1. Determining Impact and Return of Corporate Social Investment Presented by Reana Rossouw Next Generation Consultants

11. Case Studies Edcon & Transnet

12. Program Logic Model High Community Impact Low Business Impact Low community Impact Low Business Impact High Business Impact Low Community Impact High Community Impact High Business Impact Community Impact Business Impact/Return

13. Impact Value Chain Activities: Return: Impact: Input: What the program does with inputs to fulfill its mission Benefits or changes for beneficiaries during or after program activities The direct products of program activities What the short, medium and long term results are on all stakeholder groups What the business achieved as a result of its investment Access to new infrastructure Decline in infant mortality Less dependency on grants, etc. Increase in brand awareness and reputation Mitigate environ-mental impacts and risks Recruitment of new talent and skills, etc. New knowledge, increased skills, changed attitudes or values, modified behavior, improved conditions, altered status, etc. Number of classes taught, number of counseling sessions conducted, value of educational materials distributed, hours of service delivered, number of participants served, etc Feed and shelter homeless facilities, provide job training, educate the public about signs of child abuse, counsel pregnant women, create mentoring relationships for the youth, etc Resources dedicated to or consumed by the program FACTORS Money, staff and staff time, volunteers and volunteer time, facilities, equipment and supplies, infrastructure, etc. Output: Outcome: R E S U L T S NEXT GENERATION FOCUS

14. Impact Value Chain - Our Formula Hierarchy Inputs Outputs Outcome Impacts Returns Definition Resources invested (e.g. money, skills, etc.) Goods and services generated by the use of inputs (short-term) Expected changes in access, usage, behaviour or performance (medium-term) Ultimate (long-term) effect of the intervention on a key dimension of the development (e.g. living standards) (long-term) Direct or indirect business benefits/ value generated by activities/ programs/ interventions Qualitative Indicators Value of investment, number of hours, number of books, hours Number of schools, number of volunteer, number of teachers, students % change – access to health services, education, government infrastructure, pass rates Students finding employment, people with skills finding employment Number of graduates hired by company, % change in grievance, complaints received by company Qualitative indicators Stakeholders satisfaction with the programme Perceptions of schools, educators, learners, Beneficiaries reporting benefits and application of skills, education Quality of links to local employment opportunities, perceptions of improved socio economic status or opportunities Changes in community / customer/ employee perceptions attributable directly/ indirectly to CSI

15. Impact Assessment Model High Community Impact Community Impact Business Impact/Return Beneficiary Stakeholder Group 1 Communities Stakeholder Group 2 Beneficiaries / Stakeholder Group 3 Other Beneficiaries / Stakeholders Group 4 Business Impact/ Return 1 Business Impact/ Return 2 Business Impact Return 3 High Business Impact Low community Impact Low Business Return METHODOLOGY: The more beneficiary stakeholder groups affected the greater the impact: Within the stakeholder group, the more impacts achieved the greater the impact and return Community Impact 1 Community Impact 3 Community Impact 2 Community Impact 1 Community Impact 1 Community Impact 2

16. Assessment Formula Business Impact - Reputation Business Impact – Shareholder priority Business Impact – BEE Scorecard Any other benefits Donor Community Any Other Communities Beneficiary Communities – Stakeholder Groups Impact Recipient Communities or Individuals Government Community Business Impact + Total Impact and Return = = =

17. Internal Rate of Return - Edcon 5:3 – Acceptable/Satisfactory Internal Rate of Return

18. Internal Rate of Return - Transnet 165 41 27:7 6 Number of Community Impacts Number of Business Impacts : Take highest number of scores divide by the number of programmes to get average return which becomes the Internal Rate of Return Total Number of Community Impacts Total Number of Business Impacts / : Average Number of Programmes = 6 X:Y Measured against individual programme performance, determine whether or not it is high impact or high return programmes

21. Quantifying and Qualifying ROI The ability to PROVE - scientifically! PR Value + Employee Value + BEE Value + Customer Perception Brand Value (Reputation) = Total Return on Investment + Sales value

22. Determining Impact: Scorecards 0 – 2 Impacts = Low 3 – 5 Impacts = Medium 5+ Impacts = High A scorecard to assess the overall impact of the programme vs the overall return on investment. Meaning community impact vs business impact:

23. JCA 8:4 Community Impact Reputation Brand Impact Customer Perceptions – Caring Company Organisational Impact (Training workshops) – knowledge/skills Increased number of beneficiaries served increased community reach Business Impact Increased impact on beneficiaries – better services – more efficient – more skills and jobs Number of Organisations benefited Number of Beneficiaries benefited Organisational Impact Contributions to operational costs Impact on resources and funding – more resources and additional funding Job Creation and Skills Development (Community & Beneficiaries PR Value Increased sales and accounts Additional Funding and leverage of funding PR/Marketing Exposure Brand/ Business Alignment

24. City Year Community Impact Reputation Brand Impact Organisational Impact Organisational Capacity Leverage funding other donors Service Leaders: Improved job search skills Business Impact Service Leaders: Improved motivation, aspiration, confidence and self esteem BEE Scorecard Learners: Motivation and mentorship Number of organisations benefited - schools Number of Beneficiaries benefited – service leaders Number of Beneficiaries benefited – learners Number of service hours PR/Media Value Customer Perceptions Service Leaders: Increased qualifications/ skills Service Leaders: Access mainstream opportunities education and jobs Schools: Additional resources for teachers in classrooms Organisational Impact Supporting government priority – (Youth Development) and building South Africa’s democracy Community Impact: Integrating community development, supporting broader community partnerships Number of courses/ classes 9:3

25. I Choose to give 4:3 Community Impact Employer of Choice Organisational Impact Additional resources – additional funds – leverage of funding Number of beneficiaries increase – impact increase Business Impact Brand and Reputation Caring Company Employee Impact – Transformation Life Skills Development Number of employees Number of beneficiary organisations Organisational Capacity Number of organisations increase and number of beneficiaries increase Amount raised Link between stores and local communities

26. Evaluation and Total Programme Participation Programmes Indicators - Organisation Indicators – Community Indicators - Employees Indicators – Business Impact Total Outcomes Total Impact Community Business ROI Jet Community Awards 6 2 0 4 6:2:4 8:4 City Year 2 7 0 3 2:7:3 9:3 I choose to Give 2 1 1 3 2:1:1:3 4:3 SOS Children’s Village 2 2 0 2 2:2:2 4:2 Dreamfields 0 5 1 4 6:4 6:4 Star Schools 1 5 0 1 1:5:1 6:1 Casual Day 3 2 1 3 3:2:1:3 6:3 Thuthuka Bursary Fund 1 1 0 1 1:1:1 2:1 Red Cress Children’s Hospital 7 2 0 2 7:2:2 9:2 Biblionef 1 9 1 2 1:9:1:2 11:2 Clothing Donations 2 2 0 2 2:2:2 4:2 HIV & Me 3 10 0 1 3:10:1 13:1

27. Evaluation and Total Programme Outcome Programmes Score/Rating Observations Recommendations Jet Community Awards 8:4 High Impact High Return Continue and Expand Find more of these type of programmes City Year 9:3 High Impact Low Return Either adjust and redesign program for higher impact or cancel program I choose to Give 4:3 Low Impact Low Return Program needs to be redefined with service provider to more clearly define impact and return SOS Children’s Village 4:2 Low Impact Low Return Need to more clearly define indicators for measure or except low return and impact Dreamfields 6:4 High Impact Low Return Either adjust and redesign program or cancel program due to strategic importance of driving merchandise sales (to increase ROI) Star Schools 6:1 High Impact Low Return Program needs to be redefined with service provider to more clearly define return Casual Day 6:3 High impact Low Return Continue – expand program – redefine to ensure greater impact Thuthuka Bursary Fund 2:1 Low impact and Low Return Either adjust and redesign program or cancel program Red Cress Children’s Hospital 9:2 High impact Low Return Program has come to natural end Biblionef 11:2 High Impact Low Return Redesign program for higher return Clothing Donations 4:2 Low Impact Low Return Redefine and redesign program to ensure greater impact and return HIV & Me 13:1 High Impact Low Return Expand program or redesign to ensure greater return

28. Impact and Return: Program Logic Model High community impact Low business return Low community impact Low business return Low community impact High business return High community impact High business return JET COMMUNITY AWARDS City Year; SOS Children’s Village; Dreamfields; Star Schools, Casual Day, Red Cross Children’s Hospital, Biblionef, HIV& Me I choose to give; Thuthuka Bursary Fund; Clothing Donations

29. Impact Assessment and Return on Investment: Applying the internal rate of return methodology: 5:3 Programmes Score/Rating Observations Jet Community Awards 8:4 Achieved return City Year 9:3 Achieved return I choose to Give 4:3 Need to increase community impact SOS Children’s Village 4:2 Need to increase business impact Dreamfields 6:4 Achieved return Star Schools 6:1 Need to increase business impact Casual Day 6:3 Achieved return Thuthuka Bursary Fund 2:1 Need to make strategic decision – either redesign to increase impact and return or move program to another division or cancel program Red Cress Children’s Hospital 9:2 Need to increase business impact – however, program has come to an end Biblionef 11:2 Need to increase business impact Clothing Donations 4:2 Need to increase both impact and return – either redesign program or accept low return and low impact HIV & Me 13:1 Need to increase business impact

30. Transnet - Results High Community Impact Low Business Impact Low Community Impact Low Business Impact High Business Impact High Community Impact Low Business Impact Low Community Impact 27 Phelopepha (58:13) Sports Development (22:7) Containerised Assistance (20:7) Total Scores 165:41 Applying Internal Rate of Return – divide by 6 (no of programmes = 27: 6 Sharpminds (32:5) Arts & Culture (19:5) Sponsorship and Donations (14:7) 6

31. Arts & Culture Programme Stakeholder Groups Commu-nity Impacts Business Impacts Total Impact/ Return Highest Commu-nity Impact Highest Business Return Arts & Culture Individual Artists 7 Industry 3 Consumer Communities 3 Service Providers 4 Government 2 Transnet 5 19 5 19:5 No 5 No 3* Achieved low community impact and low business impact

32. Health Phelophepa Stakeholder Groups Commu-nity Impacts Business Impacts Total Impact/ Return Highest Community Impact Highest Business Return Patients 8 Beneficiary Communities 8 Other community health care facilities 8 Government 8 Care Givers Staff, Students 7 Learners & teachers/ Schools 4 Universities 4 Community Based Organisations 4 Donors/ Sponsors 7 Transnet 13 58 13 58:13 No 1 No 1 Achieved high community impact and high business impact

33. Indicators Sponsorships & Donations Beneficiary Organisa-tions Capacity Building and organisational Development Contribute to development agenda in SA and facilitate economic growth and /or organisational prosperity Access to resources – operational capacity Leverage funds of other donors Access to finance Beneficiary Communi-ties Poverty Alleviation through resource distribution Ensure economic sustainability Assist and alleviate socio-economic inequalities and restore human dignity Access to resources and infrastructure Access to skills development, capacity building, training, coaching, mentorship Individuals Business Skills Access to markets and partners, mentorship and training Job Creation, skills development, sustainability, economically active (self sustainability) Access to seed funding, marketing, mentoring, product development Transnet Supports business operation alignment – specific geographical corridors Supports and Leverage CSI Focus Areas Rail Heritage Preservation through growing awareness of Transnet’s role in the history of railways, infrastructure, logistics, steam engines, etc. Increased awareness and improved company image and as result perceived as caring responsible corporate citizen Contribute to environ-ment manage-ment through rehabilitation and conservation Opportunity to reach specialised markets Contribution to BEE Scorecard

34. Indicators Sports Development Department of Education Turn around of dysfunctional schools through sports development Identification of talent and talent development (teachers and learners) Instill a sense of national pride and community building amongst the youth New careers development – sports development & sport psychology Schools Educators Skills development and capacity building – accredited training Access to resources and infrastructure Lowering of crime rate, increases pass rates, increase educator morale, lower absenteeism rate, change in morale and attitudes Identification of talent and talent development Opportunity to recruit talented students to schools for greater achievement opportunity To assist with sports development and promote sport participation Access to qualified sports teachers Learners / Students Opportunity to use sport as an economic opportunity – professional sporting careers Skills development and high performance training Access to opportunities sponsorship/ bursaries / Access to professional sport bodies to follow a professional career which could lead to self sustainability Access to competitions and competing on national/ provincial level Quality of life – self actualization and empowerment Opportunity to participate and compete at new levels Sports Develop-ment Fraternity Access to talent (pipeline of qualified youth) Access to resources and infrastructure Access to qualified coaches, sports administrators, referees Universities Access to talent Transnet Promote Transnet as responsible caring corporate citizen PR and Publicity = brand awareness To promote Transnet as sports development leader To support priority of major shareholder (government)

35. BHP Billiton Metalloys

43. Please note: This presentation is part of a larger body of research and knowledge. This information is the property of Next Generation Consultants and may not be copied or used without express permission. More tools, articles and training information is available at www.nextgeneration.co.za