the csi handbook presentation
DESCRIPTION
Presentation of findings at the launch of the 15th edition of The CSI Handbook 2012TRANSCRIPT
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