The impact of the global pandemic has been engaged through various lenses, including that of the economic impact on women, small businesses and the imprint of digital transformation, and national government preparedness and response strategies on what has been a turbulence that has resulted in a loss of life, funds, and intensified public sector engagement and call for collaboration. A new lens engaged by the Sage Foundation, spotlights the impact on over 4000 businesses, its leaders, and employees, and how they have and are driving and thinking about corporate philanthropy.
In their Harvard Business Review essay entitled “The Competitive Advantage of Corporate Philanthropy”, scholars, Michael E. Porter and Mark R. Kramer excellently paint the inception of the term, how the business practice has evolved over time, and the (potential of the) value created from strategic, focused corporate philanthropy and how it can drive company competitiveness beyond the outlook of charity. One of the latter arguments that the essay makes prominent, is the obscene vapidness that the true aspiration of this business engagement loses itself to, resulting in this chilling statistic from the People Powering Change Report by the Sage Foundation on the effect and residue of the pandemic, and that is how businesses’ engage in philanthropy, with 64% reporting that funds for corporate philanthropy have already been cut – or will be cut in the coming 12 months.
But what if corporate philanthropy wasn’t a charitable drive? Instead, an opportunity to invest in not only the public image of the company, but to strategically support the business’ bottom line and how it contextualises its corporate social responsibility to strengthen its competitiveness for its engaged stakeholders.
“My company encouraged volunteers to assist individually in their local communities. People also opted for money donations as opposed to the usual giving of time. My organisation matched the money donations received.”
At the end of 2020, the Sage Foundation commissioned Kantar, a leading data, insights, and consulting company to conduct a global study of business leaders and employees on corporate philanthropy and its current state. The findings of the report were anchored on unpacking the influence of the COVID-19 pandemic on corporate philanthropy, to challenge the relationship between purpose-led businesses and engaged employees, and to standardise the various four markets (of Sage) in South Africa, United Kingdom, United Sates and Spain. Here is what the report has informed us about corporate philanthropy:
1. COVID’s Negative Impact on Corporate Philanthropy Investment
For corporates, the impact of the pandemic has been felt mostly by the Corporate Social Responsibility (CSR), Corporate Social Investment (CSI), and Socio-Economic Development (SED) departments, often observed through the singular lens of expenditure and non-revenue generating business activity. As such, the study reveals that 64% of the interviewed business leaders believe that COVID will impact on their businesses’ ability to invest in corporate philanthropy in the long term, and as a further consequence, 49% of the business leaders believe the ripple effect of reduced investment will cause a delay in progress being made against reaching the UN Sustainable Development Goals by 2030.
Where does your company stand?
In South Africa, according to the latest data published by the latest Trialogue Business in Society Handbook, corporate philanthropy investment grew by a marginal 1,2% in real terms from R10,2 billion in 2019 to an estimated R10,7 billion in the 2020 financial year.
2. A Company’s CSI Engagement Matters
Who engages on the billions of dollars, globally, that companies invest in? One of the 4000 group of stakeholders that the People Powering Change Report by the Sage Foundation engaged, was socially responsible employee. Globally, 58% employees referred to an organisation’s commitment to corporate philanthropy being a priority to choosing the company that they end up working for; and even through 2 out of 3 businesses do not offer volunteering opportunities to their employees during paid working hours, 1 out of 3 business leaders have felt the increased pressure from their employees since March 2020 to support the local communities.
“Great Management that gives the right level of autonomy and support. Great tools that allowed me to do onboarding remotely, great culture of the company that communicates a lot, and Sage Foundation is the cherry on the cake. Very happy to be part of this great company.”
3. The Opportunity to Redefine Corporate Philanthropy
For the Sage Foundation, their 5 paid volunteer days provides the business with a differentiator for their talent acquisition attraction strategy, a context-based objective that participates in the broader purpose-led business agenda of Sage.
Financial services company, Investec’s CSI strategy engages through the lens of education and entrepreneurship as they see these two pillars being “critical to creating employment and socio-economic growth in South Africa.” During the pandemic, Investec invested their corporate philanthropy through the Solidarity Fund, the YES programme with 1440 interns receiving funding and for entrepreneurs, supporting Uconomy.
“Sage Foundation is excellent -5 days a year each for everyone to give back to our charities and communities is great. This is only part of a good benefits package you get for working at Sage.”
The rise of smartly investing in corporate philanthropy, paired with the commitment to SDGs and strategically engaging with stakeholders like employees and investors, enlightens us how far the school of CSI thought has come. A business led by operating with purpose at the center, with an inclusive and diverse way of consulting is sure to grab the opportunity to redefine how it innovatively engaged in corporate philanthropy, and not just for the community it aids, but those who can volunteer their time and money.
“Employees are keen to keep their commitment to volunteering despite the global health crisis with almost all (97%) employees saying that disadvantaged people and non-profits needed support now more than ever due to the pandemic. Over half (57%) go even further than that and say they would volunteer their own time money to the organization or initiative that their company supports.”
From the People Powering Change Report and the case studies provided, it is clear that corporate philanthropy’s role and impact is well understood and articulated by stakeholders involved and engaged. It benefits the company’s triple bottom line, provides an elevated attractiveness and competitiveness from a talent acquisition and retention strategy, and introduces capabilities of strategically and smartly investing in company growth.
Does your company care, how does it engage philanthropically? As an investor, employee or business leader, does this matter to you?
I’d love to hear from you!
On 7 July 2020, I was greeted by an email in my inbox with the subject line “Software Company Content Campaign”, followed by an urgent request outlining the impact of my work in industry. A few negotiations and months later, this would be the birth of a partnership now known as #SageForSmallBiz with multinational enterprise software company, Sage.
Six months later, and we’ve designed a conversation engaging with innovators, entrepreneurs, financial practitioners on themes of digital transformation, financial strategy and business innovation for the optimization of successfully running your business.
To mark this 6 month landmark, I’ve decided to share some of my 6 favourite moments and resources from the #SageForSmallBiz conversation:
Announcement of the Partnership
This was a conversation and partnership that was months in the pipeline, and I’d had a relationship with a few of my current colleagues, so when we hit the ground running, it was like a aligned well-oiled machine. This lead to getting profiled on the Sage website, engaging on the value of impact innovation.
Smart Money Tribe
The prospect of being in such a partnership meant that the #SageForSmallBiz stakeholders like yourself, were looking for value-add that wasn’t just centred around my expertise of being in business innovation, but also to engage on shared experiences. This is why, when I had the opportunity, I brought in my smart money tribe who are investors, entrepreneurs, venture builders to talk about their financial strategy that they use in their businesses, and treating their entities like legacy babies.
The Evergreen 30 Day Sage Trial
As a founder of a small business, managing your expenses and income is often afforded by the affordability and accessibility of an Excel spreadsheet. As you move your business from stage of growth to another, and you cannot afford to be inputting on excel at every purchase because more high-level prioritise require your attention, or the services of an accountant, the attractiveness of automating your accounting software becomes more alluring. This is why the Evergreen Sage Business Cloud Accounting Start 30-day FREE trial is one of my favourite resources from Sage.
“Accountants don't come cheap and as a startup, you generally have a very minimal budget in the early stages of your business. So Use accounting software to remain organized.” – Tinyiko Simbine, CFO and Co-Founder of GirlCode
Trust me when I say that takes a village to raise this conversation. From my fellow brand partnership colleagues, to the Sage engine that ensures we get our wish list to give you the best engagement and resources, getting on the monthly calls and strategy sessions definitely make the journey to work on this campaign a better delight.
Small Business Toolkits
If you’re not a big fan of reading articles or joining webinars, Sage has curated a few toolkits that are consumable and practical for founders in their first year, to creatives who are struggling with the jargon of the business and finance world. My top 3 would have to be:
Elevating after 6 Months
We have a special project coming in the next few months that will engage the tough economic impact of the COVID-19 pandemic through digital transformation, financial strategy and business innovation. I cannot wait to share this with you.
What have been some of your favourite moments and resources from the #SageForSmallBiz conversation? Let me know in the comments section, I’d love to hear from you and the value derived for your business or idea. Keep following the hashtag and www.sage.com for more information and updates.
“Such valuable information!
Thank you for breaking it down, BUT not dumbing it down. We’re learning as we go and grow #SageForSmallBiz.” - Phumeza Langa, Host of #SistaHoodHour
As I’m writing this, I’ve a bottle of Prosecco Doc Luxury opened and multitasking as a writer and an impassioned drinker of Italian sparkling wine with my flute champagne glass. And due to COVID-19 (well, to some extent), I’m at home in my bed going through how I’ve documented 2020 across my social media platforms and my somewhat illegible printed journal. It’s been a year that has qualified in many books as forgettable and unforgettable, and in its wholesome character has been one that has summoned courage and resilience.
This year started with the embrace of calling me out of familiar environments, and into new territories that knew my capabilities and added capacity along the way. When I left the firm that I was with in late February, I was sure of a few things which included a moderator engagement in Kigali, Rwanda as well as a deserved vacation to a few emirates in the United Arab of Emirates – the trajectory of my career and life was from this point onwards was what I could not have mapped out happening in a space of a few months.
After taking about three months to wallow in the reality that showcased itself through the violence of a pandemic, these months were filled with the relentless job applications acceptances and rejections (that returned with over or under qualified response, or non-culture fit), refining the messaging and positioning of my personal brand, upskilling and consulting businesses and startups in business innovation and strategy. Garnering the momentum in these months, through the work of consulting and continuous effort in Vuyolwethu As A Service was an opportunity to work in the wait, as well as prepare for what the months of stupendous grace that August and the months that followed would present.
It’s often joked about that in 2020, you should at least come out with one skill and I suppose I took that joke a little too seriously. I’ve always been one to outsource the work of skills that I don’t have, which includes the building of this particular website, but through Innovtel, I had a bit too much time on my hands and tons of insomnia to challenge myself to build a website. Through this engagement came an opportunity to work with Lufthansa by being a keynote speaker at their inaugural Impact Week for South Africa and produce a guide of the talk available exclusively to my newsletter community; and a few weeks later, InnovTel (Pty) Ltd was born. Innovtel is an impact design studio that facilitates impact innovation and shared value through Marketing and MIL (monitoring, impact and learning and development). To date, we’ve worked with companies like the University of Cape Town and the Mastercard Foundation, and ShEquity and Bright Insights Global to mention a few, spanning our work across three continents and operating as a five figure business. I stubbornly had to let go of the idea of becoming an entrepreneur by 30, and honour the space in which I was and am being placed in at present.
The experience of shedding through loss of family and friendships, habitual lifestyles and an old self, commanded the fierce submission of the a new way of doing and being. Personally, one of the ways in which I did was through sitting and being at home instead of on a plane and sleeping in a newly made white sheet-fitted hotel room. It felt as if I had lost a sense of mobility and the perceived value that I had attached to it. At home, I had to buy a desk and set aside a space to operate as if I was in a hotel suite or an office, and it’s become a continued way of operating in awareness.
Words and paragraphs are not enough to encapsulate the year of the pivot that was, and the learnings and losses that it carried with it to benefit or throw us completely off. What new ways of being and doing have you had to adopt and adapt to?
I had a brief chat with Viresh Harduth who is the Vice President of Small Business, Sage Africa & Middle East about the vision and mission for Sage for small businesses across the region, and how your business can ready itself for the digital transformation and risk beyond COVID-19
1. Viresh, as Vice President of Small Business, Sage Africa & Middle East, what exactly does your role entail and how does it, and Sage support small businesses?
My job is to lead sales and renewals, channel development and customer engagement for our start-up and small business solutions portfolio. In practical terms, that means building awareness of our solutions in the marketplace, working with our business partners to help customers meet their business goals, and providing education and information to the market.
Sage’s vision in small business is to help our customers thrive by automating accounting and compliance and by coaching them to success. The way we do this is by reducing administration for our customers, helping customers to comply with tax regulations, and enabling businesses and their accountants to collaborate better.
2. In the established distinction of an SME and a Start-up, do Sage products apply to both? And at what stage should a business consider bringing in the skillset of accountancy and financing in their business, digitized or human capital?
Our goal at Sage is to build relationships with customers for life, so our Sage Business Cloud encompasses offerings for small businesses and start-ups through to sizeable medium businesses. Our solutions, designed for smaller businesses, are tailored to their specific needs, so they can subscribe and get up-and-running at an affordable cost.
Clients can start with a simple solution that makes it easy to invoice customers and track expenses, then move up the ladder to online and accounting solutions with richer functionality for budgeting, forecasting, multi-currency management, inventory tracking, employee self-service, debtors management and more.
Formal businesses – that is, limited companies – will need an accountant to prepare their annual financial statements. They will usually start by outsourcing to an accounting practice. Generally, it is only when the business grows into a larger and more complex operation that they will consider a permanent accountant. We are seeing accountants in practice become real advisors to small business clients, helping them with strategic advice around optimising costs and finding growth opportunities.
3. Before your current role, you were the Director of Optimisation and Operations at Sage International and I’d like to think that you, more than anyone else recognises the importance of embedding business optimization tools to contribute to your business’ success. How does and can Sage do this for small to medium businesses?
Our business solutions help our clients to optimise their business in two ways. Firstly, we streamline and automate many tasks for them, from financial recordkeeping, invoicing to filing tax submissions, saving them hours of human time each month. That time can then be directed to sales, strategy, billable work or other activities that add value. Automating red-tape and paperwork is a significant cost-saver.
Secondly, we understand that making the most of business opportunities must be balanced with managing cash flow and keeping costs under control. Companies need a clear, real-time view of how the business is performing to achieve that goal. Our solutions empower them with the business performance information they need to make good financial choices that translate into higher revenues and profits.
Making an investment in your business’ digital transformation is an investment that takes more than one purchase and optimising one process, it is an evolving strategy that takes time, skills and the right technology.
4. As small businesses are moving from being digitally resistant to the aspirational observers and challengers, and ultimately digital natives, what would be your advice to founders of things to consider as they map out their digital strategy?
Digital technology doesn’t need to be as complex as some small businesses outside the tech industry might imagine. A good place to start is by identifying areas where manual processes are slowing you down, costing you money, restricting your flexibility or hampering your customer experience. From there, you can look for cloud-based solutions that address your pain points through automation. Many of these tools can be trialed for a month or two for free.
To sum up: digital technology is at its most powerful when you’re starting with the goal of solving a business problem. As a small business owner, you might have limited budget and time to rapidly incorporate new technologies and skills into your business, so look for the quick wins. And remember that the cloud can adapt as your business changes and grows, remaining a valuable business tool that evolves with you.
5. Your message to founders as they are coming out of Global Entrepreneurship Month, and into a 2021 that will definitely still require us to do business differently?.
At Sage, we know the pandemic has compounded the effects of the recession, and that many small businesses are struggling just to pay the rent and keep the lights on. Their grit and resilience are inspiring, as is the role they are playing in maintaining jobs and economic activity throughout this time. But if you are running a small business, you’ll know that platitudes are not going to be enough.
There are no quick fixes for the damage that the pandemic may have dealt to your cash reserves and your cash flow. Nonetheless, there are also opportunities to get closer to your customers and find new purpose in a crisis. Stay focused on your vision, watch your cashflow, and look out for how customer behaviour is changing. Aiming for small wins makes you flexible, adaptable, and able to make faster decisions.
It’s the year that no futurist or economist could have predicted, one inhabited by a virus that would (and still) impact livelihoods, businesses, economies and our way of living. The negative socio-economic rippling effect of COVID-19 has been felt across all vectors, and in a similar light, has inspired entrepreneurial and innovative activity that’s yielded products and partnerships that have impacted and pivoted the world as we know it. On the 14th of October, I announced such a partnership, a SAGE Partnership to benefit small businesses across South Africa.
In the midst of the pandemic, and after weeks of anxiously contemplating whether to take the plunge and spending a week of building a facilitated learning platform, I launched www.innovtel.org which houses courses, e-books and InnovTel and Teach webinars on impact innovation. Birthed through our first partnership with a global leading aviation company in providing advisory and mentorship on impact innovation, InnovTel (Pty) Ltd (an impact design studio that facilitates impact innovation and shared value through design, advisory and project management) was registered a company was born.
You’re probably thinking, what a crazy time to launch! Me too, at first. I also thought, what a relevant time to engage on impact and tools that can innovatively impact the way in which we practice and understand impact. A necessary opportunity to map out what impact means for your business, and what tools to use when listening to the potential impact and growth that can be achieved.
Recently, through InnovTel and Teach, which is one of the products of www.innovtel.org , we engaged with an entrepreneur on how she is building her multi-million venture, and one of the core principles of this impact was finances. She simply said to build your business as though you are building a legacy baby and it was her accountant who gave her this sage advice.
Being a small business owner, I knew that I could waste no time in tracking the finances of my business, and in my relationship with data and intelligence, Excel was my chosen tool of choice for my business, coupled with my relationship with my banker in understanding the trajectory that I wanted to take my business in. However, I knew I needed more to optimise my operations, and my partnership with SAGE could not have been more timeous, especially since I didn’t have an accountant on my business speed dial.
SAGE, a multinational enterprise software company, and I, will be engaging in #SAGEAdvice harnessing insights and expertise, and sharing how #SageForSmallBiz tools and capabilities for SMEs can optimize business operations through digitization. Over the next few months, we’ll be unpacking what this exactly means, and how things like automated processes, getting the right tools for your business finances, choosing the right business program partners, what impact is and how getting these process right and much more can contribute to the growth and success of your business.
For now, here’s a little gift from SAGE, an e-book guide with 10 tips to transform your productivity and how changing something as simple and important as your accounting admin can have a huge impact on your business.