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Public-private partnerships and corporate social investment programmes are the way forward for business Before we go any further, let us first remind ourselves about the DNA of corporate social investment – what is CSI?
It is the investment of corporate funds or other assets for the primary purpose of achieving social outcomes because there is a need for such an investment. The primary intention of this investment is to achieve social outcomes. The expectation is of a social return on investment.
CSI spend in South Africa is currently reported to be R5.1 billion (by South African companies), with the Gauteng province receiving the major portion of this investment. Most of this investment (nationally) has been injected into education (38%).
In South Africa, we have too many parallel campaigns trying to achieve the same goals; on a larger scale, these (parallel) efforts have and will continue to result in snail-pace development inthe country. This has left one wondering if we will meet our Millennium Development Goals (MDGs).
If there is any vehicle that can remedy South Africa’s social challenges, it is definitely public-private partnerships (PPPs).
We have always known this, but what are the challenges? Why are we not seeing enough strategic collaboration between our government and corporate South Africa? These are questions we should all ask ourselves.
The importance of PPPs
Efficiency
When resources are shared (collaborative effort), the common goal of empowering the South African community (which is a shared goal) will effortlessly come into being, sooner rather than later – a win-win for everyone.
The benefits for all stakeholders will inevitably follow as a result. Benefits for businesses, government and the greater society will be in the long run.
Sustainable business environment for companies to do business
The more social interaction there is between a company and a local community, the more the latter will be interested in what a company does.
The local community will develop loyalty toward companies that invest in them.
Less brain drain for the country
With a thriving economy, a country will retain its talents (particularly the youth, which is currently preferring to work in more developed counties), since it will have fairly lucrative offers on the local job market (remember that now, more resources will be invested in development projects).
Both companies and government departments are currently challenged by the shortage of skilled personnel.
Low crime rate
Crime always takes us two steps back.
Corporate South Africa, the government and civil society remain deeply concerned about the “high level of crime and violence” in the country.
We all know that prevention is better than cure, which means that the more sustainable empowerment programmes are implemented (with all stakeholders involved), the better chance we have to reduce crime (particularly related to poverty, excluding white-collar crime) for the benefit of all the mentioned stakeholders.
This means that government investment made toward fighting crime, and money donated by organisations such as Business Against Crime can now be channelled to social development projects that aim to alleviate poverty and skills development.
Attract foreign investment
As a result, the less crime in the country, the more we will attract foreign investment from multinational companies and governments which will be interested in doing business with South African companies and government.
This will present business and job opportunities for locals and good tax returns for the Receiver, which will be used by the state to advance its mandate.
Failure in CSI
Failure in CSI is not only about a company injecting funds on a campaign that finds itself evaporating into thin air – such failure is engineered when a company cannot be corporately responsible.
Before we continue, what is corporate social responsibility? It is an organisation’s responsibility toward the business environment in which it operates.
If a company cannot be a responsible citizen, how can we then expect it to make a meaningful social investment?
Do not even mention collaborating with other companies or the government. It is like making Bernie Madoff (operator of what has been described as the largest Ponzi scheme in history) a head of state and expect him to be an ethical leader.
We have heard it all – from the Gulf of Mexico oil spill by BP (while its chief executive Tony Hayward took a yacht cruise) to banks being socially irresponsible in their dealings, resulting in the recent global economic meltdown which has erased all the CSI efforts made in the past by the very banks (one even starts wondering if the CSI made in the past by these banks was from the heart).
In a domino effect, a responsible corporate citizen (a company) will inevitably find itself in a position to make sound social investment.
Conclusion
In his foreword to the “Millennium Development Goals Report 2010”, Ban Ki-moon, Secretary-General of the United Nations, said: “The world possesses the resources and knowledge to ensure that even the poorest countries, and others held back by disease, geographic isolation or civil strife, can be empowered to achieve the MDGs.”
These resources (physical assets, skills, funding and many more) are in the hands of both the public and private sector, which is why these two parties need to collaborate.
Michael Jackson had a hit song entitled “Heal the World”, the lyrics of which go a little something like this: “Heal the world / make it a better place / for you and for me, and the entire human race / There are people dying / If you care enough for the living / make a better place, for you and for me”.
If a local community is sick with flu, inevitably when it coughs, the government and conglomerates operating there will also catch it.
As a matter of urgency, we need a biannual provincial CSI convention that will see local governments, non-governmental organisations and corporate South Africa comparing notes on local social challenges e.g. discuss the nature of the challenges facing local communities, set out clear social goals that need to be achieved, look at how to strategically share resources that both public and private parties have at their disposal, look at realistic time frames to achieve such goals, among other topics, this will result in a well-oiled machine that can sooner (than later) see South Africa obtaining a first-world country status.
Menzi Mthethwa
Sources: Trialogue, CSI Solutions, World Council for Corporate Governance
