Response of Businesses in South Africa as part of Social responsibility
Answers
Explanation:
Response of Business in south Africa as part of Social Responsibility:
The days when the government was seen as the exclusive social change agent and the absolute macro problem solver are becoming part of the past, as companies are gradually taking a larger role, actively participating in social and community projects under the concept of Corporate Social Responsibility (CSR).
CSR refers to the generally voluntary involvement, or investment, of companies in social projects that help advance the society / the community in which they operate in areas such as health care, housing, education, safety, and the environment, among other
Corporate Social Responsibility in South Africa: More than a nice intention
12th September 2011 BY: IN ON AFRICA IOA
The days when the government was seen as the exclusive social change agent and the absolute macro problem solver are becoming part of the past, as companies are gradually taking a larger role, actively participating in social and community projects under the concept of Corporate Social Responsibility (CSR). CSR refers to the generally voluntary involvement, or investment, of companies in social projects that help advance the society / the community in which they operate in areas such as health care, housing, education, safety, and the environment, among others.
Corporations have come to realize that they cannot operate in isolation to the community, that good governance and social involvement go beyond the work performed in their own offices. Their vision is shifting from one where shareholder’s value and owner’s satisfaction were almost the exclusive corporate goals to another one more sensible that considers and protects not only shareholders, but also all stakeholders; including employees, customers, suppliers, the environment and the community. One has to recognize that the adoption of a CSR posture does not result only from a generalized and progressive “change in corporate conscience”, but also from the pressure of interest groups and nonprofit organizations that defend different social causes (mining companies were mostly targeted for their alleged lack of consideration to the communities they worked in and to the environment), the need to follow accepted business trends and standards, the potential enhancement of the company’s image which can eventually translate into higher sales and lower employee turnover, the need to comply with relevant regulations and to satisfy the public scrutiny, among others. In any case, for one reason or the other, the consideration of the so-called “triple-bottom line”, that incorporates people, planet and profit, is a reality within the corporate world that cannot be ignored by corporations claiming to have good governance policies and high moral standards.
The legal framework for CSR in South Africa:
In South Africa, CSR is not only a frequent topic for conversation and debate, but also a tangible effort by many companies. The social picture of the country after the Apartheid era was one of marked inequalities in terms of education, infrastructure, economic power, and basic services access. The democratic regimes that have governed the country since 1994 have made important efforts in combating those social imbalances through different social programs and various public initiatives, but also through the impulse given to the private sector. Although the South African Companies Act 61 of 1973 does not oblige companies to engage in CSR projects, the country’s Policy Document and the King II and King III reports explicitly address the need and relevance for corporations to acknowledge all stakeholders and to adopt a “triple-bottom line” approach.(2) In particular, the King reports constitute accepted guides of best practices in corporate governance in South Africa, focusing on social, environmental and economic concerns. The King reports’ clauses are not mandatory, but they take a “comply/apply or explain” approach that somewhat forces corporations to apply CSR programs or justify why they have not adopted them.
According to research, not all CSR efforts in South Africa result from voluntary or indirect business decisions; some of them are the product of corporate compliance with the Black Economic Empowerment (BEE) legislation.
The BEE Act forces South African-based companies to consider all stakeholders when performing their internal and external operations in an effort to eradicate social and economic inequalities inherited from the Apartheid days and to help previously discriminated groups to actively participate in the country’s economy.
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