Broad-Based Black Economic Empowerment (BBBEE)

To all B-BBEE organisations that are looking to find an economical development project – this is the opportunity to evaluate whether your ED strategy is effectively going to be addressed.

For you as an organisation a sound ED Strategy – Contributor to benefit in any way is seen as an investment.

 These can be in the form of increased brand awareness from:

·         BEE Score

·         Revenue

·         Supplier Quality

·         Profitability

·         Supplier Loyalty

·         Market Share

·         Customer loyalty

Enterprise development is not just a point of the scorecard but a real growth strategy that lets a company grow by investing outside their own operation in CSI initiatives.

The facts

The latest best practice in CSI Funding indicates that the key drivers for companies CSI Commitment are:

·         Highest – Industry sector Charter

·         Medium High – License to operate

·         Medium – Stakeholder Pressure

·         Medium low – BEE Codes

·         Low – Moral imperative

GRAPH - KEY DRIVERS OF CSI COMMITMENT

 SCORECARD COMPLIANCE IS HIGH

The changing regulatory environment, and new pressures to contribute towards national development goals, has also seen a market shift over the past decade, towards a more strategic approach to CSI.

Whit this in mind CSI programs have increasingly  aligned  with core business objectives and imperatives (RTI)We are cognitive that we will attract CSI partners that will look at these activities and align them to geographical and core business as well as stakeholder communities.

This will reflect the importance of stakeholder pressures and LTO (Licence to operate) obligations in shaping CSI agendas

The current trend is demonstrated in the graph below

ALIGNMENT OF CSI PROGRAMMES

 NPOs ARE PREFERED BENEFICIERIES

When it comes to CSI projects, companies have many options to choose from. Many choose to fund NPOs that are developmental specialists and have experience in a particular focus area.

Not all CSI funding goes through NPOs but is still the main contributory beneficiary due to their social upliftment initiatives. NPOs are ever increasingly more under pressure to re- invent the way that they are operating due to economic pressures and rapid growth in poverty elements.

The NPOs that are setting a new benchmark and are focussing on the Economic Development projects are the new br5eed that will revolutionise CSI into the future and in partnership with Government and industry rewrite the model for self sustainability.

This is exactly where we at the Manger Care Centre find ourselves and acknowledge that we need to partner in the ED funding category with you in your industry to come on board in developing sound ED projects hand in hand with The manger Care Centre ED projects.

Below are the latest indicators of CSI spending in the relevant categories?

CSI FUNDING CHANNELS GRAPH

The initial Project that has been initiated is the AgriSeta SAQA Accredited skills development centre – This will have numerous sub - projects to ensure that the purpose is achieved .We will approach this in phases to ensure growth and sustainably. This means we are taking an imaginative approach to ED and identifying ourselves and our ED CSI partner to provide services in whole communities or groups of enterprises as opposed to just those in its own supply chain.

For Example:

·         Operate as walk in centre’s providing basic business facilities and training to unemployed

·         Provide intensive support and training of high potential entrepreneurs who are identified through strict selection process

·         Operate as business hubs focussed on facilitating business plans for enterprises looking for financing at micro level

·         Becoming a hybrid of the above models looking to handhold a business from micro stage through to full self sustainability through intensive support plus access to funding.

Companies with the goal of having a working partnership with NPOs are far more common now

When we approach our partners we want our MOU and formal contracts that will emphasise and address the ROI through Monitoring and evaluation (M&R).

This ensures not only the success rate of the project but keeps the focus on the ROI by addressing key business drivers and the importance of implementing these and alignment towards the strategy . Monitoring and evaluating are constant re-alignment KPIs measured which is designed towards good best practises implemented and maintained.

BEE Ratings – SA

 This is addressed as a priority and will be the main benefit for any CSI funder but not isolated as per the overview of the document.

SCORECARDS

Refer to the following websites:                              

www.beeratings.com

www.honeycomb-bee.co.za

www.mangercare.co.za

We thank you for taking the time to peruse the information we have researched and shared with you – we request that should you need to enquire further how you can become a CSI Investor that you contact us.

All donations contributed, be it with cash or material goods are tax deductible according to section 18A of the SARS income tax act.