For Wanda, starting her own business has been exciting and scary. She is just becoming familiar with CSI and interested in becoming more knowledgeable. While she has a keen interest in her profit levels, she realises her business’s role within the community in which it operates.
Corporate social investment is a business approach of encouraging companies to become more aware of how the business impacts the rest of society.
The introduction of CSI strategies has improved business functioning, by making owners liable for negative impacts on these factors, which then encourages them to work towards a better way of engaging with stakeholders.
Organisations can no longer claim to have a sole focus on profits. They should rather adopt a holistic outlook and this way they are able to connect better with the communities. Wanda and her business will be operating in a world that expects a cohesive approach in terms of working with communities. It offers good ways of demonstrating good corporate citizenship.
Corporate social investment drives businesses to become more conscious of the economic, social and environmental impacts, by investing in projects that give back to society in some form.
Its activities can help companies to connect more effectively with communities. By having strategic CSI projects, companies are able to measure their impact on societal transformation in a sense.
CSI keeps organisations accountable and ethical, while ensuring alignment with the triple bottom line ideal of ethics.
What are the foundations of CSI?
- Contributions towards environmental efforts
- Ethical labour practices
- Transparency and Honesty
As an off-shoot of CSR, CSI requires a diligent approach towards ensuring that the projects are aligned to both business values, and those of stakeholders.