The evaluation of the viability of Letsema as an alternative method for corporate social responsibility implementation in rural areas.

Abstract

ABSTRACT The research investigated the viability of using the traditional African practice of Letšema as an alternative Corporate Social Investment/Responsibility (CSI/CSR) method of implementation in rural areas. The research studied Letšema through community interviews, institutional interviews were done to determine CSI activities similar to Letšema activities, and CSI challenges were identified that Letšema may possibly solve. Then the viability of Letšema in CSI implementation was tested through similarities with existing successful CSI activities and the possibility of resolving existing CSI challenges through other Letšema activities not currently used in CSR. The practice of Letšema was researched at various locations to gain more understanding, to enable subsequent evaluation for possible CSI implementation. The relevance and value addition of CSI/CSR to business, government, non-profit organisations and CSI beneficiaries was also studied. There is general agreement among CSI practitioners on the need for Corporate Social Responsibility and that effectiveness of CSI projects is not always achieved. A further challenge to CSI programmes is their sustainability, after the CSI organisation has concluded its project in an area and has left. Letšema was assessed as an alternative way of implementing CSR effectively through localisation and contextualisation relevance in rural areas. The first issue is the process of defining CSI when organisations enter new markets such as rural areas or developing countries. This suggests the need for a context specific definition of CSI, because organisations tend to define CSI from their own perspective, resulting in outcomes that may not be relevant to the beneficiaries. The second issue deals with the outcomes of CSR implementation. This refers to a method of measuring the outcomes of the process; that is, how the success or failure of a CSR project is measured. A successful project from an organisational perspective that does not address community needs is of no use to beneficiaries. Letšema has potential for use as a CSI implementation method in rural areas, as it is not entirely dependent on money for success, but needs certain adaptations to the context of constitutional democracy and human rights culture.