 2015

Achieving social impact through storytelling HEARTLINES is an awardwinning NGO with a mission to change lives through media and start value-based conversations that transform communities. Dr Garth Japhet, an Ashoka and World Economic Forum fellow, and the co-founder of Soul City, is the founder of HEARTLINES. He shares his experience of the power of story to touch hearts and bring about change in society.

We use a multimedia strategy, as each medium has its advantages. A visual story engages on one level, audio on another, and print on yet another. The sum really is greater than the parts so the more mediums we use, the more people we reach and the bigger the impact we have. After the media phase of our interventions, many groups and institutions use our storybased resources to facilitate learning and change in schools, faith-based institutions, prisons and businesses. HEARTLINES has produced a number of award-winning films and mini-series that have been extensively aired on all the SABC channels and in many other countries. These have been supplemented by over 30 print resources.

What would you say are the hallmarks of a good relationship between corporates and social change agents? It’s about finding the sweet spot between business goals and NGO aims. There needs to be a win-win, with both parties invested and standing to gain from the relationship. We believe in the concept of shared value where the business is involved in its ecosystem. The importance of good working relationships cannot be overstated. For example, we have a partnership with Nedbank where we do education on values and money. Through this intervention we are able to help people review their relationship with money; how they earn it, save it, spend it and give it away. While we achieve our educational objectives, Nedbank is able to engage with potential customers.

What is in the pipeline for the future of HEARTLINES?

GARTH JAPHET

CEO HEARTLINES info@heartlines.org.za www.heartlines.org.za 011 771 2540

Our next campaign titled ‘What’s Your Story’ looks at building understanding between people as the basis for trust. The steps include getting buy-in, producing resources such as a feature film and other audiovisual materials and, finally, taking leaders away for a weekend to get to know each other and build relationships. 

Chapter one

Trends in global corporate philanthropy Corporate philanthropy is growing in prominence around the world. Sandra Makuchete compares significant indicators and information from reports by the Committee Encouraging Corporate Philanthropy (CECP) with Trialogue’s 2015 primary research on South African corporate giving. What is seen is that, across the globe, corporate giving is stabilising and despite different contexts, the patterns of giving are similar.

his year marks the 18th year that Trialogue has conducted primary research on corporate social investment in South Africa, the details of which appear in chapter one of this handbook. In this article, we compare findings from Trialogue’s 2015 research on 81 companies, to those from two CECP 2015 reports: Giving in Numbers and Giving Around the Globe. CECP was founded in 1999 to support companies’ social investment priorities. It has more than 150 CEOs of the world’s largest corporations as members, with annual revenues of over seven trillion dollars. CECP’s 2015 Giving in Numbers report analysed data from 271 United States companies; while the 2015 Giving Around the Globe report analysed data from 57 companies in 15 countries outside of the US in Africa, Europe, Asia and Latin America.

Total giving appears to have slowed in certain areas Trialogue’s research includes an annual estimate of total corporate giving in South Africa and the two CECP reports document the total amount of giving by the respective samples. The US and SA figures show that funding flows have slowed over the past year. However, figures from respondents sampled in the Giving Around the Globe report depict that funding flows increased for the same period. Some observations include: ●● The 271 US companies sampled in the Giving in Numbers report donated more than $18 billion in 2014, down from $25 billion donated by the 261 companies surveyed in 2013. ●● The 57 companies included in the Giving Around the Globe report gave $5.2 billion in cash and non-cash donations in 2014, up from $3.6 billion contributed by 54 companies in 2013. ●● Trialogue estimates that total corporate giving of companies in South Africa, based on an extrapolation of published figures from listed companies, was R8.1 billion (comparable to $0.7 billion at average exchange rates) in 2015, slightly down from R8.2 billion (comparable to $0.8 billion at average exchange rates) in 2014.

The Trialogue CSI handbook 2015

Median giving

$18.5 million

$1.5

million

United States

South Africa

the state of csi

Giving is concentrated among large companies

The most generous sectors differ around the world

As seen in previous years, a few large US companies made the biggest philanthropic contributions. Approximately 25% of all companies surveyed donated more than $50 million each in 2014. Total giving per company ranged from $0.3 million to $2.6 billion, with the median total giving for the same year amounting to $18.5 million. Companies surveyed for the Giving Around the Globe report were similar to the US figures; almost 25% of respondents spent more than $50 million on philanthropic efforts. It is worth noting that CECP targets companies with revenues in excess of $2 billion. In South Africa, the top 100 companies accounted for 66% of total CSI expenditure in 2015. Thirty of these companies spent more than R50 million on societal investments, 15 of which spent more than R100 million. The median CSI expenditure in Trialogue’s primary research sample was R16.6 million in 2015, up from R14.4 million in the previous year.

The CECP research on US companies revealed consumer staple companies as the front runner in many programme areas where cash was invested. These companies had the highest median total giving as a percentage of revenue and pre-tax profit, 0.19% and 1.20% respectively. The healthcare industry also made significant contributions with 0.15% and 1.17% median total giving as a percentage of revenue and pre-tax profit. The industrial sector was the least generous with a 0.08% and 0.64% median total giving of revenue and pre-tax profit. Trialogue’s ‘best estimate’ calculations show that the mining sector is still the biggest contributor to CSI in South Africa. This sector accounted for approximately 41% of the total CSI spend. In second and third place were retail and financial services whose contributions were an estimated 18% and 16% respectively.

Over half of sample companies cite increases in giving

Giving as a percentage of profit increased

In the period 2012 to 2014, a notable 56% of US companies increased their philanthropic giving while 8% maintained the same level. The remaining 36% decreased their level of giving. Similarly, 59% of South African corporates increased their giving in the last financial period, 25% decreased their giving, while 16% did not change their level of giving. Reasons for increases or decreases in giving vary across companies. Interestingly, US companies most deeply invested in the betterment of society also saw the most robust financial performance in 2012 to 2014. For instance, companies that increased giving by more than 10% also increased median revenues and pre-tax profits by 14% and 9% respectively. All other companies had a 9% median revenue growth rate and 2% median pre-tax profit growth rate. In South Africa, of the companies that increased their giving, 41% attributed this to increased corporate profits. Similarly, 55% of companies with lower CSI budgets cited declining profits as the main reason for this.

CECP’s report on US companies shows that total giving as a percentage of revenue remained fairly stable between 2012 and 2014, averaging 0.13%. However, as a percentage of pre-tax profit, giving by US companies increased from 0.95% in 2013 to 1% in 2014. Companies with revenues ranging from $15 billion to $25 billion accounted for the highest median total giving as a percentage of pre-tax profit (1.18%). However, figures for Fortune 100 companies and companies with more than $100 billion revenues were slightly lower, accounting for 0.81% and 0.77% of pre-tax profit respectively. In SA, companies continue to base their CSI budgets on net profit after tax (NPAT) targets prescribed in the BBBEE Codes (1% of NPAT). Trialogue’s research indicates that companies spent an average of 1.7% of NPAT in 2015, up from 1.4% in 2014.

According to the CECP, on average, US-based companies made 17% noncash contributions in 2014. In the US, the communications sector contributed the most to non-cash giving, a notable 52%. Pro bono services also increased with the percentage of companies offering them growing from 40% in 2012 to 49% in 2014. The Giving Around the Globe report revealed that European companies made the most non-cash contributions in 2014, 18% of their total giving. Asia’s non-cash contributions were moderate (14%), while Africa and Latin America contributed the least, at 11% and 10% respectively. In 2015, 34% of South African companies reported non-cash giving as part of their CSI expenditure, down from 40% in 2014. This non-cash giving represented 10% of total giving, down from 12%.

African Eyes Photography / DG Murray Trust

Non-cash giving represents between 10% and 20% of giving globally

Education remains the most popular sector to invest in Globally, education is still the most popular sector for investment by companies. American-based companies spent a respective 17% and 13% of their philanthropic giving at school and tertiary levels. The health and social services

The Trialogue CSI handbook 2015

Trends in global corporate philanthropy

sector is the second most popular area of investment (25%) in the US. In South Africa, 92% of corporates supported the education sector which attracted 47% of CSI spend in 2015. Social and community development, and health hold second and third positions. These two sectors secured 17% and 12% of CSI spend respectively.

Companies in all countries give outside their borders Companies across the globe tend to make both domestic and international societal investments. European companies engaged in the most international giving, with 81% of European companies giving internationally in 2014, followed by Asian and Latin American companies, at 56% and 44% respectively. US companies contributed 21% to international beneficiaries. South African companies lag in this area with only 11% of SA companies giving internationally. Furthermore, international giving by the South African companies surveyed accounts for only 3% of philanthropic giving.

Employees play an important role in corporate philanthropy US CEOs identified employees as the key stakeholder influencing decisions on corporations’ societal engagements. In line with this, 78% of US companies reported that they would most likely change their matching-gift programmes in a way that has the potential to increase employees’ participation. In 2014, 224 US companies (83%) reported having at least one domestic employee-volunteer programme. More than half (58%) of these companies reported having at least one programme available for international employees. Additionally, the top quartile of companies reported a minimum 50% participation rate by employees. The proportion of South African companies with formal employeevolunteer programmes dropped slightly from 73% to 70% in 2015. Most companies (60%) embarked on company volunteering events. Similarly for US companies, 59% offered a company-wide day of service, a significant increase from the 48% indicated in 2012. Europe had the most companies

The Trialogue CSI handbook 2015

Giving to Africa Most of the US corporate international giving went to Europe (39.4%), while Africa received the lowest investment at $88.4 million (8.5%). In contrast, for those South African companies that gave internationally in 2015, most (91%) of the giving went towards causes in the rest of Africa.

offering company time to volunteer domestically and internationally (87% and 67% respectively). A significant number of companies in Asia and Latin America also offered company time fairly generously. At least 70% and 40% of companies in those regions offered company time to volunteer domestically and internationally. US companies also prioritised the offering of company time to volunteer. Sixty percent of US companies offered paid-release time domestically and 34% offered this time internationally. In comparison, 51% of South African companies gave employees some time off during working hours. Corporate matching of employee donations was found to be low in Latin America and Africa, with 33% and 25% of companies respectively offering a corporate match. Asia ranked the best with 94% of its companies matching employee donations, followed by Europe at 88%. In regard to domestic pro bono programmes, more than 50% of companies in all the regions except Africa offered this. Just less than a quarter of South African companies (22%) undertook pro bono programmes.

Companies are increasingly measuring the outcomes of their investments Companies are beginning to take monitoring and evaluation seriously. Most (84%) US companies measured outcomes and/or impacts of their societal investments, compared to 73% in 2013. Interestingly, companies that did these evaluations reported an 18% jump in their total giving from 2012 to 2014. More than two-thirds of SA companies also claim to have measured outcomes and/or impacts of all of their projects in 2015. Of these companies, nearly 93% report findings to their boards while 66% report to other stakeholders.

report online

Chapter one

Download the CECP’s latest Giving in Numbers and Giving around the Globe reports at www.cecp.co

Companies are becoming more focused in their giving The reports discussed here confirm the growing importance of philanthropic efforts by companies across the globe. It is interesting to note that most companies are linking their CSI initiatives with their business imperatives and, in doing so, are becoming more focused in their giving. In the US, companies have reduced the number of focused funding areas to an average of 1.5 in 2014. The median number of recipients per US company has declined, although it is still very Development focus areas

4.6 1.5

Number of recipients

460 45 United States

South Africa

high, from 520 recipients in 2012 to 460 recipients in 2014. SA companies reported giving to an average of 4.6 different development areas. Most of them (28%) made contributions to 21 to 50 organisations, notably lower than their US counterparts. Eleven percent of South African companies distributed funding to less than five recipients while 17% of companies contributed to more than 100 organisations. Although there may be a long way to go, it is evident that companies understand the importance of focused and strategically aligned funding. 

the state of csi

Tomorrowâ&#x20AC;&#x2122;s leaders are born when knowledge turns to action. When knowledge turns to action, it builds a strong future. Our learning programme bears testament to this with 160 distinctions being achieved in Maths over the last two years. By working with non-profit organisations like Kutlwanong Centre for Maths, Science and Technology in Gauteng and Kwa-Zulu Natal, weâ&#x20AC;&#x2122;re delivering world-class Maths and Physical Science programmes to historically disadvantaged learners. We do this because we believe that when knowledge turns to action, it can change the world.

Liberty Group Ltd - an Authorised Financial Services Provider (No. 2409).

Accenture receives Rockefeller Foundation grant to grow youth programming academy Accenture in South Africa and the Rockefeller Foundation have entered into a collaboration to offer sought-after ICT skills and job opportunities to thousands more disadvantaged young people annually in South Africa. The challenge South Africa faces a massive and well-publicised triple challenge of poverty, unemployment and inequality. The economy continues to shed thousands of jobs annually and the official unemployment rate now stands at 26.4 percent (Q1, 2015).

Targeting youth and the right skills It is primarily a youth problem. South Africa’s 2011 Census showed that 70 percent of the unemployed

economically active working age population is younger than 35. The government is keenly aware of this. At the heart of The National Development Plan (NDP)—the strategic roadmap for all government’s programmes and plans—is a vision of a better future for South African youth through job creation and fostering entrepreneurship. But if we are to support the NDP’s goal to create 11 million jobs by 2030, we need to take a closer look at the type of unemployment South

Africa is faced with: Fundamentally, the issue is one of critically low levels of the types of skills needed to boost the competitiveness of our industries and nation. An ICT skills market assessment conducted by MICT Seta reveals more than 70,000 vacancies for ICT practitioners, eclipsing the number of ICT students graduating from tertiary education institutions. Within this basket of skills, software development is rated as one of the most-needed in the country, with C#, .NET and Java among the top 10 most wanted programming languages.

Seamless fit The close strategic alignment of Accenture and the Rockefeller Foundation makes the collaboration a seamless fit. In a pilot conducted in 2014, Accenture’s Skills to Succeed (S2S) initiative trained 240 disadvantaged young South Africa people in critical ICT and workplace skills. In addition, it arranged for job opportunities for all successful candidates in collaboration with commercial organisations. Khethiwe Nkuna, Corporate Citizenship Lead for the Middle East, Africa, Russia and Turkey at Accenture, says the collaboration, supported by the Rockefeller Foundation grant to the Accenture S2S initiative, will give it the clout to really make a difference in the job market.

S2S’s four-month courses (developed by Accenture) equip learners with the necessary combination of technical knowledge, workplace integration and project management skills. This is also the approach used at Accenture to train its industry leaders. Through this and a range of other initiatives, Accenture aims to equip 2,000 students annually with the skills to start a business or find a job over the next three years. The Rockefeller Foundation’s Digital Jobs Africa initiative seeks to catalyse new, sustainable employment opportunities and skills training for disadvantaged Africa youth, with a focus on the ICT sector—one way being through working with local organisations to provide skills training.

“The Foundation’s support really advances our work and corporate citizenship efforts in support of the government’s economic development and transformation agenda,” says Nkuna. “It provides scale to our work and ties in perfectly with our goals.” “This collaboration with Accenture seizes upon the tremendous opportunity presented by the youth bulge in Africa and the phenomenal rise of the ICT sector to bring about sustainable impact through job creation,” adds Mamadou Biteye, Managing Director at the Rockefeller Foundation in Africa.

Impact sourcing Nkuna says the company chose to focus on the impact sourcing sector to leverage opportunities in the ICT and BPO industries.

“Focusing on high-potential disadvantaged youth, women and marginalised people who would otherwise not have opportunities for sustainable employment, gives us a chance to truly make a difference. We are proud of our collaboration with Rockefeller Foundation and the fact that we can make a difference to young disadvantaged people who are facing a range of challenges. We are seeing many instances of them moving forward with their lives and achieving milestone after milestone in their own personal development.”

Chapter one

A spotlight on CSI in Kenya For the first time, Trialogue has extended the scope of its annual CSI research beyond South African borders. Information on Kenya has been gathered through primary and secondary research with a view to kickstarting a process of understanding CSI on the rest of the continent. Although ranked a lowermiddle income country, Kenya is the biggest economy in East Africa and it received the second-highest proportion of North American companies’ giving in Africa, after South Africa, according to the CECP’s (Committee Encouraging Corporate Philanthropy) Global Corporate Giving Report of 2014.

enya faces a number of developmental challenges similar to South Africa and, in fact, most other African countries, including poverty, unemployment and inequality. Kenya’s primary challenge is to grow a more inclusive economy in order to reduce poverty. Kenya’s GDP of US$60.9 billion is way smaller than that of South Africa (US$349.8 billion). GDP annual growth in Kenya averaged 5.4% from 2004 to 2015 but has not necessarily been inclusive as about 40% of the population lives in extreme poverty (below the poverty line of US$1.25 a day). The Kenyan inflation rate was higher at 7.3% in 2014 than South Africa at 6.3%. South Africa’s GDP growth rate averaged 3% from 1993 to 2015. The proportion of people in extreme poverty came down from 26.6% in 2006 to 21.7% in 2015. However, the slower economic growth rate is putting pressure on government expenditure, including affordability of social grants that cater for more than 16 million people (a third of the population). Kenya is the giant economy of East Africa; its stock exchange has 64 listed companies and a market capitalisation value of US$26.3 billion. In contrast, the Johannesburg Stock Exchange has close to 400 listed companies, some of them dual listed. The market capitalisation for the JSE’s top 100 listed companies amounts to close to US$850 billion and it is ranked as one of the 20 largest exchanges in the world.

Quick comparisons ●●

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Kenya has a growing and youthful population (70% youths) compared to South Africa that has 30% youths. Life expectancy in Kenya is higher (62 years) than that of South Africa (57 years). Kenya and South Africa have a similar infant mortality rate of 36 and 35 per 1 000 live births estimated for 2015 respectively. Kenya devolved administrative power to counties in 2010 to improve planning and governance. It established 47 counties as of 2013. South Africa has decentralised power, with three levels of government, namely, national, provincial and local government.

The Trialogue CSI handbook 2015

the state of csi

Kenya’s gap in developmental legislation Since 1992, all non-governmental organisations (NGO) operating in Kenya were governed by the Non-Governmental Organisations Coordination Act of 1990 and its Regulations of 1992. However, in view of the new constitution of 2010, Kenyan Government officials, NGO leaders and other stakeholders developed a consensus that Kenya's 1990 NGOs Co-ordination Act had major limitations. The Act was not based on a policy, did not consider international best practices and it outlawed all unregistered NGOs. Therefore, in 2006, the relevant stakeholders agreed to produce a sessional paper that formed the basis for the need to review the Act. The Sessional Paper No. 1 of 2006 contained the National Policy on NGOs. The introduction of an NGO policy and the subsequent review of the NGOs Co-ordination Act led to the passing of the Public Benefit Organisations Act of January 2013, in which NGOs would be known as public benefit organisations (PBO). Government has not, as yet, implemented the PBO Act, which it sought to amend in 2013 and 2014, although both these attempts failed. One major amendment that fell through was the proposal to cap the amount of funding NGOs could receive from external donors at 15% of their budget. Some contentious issues remain, such as executive power over self-regulation, compulsory governance of all civil society by the PBO Act, and ceding of funds to a national NGO authority. These challenges arise from security concerns in Kenya, where some NGOs are suspected of using their charitable status as a front for raising funds for terrorism. Currently, there is a revamped and influential NGO Co-ordination Board in place that’s legally mandated to regulate the sector. However, the delay in implementing the PBO Act has left a legal gap as many of the structures and the functions established in the NGO Co-ordination Act (1990) have expired or become redundant. As a result, NGOs are operating in a legal vacuum. Nevertheless, NGOs continue with their work and corporates continue giving towards charity and development work through corporate social responsibility (CSR) activities.

The Kenyan Government’s participation in the development sectors Since 2008, the Kenyan Government has been pursuing Vision 2030, a strategic framework implemented to transform Kenya into a newly industrialised, middle-income country by 2030. For the 2015/16 budget, government’s development focus is on infrastructure, agriculture, security, health, education, social protection and youth empowerment. Its ultimate plan is to boost growth, create jobs and enhance social equity. In the 2015 to 2016 financial period, it budgeted more than Ksh2 trillion (about US$21.6 billion), with Ksh721 billion (US$7.8 billion) allocated to development expenditure. To support this vision, the lion’s share (28%) of the budget was allocated to the social sector. Similar to South Africa, the bulk of the social sector expenditure is on education. It spends 21% of its recurrent budget on education.

African Eyes Photography / Inyathelo

CSI trends in Kenya To understand CSI trends in Kenya, Trialogue partnered with Fanaka Consulting and invited companies in Kenya to respond to a customised, corporate research questionnaire. Six companies responded. Although the survey response rate was disappointing, the responses gave a first glimpse into CSI practices adopted by other African companies and the intention is to improve on the robustness of this research in coming years. We are grateful to our inaugural research participants: ●● Barclays Africa ●● Standard Chartered Bank ●● Equity Group Foundation ●● KCB Foundation ●● Safaricom ●● Nation Media Group We recognise that it is not yet possible to draw concrete conclusions about the state of Kenyan – or African – CSI, based on their responses. However, we can outline the interesting findings that arose from the Kenyan survey sample. We compare some of the findings to South African survey results, where feasible.

The Trialogue CSI handbook 2015

Chapter one

A spotlight on CSI in Kenya

Respondents profile Of the six Kenyan respondents, four are in the financial services sector. Whereas most (five) employed between 1 000 to 5 000 employees, one reported a workforce of up to 50 000 staff. All companies reported adopting a combination of business-to-business and business-to-consumer models. In 2015, Trialogue received 81 responses from South African companies whose sizes varied as measured by workforce. More than half of the surveyed companies had less than 5 000 employees and 12% had more than 20 000 staff.

Social expenditure Giving among Kenyan respondents was almost entirely in the form of cash. Only one Kenyan company reported non-cash giving; however, this amounted to less than 1% of its total giving. By contrast, approximately one-third (34%) of South African respondents reported non-cash giving, showing that this is a more established practice, even though the proportion of companies giving in this way was down from a peak of 40% in 2014. Global trends as revealed in the CECP’s Giving Around the Globe report show that Africa contributed the least non-cash donations (11%), while European companies made the most noncash contributions in 2014, 18% of their total giving. The Kenyan companies indicated that budgets were determined through a range of methods. Unlike South Africa, where the Codes of Good Practice provide clear guidance that giving should equate to 1% of net profit after tax, Kenyan companies are given more leeway to determine their own budgets. From the survey it is seen that two companies established their budget as a percentage of pre-tax profit. One maintained a fixed budget with a variable percentage increase each year. The board took the decision at another company while the last took existing expenditure into consideration. While all the Kenyan companies’ funding included direct project expenditure, their spending on other cost types – and the proportion each category represents – varied widely. CSI marketing and communication costs, for example, ranged from 1% to 25% of respondents’ total CSI expenditure for the year compared to South Africa’s average of less than 5%. South African companies spent about 13% of their CSI expenditure on management and support services. Only two companies included administrative costs in their total CSI expenditure. The number of organisations supported and the number of separate grants made during the year varied substantially. Four companies made less than 20 grants to fewer than 20 organisations, with the remaining two giving more than 50 grants to more than 50 organisations.

Governance Half the respondents (three companies) in Kenya administered CSI through an in-house department, a trend similar to South Africa where this is the most common approach (55%) of respondents. One company has registered a non-profit organisation and another administered CSI through a trust funded by the group and its partners. Ultimate oversight varies across the six companies. Respondents cited their board, CEO, CSI manager and foundation/NPO trustees as custodians of CSI. All six respondents agreed that a moral imperative drove their CSI, and that it was the right thing to do. One respondent also cited reputational and strategic benefits.

Geographic distribution Only one Kenyan respondent reported giving outside of Kenya. Of the four companies which gave at a national level (to organisations spanning multiple counties), each gave more than 60% to these organisations in 2015. The remaining fifth company distributed its funding widely across 25 counties in Kenya. In the South African survey, nine respondents (11% of the sample) reported international giving in 2015, with the lion’s share (91%) of their giving going to Africa. Kenyan respondents took a less-focused approach to development sector funding than our South African corporate sample with an average of 6.7 development sectors supported (South Africa: 4.6). Similar to South Africa where education received 47% of CSI spend in 2015, education was the only sector that enjoyed the support of all respondents, although no breakdown figures were available.

The Trialogue CSI handbook 2015

the state of csi

Globally, education is the most popular sector for investment by most companies. American-based companies, for example, spent 17% and 13% of their philanthropic giving at school and tertiary levels respectively.

Monitoring and evaluation Four out of the six Kenyan companies had monitoring and evaluation (M&E) processes in place to gauge the performance of their social investments. Of these, all reported that they went on site visits and documented various types of activities performed at the projects. In South Africa, M&E is fast becoming standard practice. Ninety percent of NPOs claimed to undertake M&E in 2015 (up from 49% in 2014), while more than two-thirds of corporates stated that they conduct M&E. However, the feedback does not factor in the robustness of M&E processes, which can, at times, be somewhat superficial.

Reputation and perceptions Respondents were asked which companies and NPOs, in their opinion, were having the greatest developmental impact in Kenya. In the NPO category, the Red Cross and World Vision each received two mentions. Two companies – Safaricom and Equity Group Foundation – received multiple mentions by the small sample of respondents. Safaricom, a telecommunications company in Kenya, is a major player in CSI. True to the reputation it has built in the CSI space, through its Foundation, the Group has invested KSh18 billion towards CSR projects in education, health, economic empowerment, arts, music and culture, and the environment since 2003. Speaking at the launch of the Foundation’s 2014 to 2017 strategy, the CEO of Safaricom, Bob Collymore said, “Business has obligations and it must meet business needs without compromising the next generation. Writing cheques is easy but identifying needs and fulfilling them is harder. It is also important for companies to partner and learn from others because when we know better, we do better. CSI should be built into your DNA and be part of your company’s DNA. And the leaders should be people who walk the talk.” Staff at Safaricom seem to have internalised corporate social responsibility, while Sanda Ojiambo, Head of CSR at Safaricom, advocates for public awareness and collaboration on sustainable development matters. She encouraged Kenyans to participate and contribute to the 2015 sustainable goals. “Now is the moment for Kenyans, via #MyKenya, to build a swell of encouragement to make sure these goals are as ambitious as possible and truly game-changing for so many around the world. The new goals will be collaboratively developed and agreed upon by people and their government and can lead to a world in which people enjoy a life of dignity where basic rights are not just a luxury,” said Ojiambo.

In conclusion Kenya has benefited and will continue to benefit increasingly from Official Development Assistance (ODA) funding in the foreseeable future, whereas in South Africa this source of support is showing signs of decline as budgets shift to less-developed geographic areas. Nonetheless, corporate social investment in South Africa is well established and has been practised for many years, with formalisation being driven in the early years by codes such as the Sullivan Principles and, in later years, by BBBEE legislation and the JSE integrated reporting requirements. Corporate giving in Kenya is less established with limited sharing of practice and information and is referred to as CSR (corporate social responsibility) rather than CSI (corporate social investment). With corporate giving becoming more common, we should anticipate that companies in Africa will increasingly prioritise it. We should also see more transparent communication and platforms for sharing lead practice and professionalisation of the sector. Kenya, given the leadership position it adopts in East Africa, is likely to be at the forefront of this trend towards CSI in Africa.

The Trialogue CSI handbook 2015

AngloGold Ashanti

The main objective of the AngloGold Ashanti CSI programme is to contribute towards the creation of an equitable society, through supporting the South African Government’s transformation goals and the development needs of neighbouring countries as a source of labour resources. AngloGold Ashanti recognises education as the area in need of greatest intervention in both South Africa and the larger Southern African region. The company channels its funds towards effective school interventions and programmes that make a positive impact on education in general. A large proportion of the funds are allocated to teacher development and learner support, which includes the basic needs of children such as adequate nutrition. Subjects that are prioritised, albeit not exclusively, include mathematics, science, technology and indigenous languages. Three of these initiatives are discussed below – the Early Inspiration Programme, Roundabout Water Solutions and REAP.

AUF has an integrated approach to education that not only focuses on the skills acquired in the classroom, but also the development of each individual student to realise their full potential.

a network of existing ECD centres, and implements interventions that are focused on training and support. The main purpose of the one-year course is to reduce school drop-out rates and to improve the pass rate and learning outcomes in the targeted areas. Its holistic approach offers support for teachers, learners and parents in these centres. Firstly, training is provided for teachers to build on their existing skills. On completion, teachers are awarded with SETA accreditation in education, training and development practices (ETDP), which enables an opportunity for them to earn higher salaries. Secondly, children are monitored in their home environment to bridge any gaps that may exist between formal and home learning. These monitoring activities ensure continued learning at home to better equip children for the challenges of coping in formal schooling environments and to reduce the high drop-out rate at a later stage. Finally, parents are provided with direct training through parent-teacher workshops, which focus on imparting skills and knowledge to support further education and development at home.

The organisation strongly believes that all children should have the same exposure to preschool education as a crucial stage in a child’s physical, intellectual, emotional and social development. As such, it initiated the Early Inspiration Programme to address this need. The programme is realised through

AngloGold Ashanti became involved in the programme in October 2014 with the aim of training the teachers, learners and the parents in ECD centres in two of the company’s labour-sending areas in the Eastern Cape: Butterworth and Flagstaff. In both areas, the children and practitioners have undergone

Building the foundation of tomorrow’s leaders The African Unity Foundation (AUF) is a registered non-profit organisation focused on supporting a range of educationrelated projects, from early childhood development (ECD) to tertiary education. The organisation places strong emphasis on a good foundation in maths, languages and student self-development, equipping youth with knowledge as well as the necessary motivation to succeed.

Children in one of the Early Inspiration ECD Centres learning to love literacy.

pre-testing to establish a baseline of their levels of education, and will again undergo post-assessment after concluding the one-year programme intervention to determine areas of growth, as well as the impact on the larger community. It is estimated that by the end of 2015, approximately 48 ECD teachers would have received their level two ECD skills training qualification. “The Early Inspiration Programme helps me a lot. Today I know how to teach my children,” said Ndileka Xabanisa, one of the teachers from Zizamele Junior Secondary School in Butterworth who was fortunate to receive the training. The home-visit programme targeted 224 children and their parents. These children gained skills that enhanced their physicalmotor development; language and speech development; emotional and social development; cognitive development; and play development. The children’s parents were invited to parent-teacher workshops that focused on how to teach and guide the children outside of the classroom, including areas such as discipline, the importance of good nutrition, assisting with homework, and a better understanding of their crucial role as the parent.

REAP students and Peers Buddies (senior students who mentor first-years students).

AngloGold Ashanti partnered with Roundabout Water Solutions in 2014 with the aim of maintaining 55 pumps in rural schools across the country from the Eastern Cape to KwaZulu-Natal and Lesotho. The contribution enabled access to clean water; reduced waterborne diseases caused by the consumption of unsafe water; and eased the burden of water collection by the women and children of the community. The first pumps were installed in 1996, and to date there are over 1 800 Play Pumps in rural schools across South Africa, Lesotho, Mozambique, Malawi, Swaziland and Zambia. A community member collecting water at Ha Likotsi Village in Lesotho in the Berea district.

Access to water in rural schools Roundabout Water Solutions is a registered non-profit organisation, providing water to rural schools by means of a Play Pump. The Play Pump is installed on boreholes and is capable of pumping up to 1 400 litres per hour from a depth of 40 metres, and it is effective to a depth of 100 metres. The Play Pump is a patented roundabout pump specifically designed for driving a conventional borehole pump while entertaining children. The revolutionary design converts rotational movement to reciprocating linear movement by a driving mechanism consisting of only two working parts. As the children spin, underground water is pumped into a polyethylene tank, approximately seven metres above ground. A simple tap provides easy access to the water, while excess water is directed from the storage tank back to the borehole.

REABETSWE MARIBE Community Investment Co-ordinator rmaribe@anglogoldashanti.com www.anglogoldashanti.com 011 637 6656

“Clean drinking water is the most basic of human rights. The generous support from AngloGold Ashanti has allowed us to continue to keep the water flowing and make a real difference in the lives of disadvantaged people in rural areas of South Africa and Lesotho,” said Colin Morris, Director of Roundabout.

Providing a chance to study at high quality institutions REAP is an associated body of the Southern African Catholic Bishops’ Association (SACBC) which was registered as a South African non-profit organisation in 2001. The organisation aims to offer talented and motivated young South Africans from poor rural areas the chance to study at high quality tertiary institutions and provide them with the support and guidance they need to graduate. REAP makes provision for learners to receive bursaries from the National Students Financial Aids Scheme (NSFAS). However, the bursaries do not cover accommodation, food and textbook expenses. In 2012 and 2013, AngloGold Ashanti supported 24 students on the REAP programme. Of the students, 15 were from North West, seven

from the Eastern Cape, one from KwaZuluNatal and one from Mpumalanga. Fourteen of the students passed their year of study in 2013, and five were allowed to repeat the year. Due to the success of this partnership, AngloGold Ashanti renewed its partnership to leverage state funds by supporting eight new students from KwaZulu-Natal and the Eastern Cape. The funding covers the student’s meals, books, a personal laptop, as well as structured mentorship programmes. “REAP is extremely grateful for our longstanding partnership with AngloGold Ashanti which has helped change the lives of many young South Africans from rural areas,” says Director, Russell Davis. “Together we have been able to afford these students the opportunity to pursue their dreams at higher education level, sustain themselves and become the leaders of tomorrow,” he added.

focus areas AngloGold Ashanti’s geographic focus areas include the greater Johannesburg area, with particular focus on underprivileged communities and AngloGold Ashanti’s laboursending areas for their South African operations, both within South Africa and neighbouring countries. The CSI focus areas of support include education, health, youth skills development, infrastructure, enterprise development, and arts, culture and heritage.

Chapter two 86

The Trialogue CSI handbook 2015

focus on development The Trialogue CSI handbook 2015

Chapter Two

Development sector support and spend 2015 Trialogueâ&#x20AC;&#x2122;s annual CSI research delves into corporate investment and levels of support in the various development sectors, in addition to analysing high-level CSI expenditure and trends, as reported in detail in chapter one. Expenditure per sector is reported in this chapter and in Trialogueâ&#x20AC;&#x2122;s new Funders Guide. For 2015, the primary research sample includes information received from 81 large corporate respondents. What follows is a breakdown of the findings.

ducation is a key contributor to the prosperity and growth of a nation as well as to the success of companies, which rely heavily on appropriate skills. As such, education remains the most popular sector for corporate support. The majority (92%) of corporates in our sample invested in education with almost half of CSI budgets (47%) committed to this sector.

E 41

Distribution of CSI funding by development sector

% corporate support Corporate

0 2015

2015 n=78 / 2014 n=99 (multiple responses)

The Trialogue CSI handbook 2015

2014

% CSI expenditure 2015 n=78 / 2014 n=92

Focus on development

Disaster relief was included as a separate development sector for the first time in the 2015 research, with 17% of corporates indicating that they support interventions into humanitarian crises such as natural disasters or communicable disease outbreaks. However, such interventions received less than 1% of overall CSI spend. Despite the addition of disaster relief, there was little shift in the distribution of funding across the development sectors; no sector gained or lost more than five percentage points of funding from 2014. Companies continued to support multiple sectors. On average, the companies surveyed reported giving to 4.6 different development sectors, up from 4.5 in 2014.

Education Education is a basic human right and remains a vital instrument for empowering communities and strengthening the South African economy. It is a means of establishing an inclusive society and opens up opportunities for people to realise their full potential. Addressing the legacy of unequal education has required government to invest large amounts in this sector and, compared with other development sectors, education receives the lion’s share of state funding (about 20% of total government expenditure). South Africa also has one of the highest rates of state investment in education across the world at an average of 10% of gross domestic product. However, despite this substantial investment, the education system still faces a number of challenges and ranks poorly in a range of comparative studies. Some progress that can be celebrated has been made in the 20 years of democracy, including 99% school enrolment among seven to 15 year olds and equal government funding for all learners.

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Just over half (51%) of birth to 4 year old South African children attended daycare or another form of education outside of their homes in 2014, significantly up from 7% in 2002. Despite progress in access to schooling, dropout remains an issue. Of all learners who start school in South Africa, only 50% will make it to matric, 40% will pass matric and 12% will qualify for university entrance. Attendance at educational institutions drops to 16% for the 16 to 20 year age group and to 15% for the 21 to 25 year age group, which gives rise to more than three million born-frees (between 15 and 24 years) who are neither employed, nor in education or training. Of the 23 740 public schools in South Africa in 2009, 68% had no computer laboratories, 77% had no libraries and 86% had no laboratories, yet this is key school infrastructure for 21st century skills. According to the Department of Basic Education, in 2013 about 10% of teachers were absent for an average of 19 days, making the South African rate of educator absenteeism the highest of all Southern African Development Community countries. To meet the demands of increased learner enrolment (12.4 million in 2013 to 13.3 million in 2015), teaching staff will need to expand from 426 000 in 2013 to about 456 000 in 2025. Effectively, South Africa requires between 20 000 and 30 000 teachers each year, yet higher education institutions produced only 15 655 graduate teachers in 2014. A Council on Higher Education 2013 study revealed that the country had a higher education participation rate of 18% in 2010, up from 15% in 2000 and a first-year attrition rate of 33%. Of the students who entered public universities in 2006 on three- and four-year qualifications, only 27% graduated in regulated time.

The Trialogue CSI handbook 2015

Chapter two

Development sector support and spend 2015

An overview of CSI spend on education 42

level of education

2015 2010 outer inner 19% 16% 26% 28% 25% 29% 27% 24% 3% 3%

Early childhood development General education Further education and training Tertiary education Adult education

% CSI education spend Corporate

2015 n=68 / 2010 n=85

type of intervention 2015 2010 outer inner 24% 25% 24% 16% 18% 15% 11% 14% 10% 20% 4% 3% 3% 7% 6% 0%

Bursaries, scholarships, university chairs Infrastructure, facilities and equipment Teacher development Additional learner programmes Curriculum development School governance and functionality Special needs interventions Other

% CSI education spend Corporate

2015 n=70 / 2010 n=85

subject area 2015 2014 outer inner 35% 35% 15% 0% 13% 12% 11% 12% 8% 10% 8% 9% 10% 23%

Maths and science Specialised subjects Language and literacy Life skills Vocational and technical education Information technology Other

% CSI education spend Corporate

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2015 n=70 / 2014 n=91

Investment in education has shown steady growth over the last four years, receiving 37% of CSI expenditure in 2011, 43% in 2012 and 2013, and 49% in 2014, but this growth has levelled out, with a slight drop to 47%, in 2015. School level education (general and further education and training) continued to receive the largest portion of education support at 51% in line with 2010 allocations. Tertiary education accounted for 27% of education spend, and early childhood education investment totalled 19%. Adult education received only 3% of education spend. Bursaries and scholarships received nearly a quarter (24%) of education spend, in line with 2010 spend. Interestingly, infrastructure, facilities and equipment also received 24% of education spend in 2015, significantly up from 16% in 2010, while spend on curriculum development fell from 20% in 2010 to 10% in 2015, demonstrating a shift in education spend priorities. Maths and science remained the largest subject focus area in 2015 at 35%, the same as in 2014. Specialised subjects such as accounting and medical studies accounted for 15% of CSI spend while respondents in the ‘other’ segment indicated support for the likes of adult/consumer education, physical education, arts education and systemic education change.

The Trialogue CSI handbook 2015

Focus on development

nect contribution

15% 6% 72% 7%

Yes, from CSI budget Yes, from a non-CSI budget No Don't know

% corporate respondents Corporate

2015 n=67

The National Education Collaboration Trust (NECT) was established in July 2013 to facilitate co-operation across sectors to improve education outcomes. The trust does not replace civil society or business projects aimed at improving education, but rather co-ordinates projects to ensure they are aligned with the agreed current national education agenda. Businesses are encouraged to contribute to the NECT, with funds being matched by various government departments. In fact, member companies of Business Leadership South Africa (BLSA) initially committed to contributing 0.004% of their market capitalisation to the NECT. However, our research sample indicates that a surprisingly high 72% of corporates are not contributing to the NECT. Those that do contribute (21%) tend to allocate funds from their CSI budgets (15%), with 6% indicating contributions from other budget sources. The average NECT contribution was calculated at R2.7 million.

Social and community development This year, leaders are looking back at their progress since committing to the Millennium Development Goals (MDG) in 2000. Globally, the MDGs helped to lift more than one billion people out of extreme poverty and to alleviate hunger. Nevertheless, the struggle against poverty, inequality and unemployment stands in the way of South Africa achieving the MDGs. Forecasts based on progress in 2012 showed that three MDGs – elimination of extreme poverty, maternal health and infant mortality reduction – were not likely to be achieved as expected. Unfortunately, the country’s final MDG report was not yet publicly available at the time of publication. According to 2012 data, a significant 3.4% of GDP is spent on social assistance but despite providing social assistance to more than 16 million people, a vast majority of South Africans remain in poverty. According to the Department of Social Development, a further pressing social issue is the ongoing battle to repair the damage caused by racism, sexism, tribalism and economic oppression. If government does not deal with this comprehensively, social ills such as teenage pregnancy, gender-based violence, substance abuse, crime and xenophobic violence will continue.

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The number of people living in extreme poverty (people living below the food poverty line of R321 per capita per month in 2011) peaked at 15.8 million in 2009 as a result of the global financial crisis, before decreasing to 10.2 million in 2011. This is a significant one-fifth of South Africa’s population. South Africa’s Gini coefficient related to income (a measure of income equality) was high at 0.69 in 2011, against the government’s target reduction to 0.3 by 2015. Stats SA reports that the proportion of people benefiting from social grants increased from 13% in 2003 to 30% in 2013, before declining slightly to 29% in 2014 (more than 16 million people as of 2014). Of the 3.5 million orphans recorded in South Africa in 2012, two-thirds were paternal orphans who had lost their fathers. At the end of the second quarter of 2015, unemployment stood at 25%, up from 22% in 1994. Youth unemployment has always been higher than adult unemployment, increasing from 33% in 2008 to 36% in 2014 against adult unemployment, which increased from 14% to 16% over the same period.

The Trialogue CSI handbook 2015

Chapter two

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Development sector support and spend 2015

Based on the 2011 census findings, the prevalence of people with disabilities was 7.5% (2.9 million), up from 2.1% in 2001. The Department of Social Development reported in June 2013 that South Africa needed 68 498 social workers, but there were only 16 164 registered with the South African Council for Social Services Professions.

An overview of CSI spend on social and community development 46

Type of support

2015 2014 outer inner 45% 51% 21% 19% 21% 15% 8% 8% 5% 7%

Support for welfare organisations Infrastructure, facilities and equipment Job creation programmes Awareness programmes Other interventions

% CSI social and community development spend Corporate

target beneficiaries

% CSI social and community development spend

Corporate

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2015 n=57 / 2014 n=74

2015 2014 outer inner 29% 33% 14% 0% 11% 11% 10% 8% 8% 12% 6% 8% 5% 6% 4% 4% 1% 3% 1% 0% 1% 2% 10% 13%

Orphaned and vulnerable children Youth Non-specific beneficiaries Unemployed People with HIV/Aids People with disabilities Victims of violence and abuse The aged Homeless people Prisoners and former prisoners Animals Other beneficiaries 2015 n=57 / 2014 n=71

The social and community development sector encompasses a wide variety of cause-related initiatives such as care of the aged and prevention of cruelty towards animals, as well as widerreaching social issues such as unemployment and poverty. Given the scope of the sector, it’s not surprising that 74% of corporates support it and that it received 17% of CSI expenditure in 2015. 2015 saw an increase in investment in job creation, from 15% of social and community development support in 2014, to 21% in 2015. The increase in job creation support equated to a decrease in support for welfare organisations such as hospices, children’s homes and places of safety, which dropped from 51% in 2014 to 45% in 2015. Orphaned and vulnerable children are the beneficiary group that continued to receive the most corporate support (29% of social and community development spend in 2015, down slightly from 33% in 2014). At 14% of spend, youth were the second-largest group of beneficiaries, followed by the unemployed, which is in line with the increasing focus on job creation.

The Trialogue CSI handbook 2015

Long-term sustainability of Community Advice Offices

The National Alliance for the Development of Community Advice Offices (Nadcao) is a nonprofit organisation committed to the long-term development and sustainability of Community Advice Offices (CAO).

Community Advice Offices are small, non-profit organisations that offer free basic legal and human rights information, advice and services to people who are marginalised through poverty, social circumstances and geographical location. Nadcao was formed as an alliance of human rights organisations in 2005, supported by several key donors including the CS Mott Foundation and Atlantic Philanthropies. These donors were concerned about the fragmented and weakened state of the community advice office sector. They initialised processes that would help secure long-term support to community advice offices as a sustainable way of ensuring access to justice within poor and marginalised communities. After 10 years of existence in 2015, Nadcao proudly boasts having strengthened a sector that was on the brink of collapse through building partnerships, advocacy and resource mobilisation. Nadcao also launched the Association of Community Advice Offices of South Africa (ACAOSA), a voice organisation for the CAO sector. Nadcao currently has 312 community advice offices in all nine provinces throughout South Africa, 290 of which are members of ACOASA.

VISION

Sector regulation and recognition

We envisage a sustainable CAO sector, providing effective service delivery and having an effective voice able to attain recognition, institutionalisation and support from society.

For many years, CAOs managed without sufficient regulation. Nadcao, together with the National Task Team (NTT) on community-based paralegals, made an oral submission to Parliament’s Portfolio Committee on Justice and Constitutional Development calling for the inclusion of community-based paralegals in the Legal Practice Bill. The bill was assented in September 2014 with the inclusion of a Section 34 which calls for regulatory framework for the community advice office sector. The approval coincided with the recognition of CAOs by the Portfolio Committee on Justice in South Africa in Gazette No. 64-2014.

Central Case Management System Nadcao’s centralised case management system (CCMS) assists community advice offices with the administrative aspects of case filing as well advocacy. The CCMS enables CAOs to generate statistical reports of their casework, which will be a useful tool when meeting with potential funders, stakeholders and partners as well as for the planning, co-ordination, monitoring and evaluation of options and services required to meet not only community needs, but the needs for the community advice office. The system enables offices and the sector to formulate campaigns on the basis of strong evidence-based arguments that demand accountability from government departments and social agents. The system, however, has recorded a lower-thanexpected usage rate due to the lack of technological infrastructure characteristics in many community advice offices.

Contact details Email: admin@nadcao.org.za/secretariat@nadcao.org.za Telephone: 011 339 1258 Facebook: www.facebook.com/nadcao Director: Nomboniso Nangu Maqubela, nomboniso@ nadcao.org.za Policy and Research Manager: Dr Hamadziripi Tamukamoyo, hamadziripi@nadcao.org.za Knowledge Management and Research Officer: Khanyisile Ntsenge, khanyisile@nadcao.org.za, 081 013 6023 Admin and Finance Officer: Sheila Matsondota, sheila@ nadcao.org.za, 079 741 3402 www.nadcao.org.za

COMMUNITY ADVICE OFFICE SECTOR PARTNERS Capacity Development and Training Content • Tshwaranang (gender-based violence) • PCRD (ADR) • Justice College (Legal Administration) (MoU) Non-accredited paralegal • Black Sash • SAULCA/University Law Clinics Accredited Paralegal • SA Paralegal School • Rhodes University/SA Law School

Legal Referral & Support • ProBono.org • Legal Resources Centre • Southern Cape Land Committee • Legal Aid South Africa • University Law Clinics (SAULCA) • CLASI • Rural Legal Trust • Centre for Rural Legal Studies

Resource Organisations • SCAT • MAGI • Foundation for Human Rights (FHR) • UWC Community Law Centre (MOU) • National Youth Development Agency (MOU) • Casual Workers Advice Office • Education and Training Unit (Paralegal Manual) • National Debt Management Association (NDMA)

Network Organisations • Community Law and Rural Development Centre • Centre for Community Justice and Development • Ithembalabantu • ACAOSA Provincial Forums

Q&A

Interview by Rose COHEN

What is Habitat for Humanity’s new approach?

Can you share your experiences of working with government?

We are known in South Africa as the NGO that builds houses, but when I joined Habitat for Humanity four and a half years ago, it became apparent that the work we were doing was not sustainable. The amount of money spent on building one house for one family, alongside the intense labour, was inhibiting any large-scale, longterm impact. The South African Government has provided homes via their Reconstruction and Development Programme (RDP) and continues to do so under the Breaking New Ground (BNG) programme. We asked ourselves: how can we add value to what is already being done? This led us to the realisation that substantial resources are being invested in the construction of houses for low-income families, but little is being done to help build sustainable, thriving communities. The intention is there from both the public and private sectors, but this is not carrying through to action. Habitat for Humanity’s new focus is, therefore, on building a different country and not just houses. We are building the capacity of the families receiving houses.

We’ve worked with the NUSP (National Upgrading Support Programme) and various municipalities implementing the UISP (Upgrading Informal Settlements Programme). We are always very collaborative, but we are not afraid to say difficult things. The government has progressive policies in place, but it is policy in practice that brings change. Government needs to deliver and our aim is to help our state understand where policy implementation isn’t working. We draw on our extensive experience in the field to map out practical ways forward. We don’t point fingers and our motto is ‘we can help’. We can play an advisory role in research, process and policy.

How do you develop economically sustainable communities? We start with community-led social scoping and asset-mapping exercises. From there, we help the community identify its top challenges and empower them to tackle these. The community is in the driving seat, but we have the network, and we help them make connections. Should a community decide that they require houses, we will facilitate the building of homes, usually in partnership with government and a construction company, but this will not be done in isolation. We offer workshops on the opportunities inherent in owning a home. We discuss the value of the asset and the responsibility for maintaining it. In the past, we had a construction team to complete our building projects, now we have a community development team supporting communities in long-term change.

Building sustainable communities Since 1996, the global nonprofit organisation, Habitat for Humanity has facilitated the building of over 5 000 houses for low-income families in South Africa. While this has provided shelter for many, it has not fully realised the organisation’s desire to impact poverty in the long term. In an effort to build scale and see higher returns on investment, National Director for South Africa, Paul Durrant, has been shifting the organisation’s focus from building houses to building sustainable, cohesive communities.

PAUL DURRANT National Director pauld@habitat.org.za www.habitat.org.za 021 657 5640

The Trialogue CSI handbook 2015

Does volunteerism still play a role in the Habitat for Humanity model? Yes. There is a lot of societal awareness created through volunteerism. Our fresh approach to volunteer mobilisation is to match volunteers to community action plans. For example, if a community indicates a need for food security, which can be met with the installation of a food garden, then we will identify appropriate volunteers and recruit them for the task. This doesn’t mean that volunteers won’t still be building – we recently built 12 latrines for a school that had only one – but the focus now is on building a community and addressing critical community needs.

What measures do you use to determine your success? We use a wide variety of measurement tools, including the Poverty Stoplight Tool. This tool allows families to rate their own level of poverty, before developing and tracking a plan for change. The tool uses six dimensions and 50 indicators to determine a poverty rating of ‘very poor’ (red), ‘poor’ (orange) or 'not poor' (green). Communities will rate themselves before, during and after an intervention and are encouraged to explore and establish their own solutions to addressing their poverty levels. 

Focus on development

Health Globally, governments are in agreement that good health is an important contributor to national development. The South African Minister of Health, Dr Aaron Motsoaledi said in his 2015 budget speech that government is pursuing programmes to strengthen the whole health system rather than health programmes to fight individual diseases such as malaria, HIV/Aids, polio, and so on. The 2015/16 Department of Health (DoH) budget continues to focus on the previous financial year’s mandate of preventing disease, promoting health and ensuring quality healthcare. The DoH is also continuing to roll out the phased 15-year National Health Insurance (NHI) programme. This system of healthcare financing aims to ensure access to appropriate, efficient and quality health services for all. Although South Africa has managed to stabilise the incidence of HIV/Aids from 12.2% in 2012 to 10.2% in 2014, and has implemented a successful antiretroviral programme, the challenge of HIV/Aids and TB is still a reality. TB prevalence is highest among mine workers in South Africa and its neighbouring labour-supplying countries.

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Average life expectancy stood at 68 years in 2014. This estimate went down to 61 in cases of birth with HIV. In 2014, approximately 5.5 million people were living with HIV in South Africa, with about 17% of 15 to 49 year olds estimated to be HIV positive. In 2015, three million South Africans were on antiretrovirals (ARV), a figure that comprises more than 30% of the world’s Antiretroviral Therapy (ART) programme. This has led to congested clinics and public hospitals. South Africa’s infant mortality rate (deaths per 1 000 live births) fell from 56 in 2000 to 35 in 2015, which compares favourably with Nigeria where the rate fell from 112 to 70 during the same period. However, at this rate, South Africa has not met its Millennium Development Goal target of reducing infant mortality rates to 18 by 2015. While new cases of TB decreased from 353 610 in 2007 to 344 748 in 2012, cases of multidrugresistant TB have been on the increase from 7 350 in 2007 to 14 161 in 2012 with the highest incidence recorded for KwaZulu-Natal (47% of total multidrug-resistant TB cases in 2012). According to OECD statistics, South Africa had an estimated 0.8 registered doctors per 1 000 people, compared to the World Health Organisation recommended ratio of 1:1 000 people. South Africa’s ratio lags way behind Cuba which has the world’s best ratio of 5.9 doctors per 1 000 people. The number of nurses, including registered, enrolled for training and auxiliary nurses, stood at 270 437 as at December 2014. According to the World Bank data, South Africa had 51 nurses per 10 000 people in 2013, which compares well with the World Health Organisation’s recommended ratio of 50 per 10 000 people but lags behind Brazil which has 76 nurses per 10 000 people.

An overview of CSI spend on health 48

Type of healthcare

2015 2010 outer inner 76% 46% 6% 17% 9% 14% 9% 23%

Primary healthcare Secondary healthcare Tertiary healthcare Other types of healthcare

% CSI health spend Corporate

2015 n=47 / 2010 n=57

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Chapter two

Development sector support and spend 2015

type of intervention 2015 2010 outer inner 37% 52% 24% 17% 17% 13% 12% 9% 3% 6% 7% 3%

HIV/Aids Healthcare education, training, capacity building Infrastructure, facilities, equipment Wellbeing initiatives Non-specific general donations Other interventions

% CSI health spend Corporate ●●

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2015 n=45 / 2010 n=57

In 2015, 59% of corporate respondents supported the health sector, investing around 12% of total CSI spend. This is in line with the health sector support and spend reported in 2014. Expenditure was increasingly concentrated on primary healthcare and at 76% in 2015 was significantly up from 46% in 2010. This increase has corresponded with a decrease in support for secondary, tertiary and other types of healthcare. The proportion of health budgets that focused on HIV/Aids in 2015 was 37%, significantly down from the 52% of health spend in 2010. This decrease reflects the increasing support government has provided for HIV/Aids and corresponds with an increase in corporate spending on capacity building in the health sector. Corporate investment in health infrastructure, facilities and equipment also increased marginally, from 13% in 2010 to 17% in 2015.

Food security and agriculture Global warming and falling water tables are making it increasingly difficult for poor countries to feed their growing populations. Efforts to end hunger, malnutrition and poverty are, therefore, a high priority for most nations. South Africa has moved away from primary sectors providing natural resources, like agriculture, to secondary (manufacturing) and tertiary (services) sectors. However, for poor households, especially in rural areas and informal settlements, the requirement for food security and agriculture cannot be ignored. Society as a whole has a responsibility to ensure that vulnerable communities do not starve or suffer from malnutrition, and that communities are encouraged and supported to become self-sustaining.

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According to the Poverty Trends Report released by Statistics South Africa, 20% of the population live below the food poverty line. Furthermore, 26% of South Africa’s population regularly experiences hunger. About 40% of South Africa’s underprivileged population resides in rural areas and either directly or indirectly depends on land as a source of livelihood. According to Stats SA, in 2011, poor households spent 34% of their annual expenditure on food and non-alcoholic beverages, while non-poor households spent 11% of their annual household expenditure on such goods. Food inflation in South Africa averaged 6.4% from 2009 to 2015, higher than the core inflation rate which averaged 5.1% over the same period.

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Focus on development

An overview of CSI spend on food security and agriculture 50

type of support 2015 2010 outer inner 32% 24% 29% 39% 19% 21% 12% 8% 4% 8% 4% 0%

Food relief/feeding schemes Survivalist farming Small-scale farming/commercial agriculture Infrastructure, facilities and equipment Non-specific general donations Other

% CSI food security and agriculture spend Corporate

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2015 n=27 / 2010 n=29

Although food security and agriculture still represents the fourth most supported development sector, the proportion of corporates supporting the sector declined slightly from 42% in 2014 to 37% in 2015. The sector received 7% of total CSI spend in both 2014 and 2015. Almost a third (32%) of CSI spend in this sector went to food relief and feeding schemes in 2015, significantly up from 24% in 2010, which is somewhat surprising given that such initiatives are not a sustainable solution. Encouragingly, support was also still shown for agriculture with a 29% investment in survivalist farming (although it went down from 39% in 2010), 19% investment in small-scale farming and 12% investment in infrastructure, facilities and equipment.

Entrepreneur and small business support The entrepreneur and small business sector, also referred to as the small, medium and microenterprise (SMME) sector, is important for job creation and economic growth, but environments are not always conducive to this sector reaching its fullest potential. According to research conducted for the SMME Catalyst for Growth (C4G) Programme, in South Africa, 50% of SMMEs fail within the first two years and 85% within the first 10. Furthermore, 67% of SMMEs provide employment opportunities for their owners only. Consequently, the government and corporate sectors have a crucial role to play in supporting, stimulating and ensuring the success of South Africa’s SMMEs.

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Informal businesses contribute approximately 20% to South Africa’s GDP. Of the 500 SMMEs surveyed for the SMME growth index, 25% reported a decline in turnover in 2015 compared to 22% in 2014, and 21% reported a decline in staff complement compared to 18% in 2014. Based on the 2014 Global Entrepreneurship Monitor (GEM) report, the percentage of adult South Africans involved in entrepreneurial activity has dropped by 34% since 2013. Education impacts entrepreneurial activity. According to the 2014 GEM report, South Africa’s education system is one of the worst in the world, with levels of maths and science performance ranked at 144 out of 144 countries.

The Trialogue CSI handbook 2015

Q&A

Interview by shona young

What are the key motivators for including entrepreneurship in the school curriculum?

Some say that entrepreneurship can’t be taught. What is your view on this?

The National Development Plan outlined the creation of 11 million jobs by 2030 but only four million will come from the formal sector. This means seven million jobs will need to be created. Teaching learners and exposing them to entrepreneurship will lead to increased levels of job creation and employability. This will help to address socio-economic problems and reduce poverty as well as grow leadership in the country.

How will bringing entrepreneurship into the classroom help address this need? The nature of jobs in the 21st century is changing as technology replaces human resources. Teaching, therefore, has to be done differently if we are to address the skills gap between what the current curriculum provides and what is needed in the world of work. We must equip our learners with creative, innovative and critical thinking skills so that they’re prepared. Entrepreneurship education develops core employability skills and mindsets, such as action orientation, creativity, problemsolving and social consciousness.

What is the role of the Maharishi Institute? The Institute was established to develop a new generation of business leaders for South Africa through values-based, holistic education for disadvantaged youth. Our educational programmes provide access to an internationally recognised degree, and entrepreneurship is a key component in all phases of this process. Together with the DBE, Dr Taddy Blecher, CEO of the Maharishi Institute, and I have produced the Blueprint for Implementation of Entrepreneurship and Social Entrepreneurship in the South African School System. Dr Blecher was appointed Chairperson of the South African Government task team on Enabling Entrepreneurship for the Human Resource Development Council and we are doing this work in that capacity. The blueprint sets the goal for introducing entrepreneurship, social entrepreneurship and employability training into the National School Curriculum. It is being initiated right now and is set to be fully completed by 2030.

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Bringing entrepreneurship into the classroom The Maharishi Institute aims to make tertiary education accessible to all through a unique self-funding model which won a Global Education Award in 2010. The organisation is working with the Department of Basic Education (DBE) to introduce entrepreneurship into the national curriculum for schools. Gabriella Geffen from the Institute’s Business Development division shares insights on the importance of introducing school learners to entrepreneurship.

GABRIELLA GEFFEN

Business Development: Maharishi Institute ggeffen@maharishinstitute.org maharishiinstitute.org 011 492 0005

There are two parts to being a successful entrepreneur. The first part is having an enterprising attitude where one is hungry for spotting opportunity and awake to opportunities that present themselves. The second part is possessing entrepreneurial skills such as knowing how to run a business, how to manage finances, develop products, manage staff and how to market your products. The enterprising attitude may be innate in some, but on its own it is not enough. Through entrepreneurial education we aim to help people with the hunger to acquire the skills to start and run their own business. For those who aren’t going to be entrepreneurs, developing entrepreneurial styles of thinking enables them to become more employable and better employees.

Mathematical and communication skills are critical to entrepreneurship: are these being addressed adequately? Yes. The first key recommendation in our blueprint document is to collaborate with the Foundational Learning Task Team to improve the essential skills necessary for English (literacy), maths (numeracy), science and technology. Without this it’s impossible to introduce mandatory entrepreneurship education (which is our second recommendation), since these skills not only form indispensable tools for successful entrepreneurship, but for achieving any significant level of success.

What role can corporates play in supporting entrepreneurship in the school curriculum? Our blueprint document recommends that businesses actively engage with local educational institutions to facilitate practical learning experiences. Teachers must interact with businesses to improve their ability to teach entrepreneurship effectively. Businesses need to be active in local skills development. Involvement can include speaking at school events, sharing stories, talking about lessons learnt and encouraging learners to think about starting their own businesses. Local businesses could also engage with schools to offer hands-on experiences to learners such as mini-internships or activities during the schools holidays and ‘send a child to work’ days. 

FIVE GOOD REASONS TO CHOOSE WESSA AS YOUR CSI PARTNER

650 000

WE’RE IMPROVING EDUCATION We work with teachers and learners throughout South Africa to support and improve school curriculums with regards to environmental learning, equipping children to live sustainably in the future. Through our schools programme we reach over learners and over 45 000 educators.

650 000

WE’RE IMPROVING SKILLS Our extensive range of courses is designed to address the critical scarcity of skills and training required to drive South Africa’s green economy. Between 2012 and 2014, participants attended our accredited and non-accredited courses facilitated around the country.

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WE’VE BEEN CARING FOR THE EARTH FOR YEARS

WESSA has been a membership organisation since 1926, and we’ve become a leading implementer of environmental initiatives in southern Africa, bringing about the social change required to enable individuals, communities and government to make more sustainable lifestyle and environmental management choices.

WE’RE CONSERVING OUR COUNTRY’S BIODIVERSITY

WE’RE ADDRESSING WATER CHALLENGES

We work to achieve formal protection status for areas of high biodiversity. This helps to protect keystone species and restore South Africa’s valuable ecosystems. At the same time, we’re able to create measurable social and economic benefits for people.

We are working to ensure healthy strategic catchments in southern Africa through capacity development and protection and restoration of the region's water resources.

To find out more email info@wessa.co.za or visit www.wessa.org.za

Chapter two

Development sector support and spend 2015

An overview of CSI spend on entrepreneur and small business support 51

type of intervention

2015 2014 outer inner 63% 64% 21% 24% 6% 7% 2% 1% 8% 4%

Skills development for entrepreneurs Providing finance Infrastructure, facilities and equipment Non-specific general donations Other interventions

% CSI entrepreneur and small business support spend Corporate

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2015 n=25 / 2014 n=33

For the fifth year in a row, CSI funding for entrepreneur and small business support averaged 5% of estimated CSI expenditure, with one-third (33%) of responding companies supporting this sector. Skills development remained the most popular mechanism for small business and entrepreneur support in 2015, at 63% of funding, almost on a par with the 64% in 2014. Of the entrepreneurs and small businesses supported by CSI in 2015, an average of 49% were part of the company’s value chain.

Environment Taking care of the environment has become increasingly important across the globe and South Africa is no exception. South Africans are looking for greener practices and solutions such as using renewable energy, recycling and even urban farming. At the end of 2014, South Africa entered the world’s top 10 of countries harnessing renewable energy from the sun, with 15 solar plants contributing 503 MW to the country’s electricity grid. Once the Integrated Energy Plan is approved by cabinet, it will inform South Africa’s future energy mix and prioritise policy interventions for programmes within the energy sector. Interesting patterns in CSI support and spend in this sector are expected to emerge as a result. All stakeholders need to actively participate in ensuring a safe environment, preserving various animal and plant species, and mining precious metals in a responsible way.

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Coal remains the primary source of South Africa’s energy supply. It is estimated that 90% of South Africa’s electricity is generated in coal-fired power stations. South Africa is the third most biodiverse country in the world, after Indonesia and Brazil. Collectively, these countries harbour most of the Earth’s species and accommodate more than two-thirds of global biodiversity. By mid-2013, South Africa had 528 protected areas totalling 7.5 million hectares or 6.2% of the country’s land area. In 2014, 23% of plastic waste produced was recovered and recycled, compared to 20% in 2013. There are 221 recycling companies in South Africa and an estimated 1 800 scrap metal converters in the industry, most of which are small, medium and microenterprises.

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An overview of CSI spend on environment ●●

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The environment received 3% of CSI expenditure in 2015, the same as in 2014. However, whereas 39% of companies supported projects in this sector in 2014, this declined to 33% in 2015. CSI funding in this sector favoured water conservation and wetlands management (20%), wildlife conservation (17%), waste management (15%) and biodiversity (12%). These figures are in line with 2014 allocations. Support for awareness programmes dropped significantly from 19% in both 2013 and 2014 to 2% in 2015. In addition, our research registered no support for infrastructure, facilities or equipment, non-specific general donations or other contributions.

Sports development Sport is an important ingredient of social cohesion and national development, with the added benefit of improving health and fitness. To build an active nation and attain sustainable success, participation in sports needs to be encouraged at all levels, with equal access to competitive or recreational opportunities within schools and communities. To this end, government and corporates are taking significant steps towards transforming the sports sector, but compared to other development sectors, there is minimal investment. Government is pursuing an agenda of transformation and development through its 2015/16 budget, with a focus on school sport. The Department of Sport and Recreation South Africa received R988.5 million for 2015 to 2016, of which, 64% has been allocated to the provision of mass participation opportunities and recreation under the banner of the department’s Active Nation programme.

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Statistics show that about half (approximately nine million) of South African children are not active enough whether at home, school or at play, only engaging in 20 minutes of daily activity against the recommended one hour. Older children and girls are at greatest risk. Participation in organised activity seems to be higher in urban areas where 66% of children play sport, compared with less than 50% in rural areas.

An overview of CSI spend on sports development 52

type of intervention

% CSI sports development spend Corporate

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2015 2014 outer inner 38% 38% 15% 32% 6% 7% 6% 0% 5% 7% 4% 0% 1% 2% 1% 3% 1% 3% 23% 8%

Soccer Non-specific general donations Basketball, netball Athletics Rugby Cricket Cycling Boxing Water-based sports Other 2015 n=25 / 2014 n=26

CSI spend on sports development doubled from 2% in 2014 to 4% in 2015. The proportion of corporates supporting this sector also increased from 27% in 2014 to 31% in 2015. Soccer programmes have continuously received the greatest proportion of CSI sports development spend at 38% in both 2014 and 2015, and 37% in 2013. Non-specific donations of 15% and other contributions (23%) made up a similarly large proportion of CSI spend when combined. This could be seen as encouraging multiple sporting codes, across the board.

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Mercedes-Benz South Africa partners with Laureus Sport for Good Foundation for positive social change

Recently retired Springbok rugby captain, Jean de Villiers offers some sound advice to aspiring young players.

port has proven itself as a cohesive tool that can bring unity and development in the South African context. Whether it be Tata Madiba walking out onto the rugby field in a Springbok jersey, the 2010 World Cup euphoria that gripped the country or the way in which supporters share the glory when a sports hero achieves the impossible â&#x20AC;&#x201C; sport can be a tool for social change. One organisation that recognises this power and utilises it to address social challenges is the Laureus Sport for Good Foundation and as part of its long-standing tradition of being an organisation that also embraces positive social change, Mercedes-Benz South Africa (MBSA) has entered into a new partnership with the Foundation that will see the company, already a global partner through its international parent company, become a Country Patron and effectively the primary funder for the Foundation in South Africa. For 2015, MBSA has invested more than R3 million into the project.

Sports-themed breakfasts with a positive impact

Mercedes-Benz South Africa Vice President: Corporate Affairs Mayur Bhana with sporting legends and Laureus ambassadors Graeme Smith, Jacques Kallis and Butch James.

The partnership with Laureus is unique in that while the funding is predominantly Corporate Social Investment (CSI) focused, it will also be leveraged from a marketing perspective. Part of the funding was earmarked for joint activation which saw five sporting-themed breakfasts over the course of 2015 that were hosted at each of Mercedes-Benz’s Lifestyle Centres across the country. The five sporting themes which featured during these breakfast events included the Cape Cycle Tour Comrades Marathon in Durban, The Rugby Championship match between the Springboks and New Zealand in Ellis Park, the Open Championship at St Andrews and the last featured some renowned Cricketing legends with former Proteas Captain Graeme Smith being unveiled as the latest Laureus ambassador. “At Mercedes-Benz South Africa (MBSA) we continue to hold Corporate Social Responsibility (CSR) in high regard. We also view it as part of the strategic approach to increase the company’s competitiveness. We are very excited with our partnership with the Laureus Sport for Good Foundation and we are confident that it will go a long way in liberating the youth from the chains of poverty and other social ills. This will also afford us an added platform to make a positive impact to the broader society”, says Mercedes-Benz South Africa Vice President Corporate Affairs, Mayur Bhana. In addition to the Country Patron funding, Mercedes-Benz South Africa sponsored the inaugural Laureus Golf for Good Invitational held in November this year, as well as the inaugural Laureus Polo Day to be held in January 2016.

Enabling youth through sport One of the MBSA-Laureus media breakfasts held at the Mercedes-Benz Lifestyle Centre in Constantiakloof.

Special emphasis is also given to the Laureus Youth Empowerment through Sport (YES) programme which provides young people with training in leadership, community sports coaching, IT and job readiness. The skills gained through this initiative enable the youth to uplift themselves and their communities through sport. Using sport as a tool for social change enables disadvantaged children of school-going age to change their lives by participating in supervised healthy pursuits while being equipped with life skills. Sport celebrities are invited by Laureus to become ambassadors who in turn promote these projects of which there are 15 in South Africa. MBSA and Laureus have a shared vision of helping change the lives of young people who might otherwise become just another statistic in the country’s landscape of poverty, crime and unemployment by providing them with an opportunity to build a productive life and develop into responsible, healthy and economically active adults.

Our partnership with Laureus offers inspiration ❛to young and vulnerable people in disadvantaged communities to turn their dreams into reality through hard work and determination.

❜

Mercedes-Benz South Africa Vice President of Corporate Affairs, Mayur Bhana

www.mercedes-benzsa.co.za

Chapter two

Development sector support and spend 2015

Arts and culture A nation can express, and to some extent realise, its dreams and aspirations through arts and culture. The ability to translate experiences into images, words or music is central to human expression. Government supports arts and culture as sources of social cohesion. The Department of Arts and Culture received R3.9 billion for the 2015/16 financial period, an 11% increase from the previous financial period budget, but still a relatively small amount which is considered by many to be inadequate. There is also minimal corporate investment directed at the sector, compared to other development sectors.

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A national mapping study commissioned by the Department of Arts and Culture (DAC) in 2014 revealed that the arts and culture sector contributed over R90.5 billion to the South African economy (representing 2.9% of GDP) in 2013/14. The sector created employment for over 560 000 people, the majority of whom are young (under 35 years). Four provinces combined – Limpopo, Northern Cape, North West and Mpumalanga – accounted for only 10% of visual arts enrolment for grades 10 to 12 in 2009. According to the 2009 CSIR survey, most schools indicated that the low enrolment was due to lack of staff to teach arts and culture at that level. Visual arts comprised about 40% of the 8 706 students enrolled in professional arts at tertiary level in 2006, a drop from 47% in 2005 and 49% in 2004.

An overview of CSI spend on arts and culture 53

type of intervention 2015 2010 outer inner 40% 40% 20% 15% 12% 12% 10% 9% 8% 12% 4% 8% 0% 4% 6% 0%

Performing arts Visual arts Culture and heritage Festivals, competitions and awards Craft sector Language and literature Non-specific general donations Other

% CSI arts and culture spend Corporate ●●

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2015 n=20 / 2010 n=31

Although there has been a slight increase in the number of corporates supporting this sector (26% in 2015 compared with 23% in 2014), the percentage of overall spend remained constant at 2%. Once again, the largest proportion of spend (40%) went to the performing arts, in line with 2010. The visual arts continued to receive the second-largest allocation, while the culture and heritage sector received the third-largest.

Housing and living conditions Creating sustainable human settlements that will improve the quality of life for the poor remains a challenge for government in the face of rapid urbanisation. Efforts to address the housing shortage have been evident since the adoption of the Breaking New Ground (BNG) policy in 2004, which promoted a state subsidy for housing. In line with its comprehensive housing policy, the state has built 1.4 million housing units, providing more than five million people with secure homes since 1994. In 2009, government’s focus shifted from providing shelter, to providing sustainable and integrated human settlements. The Comprehensive Housing Plan (CHP) aims to change spatial settlement patterns by building economical and socially integrated human settlements that will enable people to work, pray, play and access amenities required for day-to-day living. The Department of Human Settlements (DHS) plans to use the R30.9 billion allocated for the 2015/16 financial year to achieve these goals.

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Focus on development

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In 2015, 63% of South Africans lived in urban areas compared to 50% in 1994, increasing the demand for housing. In 2014, more than three-quarters (79%) of South African households lived in formal dwellings, while 13% (over two million households) lived in informal dwellings and the remaining 10% in traditional dwellings. Stats SA reported that 90% of South African households had access to piped water in 2014. The percentage of households connected to the electricity supply from the mains increased from 73% in 2002 to 86% in 2014. The percentage of households without proper sanitation facilities across the country declined between 2002 (12%) and 2014 (5%).

An overview of CSI spend on housing and living conditions 54

type of intervention 2015 2014 outer inner 27% 13% 26% 73% 17% 0% 13% 14% 3% 0% 14% 0%

Facilitating housing development Building houses Water and sanitation Materials supply Energy/energy-efficiency initiatives Other

% CSI housing and living conditions spend Corporate

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2015 n=7 / 2014 n=8

As in previous years, corporate investment in this sector was low at only 1% of CSI spend. However, the proportion of corporates addressing housing and living conditions grew from 11% in 2014 to 13% in 2015. Encouragingly, spend on facilitating housing development increased from 13% in 2014 to 27% in 2015. Building houses waned as a popular corporate intervention in 2015, with support for it dropping dramatically from 73% in 2014 to 26% in 2015. The 17% investment in water supply and sanitation was a great increase on last year’s 0% response from the research sample. Energy and energy-efficiency initiatives also received 3% off a zero base in 2014. Given the small sample these numbers should be used with caution.

Safety and security International terrorism and globalisation, as well as cyber crime, have softened borders and exacerbated security problems for many countries, including South Africa, a complication the country can ill afford. In addition, rampant corruption and crime pose a serious and direct threat to South Africa’s reconstruction and development initiatives, good governance and ultimately stability, especially at a local level. Although crime is a key strategic concern for the country, only a few corporates are involved in the funding of safety and security development initiatives.

Big picture figures ●●

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The average number of murders committed daily in South Africa has increased for the third year in a row, from 45 in 2012/13 to 47 in 2013/14 and to 49 in 2014/15. South Africa has 194 852 policemen, with a police:population ratio of 1:346, which is well within the UN-recommended ratio of one police officer for every 400 citizens for effective policing. South Africa had 1 868 398 registered security officers in 2013/14, and close to 30% of them were employed in 2013/14. South Africa, therefore, has significantly more security officers than policemen in the country. There were 154 504 prison inmates in 2014. People between the ages of 14 and 25 years account for 29% (about 45 000 people) of the country’s prison population.

The Trialogue CSI handbook 2015

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Chapter two

Development sector support and spend 2015

An overview of CSI spend on safety and security 55

type of intervention 2015 2014 outer inner 36% 15% 19% 29% 15% 19% 15% 3% 1% 3% 0% 2% 0% 16% 14% 13%

Infrastructure, facilities and equipment National anti-crime/safety campaigns Community policing forums Capacity-building/empowerment programmes Support of relevant authorities Gangsterism/school crime Non-specific general donations Other

% CSI safety and security spend Corporate ●●

●●

2015 n=7 / 2014 n=14

Safety and security is one of the least funded development sectors among corporates. The sector just attracts 1% of CSI expenditure, the same as in 2014 and 2013. The proportion of companies supporting the sector dropped from 15% in 2014 to 10% in 2015. This is a surprising statistic considering the threat crime poses to South African businesses. More than a third (36%) of spend in this sector went to bolstering the relevant authorities, with the remaining spend spread fairly evenly among community policing forums, capacity-building or empowerment programmes, national anti-crime and safety campaigns and other initiatives. Investment in infrastructure and capacity building shot up in just one year. Support for national campaigns declined substantially, and respondents stopped funding the combating of gangsterism and non-specific causes entirely. However, these results should be treated with caution due to the small number of respondents each year.

Disaster relief Although South Africa may not be affected by large-scale disasters such as earthquakes, the impact of disasters in the country is intensified by the vulnerability of people living in informal settlements (over two million households in 2014). These people live in under-served, ecologically fragile or marginal areas and therefore face recurrent natural and other threats, such as floods and fires. South Africa is also exposed to a range of weather hazards, including drought and storms that can trigger widespread devastation and hardship. Its shared borders with six Southern African neighbours present cross-boundary risks and obligations for humanitarian assistance in times of emergency. The complexity brought about by a history of oppression and diverse cultures makes communities vulnerable as they interpret disasters differently. Disaster relief efforts can become complicated due to cultural differences, and the need for sensitivity and community awareness. Comprehensive, proactive and flexible engagement is required to enable effective disaster management.

●●

The number of fire incidents recorded in South Africa increased from about 250 in 1990 to close to 900 in 2004, affecting about 7 200 informal dwellings around Cape Town in 2004. The City of Cape Town recorded 7 597 vegetation fires and 1 609 structural fires between November 2014 and March 2015. The 2011 flooding disaster that cost the country more than R2 billion in damages revealed some weaknesses in the country’s disaster management plans. Humanitarian logistics account for approximately 80% of all disaster relief activities.

An overview of CSI spend on disaster relief For the first time, Trialogue added disaster relief to development sector categories in order to understand how companies have responded to high-profile events. While a significant 17% of companies reported giving to these types of causes, disaster relief accounted for less than 1% of giving. Causes supported included floods in Cape Town, Mozambique and Malawi as well as xenophobic attacks, the Ebola crisis and fires in Kya Sands and Cape Town. 

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The Trialogue CSI handbook 2015

a guide for funders

The big picture figures

More information about how to support the various development sectors can be found in our new Trialogue Funders Guide to Social Development in South Africa. The digital version is available online at www.trialogue.co.za/ products

M M I F O U N D AT I O N

Committed to the lifetime financial wellness of South Africans At the heart of what MMI does as a business, is its commitment to the lifetime financial wellness of South Africans, a commitment echoed by its CSI arm, the MMI Foundation. For the Foundation to realise its purpose of improving the lifetime social and financial wellness of people, communities and businesses, it dedicates itself to investing in partnerships with government, non-profit organisations and communities in need. Through MMI brands Guardrisk, Metropolitan and Momentum, it oversees, guides and supports projects in the field of sports development, disability and education (including consumer financial education). Common to all these projects is their alignment to national priorities and the Millennium Development Goals, interlinked with the specific needs of local communities. Education has been and will remain an undisputed national priority. And, rightly so. When the 2014 results of the annual South African Household Financial Wellness Index – a partnership between Momentum (one of MMI’s brands) and Unisa – was released earlier this year, it too emphasised the importance of education to build the resilience of households. The data showed a direct correlation between the collective level of education within a household, and its ability to face off economic challenges and remain financially well. It also pointed to the necessity of financial education to grow financial capability and safeguard households. Grassroots partnerships to large scale initiatives Poor education has left a wave of young people largely unemployable and economically destitute. The Foundation has committed itself to staving off this wave by supporting education initiatives, including consumer financial education, across the country. Annually it devotes more than 60% of its allocated funds to education. Some are large-scale collaborative projects, which unite the leading experts, resources, and relevant stakeholders to come up with best practice models and influence policy like its support of the National Education Collaboration Trust (NECT). Others materialise in on the ground curriculum and teacher support in rural areas like Mpumalanga through the Momentum brand, where the dedication of teachers and ambition of students meet. And, because it is never too early to start investing in the future, some initiatives, specifically that of the Metropolitan brand, focus on strengthening Early Childhood Development (ECD) centres. Removing Barriers Where potential barriers to quality education exist, greater effort is made towards eliminating them. The logistical complexities of

reaching rural schools in the Eastern Cape with medical trucks might require hours of planning, but once there, addressing academic underperformance resulting from poor eyesight, takes but a few minutes. Through its partnership with Mercy Ships SA, Momentum is providing eye tests to rural schools. To ensure students are focused on learning, and not distracted by the challenges in their environment or the lack of basic necessities like food and clothing, Guardrisk has partnered with various schools and organisations for destitute children to support their schooling careers. Over the years initiatives have included construction projects to build secure learning environments, food gardens and staﬀ raising money for textbooks and school shoes. Recently, they’ve invested in specialised learning equipment for schools for the disabled.

Poor education has left a wave of young people largely unemployable and economically destitute. The Foundation has committed itself to staving off this wave by supporting education initiatives, including consumer financial education, across the country. In terms of financial education, Metropolitan hosted its regular Invest in Your Future workshops across the country to promote financial education and wellness within local communities. Momentum’s Making Money Matter financial literacy board game aimed at high school learners, offered youngsters the opportunity to make financial mistakes which would otherwise be very costly, within the confines of a game, while its Motheo Financial Dialogues unpacked various topics associated with group insurance and retirement funds. Motheo consisted of radio broadcasts aired over ten vernacular community radio stations in Gauteng, and facilitated face-to-face sessions held with listener clubs. The MMI Foundation, through its continued support of education initiatives, is supporting the MMI intention of being an active corporate citizen. The various MMI brands remain at the forefront of this and the next page contains some of their project highlights in numbers; numbers which all speak to the vision that every effort invested in education, is an investment in a better future for South Africa.

7% R1.9m

Spend per focus area

Number of beneﬁciaries

602 531

10% R2.6m

Health Disability

38% R9.9m

Sports Development

Total spend across focus areas

14% R3.7m

Education

R26,5m

Financial Education 31% R8.3m

National project footprint LIMPOPO

MMI Foundation

Momentum

Metropolitan

Guardrisk MPUMALANGA GAUTENG

NORTH WEST

FREE STATE

KWAZULU NATAL

NORTHERN CAPE

EASTERN CAPE

* Spend based on FY 2014/2015

WESTERN CAPE

Focus areas

M M I F O U N D AT I O N

Health 2 projects

Health 4 projects

Education 2 projects

Education

(including ﬁnancial literacy projects)

11 projects (including ﬁnancial literacy projects)

12 projects Sports Development 2 projects

Sports Development 5 projects

Health 1 project Education 4 projects

Disability 8 projects

“The school aims to give the “The Foundation helps us to

assist children in fulﬁlling their potential ”

Wim Els The Actuarial Society of South Africa

“They have a passion for

unleashing ﬁnancial freedom to the underprivileged.” Bernice Rose Unity in Africa

“With their support we are raising achievement levels in Maths.” Nicky de Bruyn Director: Uplands Maths Outreach

best possible education to destitute children. Guardrisk makes it possible for us. ” Riana Anderson Principal: Pure Hope Kids

Overview of education initiatives

100% 5 ECD centres and 1 school renovated

2 000 pre-schoolers receiving quality education

775 ECD practitioners trained in ﬁnancial literacy

1 600 Math kits to 1 200 learners

3 000 radio minutes covering ﬁnancial matters in African languages

245 employees raised school fees for 300 learners

165 children supported with food and educational necessities

120 qualiﬁed as ECD pratitioners

Matric pass rate for UJ Metropolitan Academy

1 000 community members attended ﬁnancial education workshop

Highlight: Mitchells Plain Primary School Project – Recycle to Save and Spend. 1 200 learners: collected 4 520kg of recyclebles, raised R1753, and started a vegetable garden.

30 M2E sports bursaries

59 ﬁnancial education community workshops

8 000 eye tests in rural schools

5 schools playing a ﬁnancial boardgame

Extra classrooms for 50 orphaned children

700 learners received school shoes

Promoting creativity and environmental awareness

1 500 trained in special needs education

29 Gr 1 educators supported

Highlight: 25 caddies from across South Africa graduating with a National Diploma in Professional Golf at eta College. Endorsed by the PGA, these women and men can now earn an income as coaches.

Highlight: When employees get involved, the power to change our society is truly unlocked. That is the motto of the Lebone (Sotho word meaning ‘light’) CSI team at Guardrisk. Always eager to become personally invested, staﬀ highlights include renovation and clean-up days and career days hosted at their Sandton oﬃces. “The irony is when we become involved as volunteers in communities, especially where children are concerned, you receive more in return. You come away changed and hopeful about the future. That is why every initiative in education has actually been a highlight,” says – Thabo Qoako, Chairman Lebone Committee

www.mmifoundation.org.za

African Eyes Photography / Woza Moya

Chapter three 110

The Trialogue CSI handbook 2015

corporate practice The Trialogue CSI handbook 2015

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Corporate practice

Barclays Africa

Getting Africa ReadytoWork For Barclays Africa, becoming the ‘Go-To’ bank means facilitating greater, more inclusive prosperity for current and future generations. This ambition is at the core of the Group’s citizenship approach and one of the ways in which its purpose and values are embedded in the corporate culture.

arclays Africa’s citizenship approach has evolved over a number of years, shifting from a philanthropic agenda to a more business-led approach that considers the broader impact it can have on society. The concept of shared growth recognises there is a critical interlink between the bank’s success and society’s progress – “as we grow, society prospers, and as society prospers, we grow”. This theme of reciprocity is critical to the bank achieving its Go-To goal on the continent. Barclays Africa recognises that if it is to succeed, it must consider the societal context in which it operates and harness the potential of its people, its innovation and its scale to contribute to solving some of the challenges faced on the continent. “Citizenship is integral to the way we do business; driving a shared growth agenda on the continent can be the key differentiator that informs the Barclays brand from Cape to Cairo,” says Sazini Mojapelo, Head, Citizenship Africa. To help achieve shared growth, Barclays Africa recognises that it is critical that it considers how its citizenship approach can drive product and service innovation that delivers social and commercial value, in a way that supports the business strategy. Furthermore the bank acknowledges that it needs to shift its mindset from traditional charity donations to sustainable, impactful initiatives that leverage on its assets, capabilities and business opportunities to help address a societal need.

ReadytoWork: Barclays Africa flagship employability initiative Despite a decade of immense economic growth, Africa continues to face a number of societal challenges that limit its ability to achieve inclusive economic growth. A key challenge on the

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continent is the high level of youth unemployment – young people grapple with the challenge of limited opportunities and a lack of skills and uncertainty about how to gain meaningful employment. ReadytoWork is a new Barclays Africa flagship employability initiative that helps prepare young people across Africa for the world of work. It seeks to empower young people with the training and development they need to enhance their employment and self-employment prospects. The initiative is designed to facilitate the critical transition from education into the world of work and ongoing development in one’s career. Its primary aim is to improve the employment prospects of people through free education resources, online content, workshops and work exposure. ReadytoWork is the starting point and the bridge to a young person’s future.

What does ReadytoWork offer? ReadytoWork is a free digital and face-to-face learning curriculum that helps people develop their entrepreneurial and work skills, thereby equipping them to find a work opportunity, grow in their career or venture into their own businesses. There are two learning pathways. The first is self-employment and the second is seeking employment. The learner journey is designed to help a young person enter the world of work or start a business with the critical skills they need to succeed and to ensure they have the skills employers are looking for.

Who is ReadytoWork aimed at? ReadytoWork’s primary focus is supporting young people who have the aptitude, attitude and ambition to achieve beyond the opportunities in their immediate world.

Work skills

People skills

Money skills

Entrepreneurial skills

Get prepared for the work opportunities coming your way.

Develop your interpersonal and communication skills.

Improve your money management skills to be financially fit.

Got an idea? Discover more about starting and running a small business.

Learn more about: • Preparing to look for work • Searching for a job • Starting, settling in and excelling at work

Learn more about: • Understanding people skills • Working with others • Improving my people skills

Learn more about: • Managing my money • Dealing with credit and debt • Managing my financial future

Learn more about: • Considering my own business • Setting up my business • Growing my business

chapter three

How does ReadytoWork form part of BAGL’s Go-To goal in Africa? The success of Barclays Africa is interconnected with the success of the communities in which the bank operates. ReadytoWork helps demonstrate Barclays Africa’s commitment to driving shared growth across the continent and will help the bank achieve its goal of becoming the Go-To bank in Africa. ReadytoWork helps demonstrate BAGL’s value of stewardship by embedding the long-term interests of clients, customers and communities in the bank’s core business, and to help young people achieve their ambitions in the right way.

Employee engagement Barclays Africa colleagues play a critical role in helping to bring ReadytoWork to life in communities across the continent, while also using the curriculum to enhance their own career prospects. Colleagues across the continent can register to be a ReadytoWork volunteer so that they can help facilitate a ReadytoWork session with young people, or offer someone a work exposure opportunity in their various fields. This involves: ●● Facilitating a ReadytoWork session: Facilitate a session on work, people or money skills with one of the bank’s partners to bring the ReadytoWork curriculum closer to young people in their environment. ●● Offering a work exposure opportunity: Employees will be matched with a young person with whom they can arrange a one-day work experience at their places of work.

Thinking differently – unlocking societal solutions to deliver shared growth What are some of the societal challenges that exist in our markets? ●● Are there commercial opportunities for us to address these challenges in a way that is also profitable for Barclays Africa? ●● Does the solution use our corporate assets and expertise so we are uniquely placed to deliver a solution (potentially through collaboration with others)? ●● Could the solution meet a need for existing or new customers and clients? ●● Is this about creating economic and societal value – not just about ‘doing good’? ●●

❛

At Barclays Africa, a key focus area in our citizenship strategy is to help young people from across the continent have access to the skills and opportunities they need to fulfil their potential. We recognise that the crisis of youth unemployment is preventing many of our young people from realising their ambitions, and our priority is to give them the knowledge and guidance they need to find meaningful employment or business opportunities." Sazini Mojapelo, Head of Citizenship, Barclays Africa The article refers to Barclays Africa which includes the Barclays offices in Zimbabwe and Egypt. The listed entity Barclays Africa Group Limited (BAGL) excludes Zimbabwe and Egypt.

Contact

To help reach and support the greatest number of people on the continent through the ReadytoWork initiative, Barclays Africa is working in partnership with a range of organisations across academia, government, civil society and the private sector. The bank will also touch young people who are already out of the education system and actively searching for work or an opportunity to create a business. At the same time, the curriculum has been designed in such a way that it is relevant for people already within the work place; hence, any person of any age can access the online learning curriculum and download materials to help them sharpen their skills, including Barclays Africa employees.

highlights

Since young people leave the education system at different stages of learning, ReadytoWork curriculum is tailored to support individuals across three critical transitions from basic education into work: ●● Tier 1: Graduate youth who have gone through universitylevel education. ●● Tier 2: College youth who have gone through tertiary education at college level. ●● Tier 3: High school youth who have completed secondary education/high school.

SAZINI MOJAPELO Head of Citizenship Africa readytowork@barclaysafrica.com www.readytowork.barclays www.barclaysafrica.com 011 846 5149

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Corporate practice

Distell Foundation

Partnering with FASfacts to mentor new parents The Western and Northern Cape have a high prevalence of Fetal Alcohol Spectrum Disorder (FASD). Distell, as Africa’s leading producer and marketer of spirits, fine wines, ciders and readyto-drinks (RTD) has partnered with government and NGOs to raise awareness of this scourge and to support at-risk pregnant women.

ASD is more than a disability affecting isolated individuals; it is a social disorder with immense cost implications for both government and society. Non-profit FASfacts reports that the secondary disabilities and effects, for and due to people with FASD, cost the government more than any other disability each year. Some of the milder effects of FASD on children include problems in concentrating, hyperactivity, unpredictable behaviour and poor anger management skills. These children often drop out of school, become delinquents and turn to substance abuse. Other effects include mental illness, predisposition to HIV/Aids and TB, inappropriate sexual behaviour, violence and crime.

It is with this view that the Distell Foundation chose to partner with FASfacts on its Pregnant-Women-Mentoring-Programme (PWMP) in Worcester in the Western Cape. FASfacts runs this initiative with community members and leaders, schools, youth and church groups and tavern owners. Distell has supported FASfacts since 2008, choosing specifically to collaborate with the PWMP when it began in 2012, with just 10 pregnant women. This is a two-month training module aimed at educating and raising awareness on the mother’s role in preventing the devastating effects of alcohol use in pregnancy. Four training sessions are conducted over this period and mentors visit the pregnant women at their homes weekly to support the women’s wellbeing and provide assistance if required. The women also attend group therapy sessions where issues of self-worth, sobriety and family problems are addressed. Key to the PWMP’s sustainability has been the increasing numbers of men in the initiative; they are mentored and, in turn, can become mentors themselves. FASfacts concluded, through observation, that 63% of these women refrained from drinking during pregnancy and breastfeeding.

Changing lives and futures The PWMP is managed by a social worker and there are currently 30 female and 10 male mentors working with the group of 120 pregnant women. FASfacts concluded, through observation that,

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63% of these women refrained from drinking during pregnancy and breastfeeding. One of the successful beneficiaries of the programme describes her experience as follows: “When I found out that I was pregnant, I still continued drinking. When I joined FASfacts and learnt what alcohol can do to unborn babies, I stopped. I could immediately see the detrimental effects alcohol has on an unborn baby.” After stopping drinking alcohol, she became a mentor and continues to contribute towards the transformation of her community. Another mentor has used the skills acquired through working with PWMP to establish her own NPO in Worcester; Women of Strength aims to support and uplift women trapped in abusive relationships, the cycle of drug and alcohol abuse and abject poverty, or women needing emotional or moral support. PWMP aims to continue expanding, in the hope of reducing the burden of FASD on both the community and government by decreasing the secondary disabilities and issues created by FASD. Distell also partners with the Foundation for Alcohol-Related Research (FARR) in supporting at-risk pregnant women in the Northern Cape.

Contact

Collaborating with communities to protect unborn children

SONJA MORKEL Social Investment Controller skmorkel@distell.co.za www.distell.co.za 021 809 8344

Corporate practice

eDcon

Walking a safer and more secure life journey with our communities As a leading retailer, employer and proudly South African company, Edcon is cognisant of its responsibility towards communities it serves. The retailer’s corporate social investment focuses on five key strategic development areas: education, disability, public safety and security, merchandise donation and employee volunteerism.

Visible policing in underserviced areas The 51 mobile police units donated as part of Edcon’s partnership with SAPS forms the basis of the group’s business commitment to supporting increased police visibility, and easier access to police services by communities. The donated police mobile units have been deployed across all nine provinces at police stations identified and selected by the provincial police commissioners’ offices.

Community support through Adopt-a-Station Edcon has adopted the Johannesburg Police Station, the largest station in Gauteng. Support has been provided to the station in an effort to help improve the areas used to engage with victims of crime and the general public. Edcon has refurbished the station’s Victim Friendly Room (VFR), Customer Service Centre and the Detectives’ Office, and provided uniforms for the volunteers in the VFR.

Recognising hard work, dedication and excellence Edcon is the primary sponsor of the annual SAPS Johannesburg Central Cluster Prestige Awards. These awards recognise excellent duty performance by nominated police officers from the entire Johannesburg Central Cluster, which is made up of eight police stations: Johannesburg Central, Booysens, Sophiatown, Moffat View, Mondeor, Brixton, Langlaagte and Mayfair. The awards celebrate excellence, hard work and dedication and aim to encourage members of the police force to serve communities with distinction. In addition to these awards, Edcon supports the Gauteng Provincial SAPS Prestige Awards, Eastern Cape Provincial SAPS Prestige Awards and the National SAPS Excellence Awards.

Safety and security are key In a country with high crime statistics, a visible and motivated police presence is vital to deterring and reducing criminal activity; creating safer home environments and personal safety; improving safety and security in communities; and ultimately building a South Africa that is safe for all who live in it.

Contact

dcon’s expansive stakeholder engagement programme involves its ongoing and strategic partnership with the SAPS in supporting the drive to make communities safe against crime. This initiative is informed by the retailer’s desire to build alignment with its stakeholders by walking the life journey with communities it serves. The partnership has been forged over four years with Edcon donating a total of 51 mobile police units to the SAPS. These units serve as deterrents of crime, through their high visibility and as a contact point where criminal activity can be reported. The mobile units are used by the SAPS for special crime and safety awareness events and campaigns, as well as for community sporting events, art and musical festivals, national events and raising awareness about partnerships between the SAPS, the business sector and communities. The company’s partnership with the South African Police Service supports efforts to address police visibility and crime prevention and focuses on three areas of service delivery: Visible Policing, the SAPS Prestige Awards and Adopt-a-Station projects. Edcon appreciates the role that policing plays in customer and employee communities, as well as areas where it has business operations. The group holds the view that the creation of safe communities – be they commercial or residential – is everyone’s responsibility and not only that of the police. Thus, Edcon is committed to playing a pivotal role in discouraging criminal activity and thereby making a meaningful difference towards the fight against crime, especially in the communities within which our people live and our businesses operate.

Mercia Maserumule Group CSI and ED Manager Transformation and Corporate Affairs mmaserumule@edcon.co.za 011 491 7000

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Q&A

Interview by shona young

Partnering with the right organisations gives us the opportunity to leverage the skills of others and to work to a much wider geographical scale.

Could you describe Hollard’s innovative approach to insuring social initiatives? We created a platform called HUGinsure (Humanitarian Universal Guarantee) that will make various social impact insurance products available to development agencies. We teamed up with Dalberg to help brainstorm the concept and launched the platform at the Clinton Global Initiative in October 2013. The problem we were tackling is that on the one side you have funding and on the other the development agency/NPO that requires funding. In the middle sits a financial institution. We see a delay in the funding reaching agencies/NPOs, which can have a huge impact on the cause or the organisation itself. Our first product involves Hollard underwriting a guarantee in favour of the financial institution, which makes the funds available to the NPO sooner than would otherwise be the case.

How does HUGinsure work and who is eligible to apply for it? HUGinsure measures and manages the risks associated with funding NPOs. Tested rating methodologies and risk management principles are applied to facilitate the underwriting of social impact funding. This helps funders assess the creditworthiness of social projects and organisations so they can deploy funds with confidence, and speed up the flow of funds to NPOs. While Hollard currently favours applications from development agencies or NPOs based within the areas that Hollard operates, any agency is eligible to apply.

What role did partnerships play in the development of this insurance product? Partnering is part of our DNA at Hollard. We find partners who know more about a particular space than we do and we team up to create something innovative. We developed HUGinsure with D. Capital Partners and in association with Aon and a number of London-based underwriters such as Lloyds. HUGinsure is creating and pioneering a new sector – social impact insurance. While the partners involved have many years of expertise in global development, strategy and insurance, the combination of these disciplines is new. We recently teamed up with Munich Re and are working closely to improve the concept.

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The Trialogue CSI handbook 2015

Can you share a success story of how this product has benefited an organisation?

Innovative ways to insuring social initiatives Hollard Insurance has created the world’s first social impact insurance platform, HUGinsure, together with D. Capital Partners of the Dalberg Group. The insurance platform will improve and increase capital flows aimed at assisting the vulnerable poor. Ian Ross, Hollard’s Group Chief Underwriting Officer, tells us more about this innovation.

Project Isizwe is an organisation which aims to bring the internet to people across South Africa by facilitating the rollout of free Wi-Fi for public spaces in low-income communities, with a core focus on connectedness for the purpose of education. In 2014, the organisation approached Hollard about HUGinsure. They had run a successful pilot project in Tshwane funded by the City of Tshwane but were unable to continue the rollout as the municipality was between two budget cycles. HUGinsure was able to issue the guarantee and the banks released the money, allowing for the smooth continuation of the project. As of June 2015, Tshwane has had over 650 000 unique users on its free Wi-Fi network.

How does this product result in positive social impact? The real benefit lies in the fact that NPOs become bankable. The product gives them access to conventional funding models that are traditionally unavailable to NPOs, because they can’t provide security, surety or loan guarantees. By speeding up the funding process, HUGinsure ensures continuity of operations for NPOs, which translates into uninterrupted support for beneficiaries. In some cases this can result in lives being saved.

What are your plans for taking the product to scale to benefit more NPOs?

Ian Ross

Group Chief Underwriting Officer/ Executive Director ianr@hollard.co.za www.hollard.co.za

Liesbet Peeters

liesbet.peeters@dalberg.com www.dalberg.com

We have had some early successes since launching the product in 2013. We have since met with various banks and insurance companies internationally and the response has been good. We hope that as we continue developing HUGInsure, we are promoting the concept of social impact insurance and getting others to start thinking this way. We want to see the industry building on the work that we have done to a point where insurance for continuity of NPO operations becomes an accepted industry norm. 

Corporate practice

exxaro

Getting behind education to create a future for its communities Exxaro aims to improve the quality of education in all the communities close to its operations, to enhance job prospects and economic development in disadvantaged communities. The feedback shows the impact that these interventions are having.

❛E

ducation is the great engine of personal development. It is through education that the daughter of a peasant can become a doctor, that the son of a mineworker can become the head of the mine, that a child of farmworkers can become the president of a great nation. It is what we make out of what we have, not what we are given, that separates one person from another.”

Nelson Mandela, Long Walk to Freedom

Embracing a holistic strategy Exxaro’s strategy is typically to conduct a needs analysis in the communities and then draft individual education strategies for each business unit. As a mining company, Exxaro’s focus areas are mathematics and science, but it takes a holistic approach to education, providing teachers and learners with various skills, to improve academic achievements of the learners. In this way, Exxaro has a strong drive to provide learners with career guidance in order for them to make informed choices in the rapidly changing job market. All Exxaro education programmes are endorsed by the Department of Basic Education at circuit, district and provincial level.

A change agent in mining communities The Group’s interventions include: Learner Development Programmes – Saturday and holiday classes, and exam preparation camps for grades 10 to 12 ●● Top Achievers’ Programmes – potential bursary candidates ●● Teacher Development Programmes – formal training and classroom-based support ●● Principal Development Programmes – partnering principals with business leaders to enhance managerial skills ●● Whole School Development Programmes – infrastructure, ●●

●●

●● ●●

●●

resources, parental involvement, enhancing the image of a school in the community School Leadership Training Programmes – governing bodies, management and learner councils Inclusion of technology – moving away from the chalk-andtalk method of teaching Provision of teaching and learning resources An iDeaf Programme for the Sedibeng School for the Deaf, Lephalale – using iPads to improve hearing-impaired learners’ literacy and employability The Exxaro Mountain Bike Academy’s Kids on Bikes initiative.

Over the past two years, these programmes have yielded a marked improvement in learner achievements and provided learners with better prospects in terms of furthering their studies and careers.

Expanding the programmes Opportunities for the expansion of these interventions are limitless and Exxaro is constantly exploring mutually beneficial partnerships with other corporates and organisations to effect change in its communities. The group’s CSI strategy states: “Exxaro has a heart for education: we believe in the potential of our youth and are committed to being an ‘engine of personal development’, a belief integral to our corporate philosophy.”

Contact

As a South African-based resources group, Exxaro subscribes to Madiba’s vision by investing in education in its neighbouring communities. The objectives of Exxaro’s interventions are to raise the quality of education at schools closest to the areas of the company’s mining operations and to enhance quality job prospects in disadvantaged communities.

RAMESH CHHAGAN Group Manager: Community Development ramesh.chhagan@exxaro.com 012 307 4038 www.exxaro.com

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Corporate practice

Growthpoint properties

Growing learners and enhancing primary education in the Western Cape Growthpoint Properties Limited is the largest listed property company on the JSE, with an owner, manager and developer focus. As part of socioeconomic development, the Group focuses on corporate social investments towards social infrastructure, enterprise development, rental subsidies, staff volunteerism and education. In 2009, Growthpoint made the strategic decision to focus its CSI projects on education, issuing a national challenge to its shopping centres to identify a cause aligned to the strategy and to implement a CSI campaign around it.

he Western Cape identified the unacceptably low literacy levels in their schools as a cause for major concern, since the literacy levels in South African schools are among the lowest globally. This resulted in the birth of Growsmart, an annual inter-school literacy competition aimed at changing awareness and learning behaviour in the school community and tangibly benefiting previously disadvantaged schools and learners. Three learners are selected from each of the participating schools to compete over 11 Saturdays. Each school has a team mentor, who is one of the teachers at their respective schools and will assist in adequately preparing the team. Over a number of months during the year, all learners in grades 4, 5 and 6 in 200 schools in the Western Cape regularly receive specially designed Growsmart newspapers. The aim of the newspaper is to help learners prepare for the competition and to encourage reading, spelling, word definition and comprehension practice in the classroom and at home. The content of the newspapers is aligned with the curriculum and approved by the Western Cape Education Department (WCED). Growthpoint believes in knowledge sharing; their newspaper content is available on the Growsmart website for anyone who wants to use it.

Engaging stakeholders Growsmart is a successful public-private partnership, and includes partners such as the Western Cape Education Department (WCED),

schools in the Western Cape, various Growthpoint retail centres, suppliers and staff. Stakeholders are involved in all stages of the programme and are integral to its success. All 11 competition days are run by volunteers from Growthpoint’s staff, Mustard Seed Relationship Marketing, various Growthpoint suppliers, and WCED. The WCED fully endorses and supports the Growsmart programme and acknowledges the change that is evident in the schools in which it operates. “Impact can be linked to changed practice and behaviour in the school community and here we do have positive empirical evidence,” says Genevieve Koopman, Director: Curriculum, General Education and Training, WCED. In 2014, Constantia Village, Golden Acre Centre, MontClare Place and Longbeach Mall in the Cape were able to conduct bookcollection drives for schools that lack library facilities. These centres, as well as other Growthpoint shopping centres are also able to provide tenant sponsorship. The programme actively promotes involvement from learners, teachers and parents. “Growsmart is a great vehicle that assists in bringing people together from different backgrounds and areas of expertise to tackle the illiteracy challenge, says Shawn Theunissen, Head of Growthpoint CSR. “Our approach has always been centred on making a difference in schools and changing communities for the better, thus the desire to see the programme focusing on delivering sustainable results for both teachers and learners,” adds Theunissen.

Recognising winning schools and winning teams Growsmart library

The winning school receives an iSchool Africa iPad Learning Lab to the value of R 250 000, made possible by Growthpoint Properties. Previously the winning school would receive improvements to their premises and facilities, however it was decided in 2014 that a long-term intervention towards math and literacy was needed. Furthermore, the three learners in the winning team receive assistance with their future education to the value of R20 000 each.

From literacy to story writing The facilitation of the Growsmart programme affirms that literacy is the foundation for every other school subject, and is important for

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continued learning. In February 2014, a new element was added to Growsmart which takes the literacy initiative one step further – that of a story writing competition. Six hundred learners were invited to create and submit their own written and illustrated stories, to be judged according to strict criteria set by the WCED. Guidelines were provided to the learners to encourage them to incorporate life experiences and use of their imagination. The top 20 stories were published as a collection of works in a book titled Children Writing to Grow Smart which was distributed to selected schools. The learners’ whose stories were featured received story editing workshops to aid them in their future writing skills. The story writing competition has stimulated research skills, peer learning and media creation among the learners.

Monitoring and evaluation A five-year review of the programme took place following a successful final Growsmart competition held in September 2014 which entailed two workshops, with representation from Growthpoint Corporate Social Responsibility (CSR), Mustard Seed Relationship Marketing and the WCED. The workshops included an introduction of Growthpoint’s CSR’s approach, the objectives focusing on education and the intended social impact. Reflection of the social impact involved questions on what the current literacy problem looks like and Growsmart’s role in addressing it. It was only through the monitoring and evaluation (M&E) programme review that Growthpoint was able to identify some of the implementation gaps in the programme as well as opportunities for improvement going forward. “We realised that we needed to develop a structured M&E framework if we were to be able to report on the real impact of the programme,” says Theunissen. “For the past five years, our reporting had concentrated on the outputs of the programme and not the impact, which is where we show if we are really making a difference to the learners’ literacy levels,” he adds. Growthpoint has partnered with iSchoolAfrica to facilitate a long-term intervention to improve literacy and numeracy within the winning school. “After the review, we understood that it will take long-term investment to turn things around,” says Theunissen. “Partnering with iSchoolAfrica has enabled us to strengthen our programme inputs as the iPad Learning Lab programme works with the winning school for a period of a year to better equip teachers through training and to help learners improve their literacy and numeracy scores,” adds Theunissen.

Social investments in education need to work in collaboration with other programmes that facilitate cohesion in order to evolve with the dynamic nature of social problems. ●● Internal stakeholder engagement can be the greatest tool for programme sustainability. The staff volunteers bring co-ordination and infrastructure development expertise. ●● Unintended consequences can provide a lead into underlying problems. For Growsmart, the teacherlearner-parent involvement proved to be a way of identifying talent and promoting community inclusiveness. ●● Greater impact can be achieved when teachers are adequately equipped with effective education solutions. ●●

The review was followed by an analysis of the Growsmart competition, high-level mapping of the programme stages, and facilitation towards developing a theory of change. One of the fundamental questions was how the evidence of enhancing literacy and learning experiences would be presented, measured and monitored. Performance indicators were discussed in line with the key elements of the objective statement: to enhance the literacy, learning abilities and experience of participating learners. For example, to measure ‘enhance the literacy’, the indicator was the number of newspapers a learner would have engaged with; to measure ‘literacy and learning abilities’, the indicator was the increase in vocabulary measured in competition rounds; and to measure ‘experience’, the indicator was providing conducive learning environments through infrastructural improvements in the winning schools. Going forward, these indicators will be measured and monitored to better report on the overall impact the programme is having on literacy levels in South African learners. Growthpoint recognises that one of the limitations to the Growsmart programme is its restriction to the Western Cape and that it has not had the opportunity to increase in scale due to capacity challenges. “We would welcome the opportunity to take the programme to scale and expand to other provinces,” says Theunissen. “We are open to partnering and collaborating with other corporates and interested parties.”

Contact

Growsmart 2015 winners

lessons from growsmart

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SHAWN THEUNISSEN Head of Corporate Social Responsibility csi@growthpoint.co.za www.growthpoint.co.za 011 944 6001

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Corporate practice

the hollard foundation trust

Kago Ya Bana – significant, sustainable, systemic change in ECD Popularly known as KYB, the programme was initiated in Midvaal in 2007 by the Hollard Foundation Trust, with the objective of making a significant contribution to improving access to early childhood development (ECD) services and embedding ECD as a core component of local government’s service delivery mandate. Having achieved this objective a year ahead of schedule, KYB is already well under way to being implemented in Lesedi and the City of Johannesburg.

he aim at the outset has always been to enable the municipality, the Gauteng province and NGO ECD enterprises in the area to improve service delivery so significantly as to be able to achieve universal access to ECD for children in their foundation years of birth to four years old – the focus group. The approach was to develop a sustainable model of service delivery, incorporating the formal registration of ECD centres and ensuring their eligibility for funding from government and other sources, independent of KYB and the Hollard Foundation Trust support. The overarching aim was to leave behind a municipality capable of taking care of its own children. This was achieved through systemic change; sustainable interventions; a partnership across spheres of government focusing on the child outcomes of nutrition, growth monitoring and school readiness; strengthening practitioner competencies; and ensuring compliance with adequate care and safety of children.

Zoleka Mphela, the Principal at Ikusasa Bokamoso, an ECD centre in Lakeside, Midvaal, and her class.

and funded 15 ECD sites, which all fully met compliance requirements owing to KYB's assistance and intervention. The department continues to provide strategic advice and technical support to the municipality and ECD practitioners.

What we have learnt ●●

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It is worth building and investing in partnerships at local government level: there are more synergies and shared values than differences. Adopt a long-term approach (three to five years) aligned with government planning and funding timelines and processes. Set up governance structures upfront to ensure effective political mandating and oversight and efficient administrative accountability. Agree to timelines upfront to strengthen accountability.

Full municipal responsibility and other achievements

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The municipality has taken full responsibility for increasing access to quality ECD for all its children. This commitment is reflected in the Integrated Development Plans, which have resulted in the establishment of a dedicated ECD unit with full-time personnel, to drive and monitor delivery. Municipal by-laws have been revised to provide for the adoption and funding of home-based ECD (or Day Mother model) programmes. The Midvaal Local Municipality ECD Forum has been established, with representation from relevant municipal departments, district representatives from the Departments of Social Development and Basic Health and Education, and the ECD Practitioners Forum. The municipality has also leveraged the Expanded Public Works Programme (the EPWP) to fund stipends for day mothers. The provincial Department of Social Development registered

Medium-term arrangements and monitoring of sustained success are all part of the official handover of the programme to the municipality and KYB’s exit from Midvaal, its goals all achieved ahead of schedule. KYB is now in the implementation phase of scaling up the programme in the City of Johannesburg and Lesedi. The ultimate goal that remains is to make local government fully responsible for ECD services for all its children.

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Contact

Handing over

NTJANTJA NED CEO Hollard Foundation Trust ntjantjan@hollard.co.za www.hollard.co.za 011 351 5000

Corporate practice

Liberty Group

Changing realities Liberty has a legacy spanning over 40 years in community development upliftment activities which are shaped around the wider socioeconomic needs of South Africa. Education is key to South Africans playing a more constructive role in unlocking the country’s socio-economic capabilities. Through increasing the number of educated and skilled people one at a time, Liberty aims to maximise human potential which is critical.

One such initiative supported by Liberty is the Kutlwanong Centre for Maths, Science and Technology. Established in 2004 by former teacher, Mr Tumelo Mabitsela, this non-profit organisation assists learners from previously disadvantaged backgrounds by improving their performance in core subjects. In so doing, they are provided the opportunity to enter into a wider selection in terms of study field. Liberty supports two Kutlwanong centres: Ponego Centre in Katlehong, Gauteng; and Sibusisiwe Centre in Umbumbulu, KwaZulu-Natal. Both centres cater for 600 grade 10 to 12 learners. In 2013, 149 matriculants wrote their final exams, of which 147 learners achieved university passes and 77 distinctions were achieved in mathematics. The 2014 results were similarly outstanding with 190 of the 204 learners achieving a university entrance pass and 83 achieving distinctions in mathematics.

Success stories Two learners stand out as a testament of the potential of this programme to change realities. Refiloe Machaba from Katlehong Technical High was the top learner in 2013, having achieved a distinction pass with 100% in mathematics and 98% in physical science. Refiloe is now in his second year of his actuarial science studies at Wits University. Michael Bila from Ponego Comprehensive School was the top achiever for 2014. “Before being a learner at Kutlwanong, I mostly received average grades,” explains Michael. “I used to struggle a lot with my school work. Kutlwanong unleashed the best in me. Mam Maseko, the Centre Manager, used to tell us that we should use our emotions as a vehicle to success; that we should review our disadvantaged backgrounds and notice that change needs

Learn Like Lerato and the Like to Learn Programme are aimed at improving mathematics and literacy skills of primary school learners, offered in partnership with Future Thinking Foundation. ●● A development programme aimed at improving the teaching of mathematics by working with teachers at Liberty-supported schools and offered through a partnership with ORT SA. ●● The South African Mathematics Olympiad, a national competition, is open to all schools and aimed at improving problem-solving skills and encouraging the love of mathematics in learners. It is offered in partnership with the South African Mathematics Foundation and attracts over 80 000 entries.

Liberty’s other initiatives

Supporting maths and science

to occur. She told us to study with a purpose. My Kutlwanong educators then added the remaining reactants needed to fuel the vehicle which leads to ultimate success – education,” he adds. Michael not only achieved a distinction with 100% for both mathematics and physical science, but he was crowned the country’s top physical science learner for the class of 2014 by Minister Angie Motshekga. Due to his excellent results, he was the recipient of a Liberty bursary and is currently studying his first year of actuarial science at Wits. Liberty started funding the Kutlwanong Programme in 2013. “We are eagerly awaiting the 2015 matric results as these learners were our first intake of grade 10s,” says Liberty’s CSI Manager, Ayanda Sema. “This programme is but one of many ways in which Liberty is changing the realities of the future leaders of South Africa and will continue to do so,” adds Sema.

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Contact

iberty’s key focus area remains education. The company supports initiatives that follow a lifelong trajectory, targeting each life stage of a learner with the aim of improving their performance in mathematics, physical science and literacy. A strong emphasis is placed on mathematics as, through this subject, learners gain the problem-solving skills that are both necessary and marketable in today’s technically oriented market place. This market place is now global and South Africa must aim to achieve a competitive edge; and, as such, Liberty recognises that this will require expert problem-solvers. Practise in problem-solving will help to train the country’s future leaders of technological development.

Liberty Group CSI Department csi@liberty.co.za www.libertyholdings.co.za 011 408 3209 (Direct) 011 408 3838 (Liberty reception)

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Corporate practice

murray & Roberts

Contributing to sports development in South Africa The Letsema Sizwe Community Trust (Letsema Sizwe) was established as one of four vehicles to assist Murray & Roberts broaden its economic base. Through the Trust, Murray & Roberts provides benefits to national and regional community groupings with the aim of promoting and enabling social upliftment, empowering black youth, people with disabilities and black women.

ince the inception of the Letsema Sizwe Trust in 2006, Murray & Roberts has provided funding to several partner NGOs to carry out work with marginalised groups and supported the development of sport among both able-bodied athletes and those with disabilities, through the Jack Cheetam and Letsama Sports awards.

The prestigious Jack Cheetham Awards 2015 marks the 34th instalment of the prestigious Jack Cheetham Awards. The awards were initiated in recognition of the special qualities of Jack Cheetham, a former director of the company and the inspirational captain of the South African cricket team in the 1950s, who instilled in young people the belief that they could win. Since the inception of the awards in 1981, Murray & Roberts has acknowledged several sports administrators for their commitment to sports development in South Africa. The Jack Cheetham Award was relaunched as an annual award in 2002 not only to recognise and reward sports administrators, but also to identify sporting talent within South Africa. The relaunch was aimed at promoting sports development projects with a focus on individuals and teams that have the potential to be champions. Since the relaunch, more than 20 organisations have been honoured for their contribution to achieving the sports development ideals championed by Jack Cheetham. As a result of the significant development leverage achieved by award winners, and in recognition of the need to strengthen the impact of the winners, the prizes for the awards were reviewed, resulting in increased financial rewards over longer periods. This has resulted in enhanced participation, strengthened performance for elite athletes, greater opportunities to attract additional investment to promote expansion of their outreach and high performance programmes, and contributed to the sustainability of projects. Murray & Roberts partners with the South African Sports Confederation and Olympic Committee (SASCOC), which assists in promoting the awards among relevant sporting codes and is an integral part of the selection process for the awards. SASCOC also aids with the promotion of the awards (www.sascoc.co.za).

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The Letsema Sports Award The Letsema Award was introduced in 2009, following the outstanding performance of Hilton Langenhoven at the 2008 Paralympics in Beijing. The award recognises and supports sports development projects for people with disabilities. Murray & Roberts assisted Hilton Langenhoven, through the Erinvale Charity Organisation, for a period of three years and contributed towards his educational, personal and ongoing sports development. Since the inception of the award, seven awards have been allocated to individuals and organisations that demonstrate leadership, determination and excellence, despite being differently abled.

Winner of the 2014 Jack Cheetham Award Diepsloot Mountain Bike Academy was nominated by Cycling South Africa and emerged the winner out of 30 nominees from various national sport federations in South Africa. Diepsloot Mountain Bike Academy provides opportunities for the youth from the Diepsloot community through sports development and empowerment programmes to enable them to become active participants in the social upliftment of their district. The long-term vision of the academy is to develop each athlete into a wellrounded and skilled individual who is able to earn sustainable income and provide for their family. During 2014, athletes from the academy were selected to represent South Africa at the African Youth Games in Botswana, the Youth Olympic Games in Hong Kong, and they also had a representative at the 2014 UCI MTB World Championship in Norway.

Awards

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Previous beneficiaries of the Jack Cheetham Awards include: Bethelsdorp Wrestling Academy – 2013 Winner National Archery – 2013 First runner up ●● Dreamfields Project – 2013 Second runner up ●● Paarl Canoe Club Development Programme – 2012 Winner ●● Sedibeng Korfbal Region – 2012 Runner up ●● ●●

Some of the previous beneficiaries of the Letsema Awards: Mandeville Aquatics Disability Swimming Centre of Excellence – 2013 Winner ●● Wheelchair Basketball South Africa Disabled – 2013 First runner up ●● South African Wheelchair Rugby – 2013 Second runner up ●● Shumbashaba Horses Helping People – 2012 Winner ●● Rowing for the Physically Disabled – 2012 First runner up ●● Judo Institute for Special Needs – 2012 Second runner up ●●

Free State Sports Association for the Physically Disabled was established with the aim of supporting children with disabilities to access and excel across a variety of sporting codes including athletics, boccia, para-cycling, goal ball, swimming and cerebral palsy soccer. Most of the children are from disadvantaged communities and are identified through partnerships with schools for learners with special needs. The association provides an opportunity for athletes with disibilities to participate in sport both nationally and internationally. Athletes from the association have been included in the Free State Sports Institute’s high performance programme, with one athlete in the SASCOC Operation Excellence Programme.

HIGHLIGHTS

Winner of the 2014 Letsema Award Kirsten Beckett represented South Africa at the 2014 Commonwealth Games in Glasgow. Kirsten is a member of the Johannesburg Gymnastics Club which won the 2009 Jack Cheetham Award. Sizwe Ndlovu, was one of the South African lightweight men’s four who won gold at the 2012 London Olympics. Sizwe was among the first successes to emerge from Rowing South Africa’s schools transformation programme. Rowing South Africa won the 2002 Jack Cheetham Award. Chaeli Mycroft, winner of the 2011 Letsema Award, recently summited Mount Kilimanjaro, making her the first female quadriplegic to do so.

The winners in both categories were selected from among 30 nominees and six finalists. The final selection is guided by a set of criteria which include: the quality and reach of their outreach programmes; their ability to identify athletes with potential; exposing these athletes to high performance/elite programmes that are aimed at honing and improving their skills; the organisation’s participation in and achievement at competitions; leadership being instilled in athletes; and their ability to sustain the programme and their achievements. The winners in both categories in 2014 exceeded the panel’s expectations on almost every score.

Contact

Selection of winners

DONIQUE DE FIGUEIREDO Group Corporate Social Investment Executive donique.defigueiredo@murrob.com www.murrob.com 011 456 1587

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Corporate practice

NPC – intercement

NPC builds lasting relationships with communities NPC seeks to create CSI programmes in the areas in which it operates that build relationships between the organisation, its staff and its communities. Their artisan training and employee volunteer programmes are two examples of this goal in action.

PC is a member of InterCement, which has a presence in nine countries with 39 plants. InterCement is owned by the Carmargo Correa Group, which is Brazil’s secondlargest engineering and construction company and a leader in hydroelectrical power plant construction. In South Africa, the company has over 350 employees. NPC also has a significant commitment to help build a better South Africa through investing in local employment, local procurement, capital investment, tax contribution and corporate social investment. The company states, “We aspire to being part of and making a difference in the community.” NPC’s CSI strategy seeks to build and strengthen sustainable relations with the communities in areas which the company operates, in order to contribute to social transformation. Its mission is to facilitate sustainable community development programmes with a focus on employee volunteering, education, artisan skills development, and income-generating and entrepreneurial development programmes.

The NPC Community Trust In 2007, NPC established its Community Trust, with the purpose of investing in the development of communities in and around its cement operations in Port Shepstone, Durban and Newcastle. The trust’s mandate is to facilitate community upliftment programmes in two focus areas – education and entrepreneurial development – which the company has identified as major contributors to social and economic development. The objectives of the trust are to: ●● Promote education and entrepreneurial development ●● Distribute funds to beneficiary communities.

Artisan training creates a pool of skilled local youth One of the initiatives that NPC supports is the Artisans Training Programme, launched in 2014, which is a partnership initiative between two major corporates in the Port Shepstone area – NPC and Idwala Carbonates – in conjunction with NPC Trust and the Artisan Training Institute. The programme aims to bridge the artisan skills gap that exists in the province, particularly in the South Coast where NPC and Idwala operate. These skills are often imported from Durban or

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Artisan training: a community-wide initiative The participating partners in the Artisan Training Programme

other areas, limiting career opportunities for young people from Port Shepstone and its surrounding communities. The objective is to create a pool of skilled youth who will participate in the job opportunities in their communities. The first intake of students was in 2014 with 23 students selected from four tribal councils. Tribal authorities are responsible for the selection of candidates who have matric with maths and science. To ensure the success of the programme, a tight selection process was put in place. Students write two assessments; one conducted by the Artisan Training Institute and another by the FET College. The programme runs for 24 months and has three training levels: Six months’ trade theory training at the FET College ●● Six months’ practical training at the Artisan Training Institute ●● On-the-job training/workplace skills for a period of 12 months at Idwala, NPC and other companies. ●●

Programme outcomes: ●● Entrance into learnership programmes ●● Artisan entry-level employment ●● Small enterprises.

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The project has started to bear fruit. Five of nine learners who completed the training programme have been absorbed into learnership programmes at NPC and Idwala.

NPC’s employees contribute to communities

The Day of Doing Good The Day of Doing Good is a strategic employee voluntary initiative launched by NPC in 2013. It is part of InterCement’s

CSR programme that aims to strengthen the company’s social investment strategy and contributes to citizenship and community upliftment in communities where the business operates. It takes place annually at all InterCement companies during the month of August. Now in its third year at NPC, the Day of Doing Good has seen over 4 000 people benefiting in six communities around NPC’s six operations. Over 800 volunteers, comprising NPC employees, their friends and families, community members, partners and suppliers dedicate time and effort to charitable organisations, schools, ECD centres and health centres. This year’s Day of Doing Good took place on 23 August. NPC representatives have stated that they are always amazed by the excitement and commitment of their employees in this initiative. The day is received with so much excitement, enthusiasm and a great team spirit by employees at all their plants and projects. Employees work with dedication and commitment to the projects they selected. Their sense of ownership and pride about their contribution is visible.

Contact

The NPC Ideal Volunteer Programme is integrated with the company’s strategic social investment programmes. It aims to create opportunities not only for the company’s employees, their families, its partners and suppliers, but also to contribute to the development of communities in which it operates. NPC sees its volunteer programme as a platform for employees to give back to their communities and to build relationships within their communities. The programme has three components: Community Interaction and Volunteer Involvement Committees (CIVICO); volunteer groups called Ideal Volunteer Action Groups (GAIV); and the annual Day of Doing Good event. CIVICOs are set up in all NPC’s plants. Their responsibilities are to strengthen company ties with the community, stimulate and support volunteer activities among employees through the GAIV activities. CIVICOs play a key role in disseminating information to employees regarding social projects; ensuring that their plants have GAIVs; training and capacity building for GAIVs; organising and engaging volunteers for the Day of Good Doing event; as well as the recognition of GAIVs and other volunteers. These committees comprise of plant managers, HR practitioners, CSI practitioners, safety and environmental officers, and employees with a passion for their communities. The GAIVs are teams formed by NPC employees. They co-ordinate their activities, some of which are aligned to the company’s social investment projects. The volunteer teams have five to 10 employees who participate on an ongoing basis. The group has a co-ordinator and has a name chosen by its members. GAIVs identify projects they want to give their time and skills to under the guidance of the CIVICOs. The company provides funding for the groups to carry out their activities and for CIVICOs to incentivise the work of the GAIVs.

HLENGIWE RADEBE Transformation Manager radebet@intercement.com 031 450 4523 083 412 5551

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Corporate practice

old mutual foundation

Addressing the impact of poverty and HIV on children When Rose Mkhize’s son passed away, she was left to deal with her grief and to look after her two grandchildren without any means of support. Rose’s story is all too common in a country with such high levels of poverty, inequality and HIV.

ortunately, with help from Old Mutual, Rose and her two grandchildren did receive much-needed support through Thandanani’s Family Strengthening Project (www.thandanani.org.za). The project offers holistic support to families caring for orphaned and vulnerable children (OVC). The aim is to reduce their vulnerability, increase stability and promote self-reliance, over a three-year period.

An organisation at the cutting edge of community-based child care Thandanani Association was formed in 1989 by a group of volunteers responding to the needs of children abandoned at Edendale Hospital in Pietermaritzburg. By 1996, thanks to the efforts of the volunteers, these children had all been relocated to more appropriate places of care. However, a new threat had emerged, HIV/Aids, which was having a devastating impact on families and children. Recognising this, Thandanani shifted focus. In 1999, it relaunched itself as Thandanani Children’s Foundation and introduced a pioneering strategy aimed at supporting vulnerable children within their families and communities of origin. Since then, Thandanani has developed and refined its model to provide optimal support to under-resourced families caring for orphaned and vulnerable. The model strengthens the family construct and addresses all aspects of care for a designated specific period of time. While assisting Rose Mkhize to access government grants, Thandanani provided emergency support in the form of food parcels, basic household items and school uniforms for the children. Once the grants were in place and a food garden had been established at the family home, Thandanani continued to provide support through regular visits, health assessments and education, and participation in a variety of life-skill and therapeutic programmes. “The community workers would sometimes help us

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with vital information we did not know, which helps us as caregivers to take better care of children who have lost their parents,” explains Mkhize. “We would engage in conversations about the pains and suffering of losing our family members who we loved and how we can heal spiritually, move on and accept that we have lost those family members, because if we do not accept we end up straining ourselves emotionally,” she adds. With Mkhize now receiving government grants for her grandchildren and fresh vegetables from her garden, she is able to provide for the basic needs of her family and, with the support she received from Thandanani, she is at peace with the loss of her son and closer to her grandchildren than ever before. She is filled with gratitude for the support she received from Thandanani in her time of need.

Working on a sustainable model Thandanani’s Family Strengthening Project involves employing and training residents from the communities in which Thandanani works as fieldworkers to identify and address the basic needs of families caring for orphans and other vulnerable children within their community. With support from Thandanani staff, these fieldworkers then address the basic material, physical, cognitive and emotional needs of OVC households through a comprehensive and holistic package of services. ”The first three months involve a baseline assessment, formal placement of the caregiver, school attendance and performance assessments as well as health assessments,” explains Duncan Andrew, director of Thandanani. “The second stage, from month three to month 24, is the support stage. This is where we conduct monthly home visits, facilitate grant access, monitor grant usage and facilitate access to a range of life-skill and therapeutic programmes. The final stage, from months 25 to 36, is the withdrawal stage where we reduce the monthly home visits and monitor the family’s ability to stand on their own two feet in meeting their basic needs,” concludes Andrew. One of Thandanani’s keys aims is to ensure that households are able to function independently of Thandanani’s support once they exit the system after three years. This movement of households through the system ensures that households do not become dependent and that Thandanani itself is able to take on new households without creating unsustainable demand on its capacity and resources. The organisation has set a cap of 500 on the number of families it will support at any given time. Not only does this provide a degree of consistency and predictability in the organisation’s budget and fundraising requirements, it also ensures that the organisation does not take on more households than it can support from year to year.

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❛

I've been a member of the Payroll Giving Programme for a good few years now and I must say that it is the quickest, easiest way to make a difference. Whether it’s the elderly, disadvantaged children, women, youth or abused and abandoned animals that you are intent on helping, Payroll Giving has an organisation for you.”

Thandanani conducts regular monitoring and evaluation (M&E) to measure the impact on the families that it supports in the Midlands of KwaZulu-Natal. In the last five years, Thandanani has provided support to 1 491 households caring for a total of 10 124 vulnerable children via its Family Strengthening Project. Old Mutual works closely with the organisation around the M&E of the project. “Thandanani has developed a comprehensive database of all its beneficiaries and services,” explains Renee Palmer, the Programme Manager for the Old Mutual Foundation’s Staff Payroll Giving Programme. “This database enables them to monitor service delivery to specific households or individuals (output indicators) and to track the movement of these households through the various stages of their household support and development model over time,” she adds. This movement of households from a state of vulnerability to increased stability and self-reliance is then used as an indicator for overall impact.

Harnessing staff engagement

Contact

Old Mutual has one of the most comprehensive staff volunteerism programmes in the country with almost 35% of its employees across South Africa engaged in one form of volunteerism or another. The staff volunteer programmes are designed to integrate the company and employees into the social fabric of the local communities in which it does business. Employees are encouraged to care for the community through a number of Old Mutual Foundation-led initiatives – one of which is payroll giving. Thandanani is a staff volunteerism flagship programme funded through staff payroll giving. The Staff Payroll Programme has been in existence since 2002. To date, Staff Payroll Giving Champions have pledged more than R13 million through their donations. This is matched rand for rand by the Old Mutual Foundation to double the impact of giving. Staff contributions support organisations specialising in the care of the elderly, animal welfare, abused and neglected children and HIV/Aids care. More than 2 000 employees now donate through payroll giving to support organisations such as Thandanani Children’s Foundation.

Old Mutual staff member

HIGHLIGHTS

Measuring the impact of the project

The Old Mutual Foundation’s areas of support include: ●●

Enterprise Development focuses on small-business support and improving job creation through small-scale community bakeries and farming projects; creating partnerships for development, with a focus on business sustainability.

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Skills Capacity Development focuses on addressing the national technical skills deficit, strengthening partnerships with institutions, leveraging Old Mutual’s inherent competencies through investing in jobplacement-linked training.

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Education focuses on increasing the number of Bachelor passes obtained at low-performing schools to enable more learners to access tertiary studies. Interventions are aimed at strengthening school leadership and management, improving educator skills in maths and science, and offering extra learner interventions.

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Staff Volunteerism is a vital platform for Old Mutual employees to make a difference in the communities they serve comprising the following portfolios: ❍❍ Staff Payroll Giving Programme encourages Old Mutual employees to contribute from their salary each month, matched rand for rand by the Old Mutual Foundation. ❍❍ Staff Community Builder Programme offers eligible staff volunteers the opportunity to apply for funding for key resources for the organisation at which they are volunteering. ❍❍ Care & Share is a call to all Old Mutual employees to dedicate one day in a year, to make a difference in the circumstances of those who are less fortunate in our society and show the spirit of ubuntu, through action.

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Vulnerable Members of the Community supports ad hoc causes that improve the livelihoods of children, youth, disabled persons, women and the elderly. Old Mutual’s bias is towards rural and peri-urban communities where the poorest of the poor reside and who can derive maximum benefit through our interventions.

RENÉE PALMER CSI Consultant: Old Mutual Foundation rpalmer@oldmutual.com 021 5094511 www.oldmutual.co.za

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Corporate practice

Rand water foundation

Improving living standards within communities In line with Rand Water’s core business, the Rand Water Foundation undertakes a range of water-related community development projects, with a primary focus on conserving water, improving living standards, and protecting the environment. Through these interventions, the Foundation also seeks to stimulate entrepreneurial activity, thereby contributing towards job creation and reducing poverty.

he Rand Water Foundation’s vision is to be a socio-economic change agent of Rand Water, providing empowerment and quality in eradicating poverty and improving living standards within communities. It does this through six of its key focus areas: water and sanitation; environment management; education and training; health including HIV and Aids; enterprise development; and non-governmental organisations (NGO) support. In a revision to the strategy in 2015, the Foundation has adopted two more focus areas: namely women, youth and children; and rural development.

Harvesting rainwater in schools Tokelo Secondary School in Evaton in the Emfuleni Local Municipality is one of 20 schools in the Vaal area to have benefited from the Rand Water Foundation’s Rainwater and Gardening Food Project in 2015. The project, which falls within the Foundation’s water and sanitation portfolio, aims to educate schools and communities on how to be water-wise in their gardens as well as satisfy the need for healthy vegetables. MJ Qobolo, the Principal of Tokelo Secondary School, acknowledges how the project has already helped the school: “The project assists our school by reducing the amount of water used daily, which impacts negatively on the school’s finances. The project will further improve the greening project that the school is currently engaged in.” Since the installation of the rainwater harvesting system, Tokelo Secondary School’s water bill

has dropped drastically and they are able to water their vegetable garden daily. The learners have also benefited. “The food that is grown in the vegetable garden is able to feed our learners,” says Qobolo. “Also, the money collected from vegetable sales is utilised to augment some of the items needed for the feeding scheme,” he adds. Rainwater harvesting systems have been installed in 10 schools around Sebokeng and Evaton, and in 10 Sharpeville schools. Key interventions include the installation of rainwater harvesting equipment such as JoJo tanks and gutters, and the erection of pipes to the food gardens so as to harvest enough rainwater reducing the schools dependency on municipal water. Schools are encouraged to grow food gardens to eradicate poverty and enhance food security at a household level. Furthermore, there is awareness-raising provided to schools on using water wisely. An additional spin-off is the creation of jobs. During the assessment stage, five temporary jobs were created and an additional 10 jobs were created in the installation of the rainwater harvesting systems. The Rainwater Harvesting project was first implemented in 2011/2012, benefiting 15 schools in the Tembisa Township within the Ekurhuleni Municipality. In 2012/2013, the project benefited a further 15 schools in Alexandra Township; and the following year, it was implemented in 10 schools in the Diepsloot area, and in 10 Orange Farm schools within the City of Johannesburg. To date, a total of 70 schools have benefited from the Schools Rainwater Harvesting project and the plan is for Rand Water Foundation to target more schools in the coming years.

Greening of parks in impoverished areas Implemented in Metsimaholo Local Municipality (Sasolburg) of the Fezile Dabi District in the Free State, the Greening Zamdela project aims to introduce an integrated approach to planting, and management of vegetation in the area. This will reduce pollution and increase associated benefits such as reduced soil erosion, beautification of the environment and increased surface infiltration through the planting of trees, landscaping and the development of parks.

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“Initially the open spaces were illegal dumping sites and infested with rats,” says Sylvester Mmako, one of the local community members, who works closely with the municipality and councillors in the development of all the parks. “Through Rand Water Foundation’s intervention, the spaces were converted into parks equipped with gym equipment and, as a result, community members undertake training sessions thus promoting healthy lifestyles in the community. The parks are also recreational facilities where community members come together and enjoy natural biodiversity and a beautiful park.”

More than just greening Since the inception of the Greening Zamdela project in 2012, the Foundation has developed six parks that now feature play equipment, recreational facilities, waterborne ablution facilities, beautiful landscaping and indigenous trees. The project aims to combine ecosystem management and socio-economic objectives through restoring natural systems as a means of job creation and improved socio-economic services. The project has created 120 jobs for local communities and has supported six SMMEs as well as local suppliers. Other interventions within the environment management programme include biodiversity protection, urban landscaping and greening, wetlands rehabilitation, management of alien vegetation, erosion control and environmental education initiatives.

Supporting education for girl learners Sasha-Lee Morare is one of the beneficiaries of the Ruth First Trust at Jeppe Girls High School. Sasha-Lee, grade 11, is one of the first two girls sponsored by the Foundation. The support at Jeppe includes all tuition for the five years of high school. “Being sponsored by Rand Water has enabled me to attend one of the top schools in Gauteng and has given me the opportunity to work to my full potential during my high school career,” says Sasha-Lee. “I also receive guidance on the different paths I can take after I have finished school,” she adds. The Adopt-a-Learner Study Support Grant is one of RWF projects under its Education and Training Programme. The

programme contributes towards the quality of basic education by supporting and promoting primary and secondary education. The Rand Water Foundation is currently assisting 13 girls with full tuition scholarships at Jeppe through the Ruth First Trust. The learners receive the study support for five years from grade 8 through to matric. “As these learners could not have otherwise afforded these school fees, the contribution makes a fundamental difference to their families,” says Kevin Tait, Business Adviser and Development Director at Jeppe High School. “Enabling these young girls to attend one of South Africa’s premier public schools (100% matric pass rate for 21 successive years) gives the girls an outstanding springboard for tertiary education which will change the trajectory of their lives,” adds Tait. "The girls have excelled in the school. For example, Thirasha Waidyaratne, one of the Ruth First Scholarship girls sponsored by the Rand Water Foundation, has been appointed head girl for 2016," says Tait. “It is well known that education of girls is the most effective long-term social investment because of what they plough back into their families and communities,” concludes Tait. Sasha-Lee (inset) acknowledges the exposure she has had to a wide variety of opportunities in terms of career choice which has assisted her in deciding which career path to follow. “I would like to study further at a tertiary institution, preferably WITS and follow a career in film and animation.”

Refurbishing local clinics Linda Radebe (PHC) and Nelly Mlambo (MOU) are two of the sisters working at the Khutsong Main Clinic in the Merafong Municipality, west of Johannesburg. With only 69 staff, the clinic treats an average of 5 500 patients from the Khutsong community every month. The proliferation of informal settlements in the area, together with the change in disease profile mainly due to the burden of HIV/Aids, has resulted in an increased patient load. HIV/ Aids, TB, chronic non-communicable diseases, trauma and violence remain the key health problems experienced by the centre.

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Corporate practice

Rand water foundation

Although the centre has been in operation since 1993, Rand Water started with refurbishments in 2015 through its health (including HIV/Aids) programme. This included painting, installation of air conditioners, and the provision of additional beds for patients, emergency trolleys and side lamps. The Foundation also contributed medical equipment and fixed all the electrical heaters in the building to create a warm clinic in the winter months. Radebe acknowledges what the refurbishment has done for the clinic: “Before Rand Water Foundation’s investment, the paint was peeling off the walls. This was a major health hazard as bacteria harbours in these cracks.” Thanks to the paint job, the image of the facility has improved; it’s no longer a dull colour with rust and old fascia boards. Mlambo recognises the difference that the refurbishment has made. “According to quality assurance standards, some medical supplies should be kept at a certain temperature. The availability of air conditioners has improved the lifespan of our test kits and medicines, and given them a longer shelf life,” adds Mlambo. Both the patients and staff are the real beneficiaries of the project. “The facility is now clean which is therapeutic to patients and the refurbishments have boosted the morale of the staff,” concludes Radebe.

Creating an enabling environment for emerging entrepreneurs Amos Njoro is the owner of the poultry farm, Ya Rona Temo in the Sedibeng District Municipality in Gauteng. Through the Rand Water Foundation’s Poultry and Piggery Project, Njoro is one of the previously disadvantaged beneficiaries identified by the Foundation that received infrastructure support for his farm in 2015. The overarching aim is to provide support for small-scale farmers to assist them with business opportunities resulting in job creation and poverty reduction. Njoro’s poultry farm supplies the local market with eggs. Employing a team of eight staff, he provides accommodation for his male farmers on site but, prior to the Foundation’s involvement, female farmers had to travel or live in unsuitable premises. As a result, student female farmers tended to leave the farm before they completed their internship. The Foundation identified a gap in the training and capacity building of previously disadvantaged female

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farmers and aimed to support Njoro, renovating the premises for female students. One such female farmer is Andisiwe Ngaleka. “I came to farm for experiential learning in every farm activity as a future farmer and agriculturalist,” says Ngaleka. “My practical work involves everything from office administration to farm maintenance, maize production and vegetable growing.” She acknowledges the challenges that women face in the farming environment. “Initially it was difficult for me to cope as the only female in the male environment but through perseverance and passion I have overcome the fears and doubts because I see myself in the future as a farmer.” Not only did she benefit from the project in terms of the accommodation she received on site, but she also benefited from the training received. “I am now able to compile my semester report with relevant information. The project has helped me to get more involved in farming activities and the skills I obtained are more relevant to what my experiential learning requires. The project has given me a clear idea and understanding of what farming is and about what I want to do in future,” adds Ngaleka. Amos Njoro is one of four farmers supported by the Foundation’s Poultry and Piggery Project as part of its enterprise development programme. The programme entails developmental activities aimed at creating an enabling environment for emerging entrepreneurs, promoting entrepreneurship, enhancing competitiveness and capabilities at enterprise level and development of co-operatives.

HIGHLIGHTS

chapter three

Women, Youth and Children In 2015, the RWF adopted an additional focus area, women, youth and children to its management portfolios. Although women, youth and children are already supported in many of the Rand Water Foundation developmental programmes, it is not always possible to distinguish such interventions from the current categories. As a result, the Foundation formed a stand-alone programme that offers developmental support to these vulnerable groups as per their needs. The programme focuses on women empowerment for poverty eradication, and creating economic opportunities for women and young people. Projects include: Women and youth’s access to employment Reducing violence against women and children ●● Maternal and reproductive health ●● Women, youth and children’s access to government social protection schemes ●● Promoting women’s leadership empowerment programmes ●● Access to basic services ●● Women and youth entrepreneurship. ●●

Supporting NGOs to help eradicate poverty

SAAI conducted a number of workshops with selected students on the skills around establishing vegetable gardens and wormeries. The training was both theoretical and practical in its nature. “In total, we trained 21 co-operative representatives,” says Nxumalo. “These representatives will be able to transfer the skills learnt to their teams. Considering there are usually between six to eight people per co-operative, this relates to a total indirect training of over 160 people,” she concludes.

Contact

Over and above its long-term developmental projects, the Foundation continues to ensure overall community empowerment through its non-governmental organisations (NGO) support programme. This year, the Rand Water Foundation supported 70 NGOs via grants, training and development and Rand Water volunteer interventions through corporate staff involvement. The South Africa Association of Investors (SAAI) is one of the NGOs that received support this year. The organisation’s mission is to educate, empower, support, encourage, motivate, support and create a conducive environment for people to end poverty. SAAI’s programmes are thus geared towards target markets for empowerment. Although based in the urban surrounds of Cyrildene in Johannesburg, SAAI’s projects are focused on township and rural areas. “Our approach is to find existing community projects or schools that are struggling and assist them in establishing sustainable poverty eradication projects,” says Rejoice Nxumalo, the Chairperson of SAAI. “With the support of the Rand Water Foundation, SAAI has been able to establish the Back to Basics Project in two schools in Soweto: Mbuyisa Makhubu Primary School and Winnie Mdikizela Mandela School for the Disabled, and at the Emdeni Skills Development Centre,” adds Nxumalo. The aim of the Back to Basics Project is to conduct workshops to educate people about greening the Earth, eating healthily, planting their own vegetable gardens for sustenance farming, and using vermiculture as both organic compost and an income-generating activity. SAAI established vegetable gardens in the two schools and constructed a wormery in the skills development centre while educating and creating awareness at all three institutions.

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MOHLATLEHO SEKOAILA General Manager: Rand Water Foundation msekoaila@randwater.co.za www.randwater.co.za 011 682 0192

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Corporate practice

royal bafokeng holdings

Investing in communities Royal Bafokeng Holdings (RBH) is the investment vehicle of the Royal Bafokeng Nation (RBN), a traditionally governed community of approximately 150 000 people living in 29 villages. Located in the Rustenburg platinum belt in the North West Province, the RBN is nestled on one of the worldâ&#x20AC;&#x2122;s largest platinum reserves. Their community investment efforts are aimed at generating a socially, economically and environmentally sustainable rural community that remains true to its African heritage and traditions.

he Godisanang OVC Programme is the Royal Bafokeng Nationâ&#x20AC;&#x2122;s response to the plight of the growing number of orphaned and vulnerable children (OVC) in the area. The goal of the Godisanang OVC Programme is to provide comprehensive, competent, child-focused and compassionate care that will improve the quality of life for orphans and other vulnerable children living in Royal Bafokeng communities. Started in 2008, there are now seven OVC centres operating from existing buildings, such as school buildings: four in the north of the Bafokeng area and three in and around Phokeng. Services and activities provided at the centres for children under the age of 18 include teenage talks which include HIV/Aids education; homework assistance and school support for learners; a feeding scheme where one meal is provided daily to all children; provision of food parcels to families who are not yet receiving grants; provision of healthcare; home visits by care-givers; and psychosocial support.

Working to create a caring community The Godisanang OVC Programme is a joint venture between Royal Bafokeng Nation and Tapologo â&#x20AC;&#x201C; a community-based organisation that employs and empowers community members to service their communities in dealing with the HIV/Aids pandemic. The programme collaborates with experienced NGOs and government to ensure children are provided with the necessary care and services to improve their circumstances and give them a normalised upbringing in accordance with the resources available to them. There is a staff of 65: 59 females and five males, and it is 100% black. The level of involvement of staff varies from

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management to those who take care of the day-to-day cleaning, cooking and caring of the children, as well as those involved in the maintenance. The programme is not without its challenges. Although jointly funded by Royal Bafokeng Holdings and Impala Bafokeng Trust (IBT), as well as receiving ad hoc funding from companies and community members, the programme finds it difficult to source funders with a long-term sustainable commitment to the project. This hampers the development of staff and continual improvement. Other obstacles are social ills such as teenage pregnancies and theft from the centres where the programme is run.

Opportunity at every turn Kedase Business Enterprise (Pty) Ltd supplies loading and rigging services, mainly through the hiring of cranes, to a range of clients in Rustenburg and surrounds. The company started in Rasimone in 2005 when the current owner, Daniel Sekano, was working for the mine and realised the potential of going out on his own. Sourcing equipment externally, Kedase has worked on a range of projects including master drilling and discovery drilling. Royal Bafokeng Enterprise Development (RBED) assisted Kedase Business Enterprise by training four of its employees as crane operators and by facilitating mining contracts for the company. The business then expanded to supplying clients with loading and rigging services (mainly crane hire).

Garden creates a sense of belonging Chaneng Association for the Blind was established in Chaneng in 2005 as a small-scale farming project to grow vegetables, and is run by people who are partially or completely blind. There are 15 people who are currently part of the association, eight of whom are the original founders. “Our staff is 100% black and all are senior people,” says Mme Ntebo, one of the founders. The association grows a variety of vegetables, herbs and fruit trees. These are planted, fertilised, watered and harvested to then be processed and sold. They also harvest, package and sell honey from beehives. Daily tasks include maintaining the garden, planting and watering the crops and harvesting the honey. Healthy eating is an important aspect of people’s daily lives and through the provision of organic vegetables, the community has access to healthy food at affordable prices. In addition to selling produce to the community, the association sells to Sun City and to Boshoek shops.

RBH’s CSI objective is to contribute towards the social and economic development of the RBN through structured, sustainable initiatives. RBH dedicates R15 million each year to CSI activities, in line with a strategy approved by the board. Of this, 75% is spent within the RBN and the remainder is aimed at initiatives in other non-Bafokeng communities. The focus on RBH’s CSI programme is education and entrepreneurship development in line with the RBN’s development priorities.

The association aims to develop blind people and give them courage to do things for themselves. It also intends to reduce unemployment and poverty, which is especially high among people living with disabilities. It prides itself on being a local organisation providing organic goods at a large scale. Most importantly, it offers blind and partially sighted people a place of belonging. In 2005, Royal Bafokeng provided the Association for the Blind with land and, in 2007, the organisation received a grant from the Mbeki Trust. The biggest challenge the organisation faces is continued funding. The activities generate a modest return, and sometimes the work is motivated by passion, a love for agriculture and personal pride alone. Since the inception of the project in 2005, the scale of planting and harvesting has increased from a small backyard to a much larger area. An irrigation system was recently installed, replacing the use of cans to water the garden which is a far more efficient method. Members pride themselves on the fact that they share information and teach skills to those who join the organisation. Agricultural students from the North-West University use the area for some of their practical work which is testimony to the good work the project does. The success has not gone unnoticed. The founder and co-ordinator for the Chaneng Association for the Blind won the Community Builder of the Year award in 2008 and the provincial Entrepreneur Female Farmer of the Year award in 2013.

Contact

“We have received a lot of support from the RBED,” says the founder of the business, Daniel Sekano. “RBED paid for us to have exhibition space at MINEX (Mining Expo) in Rustenburg and I received numerous enquiries from the expo, some of which have translated into business,” Sekano adds. In 2014/15, Kedase Business Enterprise had an annual turnover of around R8 million. It has expanded and now offers everything from steelwork and woodwork to accommodation in the form of a guest house. With the expansion of the business has been the increase in staff numbers. Kedase Business Enterprise is made up of 47 employees who are all permanent staff. The employees work across various activities; from the loading and rigging services to the guest house. The staff is 100% black and includes crane operators, administration personnel, and workshop and kitchen staff. Clients include Royal Bafokeng Platinum, Impala, Xtrata Merafe, Rustenburg Platinum Mines and Sun City. Kedase Business Enterprise has big plans for the future and aims to expand its operations into other parts of South Africa.

HIGHLIGHTS

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George Khoza Corporate Social Investment Manager george@bafokengholdings.com www.bafokengholdings.com 011 530 8032 086 661 2546 (fax)

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Santam

Providing opportunities for staff to make a difference The Santam Staff Volunteerism Programme was initiated in 2009 to encourage Santam employees to become more involved in communities they care about. The programme provides the opportunity to contribute time and money, through skills-based giving (such as Santam Community Heroes) or a monthly donation (payroll giving).

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Santam mobilises its staff to participate in an annual volunteer event for Mandela Day. In addition to being a volunteerism event, Mandela Day is seen as a strategic opportunity for staff engagement, team building and morale boosting. In May of each year, entries are solicited from teams, departments and business units which identify organisations of their choice and for which they apply for funding. The CSI department assesses all applications against set criteria and those that qualify are awarded R5 000 to assist with their planned activities on 18 July.

Kim Pearce from Santam marketing department volunteering during their team’s Mandela Day initiative at the Kensington Old Age Home.

Aligning social vision with business benefits The volunteerism programme aligns with Santam’s corporate social investment vision of contributing towards real, meaningful and sustainable community development in South Africa. The beneficiaries of Santam’s staff volunteerism programme comprise a diverse mix of people; from young children to the elderly, schools, feeding schemes and a range of communities. Santam views the volunteerism programme as one with strategic business benefits. We receive external reputational benefits and positive brand association through working with communities. The programme also enhances staff morale by encouraging employees to display caring and responsible behaviour, which is known to improve productivity and build internal brand affinity. The programme is not without its challenges. For example, certain groups of staff experience time restrictions that prevent them from participating in the skills-based components of volunteerism, and it can be tricky to accurately measure improvements to morale. Overall though, the programme is viewed as a successful and meaningful one. Since 2009, Santam and its employees have spent a total of almost R1 938 100 on the Staff Volunteerism Programme; almost half of this in the last two years, when all three programmes have been up and running. Santam will continue to support staff volunteerism with the aim of establishing value-add relationships between CSI initiatives and company business priorities.

Contact

antam Community Heroes is popular for staff members who are or would like to be actively involved in the community. On an annual basis, employees make applications on behalf of the programme of their choice according to predetermined qualifying criteria – such as registered entities with a minimum of 75% black beneficiaries. Successful projects are awarded R10 000 to conduct the activities stated in the application. The relevant staff members volunteer their time and services after hours to these organisations. They also monitor the usage of funds and report on progress. Santam provides the funds and oversees governance issues in terms of Broad-Based Black Economic Empowerment (BBBEE) and Department of Trade and Industry (dti) Codes. Each year, R200 000 is allocated for this project. For other staff members who may not be able to get actively involved in community, but who would still like to contribute, Santam has established a payroll giving programme. Santam staff members are able to make financial contributions from as little as R5; these are deducted from their monthly salaries and channelled into projects and causes they identify with. The duration of financial commitment is entirely up to the employee, and for this time funds are transferred by Santam to The Giving Organisation, an independent trust that administers the funds. The Giving Organisation represents 10 charities and non-profit organisations from a variety of charitable causes, and employees choose from this list.

SHANI RINKWEST Co-ordinator: Corporate Social Investment shani.rinkwest@santam.co.za www.santam.co.za 021 915 7045

Corporate practice

south african airways

Youth broadens its horizons with SAA As South Africa’s national carrier, SAA has implemented a number of youth development programmes to provide job opportunities for young South Africans with an interest in aviation, and to ensure that the airline truly represents the people of this nation.

he carrier’s vision is to be Africa’s leading, world-class airline with a global reach, and its mission is to deliver commercially sustainable world-class air passenger and aviation services to South Africa, the African continent and our tourism and trading partners. The airline understands that to pursue these ideals, it needs to harness the diverse talent of all South Africans. To this end, it has launched a number of youth development programmes to positively prepare our youth to take on a progressive career journey. SAA’s youth development programmes are designed to expose young people to new knowledge and opportunities to practise skills in the workplace. Its intention is to position youth to become an integral part of the workplace by acquiring cognitive, emotional and social competencies that will assist them to function successfully within the work community.

all the right boxes. Instead, the airline aims to make a real difference to the people who look up to it.

SiVulindlela – Bringing aviation to you

Internships build business skills

The SiVulindlela Boeing Partnership is SAA’s way of inspiring the youth to take to the skies. The airline partnered with Boeing to source and convert a custom-made container to resemble the interior of a Boeing 737-800. Fully equipped with a flight deck and seats, it provides a real sense of an in-flight experience. The SiVulindlela Aviation Awareness Programme sends teams of experienced SAA pilots, cabin crew, aircraft technicians, chefs and employees from other divisions to disadvantaged communities across the country to encourage young learners to pursue careers in the aviation industry.

The SAA Internship Programme is a unique opportunity for participants to gain business skills in the aviation industry. The programme provides interns with valuable work experience for a limited period of a minimum of six months and a maximum of one year. Apart from practical hands-on experience and the in-depth knowledge gained, they benefit from exposure to the world of work and the aviation environment in particular. Upon completion, interns are better prepared for a role in their fields of study. The airline offers internships in various disciplines, and in the financial year of 2014/15 it had an intake of 41 interns. “My experience at SAA as an intern was amazing. I learnt a lot about IT processes and gained a lot of exposure working on IT-related projects,” says Joanaydia Bottman, an SAA intern in 2012.

Operating from OR Tambo International Airport in Johannesburg, the SAA Technical Centre delivers high-quality maintenance, repair and overhaul services to South Africa, our continent and the world. As one of the respected accredited training facilities in Africa, the centre also empowers and uplifts the community through a range of apprentice training programmes. Every year, apprentices participate in training programmes that include theory, practical and hands-on training, resulting in numerous qualifications in 11 aviation-related trades. These programmes are facilitated by highly qualified and experienced senior instructors. Courses are performance-based rather than time-bound, ensuring that each apprentice truly conquers the field they are aiming to work in. The SAA philosophy is not one of merely ticking

Taking to the skies With the wide range of youth development programmes in place, it is clear that the airline will achieve its goal of harnessing talent from all walks of life and demographics in South Africa, ultimately building a truly representative national carrier.

Contact

Where world-class aviators are born

PULANE BALOYI Specialist: Corporate Social Investment pulanebaloyi@flysaa.com 011 978 2007

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Corporate practice

sibanye gold

Delivering on social and labour plan community development projects Sibanye Gold continues to drive local economic development through its social and labour plan (SLP) community projects, and makes a significant investment into the areas surrounding its mines through agricultural local economic development (LED) initiatives. The Company is currently sponsoring two agricultural co-operatives in the Randfontein Local Municipality.

ibanye is the largest producer of gold from mines in South Africa and among the top 10 largest gold producers globally. It is a proudly South African mining company with four principal operations: Kloof, Driefontein and Cooke in the West Witwatersrand region; and Beatrix in the Free State. Currently in Africa, millions of adults and children are malnourished and many go to sleep hungry every night. The need for food security, improved nutrition and sustainable livelihoods in Africa is therefore critical. In South Africa, primary agriculture contributes about 3% to the gross domestic product (GDP) and about 7% to formal employment. The agro-industrial sector comprises about 12% of GDP. South Africa also has about 12% of its surface area available for crop production. For the past five years, agricultural exports have contributed on average about 6.5% of South Africa’s total exports; however, the majority of these still lie with traditional large-scale commercial farmers with very little achieved by the previously disadvantaged.

Offering agricultural solutions to the previously disadvantaged Sibanye recognises the opportunity to present sustainable agricultural solutions that will provide its host communities with livelihoods and dignity. The mining company partnered with AfriGrow Development to design and implement viable agricultural projects for Sibanye. AfriGrow is a non-profit and social enterprise company specialising in agriculture and the development of worker-owner projects. It provides a support programme that empowers farmers and creates a platform from which farmers can access advice, skills and capacity building. AfriGrow aims to usher-in a ‘new season’ of economic and social development. This new season focuses on enhancing social cohesion and an integrated approach to food production, nutrition, health and education. It works with communities, government and the corporate sector to develop sustainable communitydriven livelihoods through agricultural programmes. The focus is to encourage smallholder farmers to become livelihood-secure farmers using an innovative farm-to-fork partnership and support model that enhances their capacity to service both local and international markets. Farmers are carefully selected, assessed

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and given a triple bottom line focus where long-term sustainability matters the most. The You Reap What You Sow and Aredirisaneng Co-operatives in the Randfontein area are two community-driven agricultural projects that were revived this year, thanks to the support of Sibanye and through the appointment of implementing partner, AfriGrow. The two projects have achieved a significant turnaround in terms of beneficiary morale and product yield.

You Reap What You Sow This farm is located adjacent to the Mohlakeng township. Prior to Sibanye’s involvement, only 20% of the farm was being utilised (with limited production), with 14 co-operative members as beneficiaries. Francinah Makhumisani and Cecillia Dhlamini are two of the beneficiaries who have been working on the farm since 2013. Makhumisani was trained in vermiculture and Dhlamini as production manager. “So much has changed on the land since we first started,” says Makhumisani. Prior to Sibanye’s involvement, although there were two boreholes, the farm had no electricity, a non-functioning windmill and a poor quality irrigation scheme. Sibanye rose to the challenge and started investing in the land and the beneficiaries. “We now have a water system,” reports Dhlamini. The water supply was connected, along with an electric pump to power the irrigation system. There has also been stakeholder engagement with other government departments and funding agencies. As a result, these roleplayers are now supporting the farm and its members to ensure its sustainability. Dhlamini adds: “We have a permanent site manager who assists us with the overall operations on the farm.” These management skills will be transferred to the beneficiaries as part of Sibanye’s sustainable exit strategy. The working conditions on the farm have been improved significantly, where a proper administration block, change house and security has been installed. A cropping plan, designed in consultation with the members, has ensured understanding of the potential yield of the crops and anticipated returns. Two worm farms (vermiculture) were built to ensure the replenishment and improvement of soil nutrients. Staff members were trained in basic farm management, as well as how to successfully market their produce. “I have learnt about planting, harvesting and packaging,”

Aredirisaneng Co-operative The Aredirisaneng Co-operative in the Elandsfontein area currently comprises three hectares, with eight beneficiaries. The farm was donated by the municipality, which has indicated that a larger area could be made available based on the success achieved on the current area. Prior to Sibanye’s involvement, the shade netting on the farm was in need of repair, the soil was hard and infertile, and weeds dominated the site, making it hard to grow crops. Once again, Sibanye’s investment has seen the land transform into a rich, fertile area producing sustainable crops that include spinach, beetroot, carrots and micro-greens, with spinach currently the largest producer. The project is a joint venture between the local municipality as the landowner, and the Gauteng Department of Agriculture and Rural Development, AfriGrow, Sibanye and the beneficiaries. Ouma Alina Plaatjies is the Chairperson of the co-operative, and is involved in the administration. Plaatjies recognises the change in the land and progress since Sibanye’s involvement. “We’ve always planted beetroot but it never grew properly as it does now. We started planting carrots only this year and they are growing really nicely; the amount and quality of the crop is better than we expected.” A portion of the area under shade netting is now contracted to grow high value micro-greens using vermiculture for a buyer with a fixed offtake agreement. Not only has the quality of the soil improved, the staff has

During 2014, Sibanye Gold and Gold Fields recognised the need to forge strong relationships with the municipalities and local communities in the West Rand, with a focus initially on Westonaria and the impoverished townships of Bekkersdal and Simunye. A first step was sharing of information and joint strategising between managers tasked with community engagement. In a major departure from previous practice, members of the boards of each company launched an initiative towards the formation of an alliance, with the intention for a shared approach to the district’s development. The board members invited both AfriGrow and the Seriti Institute to submit proposals for a developmental intervention that would bring immediate improvements to the quality of life in Westonaria and its surrounds.

received extensive training. “We basically learnt how to plant, were trained on what types of soils and fertilisers one can get, which are fertile enough to plant crops on, and we learnt about water conservation,” acknowledges Plaatjies. The project was established in phases and includes spend on assets and infrastructure, as well as the continued training of all eight beneficiaries, as they currently plant and sell on a limited scale. Mentoring and coaching on farm maintenance and management are ongoing. When speaking of the future of the farm, Plaatjies’ eyes light up: “We would love to export large amounts of crops to neighbouring countries. We would also love to list shares on the Johannesburg Stock Exchange and see our business grow and expand productively, and to ultimately be financially stable.”

A sustainable future Through promoting the establishment and growth of the agricultural farms, Sibanye Gold is helping support communities now and into the future. The ultimate aim is to make the farms self-sustaining before the end of 2016 (which is the current SLP cycle), so that once Sibanye exits the project, the farm will be able to continue providing employment to community members and generating revenue by selling its produce to the local communities, chain stores and the Johannesburg market.

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says Makhumisani. “We are now selling our produce.” The crops include spinach, butter lettuce, crispy lettuce, micro-greens and beetroot. Most of the produce is sold to the local communities and at the Johannesburg market, while an off-take agreement for the lucrative microgreen vegetables is in place. As the supply reaches a steady state and consistent quality, the interest expressed by local supermarket chains will be pursued. Even though the project is still in its implementation phase, there are already positive results.

forming an alliance

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HETHEN HIRA Community Engagement and Development hethen.hira@sibanyegold.co.za 010 001 1152

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TELKOM FOUNDATION

Developing teachers to improve learner results The Telkom Foundation believes that the best way to eradicate social inequality is through a long-term approach, cultivating the critical skills that will support South Africa’s social and economic development. Hence, the Foundation continues to channel the majority of its CSI funding to education through its three key programmes – teacher development, learner support and connectivity.

espite the opportunities in the job market for graduates of science, technology, English and mathematics (STEM), there is a lack of demand by learners to study these subjects and pursue careers in these fields. The resultant skills gap is likely to have a long-term impact on our economy as well as their individual job prospects. As a result, the Telkom Foundation allocates the majority of its CSI budget to education with specific focus on STEM subjects. Projects are aimed at improving the quality of teaching and the performance of learners. Three of the projects that focus on teacher development include the Connected Schools Programme, Rally to Read and the Educator Mentorship and Development Programme (EMDP).

Connected Schools Programme In an effort to bridge the digital divide, the Telkom Foundation initiated the Connected Schools Programme in 1998, targeting learners from rural and disadvantaged schools. For the past two years, the programme has been the Foundation’s flagship project, highlighting the importance that the Foundation places on ensuring learners are connected. The programme aims to improve education outcomes in schools identified and selected in partnership with the Department of Basic Education (DBE) through the provision of information communication technology (ICT) equipment and resources to schools, and ICT training to educators. In 2014, the Foundation connected 36 schools that are part of its Rally to Read Programme in four provinces, and spent R9.6 million to connect these 36 schools during this period. All the schools received an ICT package worth R200 000 including 21 laptops, a printer, one whiteboard, 21 chairs and 11 tables and two-year

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internet connectivity. The Foundation partners with schools for a three-year period, ensuring sustainability. The Foundation provides two-week ICT training to ICT educators who use the equipment at the various schools. In 2014, 384 educators were trained at the Telkom Centre for Learning by Telkom staff. Educators receive training in an Internet and Computing Core Certificate (IC3) programme, an NQF 4 equivalent course, which provides the basic skills to enable them to use ICT to teach their learners in class. Mr van der Merwe is the Principal and grade 5 to 7 teacher at the Koue Bokkeveld Primary School in the Western Cape, one of the recipients of the Connected Schools Programme. “The programme has had a huge impact on our school,” he enthuses. “Being a rural school, our learners had only ever seen touch screen laptops on television. Thanks to Telkom, we have introduced laptops, and learners from grade R to 7 get the opportunity to use them.” Mr van der Merwe recognises it is not only the learners who benefit: “The new technology creates a learning environment that stimulates and challenges both the learner and the teacher and the proof is in our academic results.” To date, Telkom has invested more than R30 million on implementing the Connected Schools Programme. Between 1998 and 2013, the programme reached 819 schools, impacting 609 131 learners and 25 389 educators. The Foundation plans to engage SchoolNet to conduct ICT and change management training for both educators and principals.

Rally to Read The literacy levels of learners in rural schools in South Africa lag behind those of their urban counterparts. Without reading and writing skills, the likelihood of a learner completing high school or tertiary education is as limited as the prospect of finding future work. The Telkom Foundation has accepted the challenge of increasing literacy and promoting a culture of reading in rural and disadvantaged schools across the country. Working in partnership with government and other corporates, the Foundation has invested in Rally to Read since 2011. Rally to Read is a rural schools development programme run in all provinces except Gauteng. Championed by Bidvest which works with the DBE and the READ Educational Trust on the selection of recipient schools, the project donates quality educational resources and teacher training to improve the learners’ literacy, language and comprehension skills.

FAST FACTS

chapter three

Educator Mentorship and Development Programme In an effort to address the challenges of teaching science, technology, English and maths (STEM), the Telkom Foundation partnered with the Central University of Technology (CUT) in 2011 to launch the Educator Mentorship and Development Programme (EMDP). The EMDP aims to address the poor results in feeder schools and the poor quality of students attending CUT by developing, empowering and mentoring educators in the STEM subjects at primary school level. The Foundation committed R4.5 million to the pilot phase (2011 to 2013) which included three primary schools: Grassland Intermediate School, Bainsvlei

The Telkom Foundation spent R9.6 million on its Connected Schools Programme in 2014. ●● The programme reached 36 schools, 384 teachers and 18 000 learners in 2014. ●● Each school received an ICT package worth R300 000. ●● Schools are identified and selected in partnership with the DBE. ●● The programme has been rolled out in nine provinces. ●● In total, the Foundation has connected 1 417 schools since its inception. ●● Investment to date is over R425 million. ●● The number of teachers impacted is 42 510. ●● The number of learners impacted is 708 500.

Combined School and Kamohelo Primary School. The Foundation invested an additional R4.4 million to phase two of the programme for four new schools: Heide, Karabelo and Monyatsi Primary Schools and Kotsofalo Intermediate Farm School. Ms Mokgotsane is the grade 6 and 7 English teacher at the Grassland Intermediate School in the Free State. She concedes: “Teaching at a disadvantaged school has its challenges. We don’t have the same access to resources that other schools have. This is why we were so grateful to be selected for the Educator Mentorship and Development Programme.” The EMDP consists of three elements: mentoring of selected educators in the STEM subjects in the foundation phase; training workshops; and the provision of teaching aids and equipment. Selected educators are mentored weekly by retired educators on lesson planning, lesson presentation, learner assessments and classroom observations. The programme has supported 61 educators who have impacted 4 825 learners. Results showed that in the pilot phase, schools performed above the 50% mark. By the end of 2014, 63% of learners achieved above the 70%. Ms Mokgotsane’s face lights up, “Two of my learners received awards for highest performance in English at the end of 2013.” She also received the highest achiever award in the pilot phase for having the class with the highest marks. “I have always had a passion for English, but the support we have received has rekindled and increased my passion.”

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The programme supports the same school for a three-year period to ensure sustainability and continuity. The READ Educational Trust selects the resources for distribution and the READ trainers provide curriculum-aligned training to the teachers and dedicated support in the classroom. All Rally school teachers are trained in the modern, internationally endorsed Balanced Language approach now entrenched in the national school curriculum. Cluster teacher training takes place according to the identified needs, and ranges from language methodologies to classroom planning and evaluation. For the past three years, the Foundation has been investing more than R3 million annually in the Rally to Read Programme, sponsoring the grade R programme in all provinces and providing support to the entire Rally programme in Limpopo. In 2014, the Foundation contributed R3.153 million. Just under R2 million supported grade R classes in 119 schools in all Rally to Read provinces, impacting over 1 339 teachers and more than 41 429 learners from grades R to 7. R1.2 million was invested in the Limpopo province, impacting 160 teachers in 12 schools and 5 270 learners. To date, the Foundation has invested almost R12 million which has impacted 5 299 teachers and over 156 654 learners. According to independent evaluations of the programme, after a full-cycle READ intervention, learners advance two years in reading skills, and four years in writing skills. It is hoped that though the support of the Telkom Foundation, learners in the recipient schools will improve their chances of completing high school and increase their opportunities for tertiary education and job prospects.

Connected Schools Programme ●●

Nathi Kunene Acting Head: Telkom Foundation kunenesn@telkom.co.za www.telkomfoundation.co.za 012 311 2881

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Corporate practice

tiger brands

Nurturing minds Tiger Brands delivers on its commitment to communities through corporate social investment (CSI). The core programmes within Tiger Brands CSI continue to address some of the key aspects of the National Development Plan (NDP) and the United Nations Sustainable Development Goals by contributing towards the fight against food and nutrition insecurity.

side from being the largest branded food manufacturing company in sub -Saharan Africa, Tiger Brands is a responsible corporate citizen, passionate about making a difference to the growth and development of South Africa. Besides its own transformation and BBBEE agenda, Tiger Brands aligns its social outreach objectives with key national and global priorities that speak to the group’s business activities, strategy and mandate.

security amongst the poor and vulnerable. There is growing consensus that nutrition interventions need to be conceptually and programmatically integrated. In addition, they need to be based on proven impact at scale, be practical and action-oriented. The company’s CSI initiatives are geared towards promoting access to food through a network of stakeholders and role players.

Setting the scene

Tiger Brands is constantly looking for opportunities to create sustainable social impact by partnering with various strategic and social partners. These include government, key NGOs, customers, suppliers and other relevant stakeholders. “We believe that a collective effort is fundamental if the issues relating to food security are to be tackled and resolved,” says Zanele Njapha, the Group’s CSI Manager. “For example, Tiger Brands and the Department of Basic Education have partnered to address the nutrition needs of scholars over the long holidays, distributing around 72 000 food parcels to date.” The Group also works with NGOs to serve 12 million meals annually in disadvantaged communities. Through the NGOs, Tiger Brands donates 107 000 food parcels to families of vulnerable children, as well as child-headed households. In partnership with the African Children’s Feeding Scheme, the company’s bread subsidiary, Albany, each year provides more than 613 000 loaves of bread and 3 156 litres of Black Cat peanut butter to feed malnourished children, orphans, child-headed households, chronically ill patients and poor children between the ages of one and 18. In addition, 31 000 children benefit from sandwiches and milk donated by Tiger Brands. Some 1 200 families receive monthly food parcels comprising basic food such as maize meal, rice, samp, canned tomato and onion mix, baked beans, mixed vegetables, peanut butter, jam, dried split peas, sugar beans, and cereals such as Morvite and Jungle Oats. Together with the NGO, Heartbeat Centre for Community Development, Tiger Brands donates monthly food parcels to 190 HIV/Aids-infected, affected and social grant-dependent caregivers/ families who cannot afford a nutritious meal. Another strategic partnership includes the Shoprite Soup Kitchen Project, where 3.5 million people across the country are fed annually. Furthermore, Tiger Brands is proud to be the anchor partner for food security with the Nelson Mandela Foundation.

Poverty and malnutrition are two of the biggest contributors to childhood illness and death. United Nations data indicates that globally, 1.2 billion people are starving. Meanwhile, Statistics South Africa estimates that 12 million South Africans live in extreme poverty. Approximately 30% of SA children experience stunted growth due to a lack of adequate nutrition in their early years.

Making a difference Poverty alleviation through addressing food security, and the concomitant issues of nutrition security and nutrition education, are central to Tiger Brands’ socio-economic transformation agenda. Being in the business of manufacturing high-quality foods, the company recognises the critical role it can play as a corporate to drive awareness and collaboration to promote food

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Partnering for success

fast facts

chapter three

Providing more than just food South Africa – like other developing countries – is in ‘nutrition transition’ due to the co-existence of both underand overnutrition. While South Africa has extreme poverty and malnutrition, it also struggles with the problem of bad nutrition and obesity. Educating communities and consumers about good nutrition and highlighting problems that result from inadequate intake of nutrients is a principal aim of nutrition education. The group has two approaches to nutrition education. Firstly, educating learners on the importance of a healthy balanced diet; and secondly, ensuring that consumers of the company’s brands understand the importance of caring for their health and nutrition through good food choices. There are various initiatives under way to promote nutrition education among learners who are part of the in-school breakfast feeding programme implemented by the Tiger Brands Foundation. These include fun booklets on the importance of a balanced diet, its impact on growth and development, and tips on cooking and the heating of food. Furthermore, in 2009, Tiger Brands implemented an easy-to-understand labelling system on all its packaging that includes a nutritional guideline table, as well as the Eat Well, Live Well symbol.

The group committed over R24 million to community development in 2015, achieving several milestones: 12 million daily meals served in communities annually through working with NGOs ●● 107 000 food parcels distributed annually ●● 40 000 learners reached via the Tiger Brands nutrition education programme ●● 23 000 school holiday food parcels distributed to learners ●● 31 000 children benefit from milk and sandwich donations ●● 1 200 families receive monthly food parcels. ●●

Key partnerships in 2015: African Children’s Feeding Scheme – provision of Albany bread, Black Cat peanut butter and food parcels to those in need ●● Buhle Farmers Academy – provision of dry foodstuffs for students’ meals in support of farmer development ●● Afrika Tikkun – provision of food products that help serve over 14 000 weekly meals for beneficiaries in the organisation’s various programmes ●● Nelson Mandela Metropolitan University (NMMU) community project – provision of meals to disadvantaged students ●● Cotlands – provision of food products at all its centres. ●●

The group encourages employee involvement in communityrelated initiatives which benefit orphans, children, youth, women, people infected with HIV/Aids, the disabled and the disadvantaged. For Mandela Day 2015, over 100 employees visited the elderly and vulnerable children of the Ebenezer Hannah Home in Orange Farm, near Johannesburg. Activities covered all the Mandela Day themes: food security, education and literacy, shelter and infrastructure, and service (volunteerism). The Tiger Brands volunteers gave the home a much-needed makeover by refurbishing the study centre to make it a more conducive place for children to study. They repaired the roof and ceiling, and painted the orphanage houses and playground equipment. The volunteers also prepared food for the residents and planted vegetables to ensure a sustainable source of food.

Contact

Employee volunteerism

ZANELE NJAPHA Group CSI Manager csi@tigerbrands.com www.tigerbrands.com 011 840 4682

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Corporate practice

tiger brands foundation

Nourishing young minds towards a brighter future The Tiger Brands Foundation was established in 2010 to enhance Tiger Brands Limited’s impact in the community. Nourishing young growing minds is more than just a vision for the Tiger Brands Foundation; it is the model of an in-school breakfast feeding programme at non-fee paying schools.

he Foundation implemented the first in-school breakfast feeding programme in 2011 to complement the meal provided by the Department of Basic Education’s National Schools Nutrition Programme (NSNP). Initially, this covered six primary schools in Alexandra but has since expanded to 64 schools across nine provinces, providing the essential breakfast meal to over 44 000 learners, staff and school monitors. To date, over 38 million breakfasts have been served to South Africa’s most vulnerable learners. In addition, 24 kitchens have been installed with industrial grade equipment to create a more hygienic and efficient system to prepare nutritious meals.

Fostering strategic and social partnerships The programme has demonstrated that an effective public-private partnership can make a significant difference to the lives of learners via an in-school feeding programme, contributing to improved attendance, class participation and performance while helping to reduce obesity. The Foundation fulfils its mission in partnership with a number of stakeholders, including: ●● The National Department of Basic Education (DBE) at national, provincial and local level ●● Academic and research institutions (such as University of Johannesburg – Centre for Social Development in Africa) ●● Beneficiary schools, parents and community leaders ●● Community-based agencies (food delivery partners) ●● Funders/donors wishing to invest in food security and school nutrition programmes ●● Tiger Brands, the public and shareholders. The Tiger Brands Foundation recognises the significance of partnerships to create a pool of funding and resources to strengthen the work undertaken by established projects with similar goals and objectives. To this end, the partnership developed with the DBE (National Schools Nutrition Programme) is evidenced in the signing of a five-year Memorandum of Agreement (MoA). The MoA guides the working partnership between the Foundation and the NSNP team in the selection of beneficiary schools, with strict criteria applied to each school prior to the in-school breakfast programme being implemented. The Foundation’s partnership with the DBE has gone from strength to strength since its formation in 2011 and is recognised as one of the most successful partnerships that strives to improve education outcomes. “Our mutual engagement has accomplished a sustainable public-private partnership that addresses the needs of our learners,” says Dr Whittle, Deputy Director General:

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Social Mobilisation and Support Services, Department of Basic Education. “The highlight of this engagement is evident in a sustained in-school breakfast feeding programme in 64 schools in nine provinces which offers consistent and high-quality branded products,” adds Whittle. The Foundation has embarked on its first corporate partnership with Sishen Solar Facility in the Northern Cape. The company covers the cost of the food and the Foundation implements the programme on their behalf.

Employment opportunities The programme offers more than just the provision of food to learners. It has been instrumental in supporting over 200 jobs for food handlers (unemployed community members/parents) who prepare the breakfasts provided by the Foundation and the lunches provided by the DBE. Each food handler is employed by the DBE and is offered a stipend by the Foundation, which also provides training in food storage, preparation, hygiene and on how to use the industrial equipment installed in the kitchens to the food handlers. The distribution team – which ensures that the food reaches the beneficiaries even in some of the most remote, rural villages in the country – has more than doubled its staff since its involvement with the programme. The Foundation recognises that enterprise development is a key component in the South African corporate landscape today. As a result, it invests locally in operators who procure and deliver the required products for the programme.

Monitoring and evaluation The programme provides part-time employment to the school co-ordinators and monitors (unemployed youth from the community) who present real-time data using Mobenzi, a mobile-

Holiday food parcels Monitoring of the in-school breakfast feeding programme revealed that while learners were receiving adequate nutritional lunches during the school term, they were returning from school holidays malnourished. The Foundation – in partnership with Tiger Brands Group CSI – implemented the holiday food parcels project in December 2012 to address food insecurity by providing/

Adding value to our society through: Unlocking access to educational opportunities. Food security – contributes to enhanced performance and improved school attendance of learners. ●● Provides education on the importance of good nutrition. ●● Capacity building with school leadership to improve professionalism, teaching abilities, and management of school resources, finances and government subsidies. ●● Creating employment for the food handlers and school monitors. ●● Uplifting the community through educational programmes aimed at the parents and the community. ●● School holiday feeding programme. ●● Enterprise Development – empowerment of small-medium enterprises. All food procurement and distribution done through Tiger Brands Out of Home division. ●● Effective monitoring and evaluation of breakfasts and NSNP meals served. ●● The in-school feeding programme is an impactful model that can be replicated at any non-fee paying school. ●● ●●

supplementing learners, caregivers and their families with basic food supplies for the long school holidays during the months of July and December. In the Western Cape and Free State Province, 6 040 food parcels were distributed to the learners across 10 primary schools at the start of the July school holidays, marking the official kick-off to the Mandela Day commemoration. To date, more than 60 200 food parcels distributed nationally to participating schools have ensured that learners do not return to school malnourished.

Looking ahead Given the success of the current feeding programme, the Foundation intends to expand its activities to other schools across the country and increase the number of recipient beneficiaries. “We intend to add at least 12 more schools which will approximate to 11 000 beneficiaries by the end of February 2016,” explains Absolom. “The Foundation will provide further infrastructural support by donating and building two school kitchens over this period. Furthermore, we will provide ongoing training to the senior management teams of schools where the breakfast programme has been implemented,” concludes Absolom.

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reporting technology, designed specifically as a mobile application. It monitors on-site answers to pre-loaded questionnaires of seven to eight questions via standard mobile handsets. Reports are auto-generated and aggregated, providing the Foundation with invaluable data on the programme’s daily mechanics that range from how many learners and educators are fed meals to the attendance of both learners and educators at school. “The technology is a cost-effective and efficient way of generating data,” explains Eugene Absolom, the Director of the Foundation. “All that the co-ordinators and monitors need is a cellphone. They respond to the short questionnaire every day; within a very short space of time, we have all the necessary data and are able to report on exactly how many learners are fed across the country on a particular day,” Absolom adds. Since the start of the programme, the Foundation has commissioned two impact studies by the University of Johannesburg’s Centre for Social Development in Africa. In 2013, a study was conducted on the in-school breakfast feeding programme in relation to growth rates in learners. “The study concluded that, among other factors, stunting was reduced by a quarter in learners who participate in the Tiger Brands Foundation in-school breakfast feeding programme,” reveals Dr Miriam Altman, the Chairperson of the Tiger Brands Foundation. “The research also concluded that children who eat breakfast at school perform better on standardised tests than those who skip breakfast or eat breakfast at home.” In 2013/14, a second study was conducted to evaluate the impact of the NSNP meal and the TBF in-school breakfast feeding programme on learners in the Lady Frere district. Primary objectives were to evaluate the impact on: learner anthropometric measurements (weight-for-age, height-for-age and BMI-for-age), school attendance and school performance. Secondary objectives were to determine possible school development and broader social benefits associated with the programmes. Identifying recommended areas of improvement was also key.

highlights

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EUGENE ABSOLOM Director eugene.absolom@tigerbrands.com www.thetigerbrandsfoundation.com 011 840 4654

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Corporate practice

TRANSNET FOUNDATION

Building a healthy, safe and educated nation Corporate social investment (CSI) has become much more than an inspirational buzzword in the Transnet community. In a country where there is much scope for development and the upliftment of its people, CSI has become a core element of the state-owned enterprise. The Transnet Group has a separate division that implements the company’s socio-economic development projects to ensure the best possible resources are dedicated to CSI initiatives. This division, the Transnet Foundation, is breaking ground to build a healthy, safe and educated nation.

ransnet invests over R160 million annually in CSI initiatives with over R140 million of the funds distributed through the Foundation. The Foundation has six different portfolios. These include the Health Portfolio, Rural and Farm Schools Sport Programme, Container Assistance Programme, Education Programme, and Grants and Donations.

Giving girls the dignity they deserve In 2012, the Transnet Foundation Health Portfolio implemented a Teenage Health Programme that provides education, awareness and feminine hygiene products to the poorest, mainly rural communities of South Africa. In these communities many of the families get minimal or no income. Menstrual health and hygiene management is at the bottom of the priority list and there are often no sanitary amenities or waste management systems. On a financial level, parents do not have the resources available to buy the necessary toiletries. The result is that teenage girls stay away from school and other activities when they menstruate because they don’t have access to proper sanitation and feel embarrassed and uncomfortable. Shamona Kandia, the Portfolio Manager for the Teenage Health Programme, explains how girls are empowered and also given a future through the programme. “Through education, awareness and a dignity pack that contains basic hygiene products, the Transnet Teenage Health Programme has a positive impact on young girls in rural communities,” she says. “The programme aims to minimise the school dropout rate for girls, enable girls to participate fully in social and academic activities, teach girls to maintain basic good, clean feminine health and hygiene practices,

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and improve their quality of life. Furthermore, the programme helps teenage girls feel comfortable with their bodies and enables them to feel pride in being a woman,” Kandia concludes.

Involving stakeholders The programme involves key stakeholders in the community, including the girls’ parents, teachers, school governing bodies and government officials. It targets girls between the ages of 13 and 19. There are three key phases that form the programme. Firstly, a one-day interactive workshop where a facilitator hosts an interactive workshop session where they talk to the girls about topics such as how their body changes, menstruation, teenage pregnancy and self-esteem. Secondly, each girl gets provided with a dignity pack, containing a booklet with the information discussed in the workshop, soap, toothpaste and toothbrushes, deodorant, hand sanitiser and a menstrual cup, packaged in a school backpack. Thirdly, there is feedback and follow-up sessions of small groups of girls for a few months after the workshop. In these sessions, girls get the opportunity to talk about their experiences at small group gatherings through a process of facilitation hosted by the Transnet Foundation. These sessions also involve girls who have been through the programme, providing for the opportunity of peer learning. The programme is currently run in eight of the nine provinces and has been implemented in a number of poverty-stricken schools and communities since inception, benefiting close to 18 000 girls.

Extending the programme In 2015, after many requests from communities in which the girls’ programme has been implemented, Transnet conceptualised and implemented a boys’ programme which targets teenage boys. “To focus on only girls is akin to presenting a half-baked solution to a problem, expecting it to work,” says Kandia. The boys’ programme mirrors the educational content of the girls’ programme with a focus of health and hygiene matters and positive life choices pertaining to boys. There is a special segment focusing on education in respect of medical male circumcision. The boys receive toiletries, teen boy diaries, a soccer ball to promote physical fitness as part of wellbeing, and a school backpack. It is expected that at least 2 000 boys will benefit from the programme in 2015, with plans to increase the numbers incrementally in the future.

Uplifting communities Community-based and non-profit organisations play a crucial role in uplifting impoverished communities, where most people don’t have the means to help themselves. By providing much-needed care and services, they help empower people to live productive, healthy and fulfilling lives, and offer hope for a bright future when prospects are dim. Transnet recognises and supports the powerful impact that non-profit organisations and community-based projects have on communities. These initiatives give the Transnet Foundation an opportunity to contribute to the development of South Africa’s people, as well as government’s goals of addressing the skills shortage challenges by equipping the youth.

FACTS AND FIGURES

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Transnet Teenage Health Programme: The programme is currently run in eight of the nine provinces. ●● 18 000 girls have benefited from the programme since its inception in 2012. ●● A similar programme for boys was introduced in 2015. ●●

Grants and donations: R3 million was pledged to the Making a Difference Trust towards the construction of paediatric surgery units in five major hospitals in South Africa. ●● R5 million was donated to build the Rhodes University science faculty library – a library open to the wider community of Grahamstown. ●● Transnet partnered with Africa Vision and the Northern Cape Department of Health to remove cataracts in 180 patients and screen 350 patients in the Pixley ka Same District. ●●

Heritage preservation: The Outeniqua Transport Museum was established in 1998. ●● 16 classes of steam locomotives are on display. ●● The older locomotive is the Emil Kessler – it ran from 1889 to 1903, covering approximately 190 000 km. ●● Museums include displays of original interiors and other vehicles. ●●

The Foundation spends close to R160 million each year on community projects and sponsorships. Over and above the CSI flagship programmes such as the Rural and Farm Schools Sports Programme, the Phelophepa Health Trains and Sharp Minds! Get Ahead in Life, a portion of the CSI funds is allocated to grants for special projects. To enhance the impact of the Foundation’s donations and to reflect their business model as well as our results-driven corporate culture, Transnet focuses its resources on projects that draw upon the specialist skills and experiences of our people by contributing to social and humanitarian programmes. The Foundation helps to build stronger, healthier communities through better human services and support systems. Requests outside of these focus areas are also considered if the organisation demonstrates sound corporate governance and good business principles.

Making a difference One of the programmes that has benefited from the Foundation is the Making a Difference Trust. The initiative, started by Karolina Andropoulos whose daughter succumbed to cancer in a public

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Corporate practice

TRANSNET FOUNDATION

hospital, enhances the quality of care in paediatric units in public hospitals. Carte Blanche, the actuality TV programme on M-Net, realised the plight of public hospitals and has been involved in driving this project since 2008. The Transnet Foundation pledged R3 million towards the construction of paediatric surgery units in five major State academic hospitals: Chris Hani Baragwaneth, Charlotte Maxeke, Steve Biko, King Edward VIII and Universitas. Another organisation to benefit from the Foundation’s grants and donations is the Masizakhe Children’s Home that received R1.7 million from Transnet for the building of a kitchen and dining hall. Masizakhe Children’s Home at Mdantsane Township in the Eastern Cape was established in 1989 as a residential facility providing care, accommodation and services to over 80 orphaned and vulnerable children ranging from two to 18 years. The children’s home also contributes to efforts aimed at preventing the spread of HIV/ Aids and aims to provide the young people at the centre with independent life skills to prepare them for the outside world once they leave the children’s home. The SANDF Spouses Forum was the recipient of a R200 000 donation from the Transnet Foundation for one container to be converted into a classroom at the Thaba Tswane Créche. The SANDF Spouses Forum is a non-profit organisation that originated from a need for spouses of the generals in the defence force to synchronise their activities effectively with a view to empowering and sharing common goals. Prior to Transnet’s donation, the existing crèche was unable to support the rising enrolment numbers of children aged one to six years old. The donated container – one of Transnet’s redundant containers – has been repurposed and converted into a classroom to alleviate the space problem in the crèche.

in George and the Kimberley Transport Museum. The Transport Museum in George was established in 1998. Tourists come from far and wide to visit the museum, where they can admire the Emil Kessler locomotive (No 1), which hauled the first train in Gauteng (then Transvaal), the Randtram, from Braamfontein to Boksburg on 17 March 1890. No 1 was shipped to Durban from where it was transported by ox wagon to Germiston. She worked for 14 years until she was withdrawn from service in 1903. The museum also features other historical items such as old dining cars with wooden pillars, private saloons, President Kruger’s coach, passenger coaches, Coach No 49 used on the Royal Train in 1947, motor vehicles, crockery, cutlery and silverware. The Transnet Foundation facilitates the use of steam locomotives for tourism purposes by steam clubs. These locomotives haul vintage carriages steeped in history. Enthusiasts can experience a sense of nostalgia as they take a ride in these carriages. A few locomotives are on display at municipalities, while others are showcased at various stations throughout South Africa. “We are committed to adding to our railway collections with a primary goal of identifying, preserving, protecting, promoting and managing assets with cultural significance,” explains Brian Murison, the heritage manager for Transnet Foundation. He adds: “This is done in accordance of the National Heritage Resources Act of 1999, Act 25 of 1999.

As a State-owned company, Transnet understands the importance of investing in sustainable heritage preservation and actively tries to lead by example. Transnet’s investment in heritage preservation stretches far beyond tangible or financial gratification. By acknowledging South Africa’s rich transport history, the company makes a significant contribution towards social and economic growth and development in South Africa. With a rich railway history of over 150 years, Transnet has established two transport museums in South Africa showcasing a variety of locomotives and other historical lifestyle items. The museums are the Transport Museum

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Cherishing our history

Sibusiso Ngomane Senior Manager: Communications and Special Projects sibusiso.ngomane2@transnet.net www.transnet.net 011 308 2775

Q&A

Interview by TAMARA OBERHOLSTER chapter two

be government, it doesn’t matter which party comes into power. We need to help government out of its dilemmas. The politicisation of advocacy is also how it’s framed: if government does something wrong, we keep saying it was the ANC, and it becomes political because it’s almost like opposition parties have found a natural ally. I would never make a good politician; I would side with my opponent if I thought he were right.

What are the key advocacy issues being addressed by civil society in postapartheid South Africa? Advocacy is often misunderstood and seen as promoting a particular point of view, whether right or wrong. In South Africa, we’ve had to learn that advocacy cannot simply be adversarial; it has to be solution-orientated. The biggest challenges we have to address are endemic poverty and inequality. In the days when I was an activist under apartheid, we had a specific ‘enemy’. It’s no longer that simple. Advocacy must develop. Good advocacy must still hold government accountable, but it must also look for solutions to problems, not just criticise for the sake of it.

Would you say that advocacy is more fragmented than it was under apartheid? It’s not so much fragmented as divided across particular viewpoints. People promote their causes, whether it’s gender rights or homelessness, but many are just addressing the symptom and not the cause. They need passion that is deep enough to go and look for long-term solutions to the underlying problems. The two big things that we need to address are basic education and encouraging entrepreneurial spirit and capacity in under-developed communities.

How can civil society create a more united front?

How is advocacy typically funded in South Africa today?

The importance of funding advocacy Achmat Dangor is an author and an advocate for human dignity and social justice. His previous roles include heading up the South African office of the Ford Foundation and serving as CEO of the Nelson Mandela Foundation and the Nelson Mandela Children’s Fund. We asked him about advocacy and how corporates can fund it.

Dialogue! It starts with that. I am very encouraged by what my former colleagues at the Nelson Mandela Foundation are doing in bringing together people who are fundamentally opposed. I think we need to have another United Democratic Front; one that brings together civil society, business and government. Of course, we need respected intermediaries to do convening work. There are already forums for donors such as the African Grantmakers Association, Social Justice Initiative and Defence of Democracy Fund. They could be brought in too, to use their resources to fund long-term solutions.

Does advocacy always have to be political or politicised? No. The undertone of advocacy seen to be anti-government, but actually antiparty, is always a mistake. Government will

It’s typically funded by private foundations, mostly foreign foundations like Ford Foundation, Open Society and others that have promoted the concept of social justice around the world. In South Africa, people are beginning to understand that charity is good, but it doesn’t change the world. We need to find ways to reduce the need for charity by addressing the root causes of the problems. The Social Justice Initiative [an advocacy initiative committed to a peaceful and prosperous South Africa which mobilises funds and supports social justice organisations] recently attracted a private donor and I think that’s a very good sign. Philanthropists in their private capacity are recognising the need for helpful advocacy.

Is it possible for corporate funders to get involved and avoid politics? The comfort zone of the corporate sector is charity and that is understandable. But there is a way for business to go beyond that. For example, the old Anglo American Chairman’s Fund built some of the dialogues in the early days of the Nelson Mandela Foundation. Business people also have a lot of insight into what is going wrong at community level – whether it’s with power or water – and if they take the initiative to approach government and civil society and create a dialogue, they can definitely play a positive role. 

ACHMAT DANGOR

Advocate for human dignity and social justice adangor@hotmail.com

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Actively encouraging strategic CSI in South Africa Since its launch in 2014, the annual Trialogue Strategic CSI Award has encouraged CSI practitioners to think more strategically when planning and implementing projects. The award recognises South African CSI initiatives that successfully align social development with business priorities for maximum impact. The 2015 entries showcased a number of projects that positively and holistically impact people, planet and profit. But what makes for an award-winning CSI project? In planning for future entries, it helps to know what the judges look for.

his year, 10 companies and corporate foundations submitted a total of 12 projects for consideration. These included several repeat entries that returning judges Anthony Wilson-Prangley and Dr Stan Hardman found to be better Trialogue’s CSI Positioning Matrix conceptualised and prepared, indicating lessons learnt from the previous award process. This second competition attracted a number of strong contenders, many of whom impressed the judges with their attention Developmental CSI Strategic CSI to detail. The judges also felt that, as a collective, the latest applications showed an overall improvement from the inaugural year’s entrants. In line with the previous year’s submissions, all the entrants aimed to show their initiative’s unique approaches and contributions to CSI. However, since Charitable grantmaking Commercial grantmaking the focus of this competition is strategic CSI, those entries demonstrating direct, measurable impacts and benefits were most highly rated. While Trialogue acknowledges the role of all forms of corporate Stakeholder Recognition of No visible Competitive contribution benefit benefit benefit involvement in the community, such as charitable and Corporate benefit commercial grantmaking and developmental CSI, the Strategic CSI is defined as CSI that has a positive developmental focus is on stretching the CSI imagination towards impact as well as a significant positive effect on the business, beyond projects that exemplify the integration of social and reputational benefits. business benefits. Beneficial outcomes Visible outputs

No visible benefit

Social benefit

Beneficial impact

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2015 Distinguishing between strategic and developmental CSI The judges pointed out in their feedback that while certain of the 2015 Trialogue Strategic CSI Award entries were laudable, they did not qualify as strategic because they were more developmental or reputational in nature, and were considered to be insufficiently aligned with the company’s or organisation’s core business interests. As can be seen in Trialogue’s CSI positioning matrix, strategic projects are those that deliver a high combination of positive social and business outcomes, impacts and benefits to their stakeholders. While developmental CSI offers beneficial social outcomes, it does not always carry significant competitive advantage to corporate activity.

Judging criteria for the Trialogue Strategic CSI Award

judge’s profiles

African Eyes Photography / Biowatch

Objectives: Targets need to be practical and realistic. Initiatives should be SMART – Specific, Measurable, Achievable, Relevant and Time-bound – and the entries should show this. Visible outputs: Numbers must be provided for volume of activity. The judges need to know who has been provided with the service/product. Breakdowns by type of beneficiary and cost per beneficiary need to be included.

See the full Singita School of Cooking profile on page 154

Anthony Wilson-Prangley is a researcher, lecturer, consultant and faculty member of the University of Pretoria’s Gordon Institute of Business Science (GIBS). Before joining the faculty, he helped build the Centre for Leadership and Dialogue at GIBS. He focuses on helping leaders in business, government and the social sector bridge various divides for a collective impact. He lectures in the area of leading social change with emphasis on the dynamics of leadership, human behaviour, diversity and transformation. Dr Stan Hardman is a senior educator, academic, researcher and consultant. In his position as programme designer at the Leadership Dialogue, he develops and manages specialist programmes in leadership development. His work focuses on situations of human complexity that require holistic solutions. His particular interest is in social partnerships involving communities, business and government that create social capital while finding practical solutions to embedded problems.

Beneficial outcomes: There should be evidence of positive outcomes, such as before and after results, or results after the end of a programme. Indicators could include relative improvement or efficiency versus alternative interventions. Beneficial impact: This should be long term (three years or more). We ask whether anything changed for a community, beyond the direct beneficiaries. Government engagement, sharing lessons and advocacy are also taken into account. Recognition: We look at internal and external communications, reputation index scores, awards and BBBEE points. Stakeholder benefit: Business stakeholders need to benefit, beyond PR. We’re looking for measures that can influence profitability such as the growth, engagement, support or development of employees, customers, suppliers, community and government. Competitive benefit: Competitive advantage is measured in company performance, cost reduction or revenue increases.

The winner: Kruger National Park’s Singita School of Cooking Both judges agreed that this project most successfully met the criteria of strategic CSI and provided excellent supporting evidence: “We are glad that an entrant from last year won this year with an improved application. They most closely met the criteria of strategic CSI, and provided substantive evidence. “The project’s application form was exceptionally well completed across all categories with evidence put forward, plus often anecdotally externally validated. Examples of the project’s marketing and publicity were given, positive customer experiences were noted, as well as the feedback of community stakeholders who really matter.”

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Commendable CSI projects Below are some thoughts from the judges on noteworthy Trialogue Strategic CSI Award entries.

African Bank Tembisa Entrepreneurship Development Project An authentic attempt at experiential learning about small business development. One of the smaller projects, and therefore more handson, this project was well managed and should be commended for this.

Clover Mama Afrika This is clearly a well managed programme with a reasonable amount of mainly anecdotal evidence. It has social outcomes and impact, however, it is not strictly speaking ‘strategic’.

Coca-Cola 5by20 This international project has a strong local partnership. Its focus is on the empowerment of women in microbusinesses. The project is well presented, enjoys high visibility, and epitomises the impact that a business and logistics company can have in relation to rural reach and the development of business acumen in remote areas.

Eskom Expo for Young Scientists A strong and good example of strategic CSI, this repeat entry has broad national scope. A large and essential developmental project with strong alignment with Eskom’s core business and stakeholders, it meets the company’s agenda in that it promotes careers in science linked to electricity, plus innovations that often require electricity.

KFC Add Hope A worthy project with a logical connection to the business. This is an excellent initiative in the way it engages customers, which is rare in the CSI field. A good example of marketing CSI.

MTN 21 days of Y‘ello Care A great charitable campaign, its strong employee engagement aspect is commendable. The project is, however, more closely associated with marketing and staff volunteerism than strategic CSI.

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MTN Special Needs Schools Connectivity Programme

Pointers for future participants ●●

This worthy programme leverages off the company’s core competencies, but is more developmental than strategic.

Nedbank Mobile Clinic

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A good example of developmental CSI, this initiative clearly makes a focused impact in the communities concerned.

Transnet Teenage Health Programme

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A worthy cause focused on young women’s health and wellbeing, this is also an impressive and crucial developmental CSI initiative.

Transnet’s Phelophepa Healthcare Trains

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One of South Africa’s best examples of CSI. It leverages off good stakeholder relationships and the organisation’s core business.

Vodacom’s Youth IT Skills Development Academy The project has drawn in partners, has a strong business case, and provides good supporting evidence (in the form of examples of publicity about the project).

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Projects entered into the Trialogue CSI Strategic Award should meet the criteria for strategic CSI as opposed to mainly those for developmental and/ or marketing CSI. Past entrants are welcome to resubmit in 2016 with tweaked applications if they have compelling projects that speak to the criteria. The inclusion of independent assessments of the initiative’s CSI work will strengthen its submission. However, entrants need to use the competition form to elaborate on their strengths adequately, rather than relying on and referring heavily to additional documentation. Participants who complete the entry form in a thorough, comprehensive manner, demonstrate their own understanding of what the judges are looking for and will receive credit for this. Entrants should explore what makes CSI unique in South Africa, and more broadly, in developing economies as it relates to national (private and public) companies, state-owned enterprises and multinationals with a footprint in South Africa. 

Read more about the 2015 Trialogue Strategic CSI Awards entrants. Some links include the specific projects entered, while others are an overview of the corporate’s CSI activities or foundation. singita.com/community/singita-kruger-national-park-school-of-cooking/ africanbank.co.za/about-us/csi-programmes clovermamaafrika.com coca-colacompany.com/5by20-in-south-africa exposcience.co.za addhope.co.za mtn.co.za/community/csi/Pages/21_Days_of_Yello_Care.aspx services.mtn.co.za/ mtnfoundation/Education.html#educonnectivity nedbankgroup.co.za/sustainabilityCSIIntro.asp transnetfoundation.co.za digitalclassroom.co.za/digitalclassroom/youth-it-skills-development

Each year we recognise crucial initiatives that better the lives of our citizens by identifying companies that enhance society through their social investment actions and insights. And we invite you to join us in two 2016 projects: â&#x20AC;˘

Investing in the Future: For more than 25 years we have published dedicated Corporat Investment Surveys that recognise and reward corporate social investment. Tell your story with us in April and October 2016.

â&#x20AC;˘

Greening The Future: The M&G has published special reports to support a cleaner planet without compromising progress for the past ten years. We celebrate pioneering effort to showcase innovation in renewable energy, the combating of climate change and strategic management of natural resources. Each July we also acknowledge and reward these companies that show Innovation in Environmental Best Practice.

If your company is involved in integrating social and environmental initiatives into your business, you are invited to participate in the M&Gâ&#x20AC;&#x2122;s two main social investment projects in 2016 through advertising, sponsorship or content marketing. Please call: Adriana Botha 011 250 7410 or 082 386 1246 | AdrianaB@mg.co.za

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Singita School of Cooking’s recipe for success Rural communities in South Africa aren’t often on the receiving end of educational and employment opportunities. Similarly, businesses operating in these areas face the challenge of attracting and retaining talent. The convergence of these needs, against the backdrop of the Kruger National Park, has resulted in a culinary training and job-creation project that’s serving up a generous helping of strategic CSI.

he Singita private lodge in the Kruger National Park (KNP) partnered with the Singita Community Development Trust to establish the Singita School of Cooking in 2007. Since then, this partnership has afforded a select group of aspiring chefs the opportunity to create a better life for themselves, their families and by extension, their communities. This forms part of Singita’s ongoing commitment to providing meaningful development activities for locals, while simultaneously supporting the environment and servicing the needs of the business.

When corporate and community needs coincide From the outset, each year’s set of graduates from the Singita School of Cooking (SSC) has demonstrated that a well-conceptualised and managed CSI initiative can also be a strategically sound investment. In fact, this sustainable project ticks several boxes by developing scarce skills and creating work opportunities for unskilled, unemployed youth from the lodge’s neighbouring, economically depressed and underdeveloped Manyeleti areas. SSC, on the far eastern reaches of one of Southern Africa’s premiere ecotourism locales, fulfils the dual function of kitchen and classroom. It also fulfils Singita’s desire to source qualified staff from nearby communities. It’s a win-win. As Singita reaps competitive advantages, local youth are being prepared for a career that can improve their prospects.

Learning and development SSC was founded by one of Singita's own chefs and is located within the staff village that serves the Singita Lebombo and Sweni Lodges. Previously an army base, the village now conveniently boasts a modern, fully equipped kitchen that was made available to the Trust to establish and run a chef training facility for the benefit of the local community. Places at this culinary institution are in high demand.

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Total cost per student (per cycle): +/- R72 000 (excluding Singita’s in-kind cost). This includes all essential equipment, uniforms, laundry facilities, learning materials, ingredients, meals, transport, accommodation (where needed), and a monthly stipend to encourage learner commitment. ●● 45 learners have graduated since 2007. ●● Company expenditure on the project in 2014/15: R600 000. ●● Total company expenditure to date: R2 600 000 (approximate, excluding value of Singita’s in-kind support). ●●

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2015 improving spoken English. Work skills and ethics, time management and forward planning are also taught. SSC students are assessed as they progress and must be found competent in all modules to graduate. Once qualified, their extensive practical experience gained within a professional work context, combined with an on-paper qualification, leaves them well equipped and qualified to start working in a professional kitchen as commis-level chefs. Graduates are assisted in applying for positions as chefs with Singita, other lodges within or close to KNP, and further afield. The initiative has a high success rate, with all previously unemployed students finding employment after completing the programme. stockfresh.com/gallery/tobkatrina

Before each of its 18-month learning cycles, the project is advertised in the community by word of mouth, posters and flyers, and there is a rigorous selection process for the hundreds of applicants. With each learner intake, the course enables a small group of nine students to gain a nationally recognised Professional Cookery Qualification (NQF Level 4). This full-time programme is defined by high quality learning interactions with focused, personalised instruction from a chef skills developer. It offers a comprehensive, multifaceted curriculum that combines theory components completed in both the classroom and online, with intensive practical training in the SSC kitchen. All areas of professional cooking are explored, and students learn by doing. One year is spent cooking for Singita staff in their village, and an additional six months in real-world, in-service training, preparing food for guests at Singita’s lodges. The trainees are given daily opportunities to learn from the expert chefs who produce Singita’s Relais & Châteaux-standard food. The programme includes life-skills tuition and focuses on

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Mutually beneficial outcomes The SSC epitomises Singita’s symbiotic approach to giving back, based on its modern conservation model that recognises the need for a balanced relationship between wildlife, tourism and local communities. It’s an example of strategic social investment that makes use of available resources. While the SSC’s social impact is significant, the benefits it brings to Singita’s business are also significant. For example, the positive impression generated by the project’s contributions positions Singita KNP as a socially responsible organisation and encourages goodwill that inspires steadfast customer relationships, repeat visits and valuable word-of-mouth marketing.

Business benefits ●●

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Sourcing staff locally and training them to high standards makes Singita first choice for the top achievers in the class, ahead of other lodges in the KNP, giving them a competitive advantage. The time it takes to recruit staff is reduced and the new recruits are integrated smoothly into operations. The payroll is kept manageable and Singita is able to employ staff with

high potential to progress through the ranks within its kitchens. Singita can invest with more confidence in highly skilled, loyal staff, keeping staff turnover low.

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Another possible, indirect outcome of the SSC project is maintaining environmental integrity. As local communities experience the project’s positive impacts, the likelihood of impoverished households turning to illegal and environmentally destructive activities, such as, poaching and deforestation, remains low. The project generates ample opportunity for partnership. Singita and its partners jointly fund the SSC, and the South African Government contributes through learnership support. Additionally, individual learner sponsorships are a rewarding way for guests to contribute. On a wider scale, the project’s potential to impact the hospitality industry is noteworthy in that its success has been recognised to a point of replication. The SSC model has proved beneficial to multiple stakeholders and, as of 2015, the model is being replicated in Tanzania at the Singita Grumeti Reserves. 

What the judges said “Singita stands out, not for its size and scope, or even for financial muscle: this is a smaller, contained but highimpact project that illustrates very clear operational and strategic direction and certainly has an impact on its broader ecosystem, plus a catalytic, positive, multiplier effect on beneficiaries’ immediate families, their communities and country. “It is an extremely focused programme with strong leverage from the company purpose, and provides a direct line of sight between specific goals and measured outcomes. There is clear long-term commitment to and passionate belief in the project.”

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Trialogue CSI Forums: the outcomes For the third year running, Trialogue has sparked some thought-provoking, topical discussions among CSI practitioners at the quarterly CSI forums held in Johannesburg, Cape Town and Durban. Themes are selected and facilitated by Trialogue consultants, based on trends identified in their work with corporate clients. The environment is confidential, collaborative and conducive to problem-solving, as can be seen from the broader insights recorded and reported.

ach Trialogue CSI forum presents the opportunity to stay connected to current CSI thinking and practice in South Africa on both a regional and national level. The discussions are designed to deal with issues pertinent to corporate giving, and are hence confined to corporate participants. However, attendees concur that sharing the forum findings with the greater CSI sector and social development community will benefit all. The past four Trialogue CSI Forum topics covered: November 2014 – Can CSI influence systemic change? ●● February 2015 – How did companies score in the Trialogue CSI Reporting Barometer? ●● June 2015 – Does achieving CSI impact require companies to influence government practice? ●● August 2015 – Will the revised BBBEE Codes impact CSI approaches to skills development and education? ●●

These topics are discussed in the sections below.

Can CSI influence systemic change? Corporate involvement in advocacy programmes and development research, from a funding and collaborative working perspective, can bring about social change. This forum explored the extent to which this type of involvement can promote systemic change. What is meant by systemic change in the CSI context was unpacked and presented as two case studies of initiatives in the education sector. One was an international example (Northern Kentucky Education Council) and the other was South African (National Education Collaboration Trust).

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quick take-outs SCC: the numbers

Supporting research and advocacy in development ●● Total cost per student are(per important for000 CSI cycle): ways +/- R72 practitioners facilitate (excludingto Singita's systemic in-kindchange. cost). This includes alluncover essential Research can equipment, uniforms, ineffective as well as laundry facilities, learning leading practice, which materials, ingredients, if communicated with meals, transport, other developmental accommodation (where stakeholders can influence needed), and a monthly effective delivery. stipendcan to encourage Advocacy assist in learner commitment. holding stakeholders ●● 45 learners accountable forhave delivery, andgraduated can play asince role 2007. ●● inspiring Companyboth expenditure in the on the project in implementing agencies and 2014/15: R600 000. policy makers. ●● Total company Advocacy and research expenditure on the can be expensive to fund project to date: R2 and without having sight 600 000 (approximate, of direct outcomes, it may excluding value of be difficult to justify the Singita's in-kind support). expenditure.

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Corporates do have a role to play, but there are challenges Although most corporates recognise the importance of funding systemic change, there is some hesitation to do so, largely owing to challenges such as a lack of buy-in from management, limited control over outcomes, a shortage of resources and concerns about brand dilution. Furthermore, when it comes to funding large-scale, collaborative programmes or projects, corporates may face difficulties in working with competitors from the same industry. Such challenges can be mitigated by the formation of an independent body that sets the ground rules or makes interventions ‘company agnostic’.

Corporate approaches noted at the forum ●●

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The Tiger Brands Foundation’s in-school feeding programme partners with government and supplements government’s school feeding programme. The public-private partnership model employed has been very positive. By connecting with an existing government nutritional programme, the National School Nutrition Programme implemented by the Department of Basic Education (DBE), which already exists in these schools, the Tiger Brands Foundation’s breakfast feeding programme demonstrates good potential for scalability. Shanduka Foundation is involved in a public-private partnership with Kagiso Trust and the Free State Department of Education. The two organisations each contributed R100 million and the Department matched the funding with a further R200 million. The five-year programme is incentive-based and operates in two districts in the Free State, impacting over 400 schools. The organisations have a shared vision to improve the education system in these districts and conduct continuous monitoring and evaluation (M&E) to track performance. If the model is successful, government will be able to roll it out in other districts and provinces. The Banking Association of South Africa’s (BASA) Teach Children to Save initiative is a financial literacy programme teaching children to save. The programme is a collaborative effort of the banking industry and broader financial sector with BASA playing the co-ordinating role. The initiative also promotes volunteerism in the sector where professionals deliver one-hour savings lessons to learners in grades 4 to 7. The Hollard Foundation has partnered with the Midvaal community to ensure that the rights of every child in the community are met. It is working with the non-profits and government in the area to build capacity and strengthen collaboration and co-operation. RCL Foods recognises that the communities in its areas of operations are an important part of the success of its business. It works closely with local government identifying priority areas and partners with other organisations in the area to raise the necessary funds to roll out programmes that have scalable impact. National Education Collaboration Trust (NECT) is a partnership aimed at strengthening co-operation among stakeholders – business, government and others in civil society – in order to drive resource mobilisation, programme design and implementation. This strategic collaboration contributes to achieving the education goals of the National Development Plan and is working to improve the capacity of the state to deliver.

Winning strategies African Eyes Photograph y / Friends in Ireland

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To achieve systems change, there needs to be a mindset shift from a short-term, project-driven approach to long-term interventions seeking societal change. Internal advocacy of CSI within organisations is key to secure support for this approach and get past the competitive business focus on short-term results. CSI practitioners are constrained by funding cycles, board cycles, and impact cycles. Nevertheless it is important to make room for organic, developmental processes. There is a need to work with other corporates and to collaborate more, as one organisation cannot achieve systemic impact alone. Collaboration between all parties in the NPO, private and public sectors is ideal. Partners and collaborators need to agree on common outcomes and these outcomes must be specific and achievable. A common set of measurements should be in place.

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How did companies score in the Trialogue CSI Reporting Barometer? In 2014, Trialogue assessed 72 South African companies listed on the JSE’s 2013 SRI Index. Based on the latest company reporting on CSI and socio-economic development, none of the 72 companies in the sample scored ‘excellent’ for the overall quality of their CSI reporting, but 12 companies (17%) achieved a ‘good’ rating. At the first CSI Forum of 2015, Trialogue presented these results alongside our reporting barometer methodology and discussed what CSI reporting should cover and how to improve reporting on social investment.

The challenges inherent in CSI reporting Companies find it difficult to meet reporting requirements within the limited space allocated to CSI in their annual reports. This is compounded by the move to integrated reporting which calls for increased brevity and a focus on issues material to the business. An understanding of the business rationale for CSI is key to building a case for materiality. The Trialogue CSI barometer rankings show that reporting on impact assessment is low (39%). This may be because companies are not measuring impact, or are struggling to do so. Reasons described at the forum include: ●● It can be very challenging to measure and report on behaviour change. ●● CSI practitioners often struggle to identify suitable indicators for measuring impact. ●● Companies may not be willing to report on findings which are not positive. ●● It is expensive to effectively measure impact and budgets don’t allow for this. Furthermore, short partnerships don’t warrant the expense involved in measuring impact. Finding time to report is often not a priority of the CSI practitioner whose time is consumed by the general running of the CSI programme. Reporting can be viewed as a compliance function, which should not be rushed through or handed over to the communications team, which isn’t adequately equipped to report meaningfully on the issues. Limited space allocation in the company’s sustainability or integrated report also compromises the quality of CSI reporting. As a result, important aspects of the reporting barometer are not being covered each year. With limited space, it is more important to focus on the strategic rationale for CSI and the outcomes achieved. CSI practitioners could also motivate for larger, single CSI reports which could be located on the company website. CSI plays an important role in the business and CSI reporting should be held to the same standards as other key business functions.

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SABMiller is required to conduct CSI reporting in order to renew its licence every year. It uses a global tool, the Sustainability Assessment Matrix (SAM) for reporting purposes. The tool is internal to SABMiller and produces reports on the business performance against 10 sustainable development priorities. SAB also reports on employee volunteering and in doing so converts employee hours to rand value. MTN SA Foundation reports on objectives, internal and external strategic direction, measured results for projects, an understanding of its stakeholders, an understanding of the social and economic value of doing CSI and stakeholder value creation. MTN programmes in other countries are similarly required to report on their CSI activities.

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Providing details on the business rationale for doing CSI helps show top management how CSI will benefit the community and the business, as well as the alignment between business and government goals. CSI practitioners have to show the benefits for reputation, stakeholder relations and new business development to demonstrate the value of CSI to management. Reporting can be used as a tool for informing future work. It provides an opportunity for CSI practitioners to refine and communicate the direction and focus of the programme/s. Good reporting is critical to giving CSI a place of importance in the business. If reporting is not robust or strategic, the CSI function may be seen as peripheral to the core business. For large conglomerates that have different business units pursuing different goals, it is challenging to report on the mandate and goodwill of the CSI department. A central exco-led

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Companies are taking CSI reporting more seriously. Compliance with King III requirements could explain why. ●● Trialogue has designed its own measurement criteria based on the assessment of lead practice for reporting on nonfinancial information. ●●

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directive is necessary to ensure coherent CSI reporting at a group level. Transparent reporting is important. CSI practitioners are encouraged to share challenges and lessons learnt. This is, to some degree, dependent on company culture, but also on the extent to which the company has engaged with various projects. Less commitment to the project naturally limits the scope for detailed reporting. Much of the in-depth reporting is now happening online and stakeholders need to be directed to both these detailed reports and the printed report. Social media is also becoming a popular communication channel for CSI.

Does achieving CSI impact require companies to influence government practice? One of the most significant ways to scale the impact of a CSI programme is by working with, or influencing, government. CSI can play a highly influential role, for example, by investing in pilot projects or developing lead practice. Corporate social investment budgets are typically less than 1% of what government is spending on health and education, for instance, but CSI departments can tap into other corporate resources, such as skills, processes, products and tools that can be used to good effect. Deliberately aiming to influence government was the topic of the forum discussion, which was considered in detail.

What are the barriers to corporates engaging with government on social development?

quick take-outs

Most forum attendees agreed that engaging with government – particularly in key sectors, such as health and education – is critical. While outcomes can be achieved with individual CSI activity, long-term, sustainable, systemic change most likely requires companies to work with government. A number of themes emerged in discussing the potential successes and failures of a working, government-corporate relationship. These include: ●● Time frame Corporate social investment departments are constrained by boards that want to see immediate results. Projects tend to take longer when working with government and most companies need to show CSI results to auditors at least annually. ●● Politics Company representatives felt more comfortable with the idea of supporting communities of practice and research, rather than taking more direct approaches that might be construed as political. ●● Broken systems Government policy is often honourable, but policy implementation is repeatedly hindered by systems that don’t serve, a lack of clear lines of accountability and shortfalls in capacity to deliver. ●● High staff turnover This is evident in both CSI departments and government. A new entrant to, or key exit from, a particular project or partnership can derail the hard work. Case studies indicate that a long-term commitment is required to create change when working with government. It’s critical to understand the concept of supporting government rather than trying to do the government’s work. Extensive stakeholder engagement will ensure large-scale buy-in.

Winning strategies The following suggestions on how to navigate these challenges emerged: Supplement over supplant Aim to supplement government provision of services, not supplant it, and include an exit strategy as part of your intervention. The goal should be to leave behind skills and tools that can be used by government for years to come. ●● Sign an MoU Define roles clearly and insist on drawing up and agreeing to a Memorandum of Understanding (MoU). Trialogue research has shown that although more than half of surveyed companies have working partnerships with government, less than half of these have formal MoUs in place. A key reason for this, say CSI managers, is that contracts take about 18 months to finalise. ●● Extensive stakeholder engagement When working with government officials, the important part is to include all stakeholders. Engage with as many levels of government as possible: national, provincial and municipal. ●●

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Often success comes down to identifying and maintaining a relationship with one specific dynamic individual or department. Create shared value Understand the value proposition for government, company and all stakeholders and seek a solution that creates shared value for all. Work from within Corporates are sometimes unaware of the level of bureaucracy that officials, such as social workers, face. It is important to first understand the systemic issues. You can’t work with government from the outside. You need to get involved and work from within. Encourage collaboration There is a disconnection between government departments. Work to connect the Department of Health to the Department of Environmental Affairs, for instance. Often one government department is unwittingly holding up another. Linking those departments allows resources to be shared. Keep it relevant Any work completed with government needs to align with government Key Performance Indicators (KPI). Match your work to these priorities or agree on alternative KPIs to be pursued. Provide training Work together in identifying problems and offer business skills as part of the solution. Move the goal posts Ask the right questions to identify the real challenges and be flexible in your approach when addressing them.

Find out how Habitat for Humanity has revised its strategy to align with government to build thriving communities, page 94

Will the revised BBBEE Codes impact CSI approaches to skills development and education? The Revised BBBEE Codes of Good Practice require companies to spend 6% of payroll on skills development in order to obtain the 20 points assigned to this element (there are also five bonus points), compared with the previous 3% of payroll needed to obtain 15 points. The revised Codes also allow for training and education of unemployed black persons, which many companies currently do through their CSI programmes. This Trialogue CSI Forum considered how the Codes might lead to a shift in the nature of corporate support and the manner in which contributions are internally categorised for skills development and education.

The South African Government spends 6% of GDP and over 20% of the national budget on education. Additionally, 49% (about R4 billion) of corporate social investment was spent on education in 2014. Despite considerable financial investment, significant challenges persist in the sector, including poor teaching capacity, infrastructure, and learner support and retention. The country’s high rate of unemployment is another major challenge. Despite the creation of 1.1 million jobs in South Africa since the economic crisis of 2008/9, unemployment continues to rise as more people enter the working age group (15 to 65 years old). Unemployment stood at 26.4% in the first quarter of 2015, the highest level since 2003 when it was 30%. The revisions to the Codes place the emphasis on skills, not only for those already employed, but also for those making the transition to the workplace.

Corporate approaches noted at the forum ●●

Deutsche Bank supports Sparrow Schools, an organisation that equips young people from disadvantaged homes, who have learning disabilities, with education and employable skills. Corporates can partner with the schools to promote skills development, as well as to earn the requisite BBBEE points. Deutshe Bank has also partnered with the Tertiary School in Business Administration (TSiBA), to offer a nine-month Theory of Change Programme. The programme, which runs until February 2016, currently supports 25 non-profit organisations to think about alternative means of income-generation, while also providing students with workplace experience.

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Why have the Codes been revised? Skills development should be viewed as a tool to fast track transformation by bringing new entrants into the economy. Support for accredited training programmes for unemployed people can qualify as skills training or socioeconomic development (SED) in terms of the BBBEE Codes. Corporates can offer learnerships at a reduced cost, as a portion of money spent can be claimed back from SETAs.

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Discovery has partnered with the Umthombo Youth Development Foundation, to support youth from rural areas to pursue a qualification in healthcare. Jointly with the City of Johannesburg (CoJ), Discovery is facilitating the implementation of the skills development programme in Orange Farm. This is in support of the CoJ’s Jozi@Work Programme, which is expected to create 40 000 new jobs by 2016. Sanlam’s Vacation Camp is a short business course offered to about 50 learners from different universities. About 10 of the participating students are employed by Sanlam upon graduation. Sanlam also offers consumer financial education. Thirty percent of spend on this initiative is directed at communities, including unemployed people, and 70% at work sites, which are often identified by Sanlam business. Sanlam also partners with a number of universities to train graduates to become financial advisers. Virgin Active’s Future Crew Programme, which initially donated gym equipment to schools, now also trains learners and members of under-resourced communities to become accredited coaches through the Exercise Training Academy. Once qualified, they are either employed by schools or absorbed into the business. In terms of enterprise development, community members can train to become fully qualified dance instructors, and start their own incomegenerating studio.

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Companies need to consider how close their skills development interventions are to their business objectives, and align these accordingly. CSI is ideally placed to consider skills for unemployed people which, if aligned with human resource requirements, can serve to create a future pipeline of staff/employees with skills in specific sectors. Companies should review all education and skills development spend and assess each initiative to establish whether it could qualify as socio-economic development (SED), economic development (ED) or skills development. If a company is over-scoring on SED, for example, some of those initiatives might qualify to be re-categorised to secure scoring in another sector, such as skills development. 

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Recent changes to the compliance requirements of Broad-based Black Economic Empowerment in the Revised Codes of Good Practice (RCoGP) have placed a greater level of responsibility on corporate South Africa to grow the country’s skills pool. The criteria set out under the Skills Development pillar of the RCoGP provide new opportunities for collaboration between corporates, NPOs and other social communities that, if harnessed properly, can cultivate and grow South Africa’s greatest resource, her people. Written by OLGA MESHOE, Director at Transcend Corporate Advisors

Under the RCoGP, organisations with a turnover equal to or greater than R50 million per annum (Generic Enterprises) are required to focus their spend in the following three ways: 1. Spend up to 6% of their payroll on training black South Africans (whether or not they are employed by the organisation). This amount must be spent across black sub-groups, i.e. Africans, coloureds and Indians in accordance with the Economically Active Population (EAP) targets published annually by the Commission for Employment Equity. 2. Spend up to 0.3% of their payroll on training black disabled South Africans (who are employed by the organisation). 3. The value of the spend is fully recognised where the training is accredited with a body such as a Sector Education or Training Authority (SETA). Unaccredited training is capped at 15% of the training amount. Organisations with a turnover equal to or greater than R10 million, but less than R50 million per annum (qualifying small enterprises or QSEs), are required to spend up to 3% of their payroll on training black South Africans (whether or not they are employed by the organisation). The principles set out in 2 and 3 above are also applicable to QSEs. In addition to spending money on training, the RCoGP require Generic Enterprises to sponsor learnership, apprenticeship and internship programmes with an equivalent number of unemployed persons that represent at least 2.5% of the organisation’s total head count, determined with reference to the EAP targets. Should the Generic Enterprise secure employment for the unemployed person following completion of the

learnership, apprenticeship or internship, the Generic Enterprise is eligible to receive bonus points.

Skills development at work In implementing skills development strategies, meaningful partnerships can be established between notfor-profit companies and Generic Enterprises or QSEs who invest in skills development for unemployed persons. Accredited training programmes can be co-ordinated by NPOs, who can provide the organisation with a pool of potential candidates for employment after they have completed their learnership, apprenticeship or internship. The organisation will receive bonus points if the person is employed. Furthermore, if the person is employed at a management level, an additional contribution will apply to the management control pillar of the RCoGP. NPOs may also be well positioned to absorb skills budgets by overseeing accredited training programmes and providing internship opportunities. In return, NPOs could provide the organisation with services such as transportation, mentorship, psychological assessment and the provision of basic care, all of which the organisation would be able to claim points for under the skills development and socio-economic development pillars of the RCoGP Scorecard. Current global economic conditions make it challenging for companies to allocate 6% of payroll to training black South Africans, so a return on investment is essential. Investment in skills for unemployed people in partnership with NPOs provides organisations with multiple opportunities for optimising the RCoGP Scorecard while reaping benefits in the form of recruitment or access to services. 

Why BBBEE? According to recent data from Statistics South Africa, 50% of South Africans live on just R16 a day; and more than 20 years post-democracy, the gap between the rich and the poor is growing. As government, business and civil society grapple with implementing the best solutions for addressing unemployment, it’s generally agreed that true economic freedom will come only when the opportunity to learn and cultivate a skill that can be used in the workplace is accessible to all South Africans.

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CHIPPING AWAY AT INEQUALITY

Archway Foundation school halls tackle disadvantage

hey have been the inspiration for poetry and have reawakened the dreams of children and their teachers. They were born out of schooldays when wishes didn’t often come true. After 11 years, Garden Cities’ Archway Foundation school halls continue to chip away at the gigantic legacy of inequality in Western Cape education. After an assessment of educational disparity back in 2003, John Matthews, the then newly-appointed CEO of the Western Cape’s oldest residential development company, uncovered the gigantic shortfall of more than 700 school halls in the Western Cape, among disadvantaged schools. Why he chose school halls as his mission, and that of his company’s CSI project, the Archway Foundation, could be partly ascribed to personal experience. Matthews, who was driven to attain high levels of tertiary qualification, didn’t have it easy. His schooling took place in conditions that were not privileged, and by no means equal. He knows first hand, the searing summer days and icy wet winters in which more than a million Cape children still today gather in the open for their schools’ assemblies, with nowhere to express their creativity, or gather for cultural expression. School halls are still not a hugely popular cause, simply because, unlike classrooms and laboratories they are widely not viewed as being key to the task of educating young minds. This is entirely untrue.

A survey was conducted among principals, teachers, schoolchildren and their parents covering the then more than 30 Archway halls already handed over to Cape schools. It revealed that the presence of a hall on the school grounds had made an extraordinarily positive difference to the academic performance at the school, the levels of self-esteem among the entire school body, including the surrounding community, and the status of the school among potential pupils. Children’s attitude towards school and learning changed, and those who were polled all said coming to school had become something to look forward to. Creative energy was rekindled. And the relatively few who have previously made it into the mainstream of arts, culture and entertainment are predicted to become a flood. It shows in the academic results and in the achievements in cultural and artistic competition, sport and leadership. The effect of the halls on the children has been remarkable and there have been many expressions of thanks over the years, but none more heartfelt than that of the little rhyme penned by a Cape Town pupil: Garden Cities, toe dit lyk of niemand luister na ons gepleit, het julle nie geskroom met die verwesenliking van ons droom! The Archway Foundation has so far, in its 11 years, provided 60 halls for disadvantaged schools in the province at a cost totalling over R206 million, made up primarily of its own funds and those of the WCED and other corporate donors.

John Matthews, Group CEO of Garden Cities However, there are still around a million kids in the province going to schools without a hall. They are still gathering in open quadrangles for assemblies, and hired halls for special occasions.

No education system is perfect, but providing the basic necessities for a holistic education is an unarguable necessity. Redressing decades of neglect is a monumental task and more help is needed. The Archway Foundation calls on other corporations to assist with their CSI funds to level the opportunities for all South African children by providing one of the basic educational necessities. John Matthews would welcome a call on 021 558 7181

www.gardencities.co.za

The Garden Cities Archway Foundation Hall at Sullivan Primary School in Steenberg, one of the milestones in the now 60 halls built by the foundation. Garden Cities

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he Trialogue CSI Conference 2015 followed a similar format to previous years and, as always, showed strength in numbers: ●● 451 delegates attended the conference. ●● 53 conference speakers provided specialist knowledge. 15 breakaway sessions were held across five concurrent content streams. 27 exhibitors showcased relevant products and services. Delegates indicated that the conference was meeting or exceeding their expectations in the following ways: ❍❍ 83% of delegates rated the conference as ‘worthwhile’ or ‘outstanding’ ❍❍ The quality of the plenary speakers was perceived to be very strong, with an average of 90% of delegates rating their input as ‘beneficial’ or ‘very beneficial' ❍❍ Delegates also firmly believed that they had valuable ‘opportunities to ask questions and discuss lessons in development’ with 80% saying they found this ‘beneficial’ or ‘very beneficial. Over 24 000 interactions were recorded at the conference by the administrators of the Poken device, which delegates used to pick up information about sessions and exhibitors, as well as exchange virtual business cards. Strong use of social media was noted during the Trialogue CSI conference 2015, with posts on Facebook reaching audiences of 3 000+ and gathering 100+ likes per post.

save the date

Trialogue hosted the eighth successful gathering of inspirational CSI, sustainability and social development stakeholders at the annual conference held in Johannesburg on 5 and 6 May 2015. These stakeholders were called upon to ‘make it different’ by focusing on creating change, embracing innovation and collaborating to learn from one another’s insights. Delegates were given the opportunity to rethink their roles in social development and to establish new partnerships.

The Trialogue CSI Conference 2016 will take place in May in Johannesburg. If you would like to receive more information, please send an email to info@trialogue. co.za and we’ll add you to our mailing list.

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Making it different at the Trialogue CSI Conference 2015

Read the report backs from the Trialogue CSI Conference 2015 on trialogue.co.za, or visit Bdlive.com and search for articles compiled by our speakers and writers: Aunnie Patton, Nic Spaull and Kate Sidley.

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Delegates explored broad topics with a mandate to make it different. The five content streams were: ●● Global trends – This was a focus on those big ideas that influence development across the world. We explored how we can apply them in South Africa. ●● Improving education – Almost all companies support education and almost half of CSI spend is directed to it. We looked at how we can get it right.

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Tools for development – With the right tools, whether an online database or an M&E framework, the job gets done quicker and better. We debated and rated various tools. Financing and funding – Development initiatives are not the only area where innovation can happen. Organisations need to look at new sources of funding and new models to attract it. We reviewed these. Working with communities – Ultimately development is about people. This stream invited delegates to look at how we mobilise and serve them.

Each individual stream comprised three sessions: a panel discussion, a case study and a debate making for 15 breakaway sessions in total over the two days. The sessions were tailored around topics trending in the CSI space, as guided by Trialogue’s extensive annual research. The value of the content was evident in the depth of the ensuing collaborative discussions. All information generated at the Trialogue CSI Conference 2015 was collated and shared via Trialogue’s digital platforms: trialogue.co.za, @TrialogueSA and facebook.com/TrialogueConsulting. Business Day newspaper also reported on some of the most pertinent CSI matters that were raised. Three sessions, in particular, proved popular and pointed to the most pressing matters that CSI and development practitioners are perusing. ●● Working with communities: Creating jobs, a panel discussion When communities are asked what they most want, the response is overwhelmingly ‘jobs’. There are many ways to approach this, ranging from connecting school-leavers with work to supporting entrepreneurs. This session asked how funders could support projects that create sustainable jobs and businesses that communities buy into. ●● Success in crowdfunding: A case study Crowdfunding – collectively raising money and other resources via events and online platforms – is becoming increasingly

popular as a fundraising mechanism. While the tools may be simple, running a good campaign is not. Daniel Shaw of Thundafund presented an overview of crowdfunding while Catherine Taylor of BackaBuddy took delegates through some of the campaigns she has run, sharing successes and failures. Organisations are learning from their M&E: A debate Monitoring and evaluation is increasingly becoming a donor requirement. Many NPOs are bringing the function in-house and making an investment in measuring the impact of their development work. Ramesh Chhagan from Exxaro and Marianne Brittijn from CDRA asked: is all this increased activity in measurement actually feeding back into projects to improve them? Are we willing to drastically change our approach or even abandon projects, based on what we learn?

Other breakaway sessions at the conference delved deeper into education by looking at issues such as addressing the maths and science deficit among learners and whether this should be tackled at FET level or sooner. Examples of how resources can be successfully pooled to lobby for change were also brought to the table. Sonja Giese of Innovation Edge and Brian Liggett of Network Action Group showed how they brought about systems reform at government level in the registration of early childhood development centres. The education focus seen in Trialogue’s analysis of CSI budgets also came through in the Trialogue CSI Conference 2015 plenary sessions. Madhav Chavan from Pratham spoke about the challenges of providing education to underprivileged children in India and Garth Japhet, CEO of Heartlines and founder of the Soul City Institute, spoke about the role of storytelling in educating communities to effect social change. All in all, the Trialogue CSI Conference 2015 seemed to succeed in inspiring delegates to move towards making it different, by going forward together.

 See the Q&A with plenary speaker Garth Japhet, page 72

The hard work of creating jobs Written by Kate Sidley

South Africa’s unemployment crisis calls for innovative solutions, training and collaboration.

The Awethu Project Six years ago Themba Khumalo dropped out of high school and started making hand-pressed bricks on an empty municipal lot. He heard about the Awethu Project on the radio, joined the incubator, and was selected for its SME investment fund. At 23 years of age, Themba now employs 22 people and produces 13 000 bricks per day. With unemployment in the second quarter of 2014 standing at 25.5%, or 5.2 million unemployed people, and a staggering 42% of people under the age of 30 unemployed, we need many more entrepreneurs like Themba. That’s the goal of entrepreneurial development company Awethu. “We want to make sure that these stories are not so rare. They are real and possible with our model,” said Gareth Taylor, who

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It takes the same resources to invest in someone who will create 10 jobs as someone who will create one job. For social impact, it is important to identify those individuals who are going to go on to create a sustainable business that can employ 20 or 30 people.” Gareth Taylor, Manager of Incubator, Awethu Project.

runs the Awethu incubator. Taylor was speaking on a panel at the recent Trialogue CSI Conference 2015, discussing models that work to create jobs. Creating jobs via an incubator is a costly process, and selecting the entrepreneurs to work with is crucial. “It takes the same resources to invest in someone who will create 10 jobs as someone who will create one job. For social impact, it is important to identify those individuals who are going to go on to create a sustainable business that can employ 20 or 30 people,” said Taylor. Awethu has identified four main characteristics that they look for in their potential entrepreneurs: high learning potential, willingness to learn, tenacity and ambition.

 See Olga Meshoe’s piece on skills development in the revised BBBEE Codes, page 162

Harambee Youth Employment Finding the right person for the right industry is also key to Harambee Youth Employment Accelerator, an employer-led initiative connecting first-time job seekers with job opportunities. “We start with the client’s needs, where the demand is. We bring young people in for an assessment, match them with the right industry, and then help them to bridge to those skills,” said Chief Operating Officer Jackie Williams, who was also on the panel. In the bridging programme, there is a lot of emphasis on behavioural issues like punctuality where young people often struggle. “The attitude is often the issue with entrylevel employment in South Africa. There’s also a big mismatch between how young people view work, and what is actually available to them. We get them to understand that they need to be connected to the economy, to build their own networks and CVs. There’s dignity and potential in working as a cashier.” Harambee works with young people from rural areas and townships who have a matric. It is extremely difficult for impoverished young people to search for a job, let alone land one. The majority of jobs are filled by people who know people, and impoverished youth have no networks to call on. “Poor people can’t afford to job search, “said Williams. “Without cash for transport or internet access it is virtually impossible to find a job. As a result, poor people are locked out of the job market and risk being long-term unemployed. We aim to break that cycle.” They have placed 12 000 young people in the formal economy and plan to place 10 000 a year from now onwards. But the main

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aim is around staying in work, Jackie says. “If someone stays in a job for a year, they are likely to be employed for 85% of their working life. That changes the trajectory for the entire family.”

 See more about unemployment among the youth, page 176

Open Africa What is clear from all the panellists is that job creation takes collaboration. The third panellist, Francois Viljoen of Open Africa, said that in the rural areas where they work, networks are, if anything, even more important. Open Africa is a social enterprise that establishes tourism routes, linking community-based tourism businesses, such as accommodation providers, tour guides and artisans, into self-drive routes that are off the beaten track. The 2 500 enterprises that participate, account for over 28 000 jobs. Viljoen said: “Simply to be connected with peers and to learn from their successes and failures is critical. We provide a platform for emerging entrepreneurs, established entrepreneurs, municipalities and government to start working to the same goal. Don’t underestimate people’s willingness to be involved. We go to the private sector and say: we would like to bring a group of emerging entrepreneurs with you on this journey, would you be prepared to be involved, to mentor others? The response is very positive.” The three panellists Gareth Taylor, The described three very different Awethu Project approaches, but each had Jackie Williams, lessons to share. “To create Harambee Youth jobs, we need to back and Employment Accelerator share successful models, Francois Viljoen, Open particularly those that can Africa be scaled,” said Viljoen in conclusion.

on this panel

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Diversifying NPO income streams with crowdfunding Written by Denise Archer

Crowdfunding provides a valuable alternative to traditional funding approaches. So how can NPOs harness this method to support their work? Two panellists discussed crowdfunding in the non-profit sector.

What is crowdfunding? Crowdfunding, simply put, is fundraising achieved through receiving small amounts of money from a large number of individuals. While this concept has been around for a lot longer, with the help of the internet, crowdfunding platforms have taken off over the past 15 years. They are now a viable way for just about anyone to raise funds in a relatively short time. Statistics show that globally the practice has grown exponentially over the past five years, and continues to do so. According to Massolution’s 2015CF: Crowdfunding Industry Report, global crowdfunding saw accelerated growth in 2014; it expanded by an impressive 167% reaching $16.2 billion raised, up from $6.1 billion in 2013. In 2015, the report predicts that the

Daniel Shaw has been involved in the birth of South African crowdfunding from every angle. He is a former employee of Thundafund.com and a co-founder of Ripple. org.za. Catherine Taylor heads up the BackaBuddy online fundraising platform and has assisted various NGOs with their fundraising objectives.

resources

about the speakers

trends and topics in csi

The website crowdsourcing.org curates and hosts content specific to crowdfunding success and strategy. You’ll also find helpful articles on crowdfunding as a mechanism for fundraising for charitable causes.

industry will more than double once again, on its way to raising $34.4 billion for entrepreneurs, creatives and social causes. Most crowdfunding platforms operate off commission on the final amount crowdfunded.

Other cause-related sites with some prominence in the SA market include ForGood which focuses on goods donations and volunteerism, and GivenGain, an international site accessed by many corporates as part of their employee-giving programmes.

How can crowdfunding work for me? Panellist Catherine Taylor works for BackaBuddy and has years of experience assisting NPOs with various funding strategies. “Include at least one or two elements of crowdfunding in your fundraising strategy,” advised Taylor. “Work off events like the Cape Cycle Tour that are already in existence and use them to create your own campaign by encouraging individuals to fundraise for you. By increasing the amount of individual donors with your organisation, you can enhance sustainability.” Shaw had some basic pointers for building a successful crowdfunding campaign: “Do your research so that you can make informed choices as to which platform suits you. Ask questions like: is it easy to put my campaign up? Is good support provided? And go through the payment process to check it is intuitive. Then focus on making the experience as visual as possible for users.”

What kinds of crowdfunding exist? Panellist Daniel Shaw, Chief Operating Officer of the newly launched Ripple platform in South Africa, described the most commonly known crowdfunding types as rewards-based and equity-based crowdfunding. In rewards-based, the project creators pre-sell either the product being funded or project-related items, known as rewards, to funders as a pay-off for financial contributions. In equity-based crowdfunding, the funder buys into the company, receiving shares in exchange for the money pledged. However, lending-based (or debt-based) crowdfunding now dominates the industry; in 2014, it raised $11.1 billion dollars. Other forms of crowdfunding exist. For the NPO sector, the most relevant of these is charity crowdfunding, where individuals play a donor role to assist social projects. In 2014, social causes earned $3.06 billion globally.

Does crowdfunding work in the South African context? “Crowdfunding isn’t new in South Africa,” explained Shaw. “The original crowdfunding here is the ‘stokvel’, where groups of people pay into a joint savings scheme.” Nowadays there are a number of South African-based crowdfunding platforms available, but the most popular for entrepreneurs and creatives at present appears to be Thundafund. Launched in 2012, it has risen to prominence in the last two years, now boasting 4 888 supporters who have raised a total of over R4 million for 117 successful projects. Ripple is Thundafund’s new sister site, aimed specifically at causes and social activism. “Ripple is purely donations-based and you can do this either through crowdfunding or crowdsourcing, which means donations of time or resources,” said Shaw. Another cause-based crowdfunding site highlighted by Shaw is the BackaBuddy platform. This site operates slightly differently in that it provides “charity champions” with a platform to fundraise for the cause of their choice, usually by taking up challenges such as a sporting event for the cause. BackaBuddy has helped raise over R21 million in the past four years.

crowdfunding: a brief how-to Appoint a driver – Someone in your organisation should be dedicated to bringing in donors. Find a strong hook – Think creatively to get people to join the campaign, e.g. your organisation could collect entries on their behalf, or provide goodie bags or prizes. Set targets – For both your overall campaigns and for the charity champions involved. Make the ‘ask’ as tangible as possible – Be clear about what it costs per beneficiary to your project, for example. This motivates champions and backers to reach the target. Be relentless about the marketing – Contact the event organisers about pushing the cause and so on. Develop touch points – Aim to keep people engaged.

Are organisations learning from their M&E? Written by Denise Archer

Monitoring and evaluation is increasingly becoming a donor requirement, with many NPOs investing in measuring the impact of their development work. Yet is this increased activity feeding back into projects to improve them? This question was debated from all angles. Although over 80% of corporates and NPOs claim to be measuring project performance and impact, according to Trialogue’s CSI research in 2014, the question remains as to what they are doing with this knowledge. Ramesh Chhagan from Exxaro argued that organisations are learning from their M&E, while Marianne Brittijn (Community Development Resource Association – CDRA) took the stance that organisations are not. Ramesh’s experience with social and labour plans at Exxaro has shown him that efforts driven by compliance don’t necessarily breed trust or a social licence to operate within the communities

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We have adopted a strategic outcomes-based approach to M&E. For us, it’s about impact, not just whether objectives are being met.”

about the speakers

Ramesh Chhagan, Group Manager Community Development and SHEC Sustainability, Exxaro.

Ramesh Chhagan has over 20 years’ experience in the fields of community development, management training, and development and sustainability management. He is responsible for providing strategic and policy direction in community development. Marianne Brittijn is experienced in designing monitoring and evaluation frameworks and systems, strengthening reflection and learning cultures in organisations and conducting developmental external evaluations.

surrounding Exxaro’s operations. As a result, Exxaro has shifted away from compliance towards a shared-value approach by viewing these communities as development partners rather than beneficiaries. As such, they seek the common ground between community needs and business objectives. This approach has stimulated the need for extensive M&E at Exxaro. “We have adopted a strategic outcomes-based approach to M&E. For us, it’s about impact, not just whether objectives are being met,” said Chhagan. Exxaro has chosen the Social Return On Investment (SROI) methodology. Ramesh describes it as a comprehensive approach as it includes a theory of change and a translation of change into rand value. While comments from the audience indicated scepticism about this methodology in effectively measuring social change, Chhagan’s response was that the conversion of the social impact into rands and cents allows corporates to convince their boards that they are valid. “If you’re looking at CSI budgets, these are limited. If you can sell the value through using SROI, you could unlock a wider pool of money from human resources, labour resources, etc.” According to Chhagan, M&E processes have improved Exxaro’s CSI planning and management decisions, helping them to focus on shared value and sustainability by facilitating meaningful conversations with the projects they support. Marianne Brittijn joined the conversation with a different perspective gained through her experiences in capacity building and organisational development of NPOs. “A lot of NPOs feel like M&E is a waste of time and interferes with what they are really there to do,” explained Brittijn. “So it’s vital to demystify M&E by showing how vital it is to organisational practice.” She described M&E as more than a tool; and that it should form an aspect of almost every activity as a way of measuring, reflecting and learning. In this way, it pushes the organisation forward by continuously improving practice.

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However, Brittijn has found that most NPOs don’t plan M&E into their interventions, and therefore aren’t effectively able to understand whether they are on track to achieve their objectives. Those that do plan for M&E usually don’t include this in their budget, with the result that resources for related activities are slim and M&E remains neglected. A further issue is that baseline measurements are rarely undertaken with the result that, even when M&E is done, there is no data to compare findings against. When organisations do collect data, they often don’t take the time to analyse and reflect on the findings. Brittijn asserted that it is crucial for organisations to be able to illustrate change in order to remain accountable. By continually “asking hard questions” organisations can learn from their failures and successes. When the audience was asked how many tracked outcomes indicators, most of the room responded positively. However, when asked how many had a budget for M&E, very few responded positively. How this discrepancy impacted on M&E results and efficacy was unfortunately not unpacked due to lack of time, and remains a question worth persuing.  Conference winners Congratulations to the Mogwase Maphalala Foundation for winning the lucky draw prize at the Trialogue CSI Conference 2015 of a free full-page advertisement in this edition of the Trialogue CSI Handbook. Their conference representative, Sipho Ndaba, secured the prize on their behalf. Teboho Nkoane of Girls and Boys Town SA also walked away with a second lucky draw prize of an iPad.

Magwaza Maphalala Foundation The Magwaza Maphalala Foundation in Bergville was formed in 2014 to assist the uThekela District community with taking advantage of the economic opportunities presented by local tourism. About the area Bergville is a small town, a stone’s throw from the Drakensberg and Woodstock dams, halfway between Johannesburg and Durban on the scenic R74. Known as the gateway to the Drakensberg area, tourism is an important industry as it provides work for the locals. There are a number of resorts, lodges, self-catering cottages and B&Bs in the surrounding area, and good carp fishing spots around the dams. The current beneficiary area is Uthukela District Municipality.

Plans for the future

C ontact

The Foundation’s fundraising team intends to host an annual, local art exhibition and jazz festival targeted at visitors to the area. This exhibition will showcase the various crafters and artists from the community. The funds raised from this event will go towards building a youth centre, which will sustain the Foundation’s objective of being a self-funded entity.

SIPHO NDABA Chairperson iamsipho@hotmail.com 078 901 9997 THAMI SIBIYA Secretary thamisibiya@me.com 076 651 8960 www.magwazamaphalalafoundation.com

Other beneficiaries earmarked for these two events are 600 learners from schools around the district. School uniforms will be donated to the learners. Additional proceeds will go towards the Magwaza Maphalala Foundation’s bursary programme. This programme aims to provide academically deserving matriculants with the financial support required to register at a university of their choice. The Foundation has three main focus areas: youth development, tourism, and art and culture. The youth centre will provide a muchneeded hub for youth to generate ideas, develop their skills and empower them, in line with the government’s priorities of rural development.

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African Eyes Photography / Youth Development in the Ufafa Valley (Woza Moya)

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Spotlight on the youth Since the advent of democracy, the South African youth of the 1970s has been celebrated for its pivotal contribution to the struggle for liberation. This is in stark contrast to the current ticking time bomb type rhetoric about South Africa’s ‘poorly educated’, ‘unemployed’ and ‘undisciplined’ youth. Today’s youth may not have to fight for democratic liberation, but its task of overcoming socio-economic inequality is no less burdensome.

n April 2015, a group of students at the University of Cape Town, advocating for meaningful transformation in academia, called for the removal of the Cecil John Rhodes statue from their campus, arguing that it was a symbol of brutal colonialism and unfettered capitalism. While inspiring a controversial, yet crucial, international dialogue, this movement, which has rapidly intensified (at the time of going to print, the #FeesMustFall movement was sweeping the country), is a reminder of the collective energy and potential impact that the youth wield. Youth can play a key role in driving positive social change and growing the economy, but unless South Africa adequately equips its ‘demographic dividend’ to reach and effectively channel that potential, two-thirds of our population (youths below the age of 35, according to Statistics South Africa’s 2014 census) will prove a detriment, rather than our greatest asset.

Youth in poverty face greater threats to wellbeing In early 2015, Statistics South Africa reported the updated national and provincial poverty lines, based on the cost-of-basic-needs approach, which calculates the minimum amount of money needed to survive in South Africa. The rebased poverty line, which increased from R620 to R779 per person, per month, resulted in a substantial increase in the estimates for overall poverty in South Africa – from 45.5% to 53.8% of the population, or 27 million people.

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youth defined

United Nations, the Development Bank of Southern Africa and Statistics South Africa: 15 to 24 years old The African Youth Charter: 15 to 35 years old The South African National Youth Commission Act and the National Youth Policy 2015–2020: 14 to 35 years old Extended national and continental definitions of youth intend to help ensure that more young people are supported to overcome historical imbalances, in order to increase their socioeconomic participation.

youth focus

Determined to make ends meet Jeanette* (22) and Judy* (17), Koffiefontein, Free State

Aged 22 and 17, Jeanette and Judy have fended for themselves for the past two years, since their mother – a single parent – died of tuberculosis. More than the financial stresses of having to fend for themselves, the young women long for their mother’s guidance and nurturing. “I matriculated in 2012, and Judy will matriculate this year. It doesn’t matter how tough things get for us, it is extremely important that my sister finishes school, just like The government I did,” says Jeanette. The young women receive some grant we receive financial support from their uncle, who works as a miner, and while every cent counts, their uncle has a large family for my sister is very to support and there isn’t much money to go around. important to us. We “My uncle sends us R500 every second month, so get R330 a month.” the government grant we receive for my sister is very important to us. We get R330 a month, and I earn about Jeanette* R1 500 a month from working in a hair salon and cleaning people’s houses. We live in the backyard of one of the families whose homes I clean. We pay R500 rent a month, and try very hard not to use public transport, but that can be difficult, especially in winter. I think our meals cost about R25 a day, but sometimes we get meals from our neighbours. ”I’m trying to save as much money as possible, so that when Judy has completed school, we can move to a big city and find decent employment. I’d like to move to Joburg, but Judy loves Cape Town. I think we can both be waitresses while we study part-time for the jobs that we really want to have.”

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* Pseudonyms used to protect privacy.

Child support grants At R330 per month, the child support grant is the lowest of all social grants. In 2015, the child support grant increased by R10 – the lowest increase it had ever received. It increased by R20 in the previous two years. ●● In order to qualify for the child support grant, the child’s primary caregiver cannot earn more than R39 600 per year if they are single, or have a combined income of R79 200 if the primary caregiver is married. ●● Government intends to extend the child support grant beyond the age of 18 for children who remain in school after they turn 18. ●● ●●

Living in poverty significantly impacts young people’s lives, including compromising their access to quality education and healthcare. A 2009 Human Sciences Research Council study found that teenage pregnancy and youth HIVinfection rates in South Africa are similarly rooted in socio-economic issues, which include few opportunities for open communication about sex with parents and partners, limited access to health services, and social stigma around prevention mechanisms. Organisations such as loveLife serve the important role of advocating for more robust school-based education on the prevention of HIV/Aids and teenage pregnancy, to equip young people to make more informed and responsible choices.

healthcare and mortality rate

Sources: National Development Agency and South African Government (www.gov.za)

Of the 77 822 people below the age of 35 who died in 2013: 10 962 died from tuberculosis 7 890 from HIV ●● 4 400 from ‘other viral diseases’ ●● 3 603 from influenza and pneumonia. ●● ●●

White South African youth has the highest medical aid coverage at 73.4%, and the fewest deaths, compared with coloured youth at 18.7% coverage. Black youth have 8.8% coverage and a five times greater mortality rate than white youth. Source: Statistics South Africa Report on Morbidity and Mortality Rates, 2013

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Positive about prevention Nkosana Prince Mokoena, 23, Orange Farm, Gauteng

“After my mom died, when I was five years old, I moved from Hillbrow to Orange Farm to live with my aunt. In 2001, I was adopted by a family in Norwood, a suburb north of Johannesburg, and they helped fund my education until 2010. ”My biological father died of Aids in 2011, my aunt and cousin also passed away from the disease and my little brother is HIV positive. I am HIV negative and passionate about spreading the message of prevention. From 2012 to 2014, I worked for an HIV/Aids and TB-prevention NGO which targeted residents from Hillbrow, Yeoville, Jeppestown and the Johannesburg CBD. During that time, I also worked with the Sonke Gender Justice Network on their One Man Can, MenEngage and Brothers for Life – Not in My Name campaigns. ”I believe that we need more young men helping in the education of HIV/Aids prevention, because we are responsible for what happens in our communities. When we stand up for the When we stand social ills we experience, only then can they up for the social ills be eradicated. ”I recently joined loveLife, South Africa’s national we experience, only youth leadership development organisation, as then can they be one of 1 284 loveLife groundBREAKERs. These eradicated.” peer motivators and community mobilisers work across the country to implement loveLife’s Nkosana Prince Mokoena comprehensive, healthy sexuality, positive lifestyle and skills development programmes to young people. I enjoy being a loveLife groundBREAKER as I get to interact with young people of different races and cultures and spread good messages to them. It also gives me the opportunity to strengthen my facilitation, public speaking and leadership skills. I'm pursuing a professional qualification in corporate governance with the Institute of Chartered Secretaries Southern Africa.”

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HIV and Aids South Africa has 0.7% of the world's population but accounts for 17% of global HIV infections, and carries a quarter of sub-Saharan Africa's total burden of HIV. ●● 45% of new infections are among 15 to 24 year olds. ●● There has, however, been a decrease in infection rates among 15 to 24 year olds. ●● HIV prevalence peaks amongst 25 to 29 year old women. ●●

Source: loveLife, Status of the Epidemic

Source: Statistics South Africa Report on Morbidity and Mortality Rates, 2013

Substance abuse is another major threat which may impact people from all socio-economic backgrounds, but is often more prevalent for youth who live in poverty. While statistics about the use of alcohol and drugs among young people are widely inconsistent, the South African National Council of Alcoholism and Drug Dependence (SANCA) reports that children as young as 10 years are experimenting with cigarettes, alcohol and dagga, and that many do so to escape harsh realities. Various studies also associate sexual harassment and violent crimes with substance abuse. As with sex education, widely accessible information about the risks of substance abuse is crucial. However, education should be a component of holistic social interventions, which include providing youth with constructive and regular alternatives to harmful practices.

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Education and employment disrupt the cycle of poverty Despite receiving R265.7 billion of the national budget (government’s biggest spend in 2015), challenges within the education sector – including teaching capacity, poor infrastructure and learner support and retention – continue to demand urgent and strategic attention.

A comparison of the 532 860 learners who wrote the final matric exams in 2014, with the 1 085 570 learners enrolled in grade 2 in 2004, reveals a 50% dropout rate for the class of 2014. In light of this astounding figure, Equal Education argues that the 75.8% national pass rate, when analysed in context, is in fact closer to a 36.4% pass rate.

Creative education creates a pathway to employment Margret Maitse Molope, 21, Thabakgone, Limpopo

Since 2012, schools in Limpopo have made news headlines for not receiving textbooks and, more recently in Malamulele, for not being able to even open their doors due to the mayhem caused by service delivery protests in the area. However, the province is home to bright young people who are eager for the opportunity to explore their passions and develop their skills. Twenty-one-year-old Margret is one of these young people who, with continued support, has pushed beyond the constraints of her social circumstances. Margret was born and raised in Thabakgone, a village in the Mamabolo rural area of Limpopo, where she still lives with her mother, four sisters, and seven nieces and nephews, in a home that is financially strained and crowded, but is rarely without laughter and music. While the schools that Margret attended were under-resourced, what she remembers far more profoundly are some of the remarkable teachers who helped guide and support her. When Margret was in grade 6, the Limpopo Youth Orchestra (LYO) began offering music lessons at her school. Margret learnt to play the recorder and violin, and has remained part of the LYO. Today, she shares her love of music with grade 2 and 3 learners as a teacher with the orchestra. Margaret has also performed in Ireland and Senegal and, with support from LYO, intends to study music at university in 2016. Higher and tertiary education Under the South African Schools Act, education is compulsory only up to the age of 15 or until the completion of grade 9 – whichever comes first. ●● In 2011, the Department of Basic Education reported that 60% of youth who left grade 9 did not attain any further qualifications. ●● University entrants constitute the top 18% of high school graduates but, according to the Council of Higher Education (CHE), in 2013 more than half of these students dropped out during their first year. ●● The CHE reported that, in 2011, black students comprised 81% of the total enrolled student body of 938 200, and women made up 58%. However, only 14% of the black and 14% of the coloured university-aged population were enrolled, in contrast to 57% white and 47% Indian enrolments. ●●

Sources: Department of Basic Education and Council of Higher Education

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The ‘demographic dividend’ concept, which regularly dominates debates about youth in South Africa, can be realised only if a population constitutes more people of working age (15 to 64 years old in South Africa) than non-working age, and the relevant group is broadly employed. While the population breakdown is favourable, South Africa continues to grapple with effectively accommodating and converting its youth bulge into an asset for economic growth. Despite the creation of 1.1 million jobs in South Africa since the global recession of 2008/9, unemployment continues to rise as more people enter working age.

In 2014, of the nearly 20 million people below 35 years old:

9.8 million not economically active

6.2 million employed

3.6 million unemployed

Source: Statistics South Africa

Hard work ahead Makkie*, 27, Hanover Park, Western Cape

Makkie loved maths and hoped to study engineering or accounting after he matriculated in 2005. He intended to spend the year after he matriculated doing manual labour to save enough money for his tertiary education, but one year of odd jobs has turned into 10. He lives in Hanover Park, an area on the outskirts of Cape Town that is infamous for high rates of gangsterism and drugs. Makkie was raised by a strong mother, a nurturing but ailing grandmother, and has one younger brother. “Everybody used to tell me that if I want to improve my life I must just work hard at school. I’ve been sitting with my matric certificate for 10 years but I still can’t find a proper job. It’s embarrassing for me. My mother must work so hard. She must leave early in the morning, before it’s light, and she gets home in the dark every night. I want to provide for my family and help bring my community out of poverty, but I can’t even help myself. I just need a good job that I can go to every day. I will work my hardest and I will be reliable if I get an opportunity, but because I don’t have any experience, or contacts in the business world, the only thing I can do is odd jobs, and that’s not a reliable income. I’m very worried about our future. The days drag if you have no structure and nowhere really to go. That’s part of the reason why my friends join gangs – because it’s one of the only ways to make money in this area.” Makkie has started his own small business, painting and doing basic home repairs. While he hasn’t made much of a profit yet, he remains positive. “People can say what they want to about this community and how messed up it is, but there are a lot of really good people here who also support each other. If I make it one day, I think I’ll appreciate the hard times I experienced, because it will make me more grateful for what I achieve.” * Pseudonym used to protect privacy.

South Africa’s youth unemployment in a global context 52% of 15 to 24 year olds are unemployed. That’s more than four times the rate in sub-Saharan Africa. 73.4 million youth globally and 1.38 million youth nationally are unemployed. This means that South Africa accounts for 1.9% of global youth unemployment. ●● In 2014, 39.4% of black, 35.3% of coloured, 15.7% of Indian/Asian and 9.6% of white South African youth were discouraged work-seekers. ●● In 2012, 32% of children lived in households where no adult was employed. ●● ●●

Source: International Labour Organisation, World Employment and Social Outlook report 2015, and Statistics South Africa

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I’ve been sitting with my matric certificate for 10 years but I still can’t find a proper job.” Makkie*

youth focus

The business of youth development Low quality education and high rates of unemployment trap youth in poverty. This strained socioeconomic environment is not only a current burden to the growth of the economy, but compromises the overall capacity of the workforce that will drive South African business into the future. Realising a socio-economic environment in which young people can thrive requires a holistic and strategic multi-stakeholder approach, of which business is a key component. While the biggest percentage of corporate social investment goes to education, partnerships are crucial to ensure successful CSI initiatives. Whether these partnerships are with non-profit organisations, government or communities, business has key insights to share, including private sector approaches to strategic planning and ensuring efficiency.

Compliance targets for skills development in the revised BBBEE Codes

See the page on skills development in the BBBEE Revised Codes of Good Practice, page 160

Broad-based Black Economic Empowerment (BBBEE) is defined by the Department of Trade and Industry as “an integrated and coherent socio-economic process that directly contributes to the economic transformation of South Africa and brings about significant increases in the numbers of black people who manage, own and control the country’s economy, as well as significant decreases in income inequalities”. Government’s further prioritisation of skills development in the recently amended BBBEE Codes is a significant way for business to impact youth development in South Africa. The Codes now require companies to spend 6% of payroll in order to obtain the 20 points assigned to this element (there are also five bonus points), compared with the previous 3% of payroll needed to obtain 15 points. The compliance targets for skills development under the new Codes also require specific spend on unemployed black people, which means that black staff will not be the only ones to benefit from these amendments. It is necessary for business to adopt a comprehensive BBBEE plan to respond more deliberately to the significant challenges that many historically disadvantaged youth have to overcome before even entering tertiary education, let alone the workplace. This should include the development of essential, but often overlooked, ‘softer’ skills to equip beneficiaries to cope with developmental programme requirements. Empowering youth with both quality education and skills development that lead to sustainable employment can help to break the cycle of socio-economic disenfranchisement and is crucial for the overall development of a country. While implementation can be daunting, if companies are strategic in their approaches, BBBEE can drive meaningful transformation in the economy, by ultimately changing the skills profile of today’s youth and tomorrow’s leaders. 

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key

Youth interventions over time An overview of the rollout of national, continental and international policies influencing youth development in South Africa over the last two decades.

Local interventions over time Influences from beyond our borders

1994

2000

The White Paper on Reconstruction and Development commits the government to ensuring that suitable programmes aimed at young people are established to ensure redress of backlogs in education and training, job creation and recreation.

Millennium Development Goals, developed by world leaders at the turn of the new millennium come into effect. There are eight goals which seek to eradicate poverty and hunger, achieve universal primary education, reduce child mortality, and improve maternal health by 2015.

1995 The United Nations strengthens its commitment to young people by adopting the World Programme of Action for Youth (WPAY) to the Year 2000 and Beyond. This international strategy aims to address challenges facing youth at the turn of the millennium by strengthening capacity and increasing the quality and quantity of opportunities available to youth, to ensure full, effective and constructive participation in society. Today, WPAY identifies 15 priority areas, including poverty and hunger, education, employment, globalisation, health, girls and young women, HIV/Aids, drug abuse, juvenile delinquency, youth in armed conflict, participation in decision-making, information and communication technology, youth and the environment, leisure and intergenerational issues.

2003 Government‘s Broad-Based Black Economic Empowerment Act mandates all spheres of government and the private sector to: • Promote the constitutional right to equality • Increase broad-based and effective participation of black people in the economy • Increase employment and more equitable income distribution • Establish a national policy on broad-based black economic empowerment • Protect the common market • Promote equal opportunity and access to government services.

1996 The Constitution of the Republic of South Africa, through the entrenchment of specific rights, responsibilities and principles that all people in the country must uphold, lays the foundation for a prosperous, democratic, non-sexist, non-racist and equal society, in which the youth is economically empowered. The Bill of Rights enshrines the rights of all people, including the youth, and affirms the values of human dignity, equality and freedom.

1997 The White Paper for Social Welfare is the first government policy document to articulate the need to professionalise youth development work.

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2005 The Commonwealth Youth Charter provides parameters for the development of youth policies in all relevant countries, and aims to empower young people to develop their creativity, skills and potential as productive and dynamic members of society. The Charter emphasises the importance of the full participation of young people at every level of decision-making and development. It identifies the following principles and values for youth development: gender equality, inclusivity, empowerment and social equity, human rights, sustainability and integration or mainstreaming of youth issues across all levels of government.

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2006

2012

The African Youth Charter, which is aligned with the efforts of the African Union, serves as a strategic framework that gives direction to youth empowerment and development at continental, regional and national levels. Consistent with the South African Constitution, and in line with the socio-economic programmes being implemented or worked towards nationally, South Africa has ratified the Charter, which prioritises education, skills and competence development, employment and sustainable livelihoods, youth leadership and participation, health and welfare, peace and security, environmental protection, and cultural and moral values.

The National Development Plan (NDP) is based on the view that South Africa has an urbanising, youthful population, which presents an opportunity to increase employment and boost economic growth. It offers a long-term perspective for eliminating poverty and reducing inequality by 2030. The NDP has adopted a ‘youth lens’ in its proposals, which include: • Increasing the number of students who achieve above 50% in literacy and mathematics, improving learner retention rates to 90% and bolstering teacher training. • Strengthening and expanding the number of FET colleges to increase the participation rate by 25%. • Increasing the FET graduation rate to 75%. • Providing full funding assistance, which covers tuition, books, accommodation and a living allowance to financially disadvantaged students. • Expanding learnerships and making training vouchers directly available to job seekers. • Formalising a graduate recruitment scheme for the public service to attract highly skilled people. • Expanding the role of state-owned enterprises in training artisans and technical professionals.

Cabinet approves the first 2007/8 Industrial Policy Action Plan, which acknowledges the importance of prioritising youth in job creation and strengthening entrepreneurship.

2008 The National Youth Development Agency (NYDA) is established to address youth development issues at national, provincial and local government levels. NYDA plays a leading role in ensuring that all major stakeholders, including government, private sector and civil society, prioritise youth development. Individual or micro-level programmes provide direct services to youth in the form of information provision, career guidance services, mentorship, skills development and training, entrepreneurial development and support, health awareness programmes and involvement in sport.

2009 The African Union declares 2009 to 2018 a 'Decade of Youth Development' on the continent.

2010 South Africa’s New Growth Path is introduced, positioning education, skills development, enterprise development and Broad-based Black Economic Empowerment as the focus areas directly related to improving economic participation.

2011 The National Skills Accord and The Youth Employment Accord (2013), signed by business, government, labour, civil society and nongovernmental organisations, aim to improve youth capacitation and placement in jobs, and to make the economy sensitive to the employment needs of young people. The Integrated Youth Development Strategy for South Africa is an implementation framework that assists the National Youth Development Agency to rally all key governmental and non-governmental stakeholders towards the successful ”initiation, designing, co-ordination, evaluation and monitoring of all programmes aimed at integrating the youth into the economy and society in general’’.

2013 The Revised BBBEE Codes of Good Practice prioritise skills development and emphasise the training and education of unemployed young black persons. The Department of Trade and Industry’s Youth Enterprise Development Strategy responds to the New Growth Path call for the state to provide bold, imaginative and effective strategies to address youth unemployment, through the creation of millions of new jobs. Through this strategy, government intends to enhance youth entrepreneurship, accelerate the growth of youth-owned and -managed enterprises capable of contributing to the gross domestic product (GDP) growth rate, and increase youth self-employment and innovation.

2015 The National Youth Policy (NYP) focuses on redressing the inequities of the past and addressing the specific challenges and immediate needs of the country’s youth. The NYP is built on the belief that South Africa has the potential and capacity to eliminate poverty and reduce inequality over the next two decades. It seeks to create a socially and economically inclusive society in which people are active champions of their own development, and are supported by an effective government. For the goals of the NYP to be realised, government must partner with all sections of society, including the private sector.

sources

2007

Sources: Integrated Youth Development Strategy for South Africa, www.nyda.gov.za, National Youth Policy 2015–2020, National Development Plan 2030 Executive Summary, Youth Enterprise Development Strategy 2013–2023, The African Youth Charter (2006), The Millennium Development Goals Report 2015, Guide to the Implementation of the World Programme of Action for Youth.

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Q&A

Interview by Rose COHEN

How does Go for Gold work? Go for Gold is a four-phase programme designed to draw disadvantaged students into a career in construction and to break down barriers to education and employment. • Phase one involves schooling. We provide extra maths, science and IT tuition alongside life skills coaching and mentoring to grade 11 and 12 students. • Phase two is an internship year. We give the students we’ve supported through school the opportunity to work in a construction company. It’s a good year for growing up and deciding on a career path. • Phase three is tertiary education. Our students do extremely well because they’ve been exposed to the practical aspects of their theoretical studies during their gap year. • Phase four is employment. We place the Go for Gold alumni back into the industry and they become mentors for the new students entering phase one. Over 600 learners have been admitted to the programme since 1999. Of this, just over 400 are either still on the programme or have graduated. A total of 121 Go for Gold graduates have gone through all four phases of the programme and the majority are employed by a partner company.

What is the benefit of collaborating with industry partners? Go for Gold was born of a collective desire to tackle youth unemployment and the fact that there are too few candidates with the right skills available to the industry. By working together, we can scale our initiatives and provide more opportunities for students to learn and become qualified, which in turn will strengthen the industry. Go for Gold’s partners include Power Construction, Haw and Inglis, NMC, Murray and Roberts, Martin and East, Sutherland and Associates, and WBHO. Although these companies are competitors, if the industry is weak, everyone loses.

How do you ensure continuity and strengthen the robustness of the partnership and programme? All partners have representatives on Go for Gold’s board resulting in high ownership. It’s a well-functioning board comprised of

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Partnering with industry for impact Go for Gold is a youth education and employment initiative founded on a collaboration between construction businesses, government and civil society. The organisation addresses a skills deficit in the industry by educating and supporting learners from FET level through to tertiary education and finally employment. Go for Gold Chairperson, Marlene Cronje, cites two main reasons for their success: partnership and mentorship.

Marlene Cronje

Organisational Development Director, Power Group mcronje@powergrp.co.za 021 907 1300 www.powergrp.co.za www.goforgold.org.za

like-minded members who want to make an impact beyond their own companies. Each member contributes a lot of time, experience and advice and we talk about problems. The board holds a strategic planning session once a year. We constantly explore the potential for new partnerships, for example, with other NPOs that could assist with feeding, transporting and tutoring Go for Gold students. We meet regularly with teachers and partner with the provincial departments of education in the Western Cape and Gauteng. We monitor the performance and progress of students closely and are not afraid to admit when things aren’t working. We have a strong learning and improving ethos and regularly tweak the programme where necessary.

How are challenges that affect the performance of beneficiaries tackled? The success of our programme can largely be attributed to a strong focus on life skills. We acknowledge that our students come from severely disadvantaged backgrounds and we offer a lot of support. Students are mentored, coached and encouraged to address past problems to enhance their coping skills. The mentors are Go for Gold staff, specialised in this field, and senior programme participants who are equipped with the appropriate skills and level of personal growth. Go for Gold students also support each other on campus and in the workplace.

What advice can you share with corporates in other industries looking to establish a similar co-operative? Long-term financial support to set up and sustain the programme is critical, but it requires more than that. There needs to be a commitment by each company to work together at an executive and human resources level to build and develop the programme. It’s not about individual interest, it’s about the collective for the sake of broader impact. Large corporates have their own CSI programmes for which there is much enthusiasm and support. I would encourage moving away from working in silos. It’s essential to focus on the sustainability of the industry as a whole, rather than the exclusive needs of your company. Building scale or increasing impact is less achievable independently. 

ENRICHING

HUMAN CAPITAL ADvTECH CONSISTS OF TWO

MAIN DIVISIONS, EDUCATION AND RECRUITMENT, MEANING THAT OUR BUSINESS IS ALL ABOUT PEOPLE DEVELOPMENT, EDUCATION AND IMPARTING KNOWLEDGE.

7 100

BURSARIES AWARDED DURING 2014

R84.2 Million CSI ACTIVITIES

ADvTECH welcomes opportunities to partner with other organisations and corporates.

For further information contact:

Gregory Laing Group Advisor CSI 011 676 8000 glaing@advtech.co.za www.advtech.co.za

In our goal to enrich human capital, we use our expertise and proven academic excellence to make a difference to society through, in particular, our educational interventions. CSI is an integral part of the company’s operations and our outreach projects provide many committed and passionate volunteer staff and students with opportunities to engage and make an impact in their local communities. Such projects include ‘Adopt-a-school’ and ‘Peer-to-peer’ teaching, in addition to numerous outreach activities in support of commemorative days such as Mandela Day and Environmental Awareness Day. The major part of our Corporate Social Investment spend, however, continues to be on providing bursaries and scholarships on a merit basis for previously disadvantaged individuals. Education is important in promoting equality and is an enabling factor in transforming our society: in 2014 ADvTECH spent R82.2 million which has opened doors for over 7 000 top performing students.

there have been 189 recipients, with the first nine students graduating in 2012. In 2014, bursaries were awarded to 52 student teachers and a total of 12 bursary holders graduated, of whom ten were employed within the Schools division. While training, the bursary holders are also given the opportunity to apply their acquired skills practically within the Group’s schools through our Teacher Trainee Development (Mentorship) Programme.

Bursary interventions

• Another bursary programme initiated by Varsity College, SAICA and Deloitte for the UNISA BAcc degree is now in its fourth year, with 26 carefully selected full-time students currently registered at the Durban North campus. Five students from the first cohort have completed their undergraduate degrees. Varsity College is working with other local auditing firms to encourage them to participate in this successful programme.

Training teachers Careful consideration has been given to where our CSI spend will be most effective. There is a great need for well-trained and inspired teachers and this led to ADvTECH launching a teacher bursary scheme in 2007, aimed at producing a sustainable supply of quality teachers. Since 2007

Other bursary initiatives Many of our brands have their own bursary programmes in place. A number of brands require bursary holders, as part of the agreement in accepting a bursary, to participate in volunteering either on campus or in community projects. • Varsity College invests in the order of R30 million each year in students selected in a number of categories including leadership, academic excellence and sporting achievement.

The bursary programme has been extended to students wishing to study for a Bachelor of Laws degree (LLB) through Varsity College in partnership with the University of the Free State. One such bursary recipient achieved the top results in the Province in the UFS LLB degree in 2014.

The programme stimulates creative thinking, provides design and photographic skills and basic business and management competencies. South Africa’s Creative Circle, representing advertising and design agencies, is helping with coaching and the provision of internships.

• Rosebank College has a novel way of offering a bursary at each campus: at registration students are invited to make a contribution to a “Live the dream” wall. At the end of registration a bursary winner is selected.

• The Design School Southern Africa (DSSA) awards bursaries annually to deserving applicants who demonstrate strong academic and artistic potential. In 2014, bursaries awarded to full-time students totalled R200 000.

• The VEGA CSR Partnerships initiative was introduced to support creative students from disadvantaged backgrounds with a bursary into two Vega bridging course programmes, the Higher Certificate in Creative Development and the Higher Certificate in Brand Building Practice. In 2014, 112 students enrolled on the programmes which offer credits into a Vega degree, if the candidate is successful. Vega makes a significant financial and mentoring contribution to each student.

• The Izzi Trust focuses on empowerment through education. The successful fundraising activities of the schools involved, Pecanwood, Tyger Valley and Southdown Colleges, allow the Trust to award a number of bursaries annually to students from disadvantaged backgrounds. We have successfully assisted 44 students with bursaries since 2008 and currently assist 17 students with bursaries.

• Vega has collaborated with the Umuzi Photo Club on a new community outreach project – The Power of 50. For this one-year pilot learnership programme 50 talented students were selected by Umuzi, with Investec providing funding support.

• Trinityhouse Randpark Ridge annually raises money to sponsor an orphan to attend an independent school in the area, Sparrow Ministries School. • The Resourcing division has its CSR Bursary Programme for staff and their families. In 2014 there were 14 beneficiaries.

Community engagements An integral part of ADvTECH’s CSR activity is to make a difference in underprivileged communities while instilling in our students the need to be good citizens, this we see as an essential part of the teaching and learning environment. In the past year, over 95 different organisations benefited from projects run by our students and staff across the Group. While the projects are varied, the emphasis is on education, health and environmental interventions. All our brands are encouraged to participate in our adopt-a-school programme. Some highlights include: • Support for the Star Child Care Centre in Alexandra, a joint initiative between Head Office, some Crawford Schools and Junior Colleges. Funds raised have been used to upgrade the facility and purchase educational toys and books. The Principal requested help with management and administrative training and Junior College staff are sharing their expertise in Early Childhood Development with a number of the teachers.

Crawford School students in Johannesburg have been involved in Peer-to-peer teaching of Mathematics to Grade 8 students from several Soweto schools. Commented one participant: “We sweated and fretted until every pupil understood what we were trying to teach them… this has been one of the most rewarding experiences of my schooling career.”

• Varsity College has partnered with the Masixhasane Literacy Project to distribute mobile multimedia library units to disadvantaged schools and communities throughout South Africa. Varsity College campuses to date, have raised over R400 000 and in 2014 supplied ready-to-use library units to four rural schools. • Rosebank College Auckland Park students are involved in the Home of Hope literacy project: they hold weekly computer literacy classes for the grade 11 and 12 girls who have been abused or abandoned. Students from RC Pretoria, after being given classroom management training, assist groups with daily homework assignments at the Sunnyside Drop-in Centre, in addition to upgrading the facility. • Trinityhouse Little Falls Preparatory has an ongoing project assisting Matla Combined School in Muldersdrift, whose 800 pupils are mainly drawn from nearby informal settlements. Initiatives such as painting classrooms or guiding teachers in more effective classroom organisation are aimed at helping the school to become a positive learning environment.

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Approaches to youth development Well-managed systems, increased collaboration and strengthened partnerships between government, business and civil society are needed to convert the passion that fuels youth development in South Africa into action and impact. While there is no foolproof approach to ensuring successful outcomes, innovation, creativity, adaptability and commitment are recurring themes in the following case studies.

here are various approaches to youth development in South Africa. Often, efforts by non-profit organisations, government and business overlap, but this need not lead to conflict. There is considerable value in forming strategic partnerships to achieve mutual goals. The Shanduka Foundation and Kagiso Trust have formed one such partnership in their work with 371 schools in the Free State, to improve infrastructure and learner performance. For years, the two organisations ran similar school development programmes. In 2013, having recognised synergies and shared insights, the organisations combined their knowledge and resources, each committing R100 million over five years – a contribution matched by the Free State Department of Education – to create a sustainable model for improving education in the region. Instead of attempting to impose a plan on the Free State Department of Education, the creation of a three-way partnership, that includes government, underpins the collaborative success of this initiative.

Closing the gap between schooling and employment Many previously disadvantaged young people are the first generation in their families to receive tertiary, secondary or, in some cases, even primary school education, and thus the potential to build sustainable careers. The pathway from education into careers can be especially steep for youth who have not had the exposure, or opportunities, to develop the ‘softer’ social and interpersonal skills that are often expected in formal work environments. Harambee Youth Employment Accelerator is an example of a programme that responds to the gap between school-leavers seeking employment and businesses seeking reliable and capable entry-level employees. The programme sources candidates, equips them with the confidence, skills and functional behaviour required to establish a career, and places them in suitable employment at several leading companies that partner with the programme. More than half of Harambee graduates come from child- or grandmother-headed households in which government grants are the only source of income. As a result, permanent work and a salary make these young people the breadwinners for their households.

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Mobilising a community to create a safe space for youth For many young people who live in over-populated and under-resourced environments, the possibility of being carefree is all too often overshadowed by immense social pressures. Creating dynamic places of safety in vulnerable and crime-ridden communities, if managed well, can serve as havens from gangsterism and crime, substance abuse, dangerous domestic environments and other social ills. The township of Nyanga in the Western Cape has been labelled ‘the murder capital of the world’. The Safety Lab, an organisation that aims to catalyse social innovation to develop effective street-ready safety solutions in consultation with the Nyanga community, noted that the area lacked consistent and enriching recreational activities for youth, while communal facilities were going largely unused. Over a two-year process, The Safety Lab facilitated the community’s development of Nyanga Yethu. This is a youth programme which grew from weekly filmscreenings in the community centre to jam-packed and popular weekend-long activities tailored for different age groups, including a ‘youth lounge’ offering free internet access, various forms of sports training, dance and music classes, poetry sessions and other creative performances. Applying business sector principles, Nyanga Yethu was marketed to youth as a trendy, rather than just as a safe space. Some of the programme’s operational strengths come from its use of innovative mobile applications for monitoring and evaluation purposes, as well as its empowerment of local youths to lead and take ownership of their community.

Ensuring accessible ICT According to recent research conducted by social media agency, We Are Social, almost half of South Africans (24.9 million) are active internet users. However, despite growing participation, internet access remains unaffordable for many. The Cape Innovation and Technology Initiative (CiTi), founded in 1998 by a broad group of industry stakeholders and inspired citizens, is a flagship organisation for the technology sector in the Western Cape, and has become a development model for industry and public sector collaboration. CiTi operates communal office spaces – one close to the city centre and one in the township of Khayelitsha – which incubate hundreds of start-up businesses, providing quality ICT services and individualised training and skills support. For everyday internet access, government-funded Youth Cafés and free wireless internet connectivity zones are also on the rise.

Building leadership by encouraging individualism and diversity Youths are often homogenised based on their similar experiences. However, if individuality is encouraged and harnessed, rather than suppressed, young people can develop leadership skills based on their specific talents and strengths. ACTIVATE! is a leadership development programme that builds the capacity of diverse groups of youth in key skills, including project management, the art of innovation and communication, the value of social capital, and how to navigate the socio-political arena. This comprehensive training intends to equip young people with the holistic skill set needed to constructively lead development initiatives in their areas of interest, including crime prevention, community development, environmental sustainability and entrepreneurship. 

measuring youth wellbeing Many interventions that target youth aim to improve confidence, self-esteem, resilience and coping mechanisms. Unlike school results, these ‘softer’ attributes are extremely difficult to measure. Trialogue is piloting New Philanthropy Capital’s Well-being Measure in South Africa. The tool is designed to help show the difference programmes make to the lives of youth, aged 11 to 16. The survey measures selfesteem, emotional wellbeing, resilience, satisfaction with friends, family, community, school, and life. It can be used to compare wellbeing before and after an intervention or across different programmes. Visit www.well-beingmeasure.com or contact Trialogue to discuss use of this tool in South Africa.

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Vodacom e-school Vodacom Power to you

Vodacom believes that the biggest differentiator between advantaged and disadvantaged learners in South Africa is access to quality educational content. That is why Vodacom seeks to make its biggest contribution to education in South Africa as promoting access to educational content to all South African learners, regardless of their socio-economic status. The Vodacom e-school should be understood as part of the Vodacom Mobile Education programme: its goal is to improve teaching and learning using information and communications technology (ICT). In this regard, the programme offers ICT equipment to access content, connectivity and continuous training. The case for the establishment of the

e-school portal was the recognition that not all South African learners have access to quality educational content; the teachers themselves need to augment their knowledge and resources; the available content needs to be presented in exciting formats that are relevant to the learnersâ&#x20AC;&#x2122; lifestyles; and connectivity costs are a barrier for impoverished learners who are not able to enjoy the amount of content that is available on the internet. The Vodacom e-school portal therefore addresses these observations. It is a multimedia-based platform that offers Curriculum Assessment Policy Statements (CAPS)-aligned educational content. Currently it offers content for grades 8 to 12. In its design, the emphasis is on creating excitement and enthusiasm for the learners. The underlying philosophy was to create

a platform that is fun and convenient, encouraging learners to study smarter not harder. The interactive elements of the portal allow the learning to be self-paced. In this way, the learner takes control of the learning process. They are able to watch videos, do tasks and quizzes and monitor their own progress.

Learning is fun To create more excitement, the portal allows the learners to create their own profiles, upload their pictures, choose names to use and subjects, and create their own dashboard to track their own development. It is a platform that was created with todayâ&#x20AC;&#x2122;s learner at the centre. Rewards One of the interesting features is the rewards programme. It encourages learners to use the site more and to

perform better. They get bronze, silver and gold badges that can be converted into vouchers and discounts. This ensures that the learners see tangible benefits. It is a good example of how CSI is linked to the core business of Vodacom.

Free access The biggest differentiator from other online portals is that this facility is available to all learners who have internet access; but is accessed free to Vodacom subscribers as access is zerorated. Connectivity therefore ceases to be a barrier to learning. Further developments Having run the portal for a year, Vodacom intends to provide content from grades 4 to 12. The content will be translated into three other South African languages.

The intention is to monitor learners’ progress in order to measure the impact of this initiative.

commitment to improve the standard and quality of education in schools across the country.

Zero-rated education sites In its quest to improve access to education content Vodacom has also zero-rated the following educational sites:

www.vodacom.co.za/e-school

www.digitalclassroom.co.za www.mindset.co.za www.everythingmaths.co.za www.everythingscience.co.za www.education.gov.za www.fundzaluxaka.gov.za

Mthobeli Tengimfene Executive Head: Corporate Social Investment 082 273 5223 mthobeli.tengimfene@vodacom co.za

This initiative is testimony of how ICT can level the playing grounds for all and contribute to South Africa’s democracy. Supporting education is the main focus of the Vodacom Foundation. Vodacom e-school reflects the company’s 187

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New regulations on the allocation of lottery funding seek to improve efficiencies, reduce reporting requirements for small grants, and mitigate financial and reputational risks. The regulations were issued in the wake of the Lotteries Amendment Act. The Act gives the Department of Trade and Industry (dti) increased power over the running of the National Lottery and the distribution of funds, establishing the National Lotteries Commission as regulator. Written by Sophie Hobbs, Nacosa

During the public consultation period for the Bill, civil society’s main concern was around the increase in the regulatory and operational powers of the state over the National Lottery and the National Lottery Distribution Trust Fund (NLDTF) making the state at once the regulator, the distributor and, potentially, the operator. The Lotteries Amendment Act (No. 32 of 2013) licenses an organ of state to conduct the National Lottery for up to eight years, if the licensed operator fails to meet its licence agreement obligations. The Act also extends the powers of what was the National Lotteries Board, providing for the establishment of a regulator – the National Lotteries Commission – to oversee fund distribution and the operation of the lottery itself.

Regulating the funds The dti gazetted regulations to accompany the Amendment Act in April 2015. While the Act puts in place the necessary legal framework, the regulations set out the rules for how the money raised through the lottery is distributed. Civil society organisations applying for lottery funding need to note the following: ●● Priorities – The budget allocation for the Charities sector has increased to 47% and for Sport and Recreation to 28%. Arts, Culture and National Heritage loses out, with its budget allocation down to 23%. The regulations make it possible for organisations to apply for multi-year funding (maximum of three years), subject to the availability of funds and government priorities. ●● Reporting – The regulations specify different reporting requirements depending on the size of the grant received. Organisations receiving small grants (less than R500 000) need to provide only a report and supporting invoices; those receiving medium grants (R500 000 to R5 million) must submit an independently reviewed financial statement; and those with large grants (greater than R5 million) must submit an audited financial statement in respect of the grant. ●● Eligibility – Organisations are not eligible for a round of funding if they have received a lottery grant less than 12 months from date of receipt of the funding.

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However, in the recently issued call for applications in the Charities sector, this is not mentioned in the eligibility criteria. Training – The regulations make the Commission responsible for educating and raising awareness of the grantmaking process and for providing financial management training or capacity-building training to grant applicants. Procurement – Grant recipients are directed to follow a transparent and competitive process for procurement, aligned to treasury regulations. Time frames – To improve efficiencies, time frames for the adjudication of grants are set at 150 days from date of application and 90 days for the adjudication of appeals. Agents – The regulations discourage applications for grant funding via intermediaries and allow for this only when organisations have been in existence for less than six months.

A new Commission In July 2015, the National Lotteries Commission (NLC) launched its new brand identity and announced that the CEO of the National Lotteries Board, Charlotte Mampane, would assume the position of Commissioner. The Commission’s role is to regulate the National Lottery as well as other lotteries, including society lotteries to raise funds through promotional competitions, and to advise the Trade and Industry Minister on policy. While the Commission does not adjudicate applications for funding or make allocations to organisations, Commission members are also trustees of the National Lottery Distribution Trust Fund (NLDTF), which does. The NLDTF structure remains unchanged with committees, known as ‘distributing agencies’, adjudicating all grant applications. 

online

change in the lotteries landscape

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For more on the National Lotteries Commission, go to www.nlcsa.org.za

government initiatives aimed at youth

Chapter five

Government’s significant financial investments in education, skills development, job creation, entrepreneurial and small business support aim to help realise a society in which widely accessible quality education can lead to decent employment, presenting a crucial pathway out of poverty for youth in South Africa.

Skills development and job creation ●●

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Written by Trialogue

Education ●●

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The Education Enablers Fund is a new initiative of the National Youth Development Agency, which identifies and helps youth in rural areas who are 14 to 19 years old, in grades 8 to 12, and are in need of basic essentials, such as uniforms and stationery. The first phase of the Fund is being implemented at rural schools in KwaZulu-Natal, Limpopo and the Eastern Cape, which have been classified as under-resourced by the Department of Basic Education. The National Student Financial Aid Scheme offers study loans to academically deserving and financially needy South African students who are registered at public tertiary institutions. A loan has to be paid back only upon completion of studies, and only once the student is in a job and earns more than R30 000 per year. If the student passes all subjects, a maximum of 40% of the loan is written off. The Funza Lushaka Bursary Programme promotes teaching in public schools. Full-cost bursaries enable eligible students to complete a full teaching qualification in an area of national priority. Recipients are required to teach at a public school for the same number of years that they receive the bursary. The National Film and Video Fund provides funding to students in financial need to pursue studies related to film and television at all accredited tertiary institutions in South Africa. Various government departments offer study bursaries to students who perform well and need funds to study. Most of these departments are at a provincial government level and offer bursaries in line with their scope of work. Some municipalities also offer bursaries to local students.

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The Expanded Public Works Programme involves young people in the refurbishment and maintenance of community infrastructure across the country. It seeks to reduce poverty and unemployment by giving many young unemployed people access to temporary work and skills programmes. The National Rural Youth Service Corps programme recruits and develops youth in rural areas. It helps them to build their capacity to work and perform community service in their own areas, so as to contribute to local socio-economic development. The Services Sector Education and Training Authority (SSETA) ensures that skills requirements in the services sector are identified, developed and made available. Funds for this initiative are disbursed from the training levies payable by all employers. These levies are collected by the South African Revenue Service via the Department of Higher Education and Training. Various government departments also offer internships and learnerships for youth.

Entrepreneurial and small business support ●●

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The National Youth Development Agency Grant Programme provides financial and nonfinancial business development support to young entrepreneurs who are building their businesses and beginning to show potential. Junior Achievement SA runs three programmes that encourage youth entrepreneurship: the Enterprise Dynamics Programme is school-based and suitable for learners from grades 1 to 12; the Mini-Enterprise Programme aims to provide business and life skills training for senior secondary school learners; and the Business Establishment and Sustainability Programme trains youths, who have not finished school and cannot find work, to set up and sustain their own job opportunities. A R2.7-billion Youth Fund, aimed at creating millions of sustainable jobs, was recently launched by the National Youth Development Agency, Industrial Development Corporation and the Small Enterprise Finance Agency. The Fund offers between R500 and R5 million to proposals that can demonstrate a sustainable business model. R1.7 billion has been earmarked to support entrepreneurs under the age of 35 years. The Jobs Fund aims to create jobs by supporting initiatives that generate employment in innovative ways. The Fund offers one-off grants in the areas of enterprise development, infrastructure, support for work-seekers, and institutional capacity building. 

Source: www.gov.za

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Change the face of South African society by eliminating poverty and reducing inequality, with 2030 as a deadline. That’s the task set out in the National Development Plan (NDP). It is a bold plan requiring bold action, the action part of which has fallen to Operation Phakisa. Written by Erika Bornman

The main focus of the NDP is to unite South Africans around a common programme that will enhance and uplift South Africa’s constitutional concept of a unified, prosperous, non-racial and non-sexist society. However, the NDP is more than just a vision. It is a long-term strategic plan that serves four broad objectives: 1. Setting important overarching goals to be attained by 2030. 2. Building consensus on the key obstacles and specific actions to be undertaken. 3. Providing a common framework for detailed planning. 4. Creating a basis for making choices about how best to use limited resources.

NDP origins May 2010 – The National Planning Commission, an advisory body comprising 26 non-government spokespersons, was established to draw up the NDP. June 2011 – The commission released its diagnostic report, citing a failure to implement policies and an absence of broad partnerships as the main reasons for slow progress in transformation. November 2011 – The draft NDP was released. September 2012 – Cabinet adopted the plan after public consultation.

The Malaysian connection With a plan for growth in place, the question of how to implement it remained. On a state visit to Malaysia in August 2013, President Jacob Zuma was introduced to their Big Fast Results methodology, an approach

❛

The people of South Africa deserve much better from all of us. We must work tirelessly to move our country forward and build a better life for all, especially the poor and the working class.”

adopted by government to achieve significant economic transformation within a short time by addressing national key priority areas, including poverty, crime and unemployment. With the support of the Malaysian Government, the Big Fast Results approach has been adapted to the South African context. To highlight the urgency of delivery, the local version is named Operation Phakisa (meaning ‘hurry up’ in Sesotho).

Phakisa in practice Operation Phakisa is a results-driven approach that sets clear plans and targets, employs ongoing monitoring of progress and makes the results public. Key to this is a series of laboratories – labs for short – that bring together teams of experts and stakeholders from the public and private sectors, academia, and civil society organisations. They collaborate and conduct intensive planning at a practical and detailed level in order to deliver complete, signed-off action plans for presentation to Cabinet.

Seven steps Once plans have been completed and approved, Operation Phakisa enters an implementation phase. This is rigorously monitored and measured against publicly stated targets. There are clear steps for each task team: 1. Delivery laboratories – Developing the delivery plans. 2. Road map finalisation and sign off – Engaging with potential funders, designing the final road map and getting government approval. 3. Public commitment – Sharing the lab’s outputs in a public Open Day. 4. Capability building – Assessing gaps and building a programme to support delivery. 5. Delivery – Driving the execution of the plans, problem-solving challenges and escalating issues where necessary. 6. Monitoring – Measuring progress against key performance indicators, reporting internally and publicly. 7. External accountability – Auditing results and making them publicly available.

First phases Operation Phakisa identified two initial priorities: 1. The oceans economy lab, started in July 2014: unlocking the economic potential of South Africa’s oceans. 2. The health lab started October 2014: improving the quality of care provided in public sector clinics. In August 2015, President Zuma announced the operation’s third project: the mining lab. 

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operation phakisa

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Read more at www.operationphakisa.gov.za Sources: www.pemandu.gov.my, www.gov.za, www.southafrica.info, www.bdlive.co.za, www. southafrica info, www.mediaclubsouthafrica.com

President Jacob Zuma

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ANGLOGOLD ASHANTI DELIVERS ON SOCIAL AND LABOUR PLAN PROJECTS AT ITS MAJOR LABOUR SENDING AREA OF OR TAMBO DISTRICT MUNICIPALITY According to the National Development Plan (NDP) and the New Growth Path (NGP) – two of government's key policy frameworks aimed at driving the socio-economic development initiatives in the country over the next thirty years – education, training and innovation are central to South Africa's long-term development. They are the key elements of government's programmes aimed at reducing the levels of poverty, unemployment and inequality; and serve as foundations towards the achievement of an equal, democratic, non-racial and prosperous society as envisioned in the country's Constitution.

ith the ocean just a stone's throw away and in between hills dotted with pink and green houses, lies Dudumayo Senior Secondary School. The school is located at the heart of a village called Mqanduli in the King Sabata Dalindyebo Local Municipality which forms part of the OR Tambo District Municipality in the Eastern Cape, one of AngloGold Ashanti’s (AGA) major labour sending areas.

The former President of South Africa, the late Tata Nelson Mandela, spearheaded the building of the school in 2002 which has since seen an influx of students seeking access to a better education. On Wednesday, 22 April 2015 representatives from AGA’s South Africa Region handed over a science laboratory to the more than 1 000 learners and parents at Dudumayo, that will benefit them in science and life science studies. In alignment with the NDP, and as part of the company's commitment to supporting government in meeting the standard and norms as set by the Minister of Basic Education, AngloGold Ashanti received proposals from the Eastern Cape Department of Education through the OR Tambo District Municipality to financially assist with the construction of schools build projects, including the science laboratory at Dudumayo and the building of a new school at Bholani Primary School in Ntafufu near Port St Johns, for inclusion into its Social and Labour Plans. SAR Senior Vice President for Sustainability, Simeon Mighty Moloko, said that he was extremely proud to follow in the footsteps of Madiba to, on behalf of AGA, deliver the

science laboratory that will help improve results in the school. “This morning I challenged the school to improve on its Matric pass rate,” he said to the learners. Like Madiba said: ‘It always seems impossible until it is done’,” said Moloko. Lucky Meyi from the National Union of Mineworkers and Tebogo Molale from the Association of Mineworkers and Construction Union represented organised labour at the event with Meyi delivering a message of support on behalf of the AGA Future Forum. “As organised labour, we are happy to be part of the ceremony as part of the stakeholders who were involved in the development of the company’s Social and Labour Plans,” he said. The science laboratory has an interactive board installed to facilitate interactive learning, science experiments, science lessons and many other science-related programmes. During the same week, AngloGold Ashanti handed over a brick and mortar school to a community in the remote village of Ntafufu. To get to Bholani Primary School, one has to drive on a makeshift gravel road which at some points is precarious and dangerous to negotiate, drive over makeshift bridges that are easily flooded in the rainy season and up the steep, muddy hills. The contractor responsible for building the school had the unenviable task of transporting bricks and building material up and down on this challenging road. Through utmost determination and managing the many challenges associated with this project, the school was completed and officially handed over on Thursday, 23 April 2015. Councillor Nomakhosazana Meth, the Executive

Simeon Mighty Moloko; Senior Vice President Sustainability and the late Principal Eric Petse explain to two learners how some of the science equipment and chemicals work.

Mayor of OR Tambo District Municipality thanked AngloGold Ashanti for being a kind partner. “You took a very important step, as OR Tambo is one of the poorest districts in the country. Thank you for working with government to give our children a brighter future,” she said. Moloko added that the school would not have been delivered were it not for the women in the community. “When we arrived here with the municipality some months ago, we promised to provide water to be used in building the school, but we failed to do so. However, the women here today carried buckets of water on their heads, to and from the river and back, up and down many, many times to ensure that the new school could be completed on time. AngloGold Ashanti, in turn, rewarded them by giving them a stipend for their effort as additional income from the project,” he said. Mandla Makupula, MEC for Education said that we are all here to rejoice with the community of Bholani. “Since I have been with the Department of Education, our people's patience, determination and heroism has created a miracle. Your dedication to see your children educated made it possible for the community of Bholani to build a mud school to see your children learn against all odds. Today we celebrate our commitment as a community. We must treat this facility with respect. Let us respect our mothers who sell at the street corners to give us a better life and a quality education,” Makupula said. The new school replaces the old mud school that serviced the local community for years. The school is the only primary school in the

Unveiling the plaque at Dudumayo Senior Secondary School (from left to right) are Tebogo Molale, Regional Coordinator from Association of Mineworkers and Construction Union; Maxwell Bolani, Manager Local Economic Development; Councillor Madodana Socikwa, MMC for Local Economic Development; Ntsikelelo Vasi, Chief Director at the Eastern Cape Department of Education; Simeon Mighty Moloko, Senior Vice President Sustainability; Councillor Nomantombazana Dyule, MMC for the Special Programmes Unit; Lucky Meyi, National Union of Mineworkers; Eric Petse, School Principal and Dr Oupa Nkagisang, Manager Community Human Resource Development.

Read more about the South Africa Region's Socio-economic Development Framework, Social and Labour Plans and Mining Charter in the 2014-2015 Community Report. Download the reports at www.anglogoldashanti.com/Sustainability/SAMiningCharter.

The mud structures at Bholnai in which the children were taught.

The six new brick and mortar classrooms.

In one of the six classrooms is Lucky Meyi, National Union of Mineworkers; Tebogo Molale from Association of Mineworkers and Construction Union; Councillor Nomakhosazana Meth, Executive Mayor OR Tambo District Municipality; Simeon Mighty Moloko, Senior Vice President Sustainability; and Mandla Makupula, MEC for Education with learners at Bholani JP School.

area and which will now address the historical problem of illiteracy in the area. In addition to the two infrastructure development projects, the company, in partnership with the Mining Qualifications Authority (MQA), OR Tambo District Municipality and Department of Higher Education and Training, officially launched the Community Youth Technical Skills Development Programme in Mthatha. The objective of the programme, is to equip the unemployed youth in AngloGold Ashanti's host communities in the Merafong City Local Municipality, Dr Kenneth Kaunda District Municipality (DKKM) and major Labour Sending Areas in the Eastern Cape, with skills that will assist them to obtain employment, or start sustainable enterprises of their own, supported by the Enterprise Development Centres to be established in these areas.

The MQA appointed AGA, to once more, implement the programme in the Eastern Cape, to equip the 600 beneficiaries with ‘portable skills’ at a cost of R16 million. This was after AGA successfully delivered the same programme in DKKM and Merafong in 2014, where just over 600 young people were equipped with the relevant skills required by the municipalities as well as the local economy. The programme includes skills like welding, brick-laying, carpentry and plumbing. Sam Seipei, the Chief Executive Officer of the MQA, said he was proud to be launching the programme in collaboration with AngloGold Ashanti, as it has a proven record of delivering quality training within the stipulated time frames and budget. “AngloGold Ashanti knows the dynamics in their host and labour sending areas and when they approached us, on behalf of the ORTDM with a proposal to equip the young people with portable technical skills required by the economy” said Seipei. Speaking on the topic of ‘partnerships and collaboration’ between the private and public sectors, Simeon Mighty Moloko, said that the company’s approach to this is informed by its values and the objective of the Region’s Socioeconomic Development Strategy, which is to create ‘healthy, safe, educated and economically active communities’ in its host and labour sending areas. “Some of you, who will graduate from this programme and who wish to become entrepreneurs, will be helped through the Enterprise Development Centre that will be established in Mthatha,” Moloko said. “I wish all 600 of you the best of luck. This is a defining moment for you. It is a golden opportunity that is now in your hands, grab it with both hands and run with it fast, with both feet,” he told the beneficiaries. In his keynote address, Deputy Minister Manana said that: “it is an honour to address you, beneficiaries of this initiative and

Sam Seipei, Chief Executive Officer of the Mining Qualifications Authority; Mduduzi Manana; Deputy Minister of Higher Education and Training; Councillor Nomakhosazana Meth, Executive Mayor OR Tambo District Municipality and Simeon Mighty Moloko, Senior Vice President Sustainability.

dignitaries, in this small but humble town of Mthatha, home to the late former President Nelson Mandela, former President Thabo Mbeki as well as Walter and Albertina Sisulu, some of the greatest minds that hatched from humble beginnings. Two years ago, I was approached by the MQA, with a proposal to partner with a reliable company like AngloGold Ashanti, in extending the company's Community Youth Technical Skills Development Programmes to the youth in its host and major labour sending communities. I was supportive of the initiative, as it is in line with Government’s objective to develop technical skills required by the economy and aimed at reducing youth unemployment in the country. U Baba Moloko was correct when he said that, since 2012, I have made it my business to visit all corners of the country to galvanise the youth and encourage them to take up technical careers and equip themselves with technical engineering related and artisanal skills needed by the economy,” he said. “Youth development is important, and therefore rolling out this programme in our ailing communities so that they can overcome the disadvantages before them, is an honour. The National Development Plan notes that by 2030 we should be producing 30 000 Artisans per annum. Currently we produce 13 000 – this is not enough. We have placed education as an Apex priority, so that young people can be skilled to make them more eligible for employment. There is a difference between unemployed youth and unemployable youth,” said Deputy Minister Manana. He concluded by saying that this is an intervention of profound proportions and that it is only through the efforts of a caring government working together with caring and responsive partners like the MQA and AngloGold Ashanti, that we can deliver on this project. “People must become self-sufficient and self-reliant – that is the culture we are trying to create.”

The 600 recipients of the Community Youth and Technical Skills Development Programme.

In an effort to create and facilitate access to procurement opportunities in AngloGold Ashanti for companies in our host communities, the Supply Chain Department has launched a Local Procurement Portal for businesses from these operational areas. The portal is available at www.anglogoldashantiprocure.co.za.

Chapter five

The Sustainable Development Goals On 25 September 2015, world leaders adopted the 2030 Agenda for Sustainable Development at the United Nations Sustainable Development Summit. The agenda covers 17 Sustainable Development Goals (SDG) to end poverty, fight inequality and justice and tackle climate change by 2030. The SDGs replace the Millennium Development Goals, which were launched in 2000 and have now expired, and will guide policy and funding for the next 15 years until 2030.

quick facts

The 17 SDGs

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The SDGs are the result of a three-year process involving 83 national surveys, engaging over seven million people, making it the biggest consultation process in United Nations history. ●● The 17 goals form a framework for international policy, but are not legally binding. This is deliberate, to prevent legal obstructions. ●● While the Millennium Development Goals were mostly aimed at poorer countries, the new Sustainable Development Goals are designed to be universal, encouraging all nations to take a global view. ●●

Q&A

Interview bychapter zyaan Davids two

to engage in a similarly creative process regarding the way we do business. The future sustainability of business is, after all, dependent on the socio-economic health of society. Business can, and should, use its influence, not just its CSI spend, to effect positive social change.

What are the SDGs and why do we need another set of goals? Integrated and universally applicable goals are needed to eradicate extreme poverty, as a crucial component of addressing the urgent migration challenges, wars and terrorism currently seen across the globe. The SDGs focus on people, the planet, prosperity, peace and partnerships as the key elements towards achieving the 2030 Agenda for transforming our world. While the MDGs were set in silos and took a top-down approach, the SDGs, which have built on the shortcomings of the MDGs, underwent a rigorous consultative process with a ‘for the people, by the people’ agenda. The SDGs have been acknowledged as a global framework and it will be up to individual governments to use these to enhance national development plans.

To what extent did business South Africa engage with the MDGs and why should it commit to the SDGs? The MDGs that South Africa performed well on, such as maternal health and HIV prevention, were not necessarily the aspects of social development that business engaged with directly. With the incoming SDGs, corporates should not view their social investment as optional, but rather as crucial for ensuring the long-term sustainability of their business. Business is legislated to spend a specific amount of its profit on social development, and while there is growing emphasis on the need to assess the impact of that spend, I think that much work remains for business to really begin to understand its role as a key contributor to society. We are witnessing financial systems collapsing, social unrest and serious depletion of finite natural resources and our attempts to address these challenges within our current economic theories of supply and demand are simply not working. We have to find a new paradigm in which to respond. Humans have done an incredible job of imagining and then realising the impossible in terms of technology. In order to resolve our global challenges, we need

Will the SDGs hold business to greater account than the MDGs did?

Exploring the Sustainable Development Goals The Millennium Development Goals (MDG), as quantifiable targets for addressing poverty, gender equality, environmental sustainability, and ensuring basic human rights for all, are being replaced with 17 Sustainable Development Goals (SDG) in 2016. Shani Kay is Managing Director of Regency Foundation Networx and Executive Producer of It’s Africa’s Time, a television series produced in partnership with the United Nations Development Programme. Drawing from her expertise in sustainable business development, she discusses the potential of the SDGs to drive global transformation.

SHANI KAY

The Sustainable Development Goals come into effect on 1 January 2016, and will guide decisions for the next 15 years.

Managing Director of Regency Foundation Networx and Executive Producer of It’s Africa’s Time shanik@regency.org

The SDGs have already placed a stronger emphasis on business as a transformative force in ensuring the sustainability of our planet. The United Nations Global Compact works with business, aiming to create a sustainable and inclusive global economy that delivers lasting benefits to all communities and markets. It also emphasises how value creation works and where shared value can translate into inclusive growth and profitable business. However, one of the reasons that the MDGs were not effectively met was due to a lack of financial backing. For the SDGs, the budget and emphasis on infrastructure has increased significantly, but exactly where the money will come from has yet to be clearly outlined, and this is concerning.

To what extent should corporates feel compelled to fund SDG-related initiatives? Instead of business feeling burdened by investing in social development, it needs to understand that contributing to the greater good of society will also translate into ensuring the material success of its longterm strategy. According to a recent report, Thabo Mbeki, in his capacity as the head of a high-level panel on illicit financial flows from Africa, said that Africa loses R50 billion every year as a result of illicit flows of funds. This is about double the amount of money that the continent receives through financial aid from the West. So, what Africa needs above all for sustained development is good leadership and responsible, ethical and well-governed business. Rather than directly funding SDG-related activities, if ethical business focuses on its own long-term sustainability, it will become more aware of real risks and opportunities and ensure that its practices are aligned with the aims of the SDGs.  Read more about the Sustainable Development Goals at https://sustainabledevelopment.un.org/ post2015/transformingourworld.

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government pays private investors for ensuring improvements in social conditions. Another interesting one is donor-advised funds; financial organisations advise philanthropists on where their donations would be most effectively used. However, these are still in the infancy stages in our market and require a long-term view to investing in development.

Should social investors look beyond pure grantmaking to other methods of supporting non-profits? Effective, sustainable partnerships are about investing in, and building longlasting relationships with non-profit organisations. Beyond financial support, investors should consider issues of building capacity within the organisations that they support. In addition, technical equipment in the investor’s business that has been replaced could be repurposed for use by the non-profit. However, it is important that non-profits are not perceived as a dumping ground, and that donated material is in good working condition, adding value to the organisation’s operations.

Why is it important for non-profits to have long-term relationships with their donors? It is important for non-profits to diversify their donor base, while working closely with existing donors who are committed to their organisation. Donors should have conversations about sustainability with their partners, and possibly commit additional funds towards a sustainability fund to ensure that, beyond their tenure, the nonprofit will continue to operate.

How can financial sustainability be attained? Rendering paid-for services or trading, and committing to building up an endowment have proven to be successful methods. For some non-profits, trading is a viable, alternative income stream to complement grant funding. However, it is critical that the paid-for services draw from the organisation’s core competencies. It gets risky when a non-profit sets up an enterprise that is at the extreme end of what they do, as it can potentially strain resources. A balance must be struck in which the organisation does not focus so much energy on the enterprise that the organisation’s mission is defeated. At Nedbank Private Wealth, we encourage the professional management of reserve funding through investments to ensure capital preservation, as well as growth. Non-profits are beginning to consider investment more seriously, particularly with regard to large sums of money. There are also new tools to facilitate development funding, such as social impact bonds, a contract by which

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How can endowments benefit nonprofits and social investors?

Supporting financial sustainability Noxolo Hlongwane, Head of Philanthropy at Nedbank Private Wealth, talks about financial tools for development. She gives advice on how to ensure the sustainability of nonprofit organisations through alternative approaches to pure financial support. She also explores the value of shifting traditional donorrecipient relationships to more collaborative and long-term partnerships between investors and non-profits.

NOXOLO HLONGWANE

Head of Philanthropy, Nedbank Private Wealth noxoloh@nedbankprivatewealth.co.za www.nedbankprivatewealth.co.za

For non-profits, endowments alleviate donor dependency and eliminate the anxiety of living year to year. They secure bridge funding for non-profits if there are payment delays from donors. I always emphasise the importance of replenishing sustainability funds or endowments once they have been tapped into. Non-profits should be proactive and deliberate about securing their resources. When capital is left in cash, inflation eventually erodes the true value of that capital base. Social investors, when they decide to step away, will have the reassurance that the non-profit can continue to run by drawing on the interest generated from these endowments.

Is debt a bad thing for non-profits? In order to service debt, you need to have a guaranteed income flow; with non-profits, funding is seldom guaranteed. Many financial institutions are not eager to grant loans to non-profits. The reputational risk is significant. For example, if a financial institution grants a home loan to a non-profit that looks after vulnerable children and they are unable to meet their monthly payment obligations, the financial institution would have to repossess that property, potentially attracting a backlash from the community. Deliberately setting out plans to raise funds above the organisation’s annual budget, and venturing into paidfor services or trading are just some of the ways that have proven successful in ensuring the long-term financial sustainability of organisations. 

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Join Nedbank and help make a difference in the lives of many South Africans. We understand that our success is greatly dependent on the environment in which we operate: the people and our planet. That is why we have invested R140 million over the past year in: • • • •

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the

2015

ISBN 978-0-9921777-3-7

CSI handbook

18th edition

9 780992 177737