Discover the Potential Economic Impact of Effective Social Investment [Infographic]

30 Jan 2017


How recently launched report on the economic impact of effective corporate social investment, commissioned by Nation Builder, builds a solid business and economic case for corporate social investment in South Africa.


Corporate social investment (CSI) is more than a simple compliance exercise. Business South Africa is becoming increasingly involved in tackling, and developing solutions to, the social problems facing the country. Businesses can “do well by doing good” through an effective CSI programme that impacts people and the economy while also offering strategic benefit to the business.


“THE CASE FOR CORPORATE SOCIAL INVESTMENT IN SOUTH AFRICA” is a collaborative research report by the Bureau of Economic Research (BER), commissioned by Nation Builder, and in association with Trialogue. Published in August 2016, this research report sets out the obvious motivations behind effective corporate social investment, and builds a solid business case for companies to invest in socio-economic development.


It is estimated that R8.1 billion was spent on CSI in 2015. According to the BER report, if all of these funds were invested effectively, this could result in R25 billion being added to South Africa’s economic output. In effect, businesses will experience a societal return of R3.2 for every R1 spent annually on CSI. This same value of CSI spend would sustain almost 63,000 jobs and generate R7.7 billion in labour remuneration – ultimately reducing unemployment and impacting our economy positively. In all, effective CSI has the potential to increase the South African gross domestic product (GDP) by R12.5 billion.


CSI plays an important role in creating an environment that allows for more inclusive economic growth and the report has shown that the potential impacts of already existing expenditure is highly significant in the current South African context. The BER calls this “a rare win-win situation”.


Findings such as this highlight the importance of initiatives such as Nation Builder and the Good Giving Benchmarking Tool that assist businesses to achieve the best possible impact through their CSI initiatives.


This report is especially useful for business owners, CEOs, CSI practitioners and everyone involved in leveraging their business for the upliftment and transformation of our country and its people. Not only does it directly support the case for using business for good, but it also emphasises the need to develop even more effective CSI initiatives, ensuring greater and lasting impact.


To read the full report, view the main findings and download infographics of the report, visit the Nation Builder website.


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