What is CSI?
Corporate Social Investment (CSI) is designed to uplift communities. A sub-component of corporate social responsibility, CSI is about using company resources for development. Projects undertaken are not created for increasing profits. Instead, they are about improving the company’s credibility with stakeholders along with shareholders.
Any company that wants to ensure ethical business operations should avoid making mistakes by following a simple procedure. Its CSI team should also learn from what went wrong in other companies by looking at case studies.
Done correctly, CSI offers a range of benefits. But there are a number of things that can go wrong along the way.
Common CSI mistakes include:
Neglecting to develop a CSI strategy
It’s key to know that CSI can attract and retain investors, while also enhancing credibility. By not developing a clear strategy, then the company is likely to end up wasting resources. By aligning the company’s CSI initiatives with its values and ethos, this is more likely to result in a successful strategy – which is why it’s key to have a plan in place.
Not having any CSI projects
Having a good CSI programme is a critical component of business success. Without any CSI projects, a business lowers its chances of attracting more investors and retaining customer loyalty.
Not understanding what CSI is about
A company cannot continue to grow at the expense of the natural environment or local communities. A company must understand the impact as well as how to measure it.
Over-communicating every step of the strategy
You don’t want to diminish the impact of the project by overdoing it when communicating with stakeholders.
Setting unattainable targets
By setting goals that are unattainable, business risk wasting resources such as time and money.
Not communicating about CSI
Make sure that you accurately reflect what your CSI policies aim to achieve to all stakeholders, otherwise not enough may be invested into the programme. This is one of the most common CSI mistakes.