FOR many companies, corporate social investment means writing out cheques. These companies fulfil their corporate social investment requirements but have little real involvement in the initiatives which they fund.
But the partnership approach, whereby companies approach corporate social investment in a far more consultative manner, means greater involvement on the company’s part, and usually results in more sustainable solutions for its beneficiaries.
As I grew up in the townships, and still know many people who live in underserved areas, it is only logical to me that you should consult with the intended beneficiaries about the fundamental issues and the solutions they may have.
Using the partnership approach, companies talk to and listen to the communities, understand the intricacies of each of their initiatives and then design solutions for the communities, rather than imposing solutions created by companies or nongovernmental organisations (NGOs).
There is no doubt that the partnership approach takes far more time to set up, implement and follow through. But it also ensures the beneficiaries are more likely to be able to look after themselves .
Using this approach, it is often easier for companies to gain a deeper understanding of their particular areas of involvement, if they choose only a few areas of specialisation on which to focus.
At we have taken a programmatic approach in which we have reduced the number of focus areas so we can spend more time and money on selected ones and defined programmes within those areas. We have 12 programmes at the moment and have committed to all of them for the next few years so we can really get to know each other and build trust with our beneficiaries.
As a large company, we are able to have a properly staffed department focusing only on corporate social investment. We also use an NGO, which has developed a great deal of knowledge and community experience in our areas of focus and speaks for communities that may not be able to speak for themselves.
NGOs play an important role as the intermediary between the company and communities in terms of fundraising and initiating proposals. Companies should negotiate with the NGOs they deal with to ensure their funds are spent in the best possible way. Some NGOs have created bureaucratic structures that detract from serving the needs of the communities. By negotiating with them, companies can ensure that these structures are removed.
It is also important to be patient as many corporate social investment programmes take many years to show results.
Companies need to be dedicated to their programmes for the long term. For example, improving the quality of education cannot happen overnight; it will take many years. We have found, over the past three years, our involvement in the education sector has given us a far greater understanding of the problems it endures and we have been able to pilot a number of innovations from which we are still getting results.
We have also found our involvement in agricultural livelihoods has meant that local communities have once again started living off the land, rather than relying on social grants.
By establishing a level of trust, introducing best practices and working closely with the communities, we have been able to show them that agricultural enterprises can help alleviate poverty.
By becoming involved in such consultative ways, business can play a role that shows it does not exist only to make profits but also to ensure the environment in which it operates is sustainable for the long term.
- Nxasana is CEO of FirstRand.