Trialogue is pleased to present its 25th consecutive year of research into the state of corporate social
investment (CSI) in South Africa. This chapter outlines the most noteworthy results from the 2022
primary research, as well as Trialogue’s secondary analysis of CSI expenditure. Note that ‘2022’ refers to
data from the 2021/22 financial year, which differs across organisations, depending on the month of
Estimate of total CSI expenditure
This estimate is based on analysis of the CSI expenditure of listed South African companies and multinationals operating in South Africa, as well as state-owned enterprises. It includes an extrapolation based on the total number of companies operating in South Africa and is thus an estimate for CSI expenditure by all companies in South Africa. Trialogue’s analysis considers:
- Year-on-year changes in the CSI expenditure of 118 companies and the net profit after tax (NPAT) of 153 companies listed on the Johannesburg Stock Exchange, using publicly reported data.
- A triangulation of published CSI expenditure as a percentage of published NPAT with South African Revenue Service (SARS) data on total company taxable income and tax.
- Year-on-year changes in the CSI expenditure of 33 companies that participated in Trialogue’s 2021 and 2022 primary research, as well as the proportion of companies in our 2022 sample that reported increases and decreases in CSI expenditure.
- A comparison of the combined CSI expenditure of the top 100 companies and scenario analysis of how much of the total market the top 100 companies represent.
- An extrapolation of total expenditure based on the number of medium and small companies in South Africa.
Growth in total CSI expenditure
- Growth in CSI expenditure has not shown a consistent trend since a period of growth in real terms between 1998 and 2013. In 2014 and 2015 CSI expenditure experienced negative growth in real terms. In 2016 and 2017 real growth flattened, and in 2018 and 2020 it showed a slight increase.
- After a 4% decrease (7% in real terms) in 2021, largely due to pandemic shocks and impact on NPAT, CSI expenditure grew by 6% to R10.9 billion in 2022. This equates to an almost zero percent increase in real terms.
- Based on published CSI expenditure as well as results of Trialogue’s 2022 primary research, significantly more companies reported an increase in CSI expenditure than those that reported a decrease.
- NPAT of listed companies was significantly higher this year with a median increase of 57% (across the 153 companies with published NPAT data for two years). However, the lower increase in CSI expenditure could be attributed to a lag between NPAT and CSI expenditure, with CSI budgets typically set as a percentage of NPAT based on the financial performance of the previous year. This bodes well for growth in CSI expenditure in 2023.
CSI spend by industry
- Based on available CSI expenditure
data of 188 large companies with sector classifications, the top three sectors remained the same in 2022 as in previous years.
- Basic materials, which is made up of mining, chemicals, water and forestry, accounted for the largest portion of CSI expenditure (34%) in 2022.
- Consumer services – constituting retail, media, travel and leisure – was the second-largest contributor at 29% of CSI expenditure, with the increase from previous years largely driven by non-cash
giving (product donations and media public service announcements).
- Financials were the third-largest contributor at 19% of CSI expenditure.
CSI spend across the top 100 companies
- CSI expenditure remained concentrated with the top 100 companies (by available data on CSI spend) accounting for 79%, or R8.6 billion, of total CSI expenditure estimated at R10.9 billion.
- Of the total R8.6 billion spent by the
top 100 companies, over two-thirds
(69%) was spent by the 22 companies
whose CSI expenditure was more than
R100 million in 2022.
Between May and August 2022, professional researchers conducted virtual interviews with CSI representatives from large South African companies. Companies also had the option of selfcompleting the online questionnaire, which was then verified by the researchers.
- There were 65 participating companies. Of these, 74% also participated in 2021.
- Since it was first measured in 2011, the financial sector has been the best-represented sector in the corporate respondent sample (29% in 2022), followed by consumer goods
(17% in 2022).
- The surveyed companies were large, with seven in ten companies (71%) having an annual income of over R1 billion in their latest full financial year, and 45% having an income of over R10 billion. More than half of the companies (57%) had a net profit after tax (NPAT) of over R500 million.
- Over half of the companies (55%) employed more than 5 000 people, with one-fifth (20%) having more than 20 000 employees.
- Two-thirds of the companies (61%) had a BBBEE status of Level 3 or better. Nearly half (49%) had a BBBEE status of Level 1 or Level 2.
- Most companies (72%) scored the full five points for the socioeconomic development (SED) element of the BBBEE Scorecard.
- Twenty-six companies (40%) were included in the FTSE/JSE Responsible Investment Index. Of these, 17 were in the Top 30 of the Index.
Information was collected from non-profit organisations (NPOs) between May and August 2022, using the online survey tool Qualtrics.
- A total of 115 NPOs participated in the 2022 research. Of these, 20%, or 23 organisations, also participated in 2021.
- In 2022, half of the NPOs (51%) surveyed were medium-sized organisations with an income of between R2 million and R20 million. About one-fifth of the sample (19%) had annual incomes of more than R20 million.
- Nearly three-quarters of participating NPOs (72%) employed fewer than 50 people.
Trialogue is the southern Africa partner in a global network of responsible business and social development-focused organisations, called the Global Exchange. The initiative is overseen by the US-based Chief Executives for Corporate Purpose (CECP). We once again aligned our corporate questionnaire with the CECP Global Impact at Scale survey, which includes data from 17 South African companies that participated in Trialogue’s research. All international research findings quoted in this chapter are from the CECP 2022 Global Impact at Scale report. All US findings are from the CECP 2022 Giving in Numbers report.
CSI expenditure in 2022
Changes in CSI expenditure
- In 2022, 44% of the companies in the sample reported an increase in CSI expenditure, up considerably from 36% in 2021. There was also a significant drop in the proportion of companies reporting a decrease: from 51% in 2021 to 27% in 2022.
- This positive trend follows the increased profitability of companies in 2021: among the 28 companies that reported increased CSI expenditure, a third cited an increase in corporate profits (36%) as the main reason for the increase.
- The main reason for decreased CSI expenditure by South African companies was a change (decrease)
in corporate profits, which 53% of the 17 respondents listed as a reason for the decrease, down from 76% in 2021.
- Most companies surveyed were optimistic about social investments over the next two years, with 60% predicting that there would be an increase in resources and budget for CSI, up from 41% in 2021. About a third of companies (34%) expect social investments to remain the same (42% in 2021). Only 6% expect that there will be a decrease in social investments over the next two years (down from 17% in 2021).
- This compares favourably to the global data where 61% of companies expect resources to stay the same and 28% expect an increase over the next two years.
Value of social investment of corporate sample
- Total social investment of the 59 companies that reported expenditure figures for 2022 was more than R2.7 billion (cash plus non-cash, including donations of goods and services as well as employee volunteering time). Most social investment was in the form of cash expenditure by a CSI department (41%) followed by cash expenditure through a trust/foundation (38%).
- None of the participating companies in 2022 reported spending through BBBEE community ownership trusts.
- Nearly eight in ten companies (79%) that reported expenditure figures spent more than R10 million on social investment in 2022, with 18 companies (29%) investing more than R50 million. Of these, 10 companies invested more than R100 million.
- The 2022 median social investment increased from R23 million in 2021 to R24 million in 2022. The average social investment decreased to R47 million in 2022 from R63 million in 2021 and R76 million in 2020.
- In 2022, 50 participating companies (77%) reported non-cash giving. This is a significant increase from 29% of the 69 companies surveyed in 2021, and the highest since it was first measured.
- Only 23 of the 50 companies reported the value of non-cash giving, which amounted to R415 million in 2022.
Of this, 85% (R350 million) was the value of goods and services, and 15% (more than R64 million) was the value of employee volunteering time.
- More companies reported the value of volunteering time (six, up from four in 2021) and the total value increased significantly from R4 million in 2021 to R64 million in 2022.
- Non-cash giving as a proportion of total social investment increased from 13% in 2021 to 15% in 2022 (in line with the 2020 figure of 16% but higher than the 6% reported in 2011). The 23 companies that provided the value of non-cash giving reported an average non-cash expenditure of R18 million.
Methods used to determine CSI budgets
- In 2022, more than half of the participating companies (52%) determined their annual CSI budget as a percentage of after-tax profit or net profit after tax (NPAT). This has been the dominant method since the introduction of the BBBEE Empowerment Act, prior to which budgeting was primarily based on company decision and board approval.
- The companies that used this method in 2022 allocated between 0.6% and 4% of after-tax profit to the annual CSI budget, with most allocating between 1% and 2% of after-tax profit, in line with the target for SED spend of 1% of NPAT in the BBBEE Scorecard.
- Regardless of budget method used, two-thirds of companies in the sample (66%) estimated that their social investment accounted for up to 2% of their NPAT in 2022, with more than half (52%) in the range of 0.6% to 1.5% of NPAT.
- The second most common method for determining CSI budget was on the basis of company decision/ board approval (18% of companies). This is down from 29% in 2021, and significantly down from when it was the most popular method in 2003 (55% of companies).
CSI expenditure line items
- Most respondent companies (94%) included direct project expenditure in cash CSI expenditure, and it comprised 84% of total CSI expenditure on average, in line with previous years.
- Costs related to employee volunteering and staff events were the second most prevalent expenditure item (38% of companies in 2022), but comprised only 2% of companies’ cash CSI expenditure on average.
- This was closely followed by CSI marketing and communication costs, included by 35% of companies, and which comprised 2% of cash CSI expenditure on average.
- Expenditure on monitoring and evaluation increased marginally from 1% of cash CSI expenditure in 2021 to 2% in 2022, while spend on development sector research decreased from 1% in 2021 to nothing in 2022.
Governance and management
- In 2022, one-quarter of participating companies (16 companies) reported having multiple structures for managing CSI. In most cases, respondents had a CSI department in the company and a separate legal entity, such as a trust. This is in line with 2021 where 18 corporates (26%) reported CSI expenditure through multiple structures.
- Almost half of company respondents (48%) managed their CSI through a dedicated department within the company in 2022 (up from 43% in 2021, but still lower than 57% in 2020). Twenty-three companies (35%) had the CSI responsibility carried by another department of the company.
- In 2022, 19 companies (42%) that managed their CSI within the company reported to the corporate affairs/
public affairs/government affairs department (up from 36% in 2021), while 18% reported to human resources. The proportion of participating companies reporting directly to the company exco or board increased from 4% in 2021 to 11% in 2022.
- Fourteen companies had both a CSI department and a foundation in 2022 (12 companies in 2021). Over one- third of these companies (36%) reported no linkage between the foundation and the CSI department, significantly up from 2021 when none of the companies reported no linkage and most (75%) reported that the foundation and CSI department were managed by the same people.
Management of CSI functions
- In line with the number of companies that reported having a registered trust in 2022, 18 companies (28%) indicated the trustees or non-profit board of directors have ultimate oversight of the CSI function. For one in five companies, ultimate oversight sits with the company directors (11% social and ethics committee, and 9% company board). Where ultimate oversight sits within the company, it is most often with the divisional executive (18%).
- Over half of participating companies (55%) had between two and nine employees managing and administering CSI in 2022. One-quarter (25%) had fewer than two employees and one-fifth (20%) employed ten or more people. In 2022, the median number of CSI employees was three (down from five in 2021).
- More than half of companies (51%) indicated some form of joint working between CSI and environmental staff. The remainder (49%) reported that their CSI staff work separately or somewhat separately from staff working on environmental issues. This indicates a slower integration than globally, where 83% of companies reported some form of joint working, and only 17% reported separate working.
Strategy and risk
- In 2022, over two-thirds of respondents (69%) said their company’s overall business strategy very much
integrates and responds to their company’s material environmental, social and governance (ESG) issues.
- A further 20% indicated their business strategy responds to critical ESG issues to some degree. These results are in line with global findings, where 72% of companies reported very much integration and 26% somewhat integration.
- Most respondents (69%) in South Africa and 80% globally expect ESG to be integrated across every department in the next five years, with 11% expecting integration after six years, and the remainder unsure.
- Almost equal numbers of companies report integrating ESG metrics into employee performance and remuneration indicators (42%) and not integrating them (43%), with the remainder unsure.
CSI rationale and benefits
- In 2022, moral imperative/the right thing to do was ranked as one of the top three reasons for supporting CSI by three-quarters of companies (75%), with over half (51%) rating it the top reason. This has been the top reason for doing CSI every year since it was first measured.
- BBBEE codes moved from third place in 2021 to second in 2022, with 54% of respondents including it as a top-three reason, while reputation moved from second place in 2021 to third in 2022, with 44% of respondents including it.
- Fewer companies (10%) included the industry sector charters as a reason for doing CSI, down from 22% in 2021 (and 28% in 2013).
- Attracting and retaining the best candidates and employees was listed by almost half of companies (45%) as the main employee benefit of CSI. This was followed by improving employee engagement scores (28%), which was ranked highest by global companies.
- Close to a third of companies each considered improved reputation/ trust scores (35%) and improved brand perception (34%) as the main customer or brand benefits of CSI. Fourteen percent cited increased customer loyalty as the third most important customer benefit, with the remainder selecting other reasons, or unsure of the customer benefits.
- Similarly, global companies rated improved brand perception and improved reputation as the most important brand benefits of social investment.
- In 2022, more than three-quarters of companies (77%) had practised CSI for 16 years or more, with over half (52%) practising CSI for more than 25 years. Only two companies in the sample had practised CSI for five years or less.
- All the companies in the sample, bar one, had a CSI strategy in 2022. Most of the NPOs surveyed (88%) also had a formal strategy.
- Over half of companies (53%) update their CSI strategies at least every two years, with 40% updating their CSI strategies every year. Forty- one percent of companies update their CSI strategy between every three to five years, with four companies (6%) doing so less frequently than every five years.
- More than two-thirds of NPOs (65%) update their strategies at least every two years, with more than half (55%) doing so every year. Nearly a third of the NPOs (30%) update their strategies between two and five years.
- In 2022, most companies (83%) had a formal process to manage risks associated with CSI programmes
or specific projects. Nearly three- quarters of NPOs (73%) had a formal process to manage programme/ project risks.
- Almost two-thirds of companies (65%) incorporate CSI risks into the company’s risk register and manage CSI risks through the company’s risk function. Almost a quarter of companies (23%) manage CSI risks through the CSI function, independent of the company risk function.
- Over half of companies (52%) did not require NPOs/projects to have risk management plans as a condition for accessing funding. In line with this, only a third of NPOs (32%) claimed they were required to have a risk management plan to access funding.
- Under half of the participating companies (45%) had insurance cover for risks arising from CSI initiatives, although a third of respondents (32%) did not know, with almost a quarter (23%) not having insurance in place. More than half of NPOs (58%) claimed to have insurance cover for programme/project risks.
- In 2022, companies reported practising an average of two types of CSI approaches, as depicted in Trialogue’s CSI Positioning Matrix. This is in line with the results of 2021.
- The most popular approach reported was strategic CSI, practised by three- quarters of companies and receiving an average of 46% of CSI spend. Strategic CSI shows evidence of developmental results (outcomes or impact) and business benefits that go beyond reputation to significant improvements with business stakeholders or competitive advantage.
- There was a slight drop in the percentage of companies that reported practising developmental CSI, from 74% in 2021 to 69% in 2022. Developmental CSI refers to CSI that generates significant social outcomes with limited alignment to the core business. The average CSI spend on developmental CSI increased to 40% in 2022 from 37% in 2021.
- The proportion of corporates supporting charitable grantmaking projects declined from 56% in 2021 to 48% in 2022, with the average CSI expenditure also dropping to 10% in 2022. Charitable grantmaking often takes the form of once-off donations, without focus on business value or developmental benefits.
- Commercial grantmaking prioritises corporate benefit over social benefits, and remains the least practised approach. While the percentage of corporates practising this approach decreased from 18% in 2021 to 15% in 2022, the average CSI spend increased (from 3% in 2021) to 5% in 2022.
Development sector funding
- Companies supported an average of five sectors in 2022, with 24 companies (37%) supporting more than five sectors. This is in line with 2021, and slightly above the average of 4.6 sectors supported in 2020.
- Education remains the most popular cause. Almost all companies (98%) supported education in 2022 (up from 91% in 2021). The average CSI spend on education increased from 39% in 2021 to 44% in 2022, still below the half of average CSI spend recorded in 2020.
- Social and community development remains the second most supported cause, supported by three-quarters of companies in 2022 (74%). However, the average CSI spend decreased to 13% in 2022, from 17% in 2021.
- Disaster relief continues to be the third most popular cause, supported by 71% of companies in 2022. Average CSI expenditure decreased marginally to 8% in 2022, from 9% in 2021.
- Consistent with 2021, more than half the companies (58%) supported food security and agriculture interventions in 2022. The average CSI spend on this sector remained at 10% in 2022.
- More companies (40%) supported entrepreneur and small business support in 2022 (up from 30% in 2021). The average CSI spend for this cause also increased from 6% in 2021 to 8% in 2022.
- Less than half of companies (43%) supported health-related interventions in 2022 (down from 54% in 2021).
As a result, health dropped from fifth to sixth place of the most supported causes in 2022, with average CSI spend below 10%.
- More companies supported environment, housing and living conditions, and sports development in 2022 than in 2021, supported by 31%, 20% and 18% of companies, respectively. The average CSI spend in each of the three sectors remains below 5%.
- There was a decrease in the number of sectors supported by NPOs, from an average of 3.2 development sectors in 2021, to 2.6 in 2022. The number is still lower than corporates, reflecting the role of NPOs as implementers.
- Education, and social and community development remained the most supported sectors, supported by 80% and 56% of NPOs, respectively and accounting for an average of 34% and 28% of NPO spend, respectively.
- Health became the third most supported area in 2022 – a shift from 22% of NPOs supporting this cause in 2021 to 26% in 2022, and with average expenditure doubling from 5% to 10%. Support for, and average expenditure on, food security and agriculture both decreased in 2022.
Geographic distribution of funding
- Similar to last year, companies supported projects in an average of five provinces in 2022, excluding national projects (those operating in two or more provinces).
- Nearly two-thirds of companies (65%) supported national projects, which accounted for an average of 68% of company expenditure in 2022.
- Gauteng was the most supported province, with 31% of corporates supporting at least one project in Gauteng in 2022. The average CSI expenditure on projects in the province was 11% in 2022.
- Over one-quarter of the companies (28%) supported at least one project in KwaZulu-Natal in 2022. The average CSI expenditure to the province was 8%.
- None of the companies surveyed in 2022 supported international projects, compared to 7% in 2021. Globally, 62% of companies made at least one grant that had international impact.
- NPOs operated projects in an average of two provinces, excluding those operating nationally and/or internationally.
- The proportion of NPOs operating projects nationally increased to 29% in 2022, up from 15% in 2021, with the average expenditure increasing from 7% in 2021 to 19% in 2022. Despite the increase, average NPO expenditure
on national projects was lower than corporate expenditure on national projects (68%).
- The distribution of NPO resources was otherwise similar to that of companies, with South Africa’s two economic hubs (Gauteng and the Western Cape) cumulatively receiving more than half (53%) of sample NPO resources.
Number and type of projects supported
- In 2022, most companies (83%) proactively identified CSI projects through the CSI function. The remainder identified projects by a reactive selection through applications.
- Companies supported many projects, with 64% supporting more than ten CSI projects and 26% supporting more than 50 projects in 2022.
- Over half of companies (57%) supported three or more flagship projects in 2022. More companies supported more than one flagship project in 2022 (74%, up from 65% in 2021).
- On average, corporate respondents spent 61% of their CSI budget on flagship projects. The median CSI budget allocation to flagship projects was 70%.
Types of organisations supported
- NPOs remained the most popular recipient of CSI funding, with 94% of companies directing an average of 58% of their spend to NPOs in 2022.
- Schools, universities, hospitals and other government institutions were also popular recipients, supported by 68% of companies and receiving over one-fifth (22%) of funding.
- This was followed by for-profit service providers and government departments, receiving 8% and 4% of average CSI expenditure in 2022 respectively.
- Nearly half of the participating companies (45%) did not offer any form of capacity building to NPOs in 2022. Workshops or training programmes, offered by one-third (34%) of companies in 2022, remained the most common type of support provided since this question was last asked in 2020.
- Thirty-eight percent of the NPOs sampled did not receive capacity building in 2022. Workshops or training programmes were the most common type of capacity building received by NPOs (35%), followed by pro bono support (26%). These were also the most common types of capacity building received in 2020.
- Flexible funding for internal capacity building was the most preferred form of capacity building by NPOs (39%), followed by pro bono support (20%), and workshops and/or training programmes (15%). The least liked were secondment of company staff to non- profits (24%), organised knowledge- sharing platforms such as conferences, seminars, etc (12%) and academic programmes (10%). NPOs’ order of preference for types of capacity building in 2022 was broadly in line with the results of 2020.
Communication rationale and budgets
- The most common reason for communicating CSI was brand enhancement, cited by 70% of companies in 2022. This was followed by encouraging partnerships and collaboration (66%).
- NPOs communicated their work to attract donor funding (64%) and to encourage partnerships and collaboration (59%).
- The least common reason for companies and NPOs to communicate their work was to share challenges and lessons learnt. Best practice was more readily shared.
- Approximately one-third of participating companies (34%) allocated a portion of their CSI budget to communication. On average, these companies that provided data allocated 5% of their CSI budget to communication, ranging from 0.4–15%. Fifty-one NPOs (44%) allocated a portion of their budget to communication in 2022.
- The 40 NPOs that provided communication budget information allocated an average of 6% of their budgets to communication (up slightly from 4% in 2021). Nearly a third of NPOs (30%) allocated more than 5% of their budgets to communication, up from 10% of NPOs who allocated this proportion in 2021.
- A third of the companies (33%) employed more than one person to manage CSI communication in 2022, while one-fifth (20%) employed one full-time person for this role. Over one- fifth of companies (22%) did not employ or contract anyone to manage CSI communication.
- Only 30% of companies managed CSI communications within the CSI department (in line with the third of companies that allocated a portion of the CSI budget to communication). Most companies used the corporate communications (63%) or marketing (44%) departments to manage CSI communication.
- The majority of NPOs surveyed (71%) have one or more persons appointed to manage communication internally, either in a full-time or part-time capacity. However, more NPOs (24%) did not have any staff managing the communication function compared to last year (18%).
Communication channels and reporting
- In 2022, company annual reports (83%) followed by social media platforms (75%) and company websites (75%) were the most common channels used for reporting CSI. Fewer companies used CSI-specific brochures (23%), CSI- specific websites (20%), and external exhibitions/posters (13%).
- Over a third of companies surveyed (34%) used the Global Reporting Initiative (GRI) standards for ESG reporting. A quarter of companies (25%) used the Carbon Disclosure Project (CDP) standards, while 14% did not use any ESG reporting standards and 36% were unsure.
- Around half of the companies (51%) reported that the amount of their ESG reporting increased in 2022, with 18% reporting that it stayed the same. No companies reported a decline.
Monitoring and evaluation
M&E policies and budgets
- Sixty percent of companies had a stated policy on M&E in 2022.
- Nineteen companies (30%) allocated a portion of the CSI budget to M&E, accounting for an average of 5% of the CSI budget.
- Of the 19 companies that provided M&E budget data, most (79%) allocated 5% or less of their CSI budget to
M&E. Around a fifth of companies (21%) allocated more than 5%. The budget allocation ranged from 1% to 15%, with a median of 4%.
- More NPO respondents reported having a budget for M&E (45%, up from 36% in 2021). Of these, twelve NPOs (34%) allocated more than 5% of their budget to M&E, down from 54% in 2021. The median proportion of budget NPOs allocated to M&E was 7%, with an allocation ranging from 0.05% to 30%.
- Almost a third of companies (32%) and over a fifth of NPOs (21%) do not have any internal or external resources dedicated to managing M&E.
- The proportion of companies with internal staff to manage M&E has remained fairly consistent at around half (50% in 2020, 49% in 2021 and 52% in 2022). The proportion of NPOs using internal staff (either part time or full time) increased slightly from 70% in 2021 to 74% in 2022.
- More companies (16%) than NPOs (5%) used external consultants for M&E.
- Despite many companies and NPOs not having dedicated staff, only 8% of companies and one NPO sampled did not measure outcomes for any projects.
- More companies are measuring outcomes for all grants (52% in 2020, 61% in 2021 and 66% in 2022). The proportion of companies that only measure outcomes for grants larger than a specific threshold has remained the same (13% in 2021 and 12% in 2022). Notably, the share of companies measuring outcomes for only grants made for a specific CSI project, based on other criteria, decreased from 15% in 2020 and 2021 to 9% in 2022.
- Around half of NPOs (53%) recorded and measured outcomes for all projects in 2022, in line with recent years (48% in 2020 and 49% in 2021). The proportion of NPOs that measured outcomes for all projects, but only at selected sites or stakeholders, remained the same. The proportion of NPOs measuring outcomes for projects only when it is a condition of funding increased to 17% (12% in 2021), while those measuring outcomes for selected or major projects only decreased to 11% (16% in 2021).
- Eighteen companies (28%) requested the same project output and outcome metrics from nearly all partners. While a similar proportion of companies (27%) requested different metrics from each partner, about one-third (34%) had a mixed approach.
- Nearly half of the participating corporates (45%) collaborated with the NPOs they support in developing reporting templates. About a third of companies (34%) have standard reporting templates and 11% of companies allow NPOs to determine how they report on results.
Use of M&E data
- Companies used M&E data mostly to report to their boards (91%), to plan or revise strategies (75%) and projects (67%), and to make decisions around exiting or continuing with support (67%). There was an increase in companies not using M&E data collected, from none in 2020 to 8% in 2022.
- The most common use of M&E data by NPOs was to report back to funders (76%) and to report to their boards (68%).
- More than half of company respondents (53%) believed that ESG data helped to improve operational efficiency. Approximately one-third (34%) believed that ESG data would attract more
- ESG investors. Three companies held the view that ESG data yielded no benefit.
- Globally, the top two uses of ESG data were the same as in South Africa: 50% of companies believed that
ESG would attract ESG investors and 42% believed it helped to improve operational efficiency.
EVP policies and budgets
- Three-quarters of companies (75%) had employee volunteer programmes (EVPs) in 2022, up from 71% in 2021. Of the 47 companies that reported having an EVP, 64% had a stated EVP policy and 69% had a separate budget for EVP.
- Twenty companies provided budget information on employee volunteerism in 2022. Most of these (70%) allocated between 1% and 5% of their CSI budget to EVPs. A fifth (20%, or four companies) allocated 6% to 10%, and two companies allocated more than 10% of their CSI budget to EVPs.
- In 2022, the average budget allocation to EVPs as a percentage of total CSI budget was 6%, while the median was 5%. The lowest allocation was 0.02% and the highest 25%.
- The proportion of NPOs with a budget for managing volunteers and volunteer programmes remains low (12% in 2022, 14% in 2021).
- Of the 23 companies that could report the amount of paid volunteering time given to employees each year, the most common amount was eight hours or one day (52% of companies).
- Globally, companies offered employees a median of 16 annual hours, or two days. The most common annual number of hours offered was eight hours (24% of companies).
- Eighteen companies with EVPs (41%) claimed that time spent volunteering by employees was included and recorded as part of total social investment. However, only two companies provided a rand value amount, totalling R62 million, in their disclosure of the components of total social investment.
- In 2022, 68% of companies had one or more people appointed to manage volunteerism in a full-time or part-time capacity, in line with 2021 (67%). A third of companies had no one dedicated to managing employee volunteerism.
- More than half of NPOs (57%) have one or more people appointed in a full-time or part-time capacity for managing employee volunteering, despite only 12% of NPOs having a budget for volunteering.
Types of EVP
- In 2022, companies offered four types of employee involvement initiatives on average, slightly up from 3.6 in 2021.
- Most companies with EVPs supported company-organised volunteering initiatives (93%), fundraising/collection drives (83%) and time off for individuals during work hours (72%). Company- organised volunteering initiatives and time off for individuals to volunteer during work hours also had the highest participation rates, at 47% and 39% of staff respectively.
- Whereas the majority of companies organise staff volunteering initiatives, far fewer NPOs (33%) were recipients
of these, suggesting that, although widespread, these initiatives are not reaching most NPOs. They also remain the least-liked type of initiative, selected by over a quarter of NPOs (26%) as their least desired type of EVP. Employee- matched funding was the most liked EVP in 2022, selected by 20% of NPOs as their preferred EVP type.
- The most received type of initiative was fundraising/collection drives (46% of NPOs), which was also the second most liked (16% of NPOs selected it as their most desired type of EVP).
- Nearly half of companies (49%) do not restrict EVP initiatives to existing CSI projects. Another 23% of companies fully restricted EVPs to existing CSI projects and nine companies (19%) allowed for some flexibility.
Impact of Covid-19 on EVP
- More than a third of companies (36%) and 16% of NPOs said the Covid-19 pandemic resulted in all volunteer programmes stopping, or being put on hold in 2022.
- Conversely, more companies and NPOs claimed that the pandemic had no impact on employee volunteerism in 2022, up from 4% to 9% and 9% to 17%, respectively.
- The proportion of companies offering new online volunteering programmes increased from 18% in 2021 to 23% in 2022. Only 10% of NPOs reported offering new online volunteering programmes in 2022.
- Fewer companies and NPOs shifted existing volunteer programmes to online in 2022 (down from 28% to 21% of corporates and 20% to 15% of NPOs).