In a challenging economic climate, South African companies are stepping up to make a difference, collectively contributing R12.7 billion to social initiatives in 2024.
According to the latest findings from corporate responsibility advisory firm Trialogue, Vodacom has emerged as the leader in corporate social impact for the eighth consecutive year.
The telecommunications giant was ranked first by corporate peers for its developmental impact, with Anglo American, Nedbank, FirstRand, MTN, Sasol, Shoprite, Woolworths, Standard Bank, and Old Mutual rounding out the top ten.
Trialogue’s 2024 Business in Society Handbook, released on Tuesday shows that corporate social investment (CSI) spending has grown at its fastest pace since the Covid-19 pandemic, increasing by 7.5% in nominal terms from R11.8 billion in 2023 to R12.7bn on in 2024.
The report said this real growth is a significant increase over the past two post Covid-19 years and reflects a recovery from that period, despite a difficult operating environment for companies in 2024.
“This year’s findings are particularly noteworthy as they demonstrate corporate South Africa’s sustained commitment to social development, even in a challenging operating environment,” said Trialogue director Cathy Duff. “The growth in CSI expenditure signals a meaningful recovery from the pandemic period and shows that companies are prioritising their social commitments despite economic headwinds.”
The basic materials sector, encompassing industries such as mining and chemicals, led the charge in corporate giving, contributing 35% of the total CSI spend. Consumer services followed at 29%, driven by non-cash contributions from retail and media companies, while the financial sector accounted for 20%.
Education emerged as the top priority, with 92% of companies directing funds to the sector. Social and community development received 15% of funding, followed by food security (11%), health (9%) and entrepreneurship (5%).
Non-cash contributions, including donated products, services, and volunteer time, accounted for 29% of CSI spend. Nearly 85% of NPOs reported receiving non-cash donations.
Meanwhile, corporate funding remains a cornerstone of non-profit income, with 93% of surveyed companies supporting NPOs. These contributions made up an average of 71% of their CSI budgets, underscoring the integral role companies play in South Africa’s non-profit sector.
The report found that NPO’s that made the biggest impact were: Gift of the Givers, which was ranked first by both companies and NPOs for the fourth consecutive year. Afrika Tikkun was ranked second by companies and NPOs for the second consecutive year. Smile Foundation was ranked joint third by companies and joint 10th by NPOs.
BUSINESS REPORT
