annual report 2009
Corporate Social Investment (CSI)
As an established fashion retailer, we have a long track record of living up to the responsibility of ensuring that our customers look and feel at their best. In doing so we are aware that we bear the further responsibility of ensuring that sustainable economic development and social upliftment take place in the communities among which we operate.
One of the ways in which the group approaches this latter goal is through the medium of targeted donations.
Social investment spending with which the group is associated makes use of funds derived from the Foschini Foundation, from group resources and from direct donations provided by staff members.
The Foschini Foundation was registered as an independent charitable organisation in August 2006. Its trustees as at its financial year-end were two independent non-executive directors of Foschini, E Osrin and D M Nurek. Its initial capital base was created by a donation from the group. The value of investments under its control at the year-end reduced to R62 million from R83 million last year as a result of the current market weakness. Its objective is to use its investment income to provide donations to selected charitable causes.
Donations made by the Foundation during the past year totalled R4,3 million. Merchandise donations for the benefit of public service organisations totalled R20 million at retail value. Additional donations to a value of R1,3 million were made by various divisions of the group in cash, sundry equipment, merchandise and services. Of their own volition and from their own resources staff members and business partners of the group contributed an additional R33 000.
It is well known that women and children are the most marginalised and vulnerable members of society. Women make up the majority of our employees as well as our customers. It is for these reasons that the beneficiaries of our CSI contributions will in the main be women and children. Consideration is also given to the disabled.
Our CSI strategy
Our aim regarding CSI expenditure is, where practical, to become involved in the conceptualisation, development and execution of our own CSI projects.
Our CSI expenditure remains channelled into the following key areas of concern:
- Education
- Skills Development
- HIV/AIDS
- Arts, Culture and the Environment
- Special Projects
The allocations of the combined cash donations from the group’s CSI funds and the Foschini Foundation for the past year are indicated below.
CSI Spend |
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Having a national presence in South Africa, the group will continue to focus on identifying suitable registered non-governmental organisations (NGOs) and nonprofit organisations (NPOs) that operate on a national basis and are worthy recipients of these donations. The Nelson Mandela Children’s Trust is an example of such a nationally-based organisation that we support.
Education
We believe that one of the keys to unlocking the potential of our country lies in the provision of and access to quality education for all citizens. We invest in projects that focus on improving the quality of literacy, numeracy, and mathematics and science education at the stage of early childhood as well as at primary and secondary levels.
Amongst the organisations that benefitted from this position are the Rural Education Project (through the University of Cape Town’s Schools Development Unit), the Western Cape Primary Science Programme, LEAP Science and Maths School, ORT-Tech South Africa, and READ Educational Trust.
We also continued to donate class-leading jungle gyms to impoverished rural schools in the Western Cape. All are primary schools participating in the Rural Education Project, chosen on the basis of most improved results in numeracy and literacy. To date we have donated 30 jungle gyms, and plan to provide more this year.
Funding of the EQUIP programme, which is run by the National Business Initiative, has been continued, support being given during the year to a high school in Gauteng.
Many of the institutions of higher learning provide educational programmes in nearby disadvantaged communities. Amongst those that we support are:
- Durban University of Technology – equipment, resources & stimulation for the children of Okubu Nezibini Educare Centre as well as sustaining student involvement;
- Rhodes University – mathematics education in rural schools in the Eastern Cape;
- University of Cape Town – the Rural Education Project;
- University of Pretoria – the Boipelo community building project; and
- University of the Western Cape – the UWC Science Academy Winter School.
Programmes that give support to disadvantaged students also receive funding.
Some of the other organisations working within the educational sphere which we supported are SMILE and the Carel Du Toit Trust.
Skills Development
For the economic development of the country it is essential that members of previously disadvantaged groups receive not only school education of good quality but also training to equip them with entrepreneurial skills to enter the world of work or to start their own businesses. With this in view, the group supports projects that provide skills for employment, job creation and entrepreneurship at post-school level.
Some of the organisations in this category that received financial support are The Big Issue, Etafeni Day Care Centre Trust, Grassroots Educare Trust, Learn to Earn, Lifeline Childline, Media & Training Centre for Health, Oasis Association, South African Council for the Blind, Tsiba Education, WHEAT Trust, Wozobona, Wilderness Foundation South Africa and Zenzele Training and Development.
HIV/AIDS
The group recognises that HIV/AIDS affects our staff, their families, our customers and the nation as a whole. There is an undeniable obligation to contribute to under-resourced programmes to contain this pandemic. Support was accordingly directed to organisations that assist orphan-headed households and to others that provide training and assistance for home-based care initiatives. These organisations included Cotlands, Kidzpositive, Ma Africa Tikkun Johannesburg, St Lukes Hospice and the University of Pretoria.
Through their activities and combined skills, these organisations educate the community about HIV/AIDS and train volunteers to counsel people infected and affected by HIV/AIDS.
Arts, Culture and the Environment
The group firmly believes in the need to support organisations that run projects to educate children about the Arts, Culture and the Environment in order for these to be sustained. Examples of organisations which received funding during the past year include the Zama Dance School, Friends of the National Gallery, Ikapa, The National Sea Rescue Institute and World Wide Fund.
Special Projects
For the fourth year, the group again proudly supported the “16 days of activism against abuse of women and children” during which the public is encouraged to ‘Act Against Abuse’. The campaign focuses on increasing the awareness of the negative effects of violence against women and children and raising the profile of some of the organisations who work in this field.
To ensure that the impact of the campaign was widely distributed, the decision was made to expand the number of beneficiaries from one to 20. Of the 20 organisations selected, sixteen received an award of R20 000 each and a sponsored interview on SAfm’s Nancy Richard’s Show, providing them with national exposure. The remaining four organisations received R5 000 each.
During 2008 the group received an award for “Exceptional Support” from the Deputy Minister of Provincial and Local government, having donated a total of R1,7 million to this initiative.
Other special projects for the year included a ‘casual day’ in aid of the Bel Porto School for the disabled, a Christmas cheer gift drive to benefit children’s organisations affiliated to the Child Welfare organisations in South Africa, and a blanket and canned food drive in aid of the Disaster Management organisation. In addition, donations were made to Red Cross Children’s Hospital, Tygerberg Children’s Hospital and the SPCA.
Working together on corporate social investment
The group’s CSI initiative is very much a team effort. We actively encourage a culture of philanthropy and community involvement amongst our employees and business partners. In pursuit of this, the group’s CSI department works with the employees of the trading and service divisions on their individual projects to maximise effectiveness.
These projects are incentivised. To recognise employees who volunteer for community work in their spare time, the group provides Rand-for-Rand grants to staff members through their “staff community builder” programme, which commenced in 2004.
Individual trading and service division projects are also provided with Rand-for-Rand support.
Beneficiaries selected by staff members of our divisions include:
- Nazareth House
- Nceduluntu Trust
- Solomon’s Haven
- Ubuhle Babatwana
RCS Group undertook various projects during the year in the areas of education, HIV/AIDS, poverty alleviation and welfare and public services at a total cost of R921 860. This division’s flagship project is a partnership with TSIBA, a free tertiary educational institution. Together they developed a financial literacy curriculum aimed at empowering students with skills to manage their finances in a responsible way.
