CSI - Corporate Social Investment

Congratulations to all of those who are busy with their internships and those who have found a permanent job. But I must say I couldn’t expect anything less from our class. We all worked very hard to benefit from the training we have received.

I just want to give some information through to specifically Cyrille and also anybody who finds Corporate Social Investment (CSI) and Corporate Social Responsibility (CSR) an area of interest. To me its not only an area of interest but also an area of necessity for the South African economy and the companies who adopt this way of working.

I found great articles from my supervisor at work, Fiona McDonald, who is actually a consultant for Rand Merchant Bank. And part of her consulting is Corporate Social Responsibility. She gave me a journal to do some extra reading on the topic. It is called “Above Board – Africa’s Global Chronicle on Governance, Leadership and Ethics”. Fiona wrote an article on the importance of CSI and CSR called “The (Social) Butterfly Effect”. This article expresses the nature of these areas and explains that if companies invest in these two areas, the society who will benefit from this will in turn invest into South Africa’s economy, which in turn will increase, like Fiona says, the ‘brand position’ of the company. Here is a short extract from her article to explain it better:

“Investment in education, skills development, healthcare, literacy, child care, HIV/Aids, gender abuse and the like builds a society that can participate more effectively in the economy.In doing this, we create more skilled employees, more consumers, a healthier nation with a longer lifespan – the ripple or butterfly effect – thus contributing to the economy for a longer period of time, and in a more valuable manner. And all the while, the brand position of the organisation is being enhanced.”

The Johannesburg Securities Exchange has a Socially Responsible Investment (SRI) Index to identify which companies invest socially. This Index assists the JSE in choosing which company to invest in. Companies are ranked according to their achievements with regards to CSI and CSR. The JSE explains the bacground and selection criteria on their website at www.jse.co.za/sri/docs/Background%20and%20Criteria.final.06%2010%2003.pdf.

I thought you, Cyrille, might find this journal very interesting, and also the JSE website could give you more information so that you can incorporate this knowledge with your internship. There is still so much to say about this topic. And I do still think that many companies have not yet realised what a positive impact CSI will have on them and on the South African society as a whole. I think the whole process of the JSE SRI Index should be more publicised and companies who are part of the Index should be praised even more. What do you think could be done to increase investors and society’s interest?