Group CSR Strategy South Africa Market Intelligence

*This report was last updated in Q4 2018. Please click on request customization if you are looking for an updated version of this report

Report Coverage

  • Analysis of Estimated Total CSR Spend in South Africa; Top Spenders on CSR
  • Comparison of Service Capabilities of Service Providers
  • Service Provider Profile

Table of contents

  1. Executive Summary
  1. Market Section
  1. South African Corporate Social Responsibility (CSR) Environment
  1. Analysis of Estimated Total CSR Spend in South Africa;
  1. Top Spenders on CSR
  1. Future Trends in Group CSR - Global Perspective
  1. King IV Report in Relation to CSR
  1. Pricing Model
  1. Service Provider Section
  1. Comparison of Service Capabilities
  1. Service Provider Profile

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Regional Market Group CSR Strategy in South Africa

The telecom sector is only a minor contributor to CSI in South Africa. 

BBEEE Regulation Specific to Telecommunication Sector

Amended BBEEE Information and Communication Technology (ICT) Sector Code – November 2016:

  • One of the key features of the Charter is to set a target of 5% of Net Profit After Tax (NPAT) on enterprise and supplier development
  • The code aims to develop and grow black-owned ICT Enterprises.

Mandatory Legislative Requirements for Listed Companies

  • Must have a Social and Ethics Committee, which oversees CSR
  • To report in their integrated report on what was done with the CSI, on whom and where it was spent, what is the impact of that spend and the same has to be reported to all the companies stakeholders
  • The impact and return on investment achieved for the companies shareholders and how this contributes toward formation of capital particularly social capital

The CSR environment in South Africa is legislated, and the sector is vibrant, due to minimum contribution toward CSR by large multinationals being at around 1% of Net Profit After Tax (NPAT).

CSR Focus Areas in South Africa

We took a sample of six companies, two in FBT (Distell & SAB Miller), two in Telecom (Vodacom & MTN), and two in BFSI (Ned Bank & FirstRand) and looked at their CSR focus areas or initiatives. The following are the focus areas identified:

  • Incorporate energy & water-efficient supply chains
  • Partnering with the government and private sector to address water challenges
  • Adopt sustainable agricultural practices and sourcing agricultural produce from sustainable sources
  • Social development initiatives for education and health either directly or by partnering with non-profit organizations
  • Enterprise & supplier development include procuring from black-owned and black women-owned entities and procuring from local suppliers from disadvantaged background

Future Trends in Group CSR – Global Perspective

Key future trends in CSR include environmental initiatives, looking at the economic, social, and environmental impact of CSR, impact investments by corporates as a part of CSR, transformative CSR, and the use of technology for CSR.

Environmental Development

  • Climate change, rehabilitation, restoration, conservation, renewable energy, sustainable agriculture are the key areas within environmental development to be of focus in the next three years

Triple Bottom-line

  • CSR in the future will include economic impact, social impact, and environmental impact rather than just social impact

Impact Investment & Sustainable Funding for CSR

  • The idea of CSR is moving from social investment to impact investment. Investment made in companies/organizations/social enterprises by funds/investors to bring about a positive impact on the society or environment, along with a financial impact is a key focus
  • Financial investments in social enterprises where the benefits (new supplier development) can be ploughed back to CSR. E.g., Social/Impact Bonds
  • More financial innovation for impact investing and regulations are expected to emerge globally

Transformative CSR

  • Businesses will identify the root cause of unsustainability and will try to eradicate this through innovation, changing their process, products, and finally vouch for company and government policies to support this. Companies will produce more ethical and environmentally responsible/conducive products

Increasing Role of Technology

  • The role of social media platforms to connect the civil society and create awareness, use of crowd funding platforms to fund a CSR project helps corporates leverage the money they have, engage public, and create communities to support projects or local causes

King IV Report in Relation to CSR

Integrated reporting and establishing a social and ethics committee are the key regulations for CSR in King IV. Responsible tax policy is also a corporate citizenship consideration in King iv.

The King IV Report on Corporate Governance for South Africa was introduced in November 1, 2016 and the disclosures required are in effect from the financial year beginning April 2017. King IV replaces the earlier King III regulation.

Integrated Reporting

  • An integrated report could be a part of financial statements or other reports made in compliance with legal requirements or a standalone report
  • The report addresses at a high level and in a complete precise manner provides all information that affects the organization's ability to create value

SociaL & Ethics Committee

  • Describes the role of the social and ethics committee as oversight and reporting of organization ethics, corporate citizenship, sustainable development and stakeholder relationship
  • The role of the committee goes beyond compliance in creating value
  • Majority of the members should be non-executive members to bring about independent judgement
  • Organizations that are not legally required to establish a social and ethics committee should consider creating a structure that would achieve the aims of such a committee

Committee Disclosures

  • The committee's overall role, responsibilities, and functions
  • Composition of the committee including each member's qualification and experience
  • Any external advisors or invitees who regularly attend committee meetings
  • Key areas of focus in the current reporting period and in the future
  • Number of meetings held during the reporting period and attendance of those meetings
  • Whether the committee is satisfied that it has fulfilled its responsibilities referred to in the reporting period

Csr Related Disclosures

  • Arrangements made to govern and manage responsible corporate citizenship
  • Key areas of focus in the current reporting period and in the future
  • How corporate citizenship was monitored and how the outcomes are addressed

Responsible Tax Policy

  • The tax policy should be compliant with applicable laws, transparent, in alignment with corporate citizenship that accounts for impact on reputation


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