The Evolution Of Absa’s Corporate Citizenship

Marking 30 Years Of Unwavering Commitment To Community Empowerment Through Strategic Intent. Corporate Citizenship is a vital component of modern business, encapsulating a company’s social responsibilities and its commitment to propagating ethical behaviour, community involvement, environmental sustainability and, ultimately, helping to move societies forward. Equally vital is having a systematic approach to tracking and measuring the effectiveness of corporate social responsibility (CSI) initiatives to demonstrate their impact.

The monitoring, evaluation and reporting portfolio in Absa’s Corporate Citizenship division involves tracking, measuring, and reporting on various programmes to demonstrate the measurable societal impact in our communities. My involvement over the past seven years has helped Absa draw unparalleled awareness to this important cause, ultimately amplifying efforts when it comes to showcasing the value creation our initiatives bring to the communities we operate in. This role requires meticulous attention to detail and a comprehensive understanding of the programmes’ outcomes.

Absa’s journey in Corporate Citizenship has undergone a significant transformation over the years. What once was viewed as an extension of CSI has now evolved into CSI 3.0 – a holistic approach that recognizes the interconnectedness of societal well-being and business success. This evolution is grounded in the philosophy of Creating Shared Value – where Absa addresses the socio-economic dynamics within our areas of operation while driving sustainable impact.

Rooted in our Group’s purpose of “Empowering Africa’s tomorrow, together… one story at a time,” our Corporate Citizenship strategy aligns with the Group’s ambition of “being an active force for good in everything we do.” Our initiatives contribute to the social dimension of the “S” in our ESG framework, integrating the company’s goals with societal needs and fostering a culture of accountability and purpose.

Our forward-looking Corporate Citizenship strategy is centered on Financial Inclusion through Entrepreneurship education. By focusing on this strategic priority, Absa is positioning itself as a leader in impactful corporate citizenship – advocating for inclusion, empowering marginalized communities, and fostering an environment where shared value is at the heart of our efforts.

This approach unlocks potential and enables brighter futures, one empowered story at a time. This strategic shift highlights the transition from Corporate Citizenship being seen as a function of the “CSI” team to being recognized as a core business imperative where commercial goals are closely intertwined with our commitment to societal advancement. In line with the CSI 3.0 objectives, the monitoring and evaluation portfolio has evolved to “Applied Measurements” to enable a proactive data-driven approach through research, insights and learnings to accelerate the social impact. I have observed several significant shifts in Absa’s Corporate Citizenship landscape during my tenure. For instance, the shift to seeing the idea of corporate citizenship as a business- wide strategy has allowed us to embed social responsibility into the group strategy, ensuring that every business unit understands its role in contributing to societal impact.

Additionally, there has been a greater emphasis on evidence- based reporting. The practice of using solid, data-driven evidence to report on the outcomes of corporate citizenship initiatives involves systematically collecting and analysing data to demonstrate the real-world impacts of these programmes.

By employing this approach, Absa provides transparent, verifiable proofpoints of the effectiveness of our efforts, ensuring accountability and fostering trust among stakeholders. This approach also allows us to clearly communicate the tangible benefits and successes of our initiatives, moving beyond mere intentions to show real and measurable results. As you may know, Absa has been leading several impactful initiatives in South Africa in recent years.

A prime example is our commitment to sustainable community development through education, youth empowerment to create pathways for young people into income-generating opportunities, financial literacy education for our communities, and broader community support. Over the past five years, we’ve made a significant cumulative investment of around R1.5 billion across the Group, positively impacting approximately 1.27 million people in the communities where we operate.

This includes among others:

  • over 39,000 students supported through various post-school education initiatives, with over 20,400 of them transitioned into income-generating opportunities thereby unlocking approximately R290 million in income,
  • Absa’s flagship ReadytoWork programme has empowered over 130,000 young people with requisite skills,
  • we have empowered over 420,000 people with financial education and tools to be financial savvy, and
  • donated over R160 million towards colleague volunteering activities and social impact response initiatives, touching over 660,000 lives.

In an effort to measure and determine the efficacy of the Corporate Citizenship programming, we commissioned independent and external evaluations on two of our signature programmes, namely (i) the Absa scholarship programme, and (ii) the Education and youth employability programme.

The key findings on the scholarship programme were as follows: the programme was successful in broadening access to higher education with 68.3% increase access to students who were eligible for but did not get NSAFS student funding; the programme had a throughput rate of 75%; and lastly it had a social return on investment (SRoI) of 1:4 – meaning that for every R1 Absa invested, the social value created was R4. The key findings on the employability programme were as follows: at least 78% efficacy in transitioning young people into income-generating opportunities, with 59% of them securing jobs or self-employment; the programme had an SRoI of 1:8 – meaning that for every R1 that Absa invested, it created a social value of R8.

Through this comprehensive and integrated approach, Absa aspire to create a future where individuals are not only equipped with the knowledge and skills necessary to succeed but also provided with the resources to thrive in an entrepreneurial environment. This vision extends beyond individual success, aiming to cultivate vibrant, resilient communities that are economically empowered.

By fostering a culture of innovation and entrepreneurship, we seek to lay the foundation for sustainable growth and prosperity, ensuring that communities are well-prepared to navigate challenges and seize opportunities in the evolving economic landscape.

Our long-term ambition is to “Empower Africa’s development and growth to enable intergenerational inclusion through entrepreneurship”, where empowered individuals contribute to the overall vitality
and resilience of their communities, leading to a more inclusive and prosperous society.

Simphiwe Mtetwa
Simphiwe Mtetwa is South Africa’s leading Corporate Social Responsibility news, media and publishing firm. We create content on social responsibility, helping government, corporates, consultants, NPOs and NGOs to reach their target markets through appropriate, targeted development news.

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