Presentation about Corporate Social Investment, Community Relations, Investment and Development in South Africa as well as Africa - presented and developed 2011.

1. Towards Best Practice
Social Investment and
Community Development
2011
Next Generation Consultants
Reana Rossouw

2. Day One
• Session One
– An introduction and
contextual overview
• Session Two
– Best practice in Africa
• Session Three
– Trends, Drivers,
Challenges
• Session Four
– Getting Started and
Making it work

3. Introduction
Contextual Overview
Definitions in Practice

4. CSI in the context of definitions
Corporate Social Investment
(CSI)
How we care for the well being of
the communities in which we
operate – (by investing resources
into communities through CSI
programme management)
Corporate Governance Corporate Social
How CSI is managed – Responsibility (CSR) now
through accountable, CSI superseded by Corporate
responsible, transparent, Definitions Sustainability
ethical investment How CSI contribute to
practices mitigating economical,
environmental and social
impacts and risks
Corporate Citizenship
How CSI contributes to
managing internal and external
stakeholder relationships both
up and downstream

5. New terminology
• CSR – an overarching value-based framework
– (the corporates contribution to a society’s sustainable
development goals)
• CSI – a voluntary social giving activity
– (strong developmental theme – improving the lives of under-
privileged and previously disadvantaged communities)
• SED – A discretionary transformation framework
– (emphasises developmental initiatives that equip
disenfranchised individuals with skills and/or resources to play
an active role in the economy)
• LED – A mandatory framework
– (Social and Labour Plan to secure ongoing licence to operate –
Mineral and Petroleum Resources Development Act – focus on
job creation with measurable outcomes)
• Corporate Sustainability
– Managing risk, impact, influence and control

6. Strategic CSI
Align strategic
Measurable
and
Return
Operational
On Investment
business and
for
Brand
Company
imperatives
CSI
Align and
Measurable
support
Impact on
government
Society and
Priorities and
Environment
Community
needs

7. Progress towards Best Practice
Traditional In Kind Social Strategic Systemic
Philanthropy Grantmaking Entrepreneur- Investments Socio
Donations/ Products, ship Aligned with Economic
Cheques services, skills Financial core business Development
resources, interests, brand Collaborative
operational values, Partnerships,
advice & competencies, influencing
expertise, and policy,
access to government contributing
markets goals advocacy and
(trade) high impact
change

8. Towards Sustainable CSI
Charity Create New Create
Business as Value competitive
Usual FLAGSHIPS advantage
Social
Value
Add
Mitigate Risks
Compliance Impacts Do no harm
Do what is Control Costs
required Sustainability
Strategy
Shareholder Value Add

9. Strategic CSI means…
best practice
• Formalised approach/documented strategy
• Regular reporting and communication (internal &
external)
• Active Senior management/board involvement
• Alignment to core business and operational
business
• Working in collaborative partnerships
• Dedicated CSI
staff/team/department/foundation/Trust
• Regular stakeholder consultation and
engagement
• Employee involvement and recognition
• Regular monitoring, evaluation and impact
assessment
• Replication of successful projects
• Development of best practice guidelines
• Sharing lessons and insights

10. New perspectives on CSI
Regulation is a key driver

11. CSI and BEE
Generic scorecard or
Turnover greater than R35m Approved Sector Charter
applies
Turnover between Simplified Scorecard applies
Choice of 4 of 7 elements
R5m and R35m All elements weigh 25%
Turnover less Exempt from BEE
than R5m And are recognised
As Level 4 contributors

12. CSI and the BEE Scorecard (cont‟d)
Direct Equity Ownership 20% Encourages the sharing of equity and voting
Empower- rights with black people and black women
ment
Management 10% Encourages senior black decision making at
executive board and senior top management
levels
Employ- Employment Equity 15% Encourages companies to identify and recruit
ment black people at professional, middle and lower
Equity management positions
Skills Development 15% Encourages companies to develop black talent
through spending on skills development and
learnerships
Indirect Preferential Procurement 20% Measures the extent to which enterprises
Empower- procure from BEE compliant companies.
ment Encourages spend on SME’s and Black owned
companies
Enterprise Development 15% Encourages development or expansion of
SME’s and black owned companies
Socio Economic 5% Encourages initiatives intended to directly
provide black people who are natural persons
with means of generating income for
themselves

13. CSI and the BEE Scorecard
• Residual Element – Code 700 Socio Economic Development – 5
points – target 1% of NPAT or 0.125% of turnover
• Key Principles
– Aimed at natural black persons, communities where at least 75% are
natural black persons or rural infrastructure development.
• Rural development programs
• Health, HIV/Aids programs
• Education support
• Environment support
• Arts & Culture
• Sport
• Aims to encourage initiatives intended to directly provide black
people who are natural persons with means of generating income for
themselves
• SED is defined as: “monetary or non-monetary contributions actually
initiated or implemented in favour of beneficiaries …with the specific
objective of facilitating sustainable access to the economy for
those beneficiaries”

14. CSI and the BEE Scorecard (cont‟d)
• Enterprise Development – Code 600 – 15 points – 3% of NPAT or
0.375% of turnover
• Key Principles
– Provision of seed capital
– Professional/consulting services
– Licencing/registration fees
– Industry specific levies
– IT services
– Payments made to 3rd parties to perform enterprise development
on their behalf
– Preferential credit facilities/guarantees/better payment terms
– Training/mentoring
– Enterprise Development unit
• Aims to encourage development or expansion of black, small medium
enterprises
• Specifically aimed at supplier development in most organisations

15. Impact of Charters & BEE Codes
• Increased communication of CSI
• More formalised approach to CSI
• New/Refined CSI Strategy
• Greater board/management involvement
• Increased/decreased expenditure on CSI
• Restructuring of CSI department
• Change in focus area/project selection
• Change in beneficiary/recipient communities

16. Impact of JSE SRI Index
• Increase in non-public information disclosure
• Most companies now committing to sustainability and
corporate responsibility – understand the imperative
• Sustainability Reports starting to be structured according to
Index Criteria
• Distinction between real performance and window dressing
becoming clearer
• Still lacking some understanding about specific issues such as
the difference between direct and indirect impacts
• CSI measurement now becoming critical
• Clear guidelines for focus areas and impact
• External reporting (and therefore results) now drive CSI
communications

17. Impact of Sustainability Reporting
• Accounting – accurately
valuing the CSI contribution
• Accuracy – measuring input
and outputs
• Data collection – measuring
impact of investment
• Indicators – development of
indicators for measurement -
impact on society, environment
or economic impact
• Strong uptake of GRI, and real
increase in assurance/
verification
• Different reporting styles
– Section of annual report
– Section of sustainability
report and integrated report
– Separate
social/environmental/ESG
report
– Separate CSI report

18. Sustainability Reporting on CSI
• Top 3 indicators for Education and Training
– 1. Number of people benefited/reached by the education initiatives
– 2. Amount of money invested/donated in the education initiatives
– 3. Number of education-related activities (e.g. seminar, classes, conferences etc.) held
• Top 3 indicators for Philanthropy and Charitable Giving
– 1. Sum of money donated/raised/contributed to community initiatives
– 2. Percentage or number of people (organizations) granted/sponsored/supported/covered by
the donated services
– 3. Number or quantity of scholarships/material/services donated (no value of money
indicated)
• Top 3 indicators for Community Services and Employee Volunteering
– 1. Number of people/organizations/projects benefited, served or implemented
– 2. Number of volunteers
– 3. Number of volunteering hours
• Top 5 indicators for Total Community Expenditure
– 1. Amount of money spent in community investment
– 2. Percentage of profit/revenue/income spent in community investment
– 3. Percentage increase of money spent on social investment, compared to last year
– 4. Number of people benefited in community investment activities
– 5. Number of projects developed and completed
• Top 3 indicators for Community Engagement and Dialogue
– 1. Number of visitors, audience and participants reached
– 2. Percentage/number of sites where community engagement activities were performed
– 3. Frequency of meetings

19. CSI in Africa
A local and continental overview
of the practice

20. Continental Context
• Vastly different models of development
• Politically very complex operating
environments
• Long history of development aid
– Good News – exposed to international
developmental models specifically large
developmental agencies – Oxfam, USAID,
missionary-faith based organisations and
government support agencies – UNDP,
Danida etc.
– Bad News – capacity and skills not
necessary transferred nor have practitioners
been involved in program design and
program management
• Being recipients of development aid meant
that we did not necessarily understood,
engaged or were part of the development
process
– Governments received the money – which
does not necessarily mean it ended up with
the intended beneficiary communities
– Development was based on developed
economies principles (Western Solutions)

21. • Large foundations
North Africa – Wealthy individuals – Oil
Barons – Aga Khan
Foundation
– Politically complex
• Muslim (Faith based) Closed
Foundations
• War Stricken – aid complexity –
who to give to and who actually
receive
• Large global partnerships
• Government considerations
(political correctness)
• Government Recipient

22. West & East & Central Africa
• Hundreds of thousands NGO’s
• High level of corruption
– Big government based foundations – Nigeria
Government/Community Foundation (NGCC) –
Supported by Oil companies – i.e. Shell
– Large multi sectoral partnerships – British/Dutch High
commissions, World Bank, United Nations
– Integrated Programs – skills, jobs, exports, market
based – Niger Delta and Rift Valley
• Development Sector has become an industry/career – Third
Sector
• Companies mainly involved in sponsorships, reputation
building type programs
• Increased cost of doing business – licence to operate
• Scalability a problem – development highly fragmented
• Influenced by international development agencies and their
agenda’s
• Indigenous funding very low and slow – mostly multi national
companies
• Strokes of brilliance – Foundations (grantmaking) collective
fundraising – management fees – capacity building for
smaller NGO’s

23. Southern Africa
Trends (1) - Regional
• South to South exchange (vs. North to
South)
• Support regional integration (SADC) –
cross border investment
• Growing role of emerging economies
(BRICSA) – global partnerships on
government level (no trickle down to
industry/practice yet)
• Role of China in African Investment
(Infrastructure)
• Major growth in private philanthropy
and its profile and birth of new
champions/philanthropists/high net
worth individuals
• Growth in private , community and
family foundations – working across
borders
• New market based approaches to
Socio Economic Development

24. Trends (2) –
Market Based Approaches - Innovation
• Bottom of Pyramid – BOP -
Models
• Micro credit movement
• Venture philanthropy – Seed
Capital
• Social entrepreneurs and
entrepreneurship
• Impact Investment
• New players – outsourced,
insourced, hybrid,
intermediary solutions

25. •
Trends (3) – New Influences
Greater emphasis on
measurement of impact
– (Sustainability reporting – GRI
G3.1)
• Growth in volunteerism
– Global networking, social
networks/media
– Recession – leverage and
extend funds
• New patterns in giving
– Increasing focus on indigenous
giving and community
development patterns (poor
philanthropist), growing
diaspora giving
• Quest for sustainability
– Definition of sustainability in
socio economic development
context
• Issue of stakeholder
engagement
– Social baseline studies,
research – evidence based
development models to clearly
understand impact and
requirements of stakeholders

26. Trends (4) - Legislation
• Motivation has changed
– Compliance with Broad Based Black Economic
Empowerment – BBBEE Act
– Compliance with industry based regulation
• SLP, LED (Mining) & ED (BEE) , Financial Access
(Financial Charter), Education
– Impact of Johannesburg Stock Exchange Socially
Responsible Investment Index (JSE-SRI)
– Sustainability Reporting have become Integrated
Reporting (King III)
• Companies have become very sensitive to
socio economic development – the value,
expectations, requirements and impact

27. Trends (5) – Financial Crises
• Good News
– Debate about aid /
development effectiveness
– Focus more on trade and
investment approaches
– Policy implementation and
systemic reform – focussing on
specific issues - education,
health, job creation
– Multi sectoral partnerships
– New developmental models -
social impact investing, cause
related marketing, industry
based investments, large
scale, new innovation in
program design
– More focus on measurement
– impact and return

28. • Bad News
– More pressure on
Trends (5)
developmental assistance
– Donors not living up to pledges Financial Crises
– Even though growth in
community foundations
numerous NGO’s closing doors
– Project based funding no
operational support
– Fewer international donors and
development agencies in
Southern Africa
– Realisation that development
takes a long time – which
might be a luxury for some
– Realisation that development
requires many players and
includes many facets
– More isolated development –
less collaboration
– More focus on sustainability

29. Trends (6) - Business
• Movement by business into
unconventional funding areas
– Policy, advocacy, human rights,
gender, climate change
– Partnerships with government and
civil society
– Longer term investment and
support
– Increase in cross boarder giving
and global philanthropy – as
African companies became more
global
– Emphasis on ROI and impact
– Challenges in enabling
environment – compliance focused
investment and giving

30. Trends (7) – Focus Areas
• Job Creation
– More for Enterprise Development, SME
Development, Skills development
• Environment
– More funding – renewable energy,
mitigate impact, carbon off setting/trading,
water
• Education
– Less funding for ECD, Schools,
Bursaries, FET and subject specific
(Science, Maths, Technology)
• Health
– Less for HIV/Aids – government
refocusing and business follows
• Overall
– Industry specific funding – Mines –
Infrastructure (Schools, clinics),
Pharmaceutical – Health/Primary health
care, Petroleum – Environmental, FMCG
– BOP

31. Issues
• Impact of government funding –
social grants
– Greater dependency creation, less
sustainability, less developmental
approaches
• Quest for impact and
sustainability
– How do we define sustainability in
SED
• Scalability and Collaboration
– How do we move from less than $1
to self sufficiency and give hope to
the youth
• New issues – food security, water
scarcity, impact of climate
chance
– How do we deal with future
challenges if we are not meeting
today’s requirements and issues

32. Towards the Future
• Innovation and
Creativity to solve
Africa’s problems
• Responsiveness and
Responsibility of
everyone to solve
Africa’s problems
• Scalability and
Focus to solve
particular problems
endemic to the African
Continent

33. Follow the money
Trialogue – CSI Handbook
13th Edition
R5.4 (b) = 2010
R5.1 (b) = 2009
R4.1 (b) = 2008
R3.2 (b) = 2007

34. Hot off the press
• Funding increased by 5.9% - (inflation 5.8% -
NO real growth)
– Improved CSI Accounting
– Broader spectrum of giving/spending
– CSI Definitions and measurement in state of flux
• SED in BEE Codes
• LED in Industry Charters
• Social & Labour Plan in Mining Charter
• Contributions
– Cash, Non-Cash (product/employee time)
– BEE Act – more are giving and giving more
– Spending remains concentrated – top 100
companies – 70% of all CSI spend
– SOE and Mining outspending the rest
– “Facilitate economic inclusion & enterprise
development” influenced increase at the expense
of welfare-based spending
– Big 4 – Education (31%), Social Dev (16%),
Entrepreneurship (13%), HIV/Aids (11%)

35. Impact of the recession
• 14% cut in CSI budgets – 2010
• 20% cut in 2009
• 23% cut in 2008
– More than 50% over last three years
• 35% of all budgets are spent
nationally
• 23% of CSI spend is concentrated in
Gauteng
• Remaining 39% of spend is across 8
provinces
• Many of the poorest provinces
(Eastern/Northern Cape) receives
little funding
• Spend/budgets now include LTO
programs i.e. financial literacy -
banks and access – healthcare and
financial services, infrastructure -
mines

36. Evolving CSI practice
• Legislation key driver
– Sector charter, licence to operate,
stakeholder pressure, reputation, BEE
Codes
• Less than half of CSI funding goes to
NPO’s
– Direct funding to industry initiatives (eg.
NBI), direct to government programs,
directly to schools, universities, hospitals,
directly to development own programs)
• Monitoring and Evaluation is gaining
traction
• Partnership models is increasing

37. What’s New
• New Sectoral Classifications
– Education
– Social & Community
Development
– Health & HIV/Aids
– Entrepreneurship & Job
Creation
– Training, Capacity Building &
Skills Development
– Environment
– Arts & Culture
– Food Security & Agriculture
– Sports Development
– Safety & Security
– Non-Sector Specific donations
& Grants
– Housing & Living Conditions

38. Popularity • Education = 32% of all
funding – but decrease of
nearly 10% in amounts
• Health = 16 of total funding%
- decline of 11%
• Social and Community
Development = 10% -
decline of 16%
• Food security and agriculture
– 5% of all funding, increase
of 4%
• Enterprise Development =
10% increase of almost 10%
• Environment – 8% - increase
of 3%
• Remaining 7 categories
receive less than 5% of
budgets

39. •
•
Supported by 93% of all corporates
Accounts for 32.4% of all spent
Education
• Most funding to school system 29%
(GR 10 – 12); 28% to GR 1-9),
bursaries and scholarships – 25%
• Maths and Science 30%
– Further education & training (FET 10-
12)
– Tertiary education (universities,
technikons)
– General education (Gr 1-9)
– Early Childhood development
– Adult basic education & training (ABET)
– Bursaries and university chairs
– Maths, science and technical education
– Information technology/computers
– Infrastructure, buildings, facilities
– Teacher Development
– Life skills
– Curriculum development/course
materials/text books
– School governance and functionality
– Language development

40. Health & HIV/Aids
• Supported by 64% of all corporates
• Accounts to 16.7% of all spent
– Hospices
– Primary Healthcare
– Training Healthcare workers
– Research & Education
– Health Infrastructure, equipment & medicines
– Specialist care
• HIV/Aids
– Support - Aids orphan support, testing, home-based care,
counseling
– Education & awareness – employee family education,
community education, health worker training, school-based
education
– Treatment – infrastructure provision, provision of medicines

41. Social and Community
Development
• Supported by 78% of all corporates
• Accounts to 12.5% of all spent
– Orphans & vulnerable children
– OD & Capacity building
– People with disabilities
– Feeding schemes
– The aged
– Victims of violence and abuse
– The destitute/homeless/shelters
– Disaster relief
– Livelihood strategies – Preventative programmes, prisoners
– Animal care
– Multi-service delivery (multi-purpose centers, etc)
– Organisational, Capacity & Community Development

42. Food Security & Agriculture
• Supported by 35% of
corporates
• Received 6% of total CSI
budget
– Food Relief/Feeding
Schemes
– Survivalist farming - Food
Gardens & Permaculture
– Small Scale farming
– Infrastructure, facilities &
equipment
– Non-specific general
donations

43. Enterprise Development
• Supported by 40% of all
corporates
• Accounts to 5.6% of all spent
– Entrepreneurial skills
development
– Supporting existing SMMEs
– Infrastructure and facilities
– Access to finance and
resources
– Outsourcing, procurement and
sub-contracting

44. Environment
• Supported by 49% of all
corporates
• Accounts to 6.8% of all
spent
– Wildlife conservation
– Waste management &
recycling
– Biodiversity, alien clearing
– Water conservation,
wetlands management
– Urban greening

45. Training, Capacity Building and
Skills Development
• Supported by 44% of
all corporates
• Accounts to 5.2% of
all spent
– Technical and
vocational training
– Entrepreneurial
training
– Capacity building for
the non profit sector

46. Arts & Culture
• Supported by 35% of
all corporates
• Accounts to 4.6% of
all spent
– Performing Arts
– Visual arts
– Festivals, competitions
& awards
– Heritage and culture
– Craft sector
– Language & literature

47. Safety & Security
• Supported by 21% of all
corporates
• Accounts to 2.3% of all
spent
– Business against crime
– Rehabilitation of prisoners,
victim support, trauma
counseling, gang-related
violence, road safety
– National campaigns,
community police forums,
school crime & safety
programmes
– Capacity
building/empowerment
programmes

48. Housing & Living Conditions
• Supported by 19% of all
corporates
• Accounts to 3.5% of all
spent
– Facilitating housing
development
– Employee involvement in
home building
– Material supply
– Water & Sanitation
– Energy/energy efficiency
initiatives

49. Sports Development
• Supported by 30% of
all corporates
• Accounts to 2.2% of
all spent
– Soccer
– Rugby
– Basketball & Netball
– Cricket
– Athletics
– Sport for disabled

50. NPO Sector
• Decline in funding:
– Global financial crises and ensuing economic
slowdown
– BEE Codes
• Impact
– Struggling to survive
– Closed down
– Discontinued projects
– Cut back in service offering

51. What‟s in/What‟s Out
Sector What’s In What’s Out Why
Education Support of community facilities, Bursaries for job placement, Part of company normal
bursaries for underprivileged within the company, crèche activity as it benefits
without employment obligations facilities for employees employees directly
Training Community training, skills In-company training, Can be reclaimed under
development for unemployed, adult workplace courses, adult Seta/Income Tax Act
basic education and training in the basic training and education
community for employees
Environment Support of conservation projects; Operational compliance Meeting legislated obligations
community clean-up projects aspects such as emissions; in SA
rehabilitation requirements
Job Creation Job creation and small business Affirmative or small business Assisting BEE and
development projects external to procurement; outsourcing, procurement targets to meet
the workplace retrenchment programs legislated obligations in SA
Housing Housing programs for the general Employee housing benefits Part of pre-and post 94
community imperatives to benefit
employees
Arts & Culture Support of developmental Sponsorship of commercial Largely for company and/or
programs, development of new events staff benefit
talent
Health Support of community clinics, Occupational health and Meeting legislated obligations
health programs in the community, safety, workplace AIDS in SA
AIDS awareness and care projects awareness, clinic facilities
in the community, ARV’s for and ARV’s for employees
community
Sport Support of developmental programs Sponsorship of commercial Primarily promotion of
events or professional teams company brand rather than
direct impact on sports
development

52. State of Giving
South Africa

53. Giving is big business*
• Listed Companies – R5.6 billion per annum
• Unlisted Companies – R2 billion per annum
• State Owned Enterprises – R1.5 billion per annum
• SMEs – R1 billion per annum
• Individuals – R1 billion per month
• Private Individuals/Family Foundations – R1 billion per
annum
• International Giving – R2 (3=2010) billion per annum
• NGC estimation = CSI in SA is a R45 billion industry
and not R5 billion
*NGC own research

54. Reported Budgets 2010 - m
Absa R102 Barloworld R7.6 Harmony R27.6
Acsa R24 BHP Biliton R115 HCI Foundation R37
Advtech R42 Bidvest R25.3 Impala Platinum R61
African Bank R8.2 British American Tobacco R30 Imperial Holdings R13
African Rainbow Minerals R19.3 De Beers R43 Investec R29
Afrox R4.2 Discovery R6.3 Liberty R20
Altech/Altron R12.4 Eskom Foundation R79.5 Lonmin R64
Anglo American R600 First Rand Group R101 Massmart Holdings R20
Anglo Platinum R245 Foshini Group R24.3 MTN SA Foundation R74
AngloGold Ashanti R21.3 Gold Fields R15 Murray & Roberts R21
ArcelorMittal R40 Grindrod R2.3 Nampak R8
Aveng R17 Group 5 R2.7 Nedbank R30
Netcare R37 Rainbow R1.6 Transnet Foundation R60
New Clicks Holdings R14.4 Sanlam R19 Truworths R28
Northam Platinum R9.5 Santam R5 Vodacom R68
Oceana Group R4.1 Sappi R16.3 Woolworths R297
Old Mutual R32 Sasol R50 Unilever R12.3
Palabora Foundation R32.6 Spar Group R6.4 Tongaat Hullet R15.7
PetroSA R44.8 Spier R7.9 Standard Bank R94
Pick & Pay R61 Telkom Foundation R47 Sun International R20.4
Pioneer Foods R5.6 Tiger Brands R25 PPC Cement R10
Primedia R53.7 AVI R15.5 Engen R18.7

55. Non Spenders
Multinationals – Telecoms Nokia, Samsung, Erickson, Siemens
FMCG L’Oreal, Revlon, Unilever, Proctor &
Gamble
Fast Food KFC, MacDonalds, Cadbury’s, Nestle
Financial Visa, Mastercard, American Express
British Airways, British Telecom
Automotive BMW, SAAB, KIA, Honda
Nationals Mugg & Bean, Distell, Nando’s, BEE
Fast Food and BEE Companies – Rainbow and Mvelephanda,
Wiphold
Industries Media, Property, Services
Finance – Asset Management/Investment
Medical, Automotive
Advertising, Hotels (Protea, City Lodge
Direct Selling/Marketing – Amway, etc
Sectors Retail - Pep, Ackermans, Stuttafords
Pharma – Novartis, Pfizer, Adcock, Aspen
Oil/Petroleum – Shell, Total, BP
State Owned Enterprises National Ports Authorities, Armscor, SAA

56. Budget Trends
• Included in the budgets of corporates for CSI are:
– Spent on Events and awards – 45%
– Monitoring and Evaluation of projects – 43%
– Marketing and Promotion of CSI programs – 40%
– CSI Reporting – 34%
– External Expertise – 30%
– Own administration – 28%
• SOOOO,
• how much is going to development work?

57. Other Contributors*
• Zennex Foundation - R30 m • Mott Foundation – R20 million
• Oprah – R150 m • Bernard van Leer Foundation –
R10 m
• Bill and Melinda Gates –R642 m
• Joseph Rowntree Charitable Trust
• Carnegie Corporation - R200 m - R10 million
• Ford Foundation – R78 m • Difid Foundation– R30 million
• MacArthur Foundation – R30 m • Shuttleworth Foundation – R50m
• Family Foundations
• Rockefeller Foundation - R30 m
– Ackerman Foundation(R40m)
• Kaiser Family Foundation – – Oppenheimer (R30m)
R195m – Murray (R20m)
• Atlantic Philanthropies – R125 m – Rupert (R50m)
• Open Society Foundation – R50m – Appelbaum (R80m)
• Kellogg Foundation - R25 m
*NGC Own research

58. Interesting Finding
• Total Aid in 2008 in m US
Dollars
– 700 hundred million USD
• Ten biggest donors in 2008
– EU Commission – 173 m USD
– US – 137 m USD
– UK – 70 m USD
– Netherlands – 55 m USD
– Germany – 37m USD
– France – 28 m USD
– Global Fund (GFATM) – 26m
USD
– Sweden – 23 m USD
– Denmark – 18 m USD
– Belgium – 18 m USD
• Together with other CSI funds
this is a LOT OF MONEY

59. Foreign Development Aid
• SA receives around 1/3 of global aid, or around US$30 billion
• USAID – US$85 million
• Danida, Cida, AUSAID, DFID – R3.7 billion
• Largest investors are USAID, European Investment Bank, EU,
Germany and Sweden
• What they give – grants, technical assistance and loans
• The RDP fund acts as a clearing housing for money donated to
SA.
• The fund showed refunds since 2002-(R79 million), 2003-
(R40 million), 2004-R66 million, 2005 – (R72 million), 2006 –
(R80 million), 2007 – (R79 million), 2008 (R87 million).
• This is due to capacity problems. More specifically
delayed requests for funding, unrealistic time frames,
incomplete and inaccurate financial statements and non
compliance.

60. Sectoral Focus of Global Donors
Donor Sector
European Union Water, LED, Education
USAID Education, democracy and
governance, health, environment,
economic capacity, employment
Norway Democracy, higher education,
research, environment, natural
resources and energy
Sweden Education, private sector, cultural
sector, urban sector, research,
HIV/AIDS, capacity building
Netherlands Justice, youth, education and local
government
Denmark Private Sector Development,
HIV/Aids, environment

61. Private Foreign Foundations
• More than 70 foreign based private foundations in SA
• More than 60 foreign faith based organisations in SA
• More than 100 foreign NGOs in SA
• Function as grantmakers, supporting specific
programmes and run their own projects
• Providing volunteers, professional services, material
resources, exchange programs.
• Most popular focus areas education,
technology/communications, capacity building,
environment, HIV/Aids & Health, culture, justice,
women, children, justice/peace/conflict resolution,
poverty.

62. Special Funds
• Initiatives by government to address poverty and development
• Budget – R55 billion per annum from Government, R5 billion from donors
• Special Poverty Relief Account
• Independent Development Trust
• Isibaya Fund
• Khula
• National Development Agency
• National Lottery Board
• National Skills Fund
• Operation Jumpstart Association
• Ntsika
• South African Women's Entrepreneur Network
• Umsobomvu Youth Fund
– (Replaced by National Youth Development Fund)
• National Empowerment Fund
• Local Economic Development Fund
• uTshani Fund

63. Public-Private-Partnerships
• National Business Initiative
• Business Against Crime
• Business Trust
• Joint Education Trust

64. Trends, Drivers and
Challenges in Grantmaking

65. 2 Perspectives
• Emerging Trends – linked to economic
crises
• Steadfast Trends – monitored over a
period of time – 5 years/top 20 most
influencing trends for the industry overall

66. 1st Perspective
Emerging Trends linked to economic crises
• Adjustment of budgets
– No new MOU’s, only focused on committed, signed
agreements
• Stronger focus on non-cash giving
– Product and services, volunteer hours, skills, time
• Stronger focus on measurement
– Monitoring and evaluation and impact assessment
• Stronger focus on new strategy development
– New focus areas
• Increased employee volunteerism & matched
giving
– To try and leverage budgets
• Greater alignment with Sustainability divisions
– Focus on Enterprise Development and
Environmental Impact
• Specific industry changes
– Automotive/Mining/Manufacturing industries in
decline, declining budgets

67. • Co-operation is no longer
a competitive factor
Impacts – Communities in distress
needs help, working
together will leverage funds
• Industry bodies need to
address specific issues
– Unions demand greater
involvement and assistance
and recognition of social
imperatives
• Communication with
development partners is
crucial
– Consider operational costs
to ensure successful
delivery of programmes
• All stakeholders will watch
how companies respond to
economic crises
– Greater opportunity for
stakeholder involvement and
participation

68. New Patterns and influencers
• Leveraging core assets
– Distribution channels
– Suppliers – value chain
– Access to markets – customers
– Access to sustainability – income
generation – social entrepreneurship
• Impact of climate change
– Reduced access to water
– Reduced food production – cost of
food
– Need for local producers to reduce
carbon footprint (importing)
• Sustainability
– The race to zero carbon impact –
offsetting carbon emissions

69. 2nd Perspective
Trends driving innovation
INNOVATION –
Is innovation possible in a
socio economic development context?
Is it fair to expect innovation?
How will we know our solution is innovative?
How will we measure
INNOVATION?
IMPACT?
SUSTAINABILITY?
RETURN ON INVESTMENT?
Is it time for “back to basics” or radical innovation?

70. Top Trends
• Most influential trends driving innovation
– Trend 1 – Social Entrepreneurship
– Trend 2 – Commercialisation of CSI
– Trend 3 – Influence of Compliance
– Trend 4 – The rise of stakeholder engagement
– Trend 5 – The pressure to measure
– Trend 6 – Bigger, better models of development
– Trend 7 – Green is the new black
– Trend 8 - Put away the lenses/gloves
– Trend 9 – Follow the money
– Trend 10 - Hard facts, dangerous half truths and total nonsense

71. Trend 1 – Social Entrepreneurship
• The rise of social entrepreneurship • Practitioners not ready
– Mohammad Yunus – Current grantmaking criteria does
• Social entrepreneurs not allow flexibility
– Charles Maisel – Cannot fund for-profits
– Tamzin Ractliff – Don’t fund individuals
• Social Enterprises – Fund only specific focus areas
– Grameen Bank notwithstanding real needs
• Social Venture Capital – Risk adverse
– Sasix – Lack entrepreneurial
understanding & insight
– Greater Good – One size fits all approach to
• Social Collaboration grantmaking
– Grow South Africa – Discriminate against profitability
– Don’t really understand
• NOTE:2011 sustainability
• ISSUE OF ENTERPRISE
DEVELOPMENT! • NOTE 2011:
• ISSUE OF SOCIAL ENTERPRISE
SOCIAL ENTREPRENEURSHIP
Best Practice in SA – Sasix – Able to raise and distribute R32-m in 36 mths

72. Trend 2 – Commercialisation of CSI
• The fortune at the Bottom of • Driven by business benefits
the Pyramid and future profits
• Products for poor people • Increased impact & awareness
• Making markets work for the of sustainability and
poor interconnectedness
• The next 4 billion • Search for double/triple bottom
• Bringing together the 1st and line benefits
2nd economies – Financial vs Social Returns
– Financial vs Social vs
• Cause Related Marketing Environmental Impact
• Flagship Programs • Elusive sustainability
• NOTE 2011: • NOTE 2011:
• ISSUE OF HIGH PROFILE • MAJOR FMCG COMPANIES
PROJECTS – OUTSURANCE – REVENUE MODELS
/ DIAL DIRECT
Best Practice in SA – Nedbank Affinity Program – R2m for NMCF in 6 months,
R75 m for WWF in 24 months,
excluding Sports Development and Arts & Culture Programmes

73. Trend 3 – The influence of compliance
• Tick box approach • Add to burden of
• Legislation are driving administration both for
motivation grantees and grantors
• Compliance are hard work • Driving pressure to measure
• The good, the bad and the ugly • Reporting becomes big
– Good - everyone now gives • New strategies/new
– Bad – once spent 1% NPAT – budgets/new focus areas/new
stop reporting lines
– Ugly – Reducing budgets • Shifts in development – new
• Points drive investments flavours of the month
• NOTE 2011: • Enterprise development at the
cost of social development and
• ISSUE OF „BLACK‟ welfare
RECIPIENTS – the poor not
necessarily classified by • NOTE 2011:
race anymore • ISSUE OF ASSURANCE AND
GOVERNANCE
Best Practice in South Africa – Linking Enterprise Development (ED),
Local Economic Development (LED), and Procurement to CSI spent.

74. Trend 4 – The rise of stakeholder
engagement & activism
• Product and market • Ring fencing CSI – The
stewardship / responsibility popularity of foundations
• Governance and ethics • Responsibility, Transparency
• Human rights and gender and Accountability
equality • Give or else – mentality
• Risk vs reputation • Communities are becoming
• Giving vs getting aware
• Food vs fuel • Issues and reputation become
• Humanities vs Humanitarians obstacles to giving
• NOTE 2011: • NOTE 2011:
• ISSUE OF LABOUR UNIONS • ABILITY TO USE CSI FOR
AND GOVERNMENT NON RESEARCH AND
SERVICE DELIVERY STAKEHOLDER
ENGAGEMENT
Best Practice in SA – British American Tobacco – South African
Breweries, Anglo American – Sustainability Reports

75. Trend 5 – The pressure to measure
• Reporting requires • Practitioners are not
measurement indicators development specialists
• Measurement indicators • Practitioners have good hearts
requires objectives and targets but not good / expert
• Objectives and targets require knowledge
strategic intent • Practitioners rely on others and
• Strategic intent requires their performance are
knowledge influenced by issues outside
• NOTE 2011: their control
• CAREFUL OF HOW AND • Practitioners don’t understand
WHAT YOU REPORT – how to prove ROI and Impact
SUSTAINABILITY REPORT • NOTE 2011:
• INDICATORS NEED TO BE
ALIGNED WITH THE
STRATEGY OBJECTIVES
Best Practice in Kenya – Kenya Power & Electricity Co in Kiburu - Pro-poor strategy –
(prepaid meters, ready board, least cost alternative (alternative energy sources),
local sustainability – planting trees – offset carbon footprint, buying poles from local
communities to provide income opportunities – enterprise development- Focus on
environment – carbon trading & energy saving bulbs
– 1m people 18 months

76. Trend 6 – Bigger, better models of
development
• Marketing is important • War on ideas
• Communication (PR) is • Piecemeal approaches will not
important work
• Integration and alignment is • Effective social change requires
important – long-term commitment
• Proving impact and return is – willingness to take risks
important – the ability to work across
• It just makes so much sense sectors and silos
• It becomes the new heart and – investments in strategic
sole of our marketing research and policy analysis
campaigns • NOTE 2011:
• NOTE 2011: • THE ISSUE OF EXIT AND
• IMPACT OF RECESSION ON SUSTAINABILITY NEEDS TO
NUMBER OF FOCUS AREAS BE PRE-DEFINED
AND DEVELOPMENT
SECTORS
Best Practice in Kenya – CFW – Franchised Health Care
50c for primary health care, 4000 nurses earning $4000 py

77. Trend 7 – Green is the new black
• Environmental impact is driven • All companies are adding
by global agendas environmental projects to
• Until now we only focused on the funding mix
social impact
• An idea whose time has come • Agriculture/Food
• The raise of ethical trading and Security/Green Farming/
sourcing, fair trade, green Organic Farming/urban
trade, eco trade, carbon trade renewal and greening –
• NOTE 2011: the latest CSI
• INTEGRATE CSI WITH phenomenon
SUSTAINABILITY • NOTE 2011:
STRATEGY TO MITIGATE
AND MANAGE RISK! • NOT ALL GREEN
PROJECTS ARE
EQUAL
Best Practice in SA – Woolworths – Good Food Journey
Enterprise Development and Procurement, recycling targets

78. Trend 8 – Put away the gloves
• Tipping points • Serious questions
– Absence of Market Standards – What have we changed
– Lack of Proven “Return on – What have we contributed
Investment” – What is our impact
– Market Fragmentation – What was the return on
– Grant Making in Isolation investment yielded
– Insufficient Resources – What access do we have to
– Various Investors, Various Knowledge
Instruments – What is our Code of Conduct
– Tension between – Where are the Industry forums &
competitiveness, Cost of collaboration
Capital and Community/ – What about the underdeveloped
government needs/wants/ Concepts Regarding the
expectations Meaning of “Going to Scale”
– Market “Insiders” versus – NOTE 2011 – ARE WE (CSI
Market “Outsiders” INDUSTRY) SUSTAINABLE?
– Market Hype Versus Vision
Grounded in Practice
Best Practice – Rift Valley – Ghana
Flowers, Tea, Coffee, Vegetables
From less than $1 a day to $3500 py

79. Trend 9 – Follow the money
• R40 billion + per annum must • New rules of engagement
yield results – Support organisations not
• Donors operate independent of programs
each other – Use influence not just money
– Experiment, pilot, scale
• Donor motivation varies greatly
– Redefine the spheres of activity
within the market – Influence public policy
• Metrics to assist in identifying – Cross the borders
effective organisations are – Consider politically incorrect
largely lacking investment opportunities to fast
track skills, job creation and
• Information systems to track poverty alleviation
effectiveness are lacking • NOTE 2011:
• NOTE 2011: • THE IMPORTANCE OF
• IT IS NOT ABOUT THE SOCIAL BASELINE STUDIES
NUMBERS! BUT THE AND STAKEHOLDER
IMPACT AND SROI ENGAGEMENT
Best Practice in South Africa – SOE in SA – Escom,
Telkom, Transnet, NDA etc – more than R1b in 2008

80. Trend 10 - Hard facts, dangerous half
truths and total nonsense
• Build to last, great to good • All we measure is input (how
• It might help you, if implementing much we spent) and activities
it doesn’t kill your organisation first (what we do) and not impact
• What is good for them might be (over time) and we don’t report
bad for you on ROI
• Great people and companies • Creating a Culture of Learning
succeed despite rather than – Learn from evaluations
because of some practices – Learn from communities
• Don’t believe your own brochures, – Learn with and from grantees
PR Materials and Annual/ – Learn with and from other funders
Sustainability Reports
– Learn from academic institutions
• NOTE 2011: – Learn from professionals
• WHAT ARE WE DOING – Learning from other types of
DIFFERENTLY – COMPARED information intermediaries
TO PREVIOUS YEARS?
Best Practice - Safaricom Keyna - renewable energy, recycling of handsets,
providing jobs for physically challenged - Measuring impact on market –
labor market, rural development, contribution to GDP, leverage of
government resources, development sector capacity and other corporates

81. Why do CSI Fail? (1)
• Limited understanding of the often complex local context:
– Companies have sometimes commenced community relations, investment and development
initiatives without fully understanding the socio-cultural context or how their presence
and actions can affect the complex dynamics between and among local stakeholder
groups. This has led to a range of unintended consequences, including the exacerbation of
tensions or creation of conflict among communities
• Insufficient participation and ownership by local stakeholders:
– Delivery of community projects without sufficient involvement of local communities and
local government in decision making around development priorities has resulted in
projects with low relevance to local stakeholders (and therefore by implication – low
impact).
• A perception of “giving” rather than “investment” (Including lack of
clear objectives):
– The tendency to view community relations, investment and development as charity, rather
than as an investment linked to the business and operational objectives – has resulted in
vague mandates and a lack of direction and purpose for socio economic development
strategies and programs.
• Detachment from the business:
– Community investment and development programs have tended to be planned and
implemented in isolation from business activities and other day-to-day actions
affecting stakeholders. This has limited CSI’s effectiveness in helping the company to
address key social risks and opportunities at the site level or to take advantage of business
efficiencies and competencies in support of local communities.

82. Why do CSI Fail? (2)
• Responding to local requests in an ad hoc manner:
– Ad hoc approaches are typically opportunistic and focus on short-term outputs rather than
catalysing long-term change. The risk, in many cases, is that the sum of all these disparate
contributions to local causes does not add up to anything that either the company or
host communities can point to as a tangible or lasting socio economic development
benefit.
• Lack of professionalism and business rigor:
– Few CSI programs are held to the same standards that companies apply to other
business investments they make (in terms of professional rigor, a clear business rationale,
planning and budgeting processes, and accountability for results). This often reflects the low
priority given to CSI by senior management when there is no perceived link to the company’s
bottom line.
• Insufficient focus on sustainability:
– It is only in recent years that the sustainability of CSI activities supported by
companies has become a key factor in project selection and design. In the past, short-
term objectives took priority over longer-term considerations, and sustainability policies and
criteria were not given much emphasis.
• Provision of free goods and services:
– While well-intended, the long-term consequences of providing free goods and services, or
infrastructure for that matter, have not proven to be in the interests of either the company or
local stakeholders. The lack of requirements for matching contributions (whether
financial or in-kind) has made it difficult to generate shared ownership or financial
sustainability, and has instead fostered dependency.

83. Why do CSI Fail? (3)
• No exit or handover strategy:
– Commencing activities without planning in advance for the company‟s eventual
withdrawal has rendered many company-supported programs unsustainable and
created difficulties for the company around its “social license to exit” in times of
financial cutbacks or project end.
• Overemphasis on infrastructure and under emphasis on
skills/capacity building:
– Traditionally, CSI programs have been dominated by company-led, bricks-and-mortar
types of projects (particularly in the mining industry) with a significant lack of
investment in the participatory processes, such as skills building, and
organisational development necessary to affect and maintain long-term change.
• Lack of transparency and clear criteria:
– Unclear criteria have led to numerous cases of conflict between and among
communities over who gets what and why. When transparent criteria are lacking,
company practice in distributing benefits may be perceived as secretive,
unpredictable, and susceptible to manipulation.
• Failure to measure and communicate results:
– In many cases the effectiveness of CSI programs is unknown because it has not
been systematically tracked or measured the way most other business activities
or expenditures would be. Common shortcomings include the lack of proper
baseline data (i.e. social impact studies) and a focus on measuring the volume of
spend (inputs) or the number of outputs rather than the actual quality of outcomes.

84. Getting Started and
Making it work

85. Our Approach
• Strategic Review
– Business
– Brand
– Operations
– Sustainability
• Internal and External Stakeholder Dialogue
– Management, Executive, Employees
– Partners, Beneficiaries, Intermediaries
• Benchmarking
– Local, Global, Inside and Outside Industry
– Comparative and Competitive Analysis
– Industry / Sector Review
• Social Baseline Studies / Sector Specific Research –
Education, Health, etc.

86. Group Feedback and Interaction
• Defining the business case
• Developing the strategy and policy
• Developing focus areas
• Developing grantmaking criteria
• The process – application, consideration,
approval, contractual, funding, monitoring/
evaluation/impact assessment, reporting,
communication

87. The Ages and Stages of CSI*
Business Age Stage of CSI Modus Key Enabler Stakeholder
Operandi Target
Greed Defensive Ad Hoc Investments Shareholders,
Interventions government
and employees
Philanthropy Charitable Donations Projects Communities
Marketing Promotional Public Media General Public
Relations
Management Strategic Management Codes Shareholders,
Systems NGO’s, CSO’s
Responsibility Systemic Business Products Regulators and
Models Customers
The Age of Responsibility – CSR 2 – Dr Wayne Visser

88. Process of Strategic CSI
Assess the Assess the Engage Invest in Set the Select Measure and
business local Communities Capacity Parameters implementa- communi-
case context Building tion models cate results
Business Socio Community Needs Objectives, In-house Baseline
Case Economic Planning Assessment guiding
Assessment principles
and criteria
Risk and Stakeholders Assets and Target Investment Multi- Indicators
opportuni- and opportunities Groups Areas stakeholder
ties networks partnerships
Core Institutional Visioning and Types of Exit strategy Third Party Community
competen- mapping prioritisation capacities perceptions
cies and skills
Internal Partners Expectations Options and Budget Foundation Return on
Alignment management strategies investment
Project Environment Gender Hybrid Models Communica-
Cycle al Scanning tions Strategy
Industry/
Competitors
Benchmarking

89. Guidelines for Best Practice
• Set out a 3-5 year plan for the company’s community investments
• Establish community relations, investment and development strategic objectives that are
linked to the business case
• Identify target stakeholder groups and specify eligibility criteria
• Link the Community Strategy to the local context by drawing upon socio economic
baseline studies
• Establish an iterative process of engagement with local stakeholders and partners on
Community Relations, Investment and Development
• Draw on the company’s core competencies and resources to support communities
• Promote cross-functional coordination and accountability for supporting CSI objectives
• Integrate CSI with other company programs that involve communities (stakeholder
engagement, grievance process, environmental and social impact management, local
hiring and contracting as well as Human Rights)
• Set out criteria and guiding principles against which all Community Investment and
Development proposals is screened
• Identify the key program areas in which the company will invest
• Identify the implementation model and decision-making / governance structures
• Define roles and responsibilities, budget, scope, and timelines
• Describe the company’s (and in particular the specific programs) exit / handover and
sustainability strategies
• Consider both short-term and long-term objectives
• Describe how project results will be monitored and communicated

90. Getting Smarter: Support
• DO YOU?
– Devote a portion of the annual
grantmaking budget to general
operating support grants
– Renew one-year grants sometimes,
often or always
– Support capacity-building activities
among grantees
– Award multiyear grants of two
years or more sometimes, often or
always
– Directly support grantee leadership
development activities
– Is your general operating support
grants greater now than it was three
years ago

91. Getting smarter:
Application practices
• Do you?
– Have a common (single/standard) application
form
– Have financial and other standard applicant
information available online
– Accept proposals that were prepared for other
funders
– Compensate nonprofits for their time if you
approached them and requested a proposal –
but then ultimately rejected it

92. Getting Smarter:
Reporting Practices
• Do you?
– Require final reports often or always
– Read Grant reports (by at least one, two or three staff
members)
– Use Grant reports to foster learning and a useful
exchange between yourself and the grantees often or
always
– Ensure reporting requirements are often or always
proportionate to the size and type of grant (e.g., a
one-page report requirement for a small grant or
event sponsorship)
– Acknowledge receipt of grant reports within four
weeks
– Require Interim reports often or always
– Have a common grant report form often or always

93. Getting Smarter: Feedback
• Do you?
– Solicit feedback of any kind
(anonymous or non anonymous)
from grantees and beneficiaries
through surveys/interviews/focus
groups
– Test/compare the results and
outcomes of your
projects/programs against
benchmarks or results of other
funders or industry standards

94. Getting Smarter: Stakeholder
Engagement
• Do you?
• Meet with grantee leaders to learn more about mutual
issues and trends from their perspectives
– Conduct site visits
– Attend grantee events (e.g., fundraisers, performances)
– Assess the needs of the communities or field(s) you serve (e.g.,
through surveys, interviews or focus groups)
– Bring together funders and grantees to discuss matters of mutual
interest
– Invite grantees to address board members sometimes or often
– Seek external input on grant proposals from representatives of
recipient communities or other grantees
– Seek advice from a grantee advisory committee about policies,
priorities, practices or program areas
– Delegate funding decision-making power to representatives of
recipient communities or other grantees

95. Steps to more strategic
grantmaking
• Clarify your values (e.g. social justice)
• Create a vision (e.g. health insurance/primary
education for all South Africans)
• Determine the best way to achieve intended
results (through research, planning, use of best
practices, careful execution and follow through)
• Stay focused (it is hard to be strategic when you
spread yourself too thin)
• Align your resources (your expertise and
network might be as useful as your money)

96. CSI – Strategy guidelines
• A strategy that
– Will support and contribute to positive social change
– That encourages innovation and creativity in its
application and interpretation
– Is so innovative and creative that it becomes a
competitive differentiator for the company
– Draws on all the core competencies and resources of
the company
– Is easy to understand, execute, communicate,
monitor and evaluate
– Will encourage and ensure employees‟ involvement
and support
– Is so comprehensive that it will guarantee board, senior
management and business unit commitment
– Focus on areas that correlate societal challenges with
business challenges
– Is still neatly boxed and clearly defined

97. CSI policy guidelines
• Support and promote projects with a specific relevance to
the organisation
• Focus on communities close to areas of business and
operations
• Collaborate with other funding and development
agencies to promote and develop CSI (collective effort and
greater contribution)
• Collaborate with government – (consult and identify need
for contribution)
• Advise communities on project planning and
implementation – to ensure project success
• Focus on and strive to consolidate initiatives that derive
greatest benefit to communities (large scale funding and
economies of scale – cluster and rank initiatives)
• Audit implementation and accomplishments – ascertain
results and outcomes
• Review and refine strategy and focus – continuous
improvement

98. Strategic Considerations
• Follow an inclusive process that allows all internal
stakeholders to contribute any resources at their disposal to
become involved in the CSI strategy
• Follow a proactive approach that encourages communities
to interact with the organisation in a deeper and more
meaningful way
• Ensure the involvement of employees in the process
• Ensure that the objectives of the CSI strategy follow ethical
grant making principals that support integrity, respect, and
nurture and reflects diversity and cultivates mutual respect,
with a bottom up approach
• Allow communities to share their needs and requirements
rather than impose interventions on such communities
• Supports political, economic and social change and
leave a legacy of empowerment

99. CSI Practitioners –
Roles and Responsibilities
• Build and maintain relationships with key stakeholders
• Develop the business case for CSI
• Get top management to understand the benefits of CSI
• Understand the nature of development
• Promote strategic CSI over compliance based CSI
• Document processes, procedures and lessons learnt
• Share development lessons and experiences
• Ensure proper utilisation of all resources
• Promote the integration of CSI into every business unit
• Communicate CSI activities to all stakeholders
• Understand what elements of project management are
relevant
• Ensure good governance and practices are ingrained
• Ensure success of projects/programmes and
interventions

100. Categories of CSI Practitioners
Type Characteristics Strengths Weaknesses
The Helper Often comes from a Often has a good May struggle to identify with
community development understanding of community corporate culture and to align
background issues and needs CSI with core business
practice
The Marketer Usually comes from a Has a good grasp of the May struggle to gain an
marketing or communications company’s interests and is understanding of and
background able to get the company acceptance by community
brand value for its social organisations
investment
The Problem Solver Often comes into CSI as a Has the experience and May end up alienating others
The Purist specialist in an area of resources necessary to in the process of addressing
interest or with regard to a address a particular need or the need owing to his or her
perceived need of a issue within the community expertise and specialist
community knowledge of the subject
matter
The Incidentalist The CSI function is only one Is often chosen on the basis May not have the time and
of a number of other roles of proximity to the leaders of support to develop a well-
that he or she fulfils within the the company conceptualized CSI model
company
The Purist Been there They have the knowledge Know everything
The Professional CSI Done that and the experience. My model/project/legacy
Practitioner Know everyone Can walk the talk and interact Knowledge is power
Know all the rules at all levels. Don’t need to learn
Know all the legislation Have developed best practice Don’t contribute to
development models. learning/knowledge/ industry
Very clear on what is
right/wrong/ what is needed – best practice

101. Towards the Future

102. • It's more ambitious: Today's
grantmakers are tackling giant
The Future of Giving issues, from remaking African
education to curing cancer.
• It's more strategic: Donors are
taking the same systematic
approach they used to compete in
business, laying out detailed plans
that get at the heart of systemic
problems, not just symptoms.
• It's more global: Just as business
doesn't stop at national borders,
neither does charitable giving.
Donors like B. Gates to George
Soros and Bono have sweeping
international agendas.
• It demands results: The new
grantmakers and philanthropists
attach a lot of strings. Recipients
are often required to meet
milestone goals, to invite
foundation members onto their
boards, and to produce
measurable results--or risk losing
their funding

103. The Future of Grantmaking
• More scrutiny from legislators and
regulators
• More skepticism from consumers and
the general public regarding motivation
and impact of corporate giving,
particularly cause marketing initiatives
• More integration of corporate
grantmaking with the larger Corporate
Sustainability agenda
• More requests from nonprofit
organisations, both large and small, to
help close budget gaps, particularly from
social service providers facing more
people in need every day
• More pressure from internal
management to cut costs, and possibly
even grantmaking budgets
• More emphasis on the role of
companies as global citizens, with an
obligation to help those in developing
countries affected by HIV/AIDS and
other global health issues

104. Challenges for 2011
• Aligning the giving program more closely with the business needs.
• Desired impacts are not being achieved – social problems persist and
may even be worsening
• Government has changed its involvement – organisations can no longer
rely on government as a source of funding or support (resources) –
disillusionment with government as a partner is growing
• The challenge of global giving is putting more pressure on funders and
their already diminishing budgets
• Education issues, diversity and environment/sustainability are gaining
in importance. Issues that are declining in importance include culture and
the arts, faith-based organisations, alumni giving and global
disease/pandemics.
• Asia is receiving the bulk of the attention. There is much less interest in
Africa.
• The top three management priorities are the relationship to the broader
corporate citizenship/sustainability agenda, measurement of results such as
impact and return on investment and volunteerism.
• The two biggest changes in corporate giving programs observed since
2007 are the greater alignment of giving programs with the business and
cuts in budget and staff

105. Tipping Points or Flux
• Tough questions
– How is contributions spent
– How much is being spent
– Are we making a
contribution or facilitating
change
– Are we entering a tick box
mindset
– Are we getting better at it,
can we measure our
impact
– Are we talking about the
same things

106. Carrots & Sticks
• Are practitioners between a
rock and hard place – do
they have influence?
– Are we strategic
– Are we entering moral
and ethical debates
• Developers &
implementers vs facilitators
• The Achilles Heel -
Measurement

107. Please note:
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