Communities, sustainability and corporate social investment projects: are they but white elephants?
Date
2018
Authors
Stander, Jovita
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
ABSTRACT
Set against the backdrop of one of South Africa’s coal-fired power station
construction projects, this study looks at the sustainability of corporate social
investment (CSI) infrastructure projects and the means of the communities
involved in such projects in maintaining the infrastructure.
There has been much discussion in literature about the sustainability and
sustainable development of CSI projects, yet the literature has offered very little
to support the notion that CSI projects in general, and CSI infrastructure projects
in particular, are indeed sustainable. Literature from the private sector suggests
that there is no shortage of funding, as billions of rand are spent on CSI projects.
However, if this money is spent on projects which are not sustainable, the funding
will eventually go to waste and not have the desired long-term effect of benefiting
the intended communities as well as generations to come.
The study seeks to address the question of how sustainable infrastructure projects
are in practice and whether the communities involved are equipped with the
necessary skills, knowledge, financial resources and management acumen to
sustain them.
The study’s specific objectives are to ascertain how the various stakeholders
understand the term ‘sustainability’, identify the types of CSI project that
stakeholders are involved in, define the involvement of government in CSI
infrastructure projects, and establish whether local communities have the means
to maintain and sustain CSI infrastructure projects. The study has taken into
consideration six CSI infrastructure projects among a rural community situated
within the sphere of influence of a power station construction project.
The research methodology took the form of a case study, as this approach allows
for the investigation of a situation within real-life circumstances. Qualitative and
quantitative data collection techniques were used to collect the research data from the three groups identified as playing a role in the CSI projects covered
within the context of the case study.
The results of the study show that companies donate second-hand materials, such
as furniture, IT equipment and stationery, and make once-off financial
contributions. They also fund and build infrastructure such as clinics, schools and
community halls. In addition, companies are involved in the training of graduates
and the funding of study bursaries for non-employees.
Sustainable projects are projects that require no further external funding for the
project, organisation and/or community involved once it has been completed.
The most sustainable projects are education and health projects; infrastructure
projects; and projects which entail job creation, revenue streams and
empowerment.
Government’s involvement in CSI projects is deemed not to be sufficient. This may
be ascribed to the absence of controls and accountability, a lack of funding, and
varying development strategies, with one strategy focusing on pro-poor
development while another focuses on independent development. This scenario
can be improved by aligning the CSI agendas of the government and the private
sector towards a concerted effort.
Although the communities indicated that they were able to maintain CSI projects
by following an ad hoc approach rather than a sustainable one, the results suggest
that recipient communities are unable to sustain CSI projects due to a lack of
education and not having a basic understanding of the reasons why projects fail.
Furthermore, the study shows that communities do not have the means to
maintain and sustain CSI infrastructure projects without the assistance of donor
companies. Without donations, infrastructure projects are bound to become white
elephants in a state of disrepair until such time as a donor company is willing to
commit funding for their maintenance.
Due to the lack of participation by companies identified in the donor group, it is
recommended that further research be done among this group in order to obtain
data on how donor companies view their involvement within the communities
after the donated infrastructure projects have been completed and handed over.
The research did not explore the reasons why government’s involvement in CSI
projects is perceived as being lacking, and further research into this matter is
recommended.
Description
Keywords
Citation
Stander, Jovita Swanepoel (2018) Communities, sustainability and corporate social investment projects: are they but white elephants?, University of the Witwatersrand, Johannesburg, https://hdl.handle.net/10539/25500