South African corporate social investment grows in 2023
Research from corporate responsibility consultancy Trialogu finds that South African companies invested an estimated $635 million in corporate social investment (CSI) during the 2023 financial year. This represents an 8% nominal and 1% real increase from 2022. The rise is attributed to post-Covid recovery, low economic growth, and a challenging operating environment.
The data, presented in the Trialogue Business in Society Handbook, indicates a consistent recovery in CSI expenditure, with 59% of surveyed companies reporting an increase in CSI spending. This marks a notable increase compared to 36% in 2021.
Around 60% of companies determined their CSI budget as a percentage of net profit after tax (NPAT), linking changes in corporate profits to the primary reasons for increases or decreases in CSI expenditure. These findings suggest a positive trend in corporate social responsibility efforts among South African companies.
Key Takeaways
In the development sector, priorities for South African companies remained consistent with previous years, with three key sectors—education, social and community development, and food security and agriculture—accounting for the majority of corporate social investment (CSI) expenditure. Education continues to be the most favored cause among local companies. While there was a decline in company support for education in 2023 (from 98% in 2022 to 78% in 2023), the average spend increased from 44% of CSI in 2022 to 48% in 2023. Social and community development retained the support of 74% of companies, unchanged from the previous year, with an average expenditure of 13% of CSI in this area. Food security and agriculture, which experienced significant increases in support during the pandemic, garnered support from 60% of companies in 2023, receiving an average of 9% of CSI expenditure. These findings suggest a continued focus on key development sectors and a nuanced shift in the allocation of corporate social investment within these areas.
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