From funding to futures (part 3): from accounting to accountability

From Funding to Futures: From Accounting to Accountability

As social investors, our sector is moving away from counting inputs and outputs to demanding outcomes and real impact. Globally, this trend is accelerating: communities and investors demand proof of impact, transparency, and ethical practice. Technology, from AI-driven reporting to blockchain-based verification, is making accountability sharper and harder to ignore. In the first two articles in this series on unlocking the potential of social investment to shape the future, we explored the shifts from charity to systemic change, and from programmes to partnerships. Now we challenge investors to ensure accountability for impact – rather than merely accounting for spend.

Accountability Through Impact Measurement

Accountability for impact requires that we take impact measurement seriously. An excellent example of this is found in our partnership with Valterra Platinum. Tshikululu has partnered with Valterra Platinum for many years, most recently in the implementation of its multi-year initiative to rebuild and build resilience in its host communities in the aftermath of the Covid-19 pandemic and social unrest. As part of reporting on the outcomes of this programme, Tshikululu worked with Valterra Platinum to develop a Social Return on Investment (SROI) analysis as a way of quantifying the benefits achieved by the programme. SROI is an innovative approach used to measure and account for value by placing a monetary value on the social impact of an outcome and comparing this with the cost incurred in creating that benefit. The output of SROI analysis is a benefit-to cost-ratio – in the case of Valterra Platinum’s programme, the analysis found an impressive average social return across all projects of 11.38:1 (i.e. a social return of R11.38 for every R1 invested in the programme). We are continuing to update our analytical model for calculating SROI and are pleased to contribute towards the sector’s ability to measure and report on social value creation in this way.

The Role of Governance in Accountability

Very closely tied to accountability is a trend at the very heart of Tshikululu’s work: governance. Recent headlines of governance failures keep many donors and social impact practitioners awake at night, not to mention the reputational and economic damage they cause to South Africa as an investment destination For Tshikululu and our clients, governance goes far beyond impact monitoring and measurement, as important as those are. We are seeing growing pressure for Environmental, Social and Governance (ESG) criteria to be included in mandatory disclosures. Part of our team is contributing directly to this work through the global Taskforce on Inequality and Social-Related Financial Disclosures (TISFD), which is developing the world’s first reporting standards for the “S” in ESG – measures that will bring social impact onto the same footing as climate disclosures. In this way, we are bringing our expertise to the global stage to enhance metrics of social progress.

Building Trust Through Transparency

Strong governance means asking tough questions about everything from the diversity and strength of boards, to rigorous due diligence, to whether we are truly partnering with the right organisations. Too often, social investment projects are launched with the best of intentions but without robust due diligence, leaving donors disappointed at best, and communities vulnerable at worst. It also means keeping the voice of stakeholders, and especially the lived experiences of communities, front and centre. Without accountability to those most affected, even the most well-designed interventions risk missing the mark. And finally, governance in this sector must embrace transparency: from how funds are deployed to how outcomes are reported. Ultimately, trust is the currency that underpins long-term, sustainable social investment.

A Call to Action for Social Investors

In conclusion, our future will be shaped by those willing to move from funding to futures, maximising the power of social investment to achieve impact. The challenge is in front of us, but so is the opportunity. The future asks three things of us as investors:

Put purpose at the core of our social investments. We can no longer afford for social investment to be seen as an add-on. We need widespread recognition that business success is inseparable from the health of our society.
Engage in partnerships for blended capital. Public, private, and philanthropic finance need to work together to create lasting impact at scale.
Seek to create and measure genuine impact. The impact generated through our social investments must be measured with rigour and transparency, and grounded in lived realities.

South Africa has shown it can change. The question for all of us is whether we are ready to invest in change at the scale required to create a future that works. We challenge social investors to commit to boldness and transformation, and to building the South Africa we all know is possible. We invite investors, partners, and changemakers to join us in moving from funding to futures and to be part of building solutions at the scale South Africa needs.