The contribution of Standard Bank South Africa CSI in development initiatives.

Abstract

The focus of the research was to investigate the nature of the CSI contribution made by Standard Band South Africa (SBSA) in development initiatives in South Africa. The concept of corporate social investment means that companies are constantly seeking to have a balance between the quest for financial return and social good. Attaining such balance requires companies to link corporate governance with social responsibilities. In so doing, companies adopt CSIs as part of their strategy to contribute towards the communities in which they operate. In South Africa, the contributions made by companies through various CSI initiatives are regulated. Most companies spend at least 1% of their profit after tax towards CSI (RMB Private Bank, 2015; Nampak, 2015; Standard Bank Group Sustainability Report 2012). The concepts of ‘corporate social investment’ and ‘corporate social responsibility’ are used interchangeably. However in this research, ‘corporate social investment’ is a preferred expression used by Standard Bank and throughout this research. The research uses a qualitative approach and structured face to face and telephonic interviews to gather data. Secondary data was also gathered from documents, annual reports and articles related to the topic. The key findings of the research indicate that SBSA through its CSI is making headways in the development initiatives in South Africa. Respondents agree that the money spent through CSI initiatives have an impact on the lives of the recipients and that the bank is also receiving return on its investment. The common issue of concern raised by the recipients is the sustainability of the funding. It is perceived as short and not long term enough to have the desired impacts on the lives of recipients. Finally, the research recommends the effective use of monitoring and evaluation to strengthen the SBSA CSI, the integration of similar programmes, the use of an v effective CSI communication strategy, the rethink of the return on investment strategy and the increase in the visibility of the board and senior executives in CSI programmes.