CSI is a form of corporate social responsibility and involves an allocation of resources towards improving the world around the business, without a direct financial benefit to the company. CSI is about making a positive impact and it aims to do good.
When trying to work out how much should be invested in CSI, companies need to consider a number of factors.
CSI is about dedicating time and resources to social, economic and environmental causes, so companies should keep in mind that it goes beyond earning a profit. Corporate reputation matters, so CSI initiatives should have targeted impacts. It’s important for the assigned team to figure out how the business can make a positive difference within the community.
There should be a strategy for investment and there should be a social return on investment.
-This decision is largely dependent on the strategy. It should outline clearly how much will be invested and the targeted outcomes.
It’s important to merge social responsibility with business-mindedness.
-The CSI initiatives should be aligned with business values and ideals. This helps to determine which causes matter most to business shareholders as well as how much they are willing to invest in them.
The investment should be measured.
-Guided by a clear strategy, the amount allocated from the budget is important.
It may be marketing-driven.
-By creating marketing-driven CSI, companies will have a clear idea of how much expenditure will go towards initiatives.
It’s important to treat CSI as part of your business and to create relevant CSI strategies.
-This will outline how much spending should go towards CSI initiatives.
Work with effective NPOs
-By identifying efficient NPOs, there is less likelihood of failure with CSI initiatives
Don’t limit the company to one form of CSI.
-The number or CSI initiatives undertaken will determine how much should be invested in CSI.