Private sector companies and State-owned enterprises in South Africa spent R8.6-billion on social development during 2015/16, representing a 6% increase in nominal growth from the previous year, according to corporate social investment (CSI) and sustainability consultancy Trialogue.

However, this growth is in line with the rate of inflation over the review period, thereby reflecting zero growth in real terms during the 2015/16 period. These findings were highlighted when Trialogue’s yearly handbook was launched on December 6, 2016. The handbook is the culmination of research into expenditure on, and approaches to, CSI in South Africa.

Until 2013, Trialogue consistently found that the total yearly estimated CSI expenditure grew in real terms. However, during the past two years, CSI expenditure showed negative growth figures in real terms, with -2% in 2014 and -6% in 2015.

The Trialogue CSI handbook points out that South Africa’s top 100 companies invested R5.8-billion in CSI initiatives during 2016, representing 68% of the total CSI expenditure for that year. In addition, 15 companies tracked by Trialogue spent more than R100-million in 2015/16, together accounting for more than half of the total amount spent by the top 100 companies.

Representing three-quarters of total CSI expenditure were the industries of mining, retail and financial services, with mining alone accountable for 30% of total CSI expenditure.

Of the sectors receiving the most CSI funding, education emerged as the most popular cause with 48% (up a notable 32% in 2010) of total CSI expenditure, with support from more than 90% of companies.

Social and community development and health were the second and third most commonly supported sectors respectively, although support and expenditure for both declined marginally from 2015.

In terms of the regional spending breakdown, Gauteng received the greatest share of CSI expenditure, although the amount received by the province declined for a second consecutive year to 19% in 2016, from a peak of 27% in 2014. Support for projects in Limpopo increased marginally, while decreases in corporate support were identified for all other provinces.

In conjunction with the launch of the yearly handbook, Trialogue also awarded its yearly Trialogue Strategic CSI Award to State-owned power utility Eskom’s Development Foundation, in recognition of the Eskom Contractors Training Academy.

The award recognises CSI projects that exemplify best practice, thereby encouraging CSI practitioners to think more strategically when planning and implementing their initiatives.

According to Trialogue, for CSI initiatives to be strategic requires positive developmental impact, which is aligned with, and contributes to the priorities of the business, beyond reputational impact.

The Eskom Contractors Training Academy addresses the national imperative of increasing the number of functional small and medium-sized enterprises, while also improving the quality of businesses that Eskom can procure from. This initiative aims to build the capacity of historically disadvantaged entrepreneurs, particularly youth and black women, to compete in the formal economy.