Review of CSI / CSR trends in SA: A Year of Evolution and Progress
Corporate Social Investment (CSI) and Corporate Social Responsibility (CSR) have been essential components of the corporate landscape for a long time. However, 2023 has been particularly pivotal in shaping the trends in these areas, especially in South Africa. This year brought to light the urgency of addressing environmental and societal challenges, while also underscoring the potential for positive change through corporate initiatives. Not only has South Africa been dealing with general social and economic issues, but loadshedding has also had a detrimental effect on business functions. Here’s a recap of the significant trends witnessed this year.
1. Sustainability and Environmental Initiatives
South Africa’s contrasting environmental crises, from flooding in some regions to drought in others, have underscored the pressing need for sustainable practices. The adverse effects of non-sustainable energy sources like coal and diesel are glaringly apparent. In response, many companies have made strides towards adopting renewable energy, optimizing their processes to be eco-friendly, and striving for net-zero emissions. Some examples of environmental initiatives include the Nedbank Foundation: The Green Economy and the SAA’s Environmental Project Office.
2. Diversity, Equity, and Inclusion (DEI)
The DEI movement has gained substantial momentum in 2023. Corporations have taken proactive steps to foster inclusive environments, from implementing diversity hiring strategies to launching initiatives supporting marginalized communities. The corporate realm is not just stopping at internal reforms; many are actively advocating for societal change, pushing for policies and practices that promote equality and justice.
3. Digital Transformation and Philanthropy:
The digital age has revolutionized the way businesses approach philanthropy. From online crowdfunding campaigns that support charity projects to virtual volunteering opportunities that allow employees to contribute remotely, the digital realm offers new ways for corporations to engage and make a difference.
Since the use of digital technology is so accessible, it has impacted the way companies approach their CSI and CSR initiatives. This fast, digital approach helps reduce a company’s carbon footprint by holding meetings online, for example. For initiatives related to education and skill-sharing, online engagement has made access to the initiatives a lot easier for a vast majority of people.
4. Impactful Metrics Reporting
No longer is it enough for companies to simply launch CSR initiatives; stakeholders more commonly request proof of their results and metrics. Comprehensive reporting, third-party audits, and rigorous impact assessments have become the norm, ensuring that businesses are genuinely making a positive impact.
5. Employee Well-being and Work Environment
The mental and physical well-being of employees has taken center stage. More companies are open to various initiatives, from mental health support programs to employee volunteering and even flexible work schedules. Focusing on CSRs like these are all aimed at fostering a healthy and supportive work environment.
6. Health and Safety
In the aftermath of the COVID-19 pandemic, health and safety protocols have been revamped across the corporate sector. Since then, more companies focused on initiatives that help the community and employees alike. A great example is the Shoprite #ActForChange Fund. They aim to make a difference in lives by providing affordable goods and services and economic opportunities. The #ActForChange Fund’s focus is hunger relief and food security.
7. Philanthropy with Purpose
Corporate philanthropy has become more strategic. Companies are now aligning their charitable endeavors with their core values and missions, ensuring that their contributions create lasting and meaningful change. This shift was evident in the numerous youth programs, educational initiatives, and job creation projects launched by NGOs and NPOs across South Africa, offering hope for a brighter future. Trialogue posted an in-depth look at their education theme, Connected Schools – a Holistic Approach.
8. Supply Chain Responsibility
The ethical implications of supply chains in CSR have come under the spotlight. Companies are delving deeper into their supply chains, ensuring that they are free from human rights violations and are environmentally sustainable. It’s in a company’s best interest to pay attention to the supply chains to ensure it complies with legal, ethical, and economic standards and concerns.
9. Partnerships and Collaborations
Companies and organizations in South Africa have continued to recognize the immense value of collaborations and partnerships in their CSR and CSI initiatives. By forming strategic alliances with non-profits, governmental agencies, and even other businesses, these companies have been able to amplify their impact, pool resources, and share expertise.
10. Regulation Compliance
As worldwide governments intensify regulations concerning sustainability and CSR, businesses are not just aiming for adherence. It’s important to discuss with policymakers to ensure that emerging regulations resonate with their company principles, values, and CSI strategies.
Summary
2023 has been a transformative year for CSI and CSR in South Africa. Faced with distinct challenges, the corporate sector has demonstrated resilience, innovation, and a genuine commitment to creating a better future. As we look ahead, it’s clear that businesses will play a pivotal role in shaping a more sustainable, equitable, and prosperous world.
About the Author:
Yolanda Gossel is the Founder and Programme Director at Five Tulips, a South African based sustainability and corporate social investment (CSI) consultancy. Five Tulips forges partnerships between communities, public and private sectors and individuals for social upliftment and preservation of our planets resources and ecosystems.
To connect with me visit:
LinkedIn: https://www.linkedin.com/in/yolandagossel005/
Twitter: https://twitter.com/Fivetulips
