MRL2601
ASSIGNMENT 2 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Entrepreneurial Law
Question 1
Explain what the principle of corporate social responsibility entails and provide
examples of how this principle is reflected in the Companies Act 71 of 2008.
Corporate Social Responsibility (CSR) refers to the idea that companies should act not
only for profit but also in a manner that benefits society at large. It encourages
businesses to take accountability for their impact on the environment, the economy, and
the communities in which they operate (Esser & Delport, 2011). This responsibility goes
beyond legal compliance and involves voluntary actions to improve societal well-being.
CSR is rooted in ethical behaviour and responsible corporate governance. It includes
promoting environmental sustainability, fair labour practices, and community
development. A business that embraces CSR might, for example, reduce pollution,
invest in local education, or support health programmes in the community.
The Companies Act 71 of 2008 reflects the principles of CSR in several ways:
Section 7 of the Act outlines the purposes of the legislation, including promoting
compliance with the Constitution and ensuring responsible corporate conduct
(Republic of South Africa, 2008).
Section 72(4)–(5) requires certain categories of companies to establish a Social
and Ethics Committee, which must monitor and report on the company’s
performance in areas such as:
o Social and economic development (e.g. B-BBEE compliance),
o Good corporate citizenship (e.g. anti-corruption initiatives),
o Environmental, health and public safety,
o Consumer relationships,
o Labour and employment practices (Republic of South Africa, 2008).
The Social and Ethics Committee must ensure that the company upholds high
standards of integrity and ethical conduct.
ASSIGNMENT 2 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, Entrepreneurial Law
Question 1
Explain what the principle of corporate social responsibility entails and provide
examples of how this principle is reflected in the Companies Act 71 of 2008.
Corporate Social Responsibility (CSR) refers to the idea that companies should act not
only for profit but also in a manner that benefits society at large. It encourages
businesses to take accountability for their impact on the environment, the economy, and
the communities in which they operate (Esser & Delport, 2011). This responsibility goes
beyond legal compliance and involves voluntary actions to improve societal well-being.
CSR is rooted in ethical behaviour and responsible corporate governance. It includes
promoting environmental sustainability, fair labour practices, and community
development. A business that embraces CSR might, for example, reduce pollution,
invest in local education, or support health programmes in the community.
The Companies Act 71 of 2008 reflects the principles of CSR in several ways:
Section 7 of the Act outlines the purposes of the legislation, including promoting
compliance with the Constitution and ensuring responsible corporate conduct
(Republic of South Africa, 2008).
Section 72(4)–(5) requires certain categories of companies to establish a Social
and Ethics Committee, which must monitor and report on the company’s
performance in areas such as:
o Social and economic development (e.g. B-BBEE compliance),
o Good corporate citizenship (e.g. anti-corruption initiatives),
o Environmental, health and public safety,
o Consumer relationships,
o Labour and employment practices (Republic of South Africa, 2008).
The Social and Ethics Committee must ensure that the company upholds high
standards of integrity and ethical conduct.
