CGF ARTICLES, OPINIONS & EDITORIALS
Getting CSI right: This is good news for Corporate South Africa (2013-04-23)
February 20,
2015 3543 3543 
Historically, our past ‘apartheid’ regime has created a challenging future for the citizens of democratic South Africa.
Whilst there has been steady progress toward a more inclusive and balanced society, there’s still plenty work ahead. The impact of our socio-economic divide -- where South Africa is considered one of the most unequal societies worldwide -- is still largely characterised by; a cycle of deepening poverty which is perpetuated by a lack of quality education, lack of access to basic services that include water and electricity, lack of a sustainable quality health care system, growing unemployment and insufficient housing for the poor. All of these challenges are compounded by the ravages of HIV/Aids.
South Africa’s Constitution and the Bill of Rights guarantee certain fundamental rights to all South African citizens. And in order to rectify the effects apartheid had upon its Black and other marginalised people in South Africa, the Government’s Broad Based Black Economic Empowerment Act serves as one of a few enabling legal mechanisms as an initiative to indirectly compel corporate South Africa to address some of these socio-economic challenges. The BBBEE Act aims to correct past racial imbalances and encourage efforts of social investment and the empowerment of essentially Black communities. The subsections of the BBBEE Act encompass amongst other, direct empowerment (ownership and management) and indirect empowerment (Employment Equity, Skills development, preferential procurement, enterprise development and socio-economic development).
Undoubtedly, there is strategic relevance for Corporate Social Investment (CSI) towards the transformation of our democracy, as well as a critical urgency to build a South Africa which is sustainable. Given the relatively slow progress over the last twenty years, the question being asked is whether we are able to act innovatively and implement creative social investment practices for greater transformation and thereby actually derive a return on investment for South Africa? [Instead of treating transformation as a mere act of compliance.]
Indeed, the value of CSI has been embraced by a number of South African corporates each who have taken a step beyond the standard ‘tick-box’ approach and have sought ways to adopting the Broad Based Black Economic Empowerment Act in a sustainable enabler to truly empower Black people and their communities, rather than simply ticking a scorecard. The results of their corporate social engagements have been felt by their shareholders, valued employees and the communities that they operate in. This being to the extent that the Johannesburg Stock Exchange implemented the JSE Social Responsible Investment Index (JSE SRI) in acknowledgment of the CSI endeavours being undertaken by the JSE listed companies.
