The CSI Handbook presentation

Launch of the CSI Handbook 15th edition

November 2012

Background to the CSI Handbook

• 2012 marks the 15th edition of the CSI Handbook

• The 15th edition includes:

– Research with both corporates and NPOs presented in the ‘State of CSI’ chapter

– Topical feature articles on the NPO funding crisis, partnering with government and the funding of advocacy

– An overview of the top ten development sectors

– Corporate case studies and advertorials

– Expert viewpoints

The results come from research with both corporates and NPOs

• Corporates

– 108 structured face-to-face hour-long interviews

– Targeted companies with largest CSI expenditure

• NPOs

– 182 respondents to internet-based survey

– 109 fully completed questionnaires

– Spanned development sectors, size and region

– Approximately 15 minutes long

CSI expenditure in 2011/12

CSI expenditure continues to grow and amounted to R6.9 billion in 2012

Source: CSI Handbook 15th Edition Estimation based on analysis of published and research CSI expenditure figures N = 109

0

1

2

3

4

5

6

7

8

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

CSI

exp

en

dit

ure

(R

bill

ion

) Nominal (R6.9 bn)

Real (adjusted for inflation)

The top 100 companies accounted for 69% of the total estimated CSI expenditure

Source: CSI Handbook 15th Edition N = 100

6

26% 10

24%

14

21%

29

19% 41

10%

Number of top 100 companies % expenditure (R4.78 billion)

100

0

The top ten ‘published’ spenders accounted for a third of total CSI expenditure Company Spend (Rm)

Anglo American 508

Woolworths 370

Gold Fields* 335

Sasol* 184

Xstrata* 154

Transnet Foundation 150

Implats 130

MTN Foundations* 129

African Rainbow Minerals 125

Standard Bank Group 114

Source: Published annual and social reports presented in the CSI Handbook 15th Edition

* Published CSI spend includes international spend

Most companies now use the NPAT method to determine their CSI budgets

Source: CSI Handbook 15th Edition N = 107

0 10 20 30 40 50 60

Other

% of payroll

Fixed budget with variable % increase per annum

Budget applied for based on existing expenditure

% of pre-tax profit

Based mainly on company decision/board approval

% of post-tax profit/net profit after tax

2012 2003 % corporate respondents

Most corporates reported the full five points available for SED on their B-BBEE scorecard

Source: CSI Handbook 15th Edition N = 108

0 10 20 30 40 50 60

Not applicable

Don’t know

1 SED

2 SED

3 SED

4 SED

5 SED

% corporate response

Geographic distribution and development focus areas

National projects receive the lion’s share of CSI expenditure

Source: CSI Handbook 15th Edition N = 103

70 60 50 40 30 20 10 0 10 20 30

Northern Cape

Free State

Mpumalanga

Limpopo

North West

Eastern Cape

KwaZulu-Natal

Western Cape

Gauteng

National

% corporate support % corporate expenditure

Education continues to receive the most support and largest share of CSI spend

Source: CSI Handbook 15th Edition N = 108

100 80 60 40 20 0 20 40 60

Other

Non-sector specific donations and grants

Housing and living conditions

Safety and security

Sports development

Arts and culture

Environment

Enterprise development

Food security and agriculture

Health

Social and community development

Education

% corporate support % corporate expenditure

The willingness to fund developmental research increased from 37% (2011) to 59% (2012)

Source: CSI Handbook 15th Edition N = 108

50 40 30 20 10 0 10 20 30 40 50 60

Advocacy programmes

Co-ordinating or linkage programmes

Developmental research

% corporates not willing to support % corporates willing to support

Funding flows

Almost 40% of NPOs experienced a decrease in income in 2011/12

Source: CSI Handbook 15th Edition N = 149

33%

29%

38%

Increase Stay the same Decrease

% NPO response

Corporate contributions make up almost a quarter of NPO funding

Source: CSI Handbook 15th Edition N = 124

0 5 10 15 20 25

Other

Intermediary NPOs

Self-generated

Foreign governments

Trusts/foundations

Foreign private donors/organisations

Private individuals

Government

Corporates

% NPO response

NPOs receive the greatest share of corporate funding

Source: CSI Handbook 15th Edition N = 103

100 80 60 40 20 0 20 40 60

Other

To industry initiatives

To for-profit service providers

To other for-profit organisations

To government departments

To government institutions

To NPOs

% corporate response % corporate expenditure

A quarter of the surveyed companies do not support NPO operating costs

Source: CSI Handbook 15th Edition N = 108

80 60 40 20 0 20 40 60 80 100

Endowment fund

Start-up costs

Capital costs

Beneficiary-specific support

Operating costs

Capacity and growth costs

Project specific costs

% corporates not willing to support % corporates willing to support

Over 75% of corporates have employee involvement programmes

Source: CSI Handbook 15th Edition N = 79

80 70 60 50 40 30 20 10 0 10 20 30

Other

Volunteering matched funding

Give as You Earn

Time off for individuals to volunteer during work hours

Employee match funding

Company organised fundraising and collection drives

Company organised volunteering initiatives

% corporate support % employee participation

Monitoring, evaluation, communication and partnerships

The most widely practiced M&E practice was monitoring expenditure

Source: CSI Handbook 15th Edition N = 107

0 20 40 60 80 100

Baseline/longitudinal studies

External evaluations

Evidence of improved impact

Monitor beneficiary numbers

Outcome indicators

Track activities

Site vists

Check that funding is spent as intended

All projects Some projects No projects Don't know

% corporate response

Corporates report more often on activities than outcomes

0 20 40 60 80 100

Formal project impact assessment

Breakdown of CSI expenditure

Project performance and outputs

Project objectives and inputs

Description of CSI projects

CSI focus areas

% corporate response

Source: CSI Handbook 15th Edition N = 106

Other than with NPOs, formal partnerships are still not widely adopted

0 20 40 60 80 100

Corporates in own industry sector

Corporates in other industry sectors

Local government

National/provincial government departments

NPOs and CBOs

Formal contract with MOULoose affiliationNo involvement beyond fundingNot applicableDon't know

% corporate response

Source: CSI Handbook 15th Edition N = 107

Governance and structure

Two-thirds of corporates run their CSI function internally

Source: CSI Handbook 15th Edition N = 106

50%

28%

16%

6% CSI department withincompany

Registered trust

CSI responsibility withinanother department

Registered Section 21company/not-for-profit

Most corporates employ between one and five CSI staff members

Source: CSI Handbook 15th Edition N = 106

0 5 10 15 20 25 30

50 or more

20-50

10-20

5-10

2-5

1-2

0-1

% corporate respondents

Company perceptions

Anglo American, SAB and Nedbank are perceived by companies to deliver the most developmental impact

Source: CSI Handbook 15th Edition N = 99

0 10 20 30

Discovery

Sasol

Old Mutual

Woolworths

MTN

Absa

Vodacom

Nedbank

SAB

Anglo American

Frequency

Anglo American, Nedbank and Old Mutual are perceived by NPOs to deliver the most developmental impact

Source: CSI Handbook 15th Edition N = 89

0 5 10 15

Sasol

Pick n Pay

DG Murray

Vodacom

Absa

Old Mutual

Nedbank

Anglo American

Frequency count

Concluding remarks

• Consistent trends with 2011 research include:

– CSI shows significant growth, attributed to better and more inclusive accounting of CSI spend

– Companies are one of the most significant sources of support for NPOs

– National projects receive the largest share of CSI budgets

– Education is the recipient of the most spend, followed by social and community development, and health

– Formal partnerships not widely adopted, most likely due to the practical difficulties of co-ordinating partnerships

Thank you