CSI: The Role Of Business in Society

The role of business in society has largely been shaped by socio-economic and political forces. In SA a clarion call for the involvement of business in the communities in which they operate was made in the 1970's and since that time the concept of corporate social investment (CSI) developed with different strands of thought evolving form paternalism to enlightened self interest. However, the socially responsible things companies do to or for the community has shifted to something it does with the communities for mutual benefit. 

In spite of its brief history in SA, corporate social investment has undergone a dynamic transformation evolving from responsibility to investment and into community development. The King III report on good governance extended the role of business to that of a corporate citizen.  Three levels of business behaviour can thus be distinguished via: the organization¡¦s role as employer, its role as a leading citizen in the community of operation and its role as a good and concerned citizen of SA.

There is a growing awareness by the private sector that being seen as a socially responsible and caring corporate citizen is an important aspect of a company¡¦s public relations and corporate image profile. There is a shift away from hand-out philosophies into a more developmental approach that brings with it the concepts of empowerment and sustainability, and necessitates a new approach to CSI, requiring partnership building with communities and other role-players, and increased networking and communicating between corporate donors in order to maximize the impact on development.

A socially responsible company taking social action in response to the changes and demands of society at large will typically be involved in: education, housing

health, welfare, job creation, community development and empowerment, small business development, environmental conservation, rural development and so on.

There has to be a balance between being proactive and responsive in CSI activities.

Companies should view their CSI programmes as a strategic function that adds value to the business and the communities it operates in, creating a conducive economic environment, whilst at the same time facilitating good corporate citizenship.

For a CSI activity to be in line with business objectives it is imperative to have absolute clarity as to the company¡¦s goals and its internal and external target audiences. This approach makes the programme responsive to the company¡¦s needs whilst upholding its commitment to communities. Strategic CSI  programmes may include, but is not limited to:  Clearly defined goals and operating criteria, the cultivation of partnerships and joint ventures and the completion of needs assessment to ensure the viability and sustainability   

of each project.

There are several ways in which companies can be become involved in CSI.  The manner in which a company becomes involved is entirely a matter of strategy. Cash contributions and non- monetary contributions can separately or simultaneously be the epitome of the approach to community involvement. Non-financial support can be provided in many forms including:

• The provision of products
• Secondment of staff to projects
• Skills transfer
• The provision of venues
• Services
• Employee involvement
• By providing your TIME to assist others.

Non- monetary contributions have become a very prominent feature of CSI lately and, within the context of the global recession that has ravaged economies as well as being strategically more sustainable, it certainly adds a new dimension to corporate thinking.

The Eastcape Training Centre (ETC) has adopted a CSI approach that is strategic and sustainable and as an NPO the ETC conceptualized its CSI programmes within the ambit of non- monetary contributions. In other words, instead of hand-outs, ETC opted for direct involvement in community development through the many different forms elucidated above. This approach signals a re- imagination of the possibilities of giving beyond funding. As such non- monetary contributions comes closer to empowerment and capacity building than hand-outs. The essence of real development and people first in the CSI debate can thus be served much better through such an approach of being truly engaged in the community being served.

[This is a slightly adapted extract from a thesis submitted by Randall Jonas in fulfillment of the requirements of an MA degree obtained from the University of Port Elizabeth in 1999 (now NMMU)].