Introduction

Corporate Social Responsibility began as the prerogative of a company to invest through donations, etc. to charities and staff they deemed fit. This was often a gesture from companies that wished to give back to communities and charities for their productive and prosperous years. Subsequently though, across the globe, it has become a significant responsibility and contribution from medium and large corporations towards a more stable economy and society.

Governments across Europe have begun looking at the large investment that companies are able to make in projects and programmes that protect the environment, provide education and training for disadvantaged people and even deliver services that government seems slower to deliver.

It is bearing this in mind, that that this policy document for Corporate Social Investment for Applied Pneumatics (Pty) Ltd., including Everlee Engineering was developed. The following are the pillars upon which the Corporate Social Investment strategy are be based:

- Investment in the well-being and advancement of employees, their families and communities.

- Investment in potential customers and their major stakeholders

- Investment in potential suppliers and small business that can impact directly on job creation and poverty alleviation

Clear distinction between donations and investment i.e. donations, refers to basically philanthropic contributions and investments are made with specific and broader objectives in mind.

Criteria for Support

Projects, programmes or businesses must be registered with relevant institutions, i.e. projects and programmes with the Department of Social Welfare as a non-profit organisation or businesses with the registrar of companies.
Projects must be addressing any of the following:

Training Programmes and Skills Development for historically disadvantaged persons.
HIV and AIDS programmes being implemented in and around Johannesburg.
Projects involved in supporting persons with disabilities, the elderly and abused women and children
Micro businesses with satisfactory and better black economic empowerment scores through investment, mentorship and technical support.

Projects, programmes or businesses will be supported to a maximum of

R150 000 per year. However, this is not guaranteed at any point.

Projects, programmes and businesses must have legitimate track record and experience in the proposed area of support and sound financial and management systems.

Allocation of portions of the total CSI budget towards specific areas that will be addressed i.e.

- Donations (charities need to be chosen and a budget developed for at least 3 years)

- Staff members need to be made aware that a maximum of a certain amount will be made available for a charity they choose, ideally one that is in need in the local community. Criteria will be developed and clearly monitored to ensure that no upheaval emanates from your good intent.

- Lastly, a model to allocate at least 45% of the total CSI budget being re-invested in business opportunities from suppliers and partners, ideally black owned companies, needing investment capital to either expand or grow their businesses. Some benefits of this are:

· Scores towards both CSI and enterprise development

· Assist Applied Pneumatics (Pty) Ltd., including Everlee Engineering in nurturing possible long-term business associates for new ventures and broadening the scope of the company

· Provides an opportunity for Applied Pneumatics (Pty) Ltd., including Everlee Engineering to address Employment Equity in the company through reallocating staff and possibly creating opportunities at slightly junior levels for black candidates to enter the company.

The model mentioned earlier is further described below:

Black owned suppliers or independent companies will be identified according to the following criteria:

· Sector they are in.

· Stability of the business, i.e. length of business activity since inception and financial records

· Possibilities for diversification and introduction of new technologies

· Trustworthiness and personal interactions between Applied Pneumatics (Pty) Ltd., including Everlee Engineering and the company management.

Once these criteria, amongst others, are met, the process of investment begins. This will include a Memorandum of Understanding between Applied Pneumatics (Pty) Ltd., including Everlee Engineering and the recipient company, a share agreement for the contribution that Applied Pneumatics (Pty) Ltd., including Everlee Engineering will be making and changes to legal documents i.e. cc papers, etc.
The investment must be monitored and transferred in staggered payments against progress made, etc. Applied Pneumatics (Pty) Ltd., including Everlee Engineering needs to have faith in the management capability of the owner.

Some points to note about this model:

We must allow for the recipient company to buy Applied Pneumatics (Pty) Ltd., including Everlee Engineering out in three years. This investment will thus grow substantially if monitored and nurtured constantly by Applied Pneumatics (Pty) Ltd., including Everlee Engineering.
When this buy-out takes place, Applied Pneumatics (Pty) Ltd., including Everlee Engineering would leave behind a company much stronger than when you met and with greater capacity to employ.
Applied Pneumatics (Pty) Ltd., including Everlee Engineering would have reported its commitment to growth and development and achieved in its objective to make money work for you.

Responsible Persons

The Managing Director and the Administration Support person in the company will manage the corporate social investment portfolio. Application forms and systems to monitor this and manage this process will need to be developed.

Timeframes

Projects will need to apply before the 31^st March of each year for support. This company will provide no guaranteed support. All applications must be renewed every year.

Reporting

All projects and businesses supported through this corporate social investment programme need to provide the following before 12^th December of the year within which support is received:

- Financial Statements including detailed expenditure schedule

- Major outcomes achieved with the investment of resources from this company.

- Detailed requirements in an application form for support for the next financial year.