AI, Sustainability and Societal Concerns: South Africa’s C-Suite Dilemmas

Q1: In the U.S. and many other markets, AI is the start and end of every business conversation. How does this compare to South Africa and Africa as a whole?

A: There are many areas in which African perspectives on AI align with the rest of the world, and some where views differ. It makes sense that AI is a topical conversation for the communications industry, balancing the benefits of productivity and efficiency with the obvious risks of disruption, fears around security and more. It is an election year in South Africa, and there is major scrutiny on all things misinformation-related. AI is under the spotlight here, too.

There’s also broad consensus in South Africa that enforceable regulation of AI will be important. Brands and businesses will have to lead the way in ensuring that their use of AI aligns with their brand values, that it’s used in a moral and ethical way, and that users’ privacy remains paramount. We haven’t gone through the passing of data protection laws, such as POPIA in South Africa and GDPR in the EU, only for user data to be bulk uploaded to third-party AI tools.

There is no doubt that AI development and adoption are areas ripe for ongoing exploration, but one must be cognizant of the challenges associated with, and the realities of, the digital divide, high inequality, dire unemployment rates and education levels. For many in Africa, the focus is so personally driven around fundamental needs, including food, housing, access to basic health care and education, that AI may not feature in the hierarchy of needs.

At a recent UN panel discussion “Fostering Prosperity through Policies on Artificial Intelligence in Africa,” Fayaz King of UNICEF highlighted that AI regulation in Africa needs to put people at the center. “For what AI giveth, AI also taketh,” he remarked, underscoring the role AI must play in decreasing the digital divide, not widening it. AI is a powerful tool, and in Africa, we need to ensure that we tap into its immense potential for good.

Q2: In addition to AI, what other themes are top of mind for communications leaders and the C-suite in Africa?

A: Right now, the C-suite and brand communicators in South Africa face relentless pressure. From consumers, their employees, and even their own senior management and leaders. Expectations are high and need to be managed carefully to protect reputation, maintain brand loyalty and retain top talent. Brands in South Africa, as elsewhere, are navigating tough economic conditions right now, but those that commit or re-commit to a few sacred goals have the chance to be seen as bold and leading bravely.

WE Communications ’ Brands in Motion research, “It’s Personal: The New Rules of Corporate Reputation,” found that of all markets surveyed, South Africans are most likely to agree that brands have social and moral responsibilities. The survey found that 92% of South Africans said they believe that brands should invest to make the world a better place, and 87% believe they are obligated to engage with societal issues that directly impact their employees. The pressures on South African business leaders are high, and those who neglect their societal expectations should be prepared for talent and consumers to look elsewhere.

The focus must be squarely on the personal realm — how can leaders improve the lives of their stakeholders? In South Africa, this means stable employment at a business led with values; acting and speaking up on sustainability and ESG; and engaging with the political climate.

Brand communicators also need to consider that it’s no longer enough for values to be restricted to corporate and brand communications. They also need to be pulled through to executive communications. The Brands in Motion survey found that 63% of South Africans said that senior executives need to communicate their values more frequently with their employees; 58% of consumers want to hear from them more often; and 55% want more communications from senior execs to shareholders. Being the face of the brand isn’t enough — leaders need to be the voice of the brand’s values, too.

Q3: Given that 41% of WE’s Brands in Motion respondents prioritize climate change, how are South African businesses weighing this issue against other social concerns?

A: A focus on climate change is particularly important in South Africa, where it will hit those in poverty the hardest. From dire water shortages in the Western Cape to ravaging floods in KwaZulu-Natal, we’ve felt the very real impact already. It’s an important issue for leadership to address, and CEOs have a great deal of agency to move forward, decarbonizing their businesses and implementing initiatives to protect their companies’ physical assets and workforces.

Research from PwC shows that 92% of South African businesses are either in the process of, or have completed, improving their energy consumption — not surprising in a country where one cannot rely on the exclusive national energy supplier and endure daily load shedding. It also shows that 77% have completed, or are finalizing, the incorporation of climate risk in their financial planning.

For many though, the climate mitigation of businesses is a background issue for others to solve. For most, there are more pressing, personal issues where brands can and should prioritize engagement.

For employees, investment by their employers into health and wellbeing programs, such as mental health, physical health and/or childcare support (62%), is a top priority. Demand for this outpaces career development programs (59%), improved work-life balance (50%), and even compensation increases (45%). With Sub-Saharan African investment in health a fraction of the global average, and a low density of healthcare professionals a severe challenge, the prioritization of health care will be a surprise to few on the continent.

Of all markets surveyed, South Africans are the most likely to vote with their wallet when it comes to societal issues, too; 78% said that their decision to purchase is impacted by how well a brand responds to an issue or crisis (compared to, for example, 38% in Germany and 41% in the U.K.).

Q4: In the Brands in Motion survey, 90% of South Africans agreed that being clear in how brands support issues is important, and 80% agreed that brands have a moral obligation to engage with societal issues when it affects their employees. How should brands and communicators approach this?

A: We saw these trends really come to the fore during the so-called Great Resignation of 2022–23, when businesses saw a boom in employees pivoting away from typically homogenous corporate culture and toward employers that better reflect their own personal values. Particularly for younger generations, work is seen as a subset of life, not separate from it. More than a post-COVID trend, the expectation for businesses to engage with societal issues is now a key decider for talent when looking for new roles. The Great Resignation is now the Great Renegotiation.

So, the focus for employers must address the issues that matter most to individual employees, how does this level up to wider communities, how can the business engage with these issues authentically, and how can the brand communicate their actions transparently.

The idea of giving employees a seat at the table is nothing new, but there must now be real emphasis that employees’ voices are heard. Through engagement with employee resource groups (ERGs), regular listening sessions and acting on expectations, brands can move the needle on their reputation. Nowadays, employee experience tracks closely with brand reputation.

The most authentic ways brands and leaders can be transparent is with data, testimonials and reviews, and content that explains what you’re doing and why. The communications industry in Africa lives in the long shadow of Bell Pottinger and scandalous agency behavior on the continent, and this means that authenticity, transparency and engagement must always be top of mind. Trust is hard won and easily lost. Any slip-up and brands and their partners will have to go a long way to win it back.

Q5: South Africa has a relatively young population (median age of 28.1). How can businesses tap into this demographic?

A: For consumers, the focus has to be on transparency and education. Brand loyalty now comes at a premium, with customers voting with their wallets. Educate your customers on who you are, what you do, and why you’re doing it, or watch them go elsewhere.

In South Africa, and across the wider continent, there’s often the expectation for brands and their leaders to be knights in shining armor. Corruption is rife, governments often fall short at the municipal and national level, and businesses have to step in to fill the gap. In South Africa, this takes the shape of companies like Investec and Vodacom offering up their generators to power traffic signals at key intersections during load shedding. Brands’ responsibilities go beyond their provision of goods and services — they’re expected to keep the lights on, literally.

And remember, Gen Z are a generation of digital nomads who have grown up with access to tech. With 98% on social media, their consumer behavior is heavily influenced by online product research and user-generated content reviewing you, your product and your brand. Leaders can take some comfort in the fact that Gen Z is more forgiving after a bad experience compared with older generations. Approach this demographic in the right way, with the right message, and you can win over a generation rapidly growing in influence.