Strategic CSI means delivering social impact programmes with a distinct benefit for both company and society. This may not be clear to all people initially as such programmes are primarily developmental interventions, according to Nick Rockey, MD of Trialogue, who took part in a discussion about the state of CSI at the Trialogue Business in Society Conference in May.  

Companies understand development well but can be less clear about how benefits accrue to them directly, Rockey pointed out.

“However, if the programmes are aligned to the business, they can leverage business resources and ultimately achieve more,” he said, adding that monitoring and evaluation can help companies to become more strategic and less inclined to roll out “vanity projects” that simply make a business look good.

Thinking more strategically helps to “elevate the conversation” and bring about shared value – something that the winner of the Strategic CSI Award for 2023, Sappi Khulisa, does especially well.

Sappi Khulisa’s shared value

Khulisa (which means ‘grow’ in isiZulu) is Sappi’s enterprise development scheme for emerging timber farmers and is a major driver of social change in the regions within which it operates.

The programme has its roots in Sappi’s CSI 1983 project, Project Grow, which was initially focused on supporting subsistence farmers in KwaZulu-Natal. It supported three growers in the early stages but has since supported 4 200 growers (80% of them women), and 200 small, medium and micro enterprises (SMMEs) directly serving these growers through silviculture, transportation, etc.

“These SMMEs alone have provided employment for more than 1 700 people in their communities,” said Beryl Traoré, social impact leader at Sappi Southern Africa.

The premise of the programme was to create shared value and meet the needs of both company and communities.

“Our neighbours had land they were not earning money from and needed jobs, and we needed a ready supply of quality timber,” said Traoré.

“That’s where the strategic CSI approach comes in – we make sure they’re sustainable, so we remain sustainable.”

Sappi’s commitment to asset-based community development is clear. “Our staff know that is not a project on the side, but part of our DNA,” Traoré pointed out. “If this project doesn’t work, we lose out on 10% of our timber. It was essential to build trust within the communities so we could thrive there, and help them to thrive.”

To date, growers have provided more than 200 000 tons of timber to Sappi, benefiting the business directly.

Bhekinkosi Moyo, director of the Centre on African Philanthropy and Social Investment (CAPSI), was one of the judges of the 2023 Strategic CSI Award.

He said that Sappi Khulisa stood out from other award entrants due to its clearly articulated objectives and visible outputs. Because the programme has existed for more than 40 years, the long-term benefits are clear, with many families having put their children and grandchildren through university thanks to their earnings.

Sappi has cultivated an excellent relationship with communities, and growers benefit from access to market, skills training, loans, and technical support.

However, Sappi is aware that many of its growers are young in what is an “old” industry, and there are opportunities to innovate and explore additional sources of income for growers between planting and harvesting trees, which can take up to 10 years.

Trends in CSI

The Strategic CSI Award has been running for 10 years, and during this time CSI has continued to evolve.

CSI 3.0, or leveraged CSI, is “strategic CSI on steroids”, according to Rockey, and entails going a step further by focusing on creating impact beyond the confines of specific programmes. However, such an approach is not suitable for all companies as it is complex and time-consuming. Rockey said company budgets and objectives will dictate whether to pursue CSI 1.0 (charitable giving), CSI 2.0 (strategic CSI) or CSI 3.0 (leveraged CSI) – and these are not “boxes” but a continuum.

“If you have a big budget and want to influence a bigger space, you need to think how you can leverage that by investing in research, collaborative processes and the like,” Rockey pointed out.

Moyo said South Africa remains a leader in corporate social responsibility on the continent, but emerging trends include the need for a greater focus on sustainability (the green economy, the Just Transition), diversity, equity and inclusion (DEI) when it comes to recruitment, procurement, and the provision of services, and the adoption of artificial intelligence (AI). The Sustainable Development Goals (SDGs) also remain a focal point.

Importantly, Moyo reiterated that companies should think about their social licence to operate.

“If communities are not playing an active role, it’s difficult to have alignment between them and your CSI objectives,” he pointed out.