What it takes to give

While the charitable initiatives of companies are often dismissed as being carried out purely for image or for the tax rebates on offer, there are a number of noteworthy projects that stand out as true examples of how corporate spending is helping to grow a nation.

A recent PricewaterhouseCoopers (PWC) survey shows that while nearly three-fourths (73%) of fast-growth private companies are involved to some extent in charitable activities, the majority of CEOs (55%) don`t see these activities as being important to the long-term growth of their business.

"On the surface, the majority of these CEOs may appear to side with Nobel prize-winning economist, Milton Friedman, who has long held that social initiatives of companies undermine their profit-seeking purpose," says Kevin Roach, Private Companies Services tax partner for PWC.

Ploughing back

CSI ploughs back into the community some of what the company has earned from that community.

Tsholo Diale, CSI manager, arivia.kom

For Tsholo Diale, corporate social investment (CSI) manager at arivia.kom, charitable activities are a strategic business imperative. "CSI ploughs back into the community some of what the company has earned from that community," he says. "In return, the organisation stands to gain acceptance from the society in which it operates.

"Companies which have a licence to operate in those communities will attract the right partners, such as clients or those in the value chain and procurement, as well as black empowerment partners," he says.

The PWC survey bears testimony to this, with 69% of CEOs saying they see retention of employees with compatible values and high-level networking as the business benefits of social investment.

While charitable giving is all well and good, the number of surveyed CEOs who get advice on these activities is startlingly low. Only 5% seek professional assistance with their philanthropic activities, and only 15% have a formal plan. Similar numbers have an "informal" plan (31%) or commit to charitable activities on an ad hoc basis (36%).

"Within the South African context, corporate social responsibility is a commercial reality," cautions Mapula Mashishi, CSI manager at PWC, SA. "In order to impact the lives of people socio-economically, corporate SA has to make an investment in terms of time and rand. The sharing of skills and involvement in developmental initiatives with, and within communities, has benefits of creating a neighbour of a choice brand, while attracting and retaining top talent."

Because of this, proper planning is required.

The ITWeb CSI special feature takes a look at the companies we believe are showing careful planning in the charitable initiatives they either created or support. These initiatives have evolved as part of a strategic plan for contributing, and are examples of how funding can either address a huge need, or build sustainability, so the beneficiaries can come to stand on their own feet, rather than continuing to rely on charitable endeavours.

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With 600 schools running computer labs by the end of 2005, the success of the Western Cape Education Department`s Khanya initiative could provide a valuable lesson plan for similar programmes trying to ramp up social development in other provinces.

A cursory inspection of Bridgeville Primary might suggest it is no different from any other junior school in the Cape Flats. It`s set in a modest building in a poor area, overwhelmed by unemployment, violent crime and social malaise.

A year ago, 90% of the school`s 560 learners (and most of the 21 staff) had never laid fingertips on a mouse. Now, the school has seen its marks in numeracy and literacy (as ranked by the education department) jump more than a 100%, attributable to the newly installed computer lab, coupled with a tailor-made software intervention.

Donated 'dinosaurs`

Bridgeville has always had a heavy focus on the arts, including fine art, drama, dance and music. Principal Albert Arendse envisions a near future where all his graduates walk away with a DVD portfolio of their work in hand. He has a long-term goal of grooming talent for Cape Town`s film industry. But the school has always suffered from a lack of resources.

When Bridgeville initially tried to go the technology route alone, the school ran into trouble with the second-hand "dinosaurs" they had been donated and software licensing issues. It found out about Khanya at a conference at UCT, immediately signed on and has been going from strength to strength ever since.

A different kind of evangelism

The charismatic ex-missionary, who was brought on board by the Western Cape Education Department to help conceptualise Khanya and put the programme into execution, is now preaching a different kind of evangelism: that the technology should not be the first priority.

Forming partnerships has been one of the greatest successes of Khanya.

Kobus Van Wyk, programme manager, Khanya

It might sound suspiciously like an oxymoron in a programme designed to get computers into schools, but as Kobus Van Wyk, Khanya`s programme manager, points out: "This kind of project has failed consistently in SA and Africa. The whole world is grappling with the problem. Our point of departure is not installing technology for the sake of it, but rather as a mechanism to assist teachers in delivering curriculum. The computer literacy will come.`

By the end of the year, Khanya will have installed a computer lab in 600 of the province`s 1 500 schools and while that might seem like small fry compared to GautengOnline`s 1 200, the latter has been bogged-down with budget slashes, bureaucracy and embarrassing slip-ups, such as installing R250 000 worth of equipment into a Soweto school that had no electricity.

Tailoring solutions to individual schools has been a big part of Khanya`s success. Van Wyk says although it`s more time-consuming, his team of 30 project managers and 40 facilitators work carefully with schools to determine needs and how to accommodate them.

Educating the educators

The challenges are multi-disciplinary. "It`s not simply ICT. You have to look at the school infrastructure. Most classrooms only have one plug, for example, and when you have 60 hot bodies and 30 computers in there, an air-conditioner isn`t a luxury, it`s a necessity. We often have to remodel buildings and reinstall their electrics, and security is a big issue."

Part of Khanya`s success is tying in with savvy partners. "Forming partnerships has been one of the greatest successes of Khanya. We play the role of coordinator or facilitator, bringing all the different parties together to form lasting partnerships at various levels."

Critically, Khanya partners with the community too, roping parents in to do basic labour like building or painting or small-scale fund-raising.

Perhaps the trickiest challenge is educating the educators. "The challenge is to train them and it needs to be done in different phases, first focusing on basic IT training and then looking at how they can use technology to help them deliver curriculum," says Van Wyk.

From a distance, the people queuing outside one of the few brick buildings in Orange Farm could be mistaken for pensioners or voters waiting their turn. They are, however, residents queuing at the Orange Farm ICT Hub, the only place for kilometres where they can make photocopies, type their CVs or learn how to use a PC.

On top of an unemployment rate hovering above 60%, Orange Farm is an unusually isolated community. Not only is it off-the-beaten track geographically, but its telecommunications connectivity is sparse, making Internet access almost non-existent. Formal businesses are rare, forcing community members to travel outside for everything from stationery, to job and training opportunities.

"The big problem in Orange Farm is that all the revenue goes out because people have to go into town for almost everything," says Douglas Cohen, project consultant of the ICT sector support programme in the economic development unit of the City of Johannesburg.

Small wonder, then, that the Orange Farm ICT Hub is attracting such queues. In operation for almost a year, the Hub is fully equipped with computers, printers, telephones, fax machines and photocopiers, all available to the local community at a minimal cost.

Established by the City of Johannesburg, the CSIR IT Centre and Computer Sciences Corporation (CSC), the hub also offers computer skills training to community members, business consultancy and desktop publishing (DTP) services.

Resources ploughed back

Eight volunteers offer these services, in exchange for the training they`ve received. All eight have had computer training, half have been trained in business advisory skills and the other half learned DTP skills. The fees they charge are low - about R200 for basic computer training - of which a small percentage goes to the volunteers, while the rest goes toward the running of the hub.

"We originally had 12 volunteers but four have since found full-time jobs, which is fine," says Cohen. "We`re happy for people to use the skills they gain here to find employment or run their own businesses. Either way, they`re helping to stimulate the Orange Farm economy."

Limited by having only eight PCs, demand for computer training outstrips supply. So far, 26 people have been trained on PC courses and the waiting list is growing.

"Training in basic computer skills is probably where the need is greatest," says Jorg Schwartze, chairman of the CSI team committee of CSC SA, which has contributed R100 000 to equip the hub, along with training and technical advice.

The hub, which is moving into purpose-built offices, faces two main challenges in deepening its impact on the Orange Farm economy, he says. "One is cost. The eight volunteers have to be very creative in providing services to a market that is so cost-driven."

CSC is looking at various ways to help them keep costs down, such as by assisting trainers to print training material, he says. At the moment, a simple printer cartridge cannot be bought anywhere in Orange Farm and few suppliers are willing to deliver to them.

"The major challenge, though, is connectivity," says Schwartze. "If Orange Farm had better connectivity, mainstream businesses would be able to use the DTP services in Orange Farm and local businesses would really take off."

In fact, developing the hub`s connectivity is the next step in its evolution, as it is soon to be used as a test bed for wireless voice over technology.

"Not only does the Web bring access to information, jobs and tenders for local business but will also include a VOIP telecentre," says Cohen. "This means cheaper calls for the community and even free calls to linked satellites of the hub within Orange Farm, such as clinics, businesses and schools."

* Next week, read about three companies` innovative corporate social investment initiatives.