Factors Necessary for Effective CSI in South Africa Setlogane Manchidi Serious Social Investing Conference 11 April 2016

Masters Research 10 seasoned 10 leaders CSI Heads with active across industry 10 leaders with active involvement in CSI Sample of 20 Face to face interviews Thematic Analysis

Three Research Questions 1. CSI impact in South Africa 2. Factors necessary for effective CSI implementation 3. Identification of CSI focus areas (2015 -2020)

Number of Participants Percentage of Participants Positive Impact? Response Number of Participants Percentage of Participants Yes, it is having impact 15 75% No, it is not having impact 5 25% Totals 20 100% All 15 who responded yes to impact felt the need to qualify their responses.

Impact is Limited Slow pace of impact Impact only in pockets Impact not systematic Impact is poor given financial injection levels

“Articulation of a clear purpose is key.” Key Factors CSI not Motivated by Marketing Strong Objection to marketing as CSI driver (20/20) CSI purpose: To drive broader societal transformation Making ‘meaningful social development change in society’ would shift things for the better “Articulation of a clear purpose is key.”

Key Factors 2. Alignment Between CSI and Business Strategy. Balance between driving social development and business goals, strategy and aspirations Unpacked alignment: sectoral, geographical, cultural and values alignment Improved alignment between CSI and business strategy should lift CSI’s positioning in business Ensure that business commitment to CSI is not an artificial one

Key Factors 3. Appropriately Structured & Staffed CSI Division CSI should not in Marketing – responsible for the low impact rate CSI should not be outsourced or located external to the business in the form of an arms length foundation Creation of separate CSI division/department with an equal standing as other operational departments

Key Factors 3. Appropriately Structured & Staffed CSI Division Resource CSI division appropriately Strategic positioning of CSI would be strengthened when suitably qualified people manage CSI strategies and efforts Balance CSI division staff compliment 50/50 – half social development and other half business CSI division must report to the highest office (MD/CEO)

Key Factors 4. Focused CSI Strategy Being everything to everyone not useful for impact (Unanimous) Need to focus but make better-informed choices Consideration of alignment to strategy is important - What constitutes greater alignment business strategy

Key Factors 5. Carefully Considered Collaboration Acknowledged limitations associated with collaborating Brand related competition Trust deficit between corporates Clarity around intentions of potential partners Form of collaboration should be consolidated Over a quarter of participants not convinced on collaboration

Key Factors 6. Focusing Communication of CSI on Impact There is a need to communicate CSI efforts (All) Sensitivities around the how to communicate CSI. (Marketing of CSI not like marketing a product) Balanced communication – Failures & Successes Focus more on difference made, avoid grand standing

Key Factors - Recap CSI not motivated by marketing purposes Alignment between CSI and business strategy Appropriately structured and staffed  CSI division reporting to the highest office in business; A focused CSI Strategy; Carefully considered collaboration within CSI; and Focusing communication of CSI on Impact.