Reinvigorating corporate social investment (CSI) with blockchain technology

Abstract

Corporate Social Investment (CSI) is the main arm through which companies go about fulfilling their social responsibilities to the communities in which they operate, and totalled R8.6 billion for the 2015/2016 year. Through the provision of much needed resources, CSI enables companies to strategically partner with and invest in Non-Profit Organisation (NPO) initiatives that create shared value by enhancing the competitiveness of the company while simultaneously contributing to the advancement, welfare and wellbeing of society. However, given the sheer size of funding in circulation, the lack of NPO financial transparency and measurement, and the inherent problems that still exist in society, some sceptics scrutinize that the current model of social investment is broken and question how much of funding actually ends up helping the people NPOs claim to assist. A data-driven revolution to build trust, deliver greater, more transparent impact, and drive systematic change in society is long overdue, and blockchain, the latest buzzword in the world of data and technology, could hold the key. Blockchain presents the promise of more efficient and effective opportunities to revolutionise the way companies engage in and track the impact of social investment endeavours, and the way NPOs address societal challenges to drive transformative and lasting social change. This study sets out to explore CSI decision-making and control mechanisms; current challenges faced in South Africa due to the lack of measurement and accountability; and potential opportunities to enhance the impact of NPOs and CSI in order to craft a tailor-made solution that harnesses the power of blockchain technology to reinvigorate CSI in South Africa.