Corporate Social Investment (CSI), often referred to as Corporate Social Responsibility (CSR), encompasses the initiatives and actions undertaken by businesses to contribute positively to society beyond their core economic functions.
These initiatives can include philanthropy, environmental sustainability efforts, community development projects, and ethical business practices. The essence of CSI lies in the idea of businesses recognizing their broader responsibilities to society and actively working towards making a positive impact.
Here on this page you will get Corporate Social Investment (CSI) : Notes, Common Exam Questions and Answers Guide, Online Quizzes and Activities for Business Studies Grade 12 Revision Studies, from Corporate Social Responsibility section. This content is under Term 2 as per the CAPS Curriculum.
Corporate Social Investment (CSI) Notes and Exam Questions Business Studies Grade 12
Corporate Social Investment (CSI)
Meaning of CSI
- Definition: Investment of corporate funds or other assets to achieve social outcomes
- Focus: Providing solutions to social problems in communities related to workers or business operations
- Scope: Projects not part of normal business activities, designed to benefit the community
- Profit orientation: Not directly aimed at increasing company profits
- Approach: Strong developmental focus, utilizing company resources to uplift communities
Purpose of CSI
- Contribute to sustainable development in communities
- Legal enforcement: Required by law and government
- Positive role in community development
- Demonstrate business’s attitude towards its community
- Long-term investment
- Relevance: Particularly important in contexts like South Africa with socio-economic upliftment as a priority
CSI Focus Areas
- Environment
- Community
- Rural development
- Employees
Examples of CSI Projects
- Donations to support local organizations
- Involvement in conservation projects
- Delivering services or building infrastructure when government is unable
- Investing in job creation projects
- Providing adult basic education
- Teaching entrepreneurial skills
- Sponsoring arts and culture programs
- Establishing early childhood development programs
Differences between Corporate Social Responsibility (CSR) and Corporate Social Investment (CSI)
| Corporate Social Responsibility | Corporate Social Investment |
|---|---|
| Aims to change business practices | Actively commits money and resources to uplift the community |
| Focuses on increasing image and profits | Focuses on community upliftment without return on investment |
| Ensures internal policies/practices include stakeholders’ interests/environmental issues | Ensures projects are relevant to community needs |
| Often intended as a marketing initiative | Intended to benefit and uplift communities through social development |
| Projects usually linked to the business (e.g. training the unemployed) | Projects are external to the business with a strong developmental approach |
Examples of Corporate Social Investment (CSI)
Example 1: Sasol
Sasol, a leading South African energy and chemical company, is known for its various CSI initiatives. One of their flagship programs is the Sasol Foundation, which focuses on education, skills development, and community well-being. Some of their key CSI projects include:
- Sasol Inzalo Foundation: Provides bursaries and scholarships for students pursuing careers in science, technology, engineering, and mathematics (STEM) fields.
- AMIP (Artisan and Mining Skills Improvement Programme): Aims to increase employability by training local community members in technical and artisan skills.
- Support for Early Childhood Development (ECD) centers: Sasol helps improve ECD infrastructure, teacher training, and learning materials in disadvantaged communities.
Example 2: Shoprite
Shoprite, the largest supermarket retailer in South Africa, has several CSI initiatives that focus on hunger relief, education, and community development. Some of their key projects include:
- Mobile Soup Kitchens: Shoprite provides meals to underprivileged communities through its fleet of mobile soup kitchens.
- Shoprite Community Network: This initiative supports local organizations in various sectors, such as education, health, and skills development.
- Shoprite Bursary Programme: Offers financial support to students pursuing tertiary education in fields like accounting, pharmacy, logistics, and information technology.
Example 3: Anglo American
Anglo American, a global mining company with significant operations in South Africa, has a strong focus on community development and environmental sustainability. Some of their CSI projects in South Africa include:
- Zimele Programme: Supports small and medium-sized enterprises (SMEs) by providing funding, mentorship, and business development services.
- Thermal Coal’s eMalahleni Water Reclamation Project: Aims to address the issue of water scarcity by treating mine-impacted water and providing clean water to the community.
- Anglo American Chairman’s Fund: Invests in various sectors, such as education, health, and welfare, with a focus on vulnerable populations and community development.
Example 4: FirstRand Foundation
FirstRand Foundation is a leading CSI initiative by the FirstRand Group, one of South Africa’s largest banking groups. Their focus is on education, capacity building, and social entrepreneurship. Some of their key projects include:
- FirstRand Volunteers Programme: Encourages employees to volunteer their time and skills for community projects.
- FirstRand Empowerment Foundation: Supports social entrepreneurs and innovative projects that address societal challenges.
- FirstRand FNB Fund: Provides scholarships and bursaries for tertiary education in various fields, such as engineering, commerce, and science.