The Absa group’s corporate citizenship strategy today is grounded in a number of successes, challenges, and lessons learnt over the last two decades.
- During the 2000s, Absa’s approach to CSI shifted from charitable giving, towards more impactful community projects which broadly aimed to stimulate social and economic upliftment.
- During 2012, Absa introduced its new Citizenship plan as the cornerstone of an evolved business strategy; one that would better align with the Group’s ability (and expertise) to facilitate greater and more inclusive prosperity for current and future generations.
- From 2016 onwards, Absa’s Shared Growth approach is premised on addressing relevant social problems with business solutions. It is no longer a separate CSR strategy, or department, that lies outside the core business; rather, it is a business-led imperative that cuts across all aspects of the bank’s operations.
Shared Growth is about applying Absa’s knowledge, expertise and resources to address the needs of its clients and the communities in which it operates, through innovative products, services and meaningful partnerships. Investing in the socioeconomic fabric while creating value for its shareholders, has become a strategic business imperative, critical to realising long-term and mutual benefit.
The journey to Shared Growth
The journey to a fully integrated Shared Growth approach throughout the business has been a steady, iterative process. The group’s corporate Citizenship strategy today is grounded in a number of successes, challenges, and lessons learnt over the last two decades.
Moving towards community investment: pre-2012
During the 2000s, Absa’s approach to CSI shifted from charitable giving, towards more impactful community projects which broadly aimed to stimulate social and economic upliftment. These were not, however, closely linked with Absa’s core business.
The themes for Absa’s CSI during this time were:
- Banking on brighter futures: helping disadvantaged people work towards financial security through financial literacy, entrepreneurship, job creation and skills development initiatives;
- Looking after local communities: local support for orphaned and vulnerable children, people living with disabilities, health and welfare and local education, including training educators;
- Employee volunteerism.
While meaningful in their own right, programmes such as these became increasingly unsustainable as they were disconnected from Absa’s core expertise thus leading to an over reliance on implementation by external partners.
Introducing Citizenship: 2012 to 2015
Citizenship, for Absa, means being a trusted and sustainable business that is a force for social good. It means taking into account both the short- and long-term interests of all stakeholders at each decision touch point within the business. During 2012, Absa introduced its new Citizenship plan as the cornerstone of an evolved business strategy; one that would better align with the Group’s ability (and expertise) to facilitate greater and more inclusive prosperity for current and future generations.
The Citizenship plan had three key aspects:
- The way Absa did business, living its stated corporate values of respect, integrity, service, excellence and stewardship
- Contributing to growth. This reflected the group’s focus on delivering products and services that contributed to the sustainable prosperity of society
- Supporting communities by investing in young people.
Guided by this agenda, together with government’s national imperatives, Absa began to partner with NPOs, to promote financial and life skills, and the development of emerging
small enterprises. During this period of consolidating its CSR activities, the group began to use its financial services expertise in order to respond to the needs of a younger generation.
Creating Shared Growth: 2016 onwards
Building on the foundation of the successful Citizenship plan, in 2016, Absa embarked on a new phase of its Citizenship journey to further align to the Group’s business strategy, geographical footprint and competitive strengths. Understanding that its business success depends on the individuals and communities that need and want its products and services, Absa aims to create value to a range of stakeholders. Absa’s Shared Growth approach is premised on addressing relevant social problems with business solutions. It is no longer a separate CSR strategy, or department, that lies outside the core business; rather, it is a business-led imperative that cuts across all aspects of the bank’s operations. The philosophy informs the Group’s business strategy and each business unit actively participates and contributes to implementation and delivery.
Given this closer alignment between supporting its communities while delivering core business goals, Absa recognises its ability to contribute most significantly in the areas of education and skills development, enterprise development and financial inclusion. These three focus areas form the crux of its Shared Growth framework.
Success factors in creating shared value
Recognising the fundamental differences between traditional philanthropic and CSR approaches, and the philosophy of creating shared value, have been critical success factors in Absa’s citizenship journey. Also, key has been the Group’s recognition that delivering meaningful social impact requires corporate alignment with local context and national development priorities.
What has remained constant in Absa’s journey is the way they do business, anchored in the tenant of stewardship: to leave society better than they found it. This includes, for example, managing its environmental impacts, supporting inclusive procurement, and enabling colleague engagement.
Absa continues to adapt its strategies and evolve its purpose- driven business models to align with global best practice and the proactive management of the six-capitals. It remains steadfast in driving market-level change, thereby enabling customers and communities to achieve their own sustainable development goals.
Source: Trialogue Business in Society Handbook 2017.