A study of the corporate social investment distribution and spending by selected corporates in the Eastern Cape

摘要

Corporate Social Investment (CSI) presents a platform for the business sector in South Africa to respond to challenges facing the Eastern Cape. Challenges facing this province are well documented, and it is important to measure and quantify how the business sector in South Africa currently contributes towards addressing those challenges. The Eastern Cape remains by and large undeveloped, with economic activity well below economic potential. Currently, economic activity is concentrated in Port Elizabeth, East London and Mthatha. Notwithstanding economic growth, high levels of unemployment and poverty persist, particularly in the rural areas where two-thirds of the population reside. The research study purposely sampled the top 30 companies from the top 100 listed in Trialogue. A total of 14 questionnaires were completed and returned by respondents. Five CSI managers were randomly selected from the 30 companies for in-depth interviews. The purpose of this exercise was to solicit further views to enable substantive triangulation of data from other sources. The research reveals that corporate groups in South Africa use different but complementary models and strategies in contributing towards poverty reduction. Education, particularly support for secondary school technology and science tuition, and also early childhood development (ECD), constitute key intervention areas by corporations in the Eastern Cape. This is closely followed by economic inclusion or enterprise development. There is no demonstrable evidence that corporate social investment in South Africa is informed by a coherent theoretical framework. The study revealed that education receives the largest share of CSI budgets in the Eastern Cape. Within education, mathematics and science is the most supported sub-programme focus area. This is followed by higher education which is also a preferred sub-programme focus area. A total of 40 percent of CSI spending has been channeled towards rural areas and towns in the former Transkei area. The ‘Mandela factor’ also plays an influential role in thedistribution of CSI spending, especially in the rural areas of the former Transkei. Donations ‘in kind’ are mostly distributed in urban areas.