Why do companies invest in art? The purpose and composition of art collections in the South African financial sector

Abstract

Companies around the world invest in art, be it through sponsorship activities or in the establishment of corporate art collections. This study explores the primary reasons why companies choose to invest in art collections, examining the South African financial sector from the perspective of a developing country. It then assesses the possibility of linking the purpose of an art collection with the type of art collected, to identify trends and create guidelines for businesses and arts organisations respectively. Finally, it examines the impact that leadership has on the implementation and continuity of an art collection and how changes in leadership can have a direct impact on the focus and composition of a collection. The study employed exploratory research through the application of semi-structured, indepth interviews with 13 individuals across 11 companies. These individuals represented a variety of roles, internal and external to the organisation, ranging from the chairperson to the Chief Executive Officer (CEO), to internal and external professional curators. The insights obtained from these individuals were collated and analysed from both a deductive and inductive perspective, to probe existing theories and generate new ideas based on the information collected. The findings of this study indicate that corporations within developing countries prioritise the purpose and strategic intent of an art collection differently from companies in developed markets. While it was not possible to determine definitive guidelines on how the purpose of a collection impacts its composition, new insights were formulated on the general focus of corporate collections on local, emerging artists, with high investment potential. Finally, it was determined that for a collection to succeed and fulfil the strategic aims of the company, it needs to have the active support of leadership and be built into the fabric of the organisation.