MRL2601
Assignment 2
Semester 2 2025
, Assignment 2, Semester 2: Year 2025
Question 1: Corporate Social Responsibility (10 marks)
Corporate Social Responsibility (CSR) is the idea that a company doesn’t exist only to
make profits for shareholders, but also has a duty to consider the social, environmental,
and economic impact of its actions. In South Africa, this concept ties into the
constitutional values of dignity, equality, and the advancement of human rights.
In the Companies Act 71 of 2008, CSR isn’t enforced in a strict way, but some parts of
the Act show how the principle is reflected. For example, section 7(d) says one of the
purposes of the Act is to promote the development of companies within all sectors of the
economy, especially to encourage investment and employment. This shows a broader
focus on economic inclusion.
Also, section 72(4) allows the Minister of Trade and Industry to prescribe the
requirement for certain companies (especially state-owned ones or large firms) to
appoint social and ethics committees. These committees must monitor company
activities in areas like:
• Employment equity,
• Environmental responsibility,
• Consumer relationships, and
• Community development (Companies Regulations, 2011, Reg. 43).
These requirements highlight that companies are expected to behave ethically and
contribute to society not only chase profit. A real-world example of CSR in action is large
retail chains like Woolworths, which have environmental sustainability initiatives and
supplier development programs.
Even though CSR isn’t a hard legal obligation across the board, the Act reflects it in
ways that guide corporate behaviour toward public benefit (Du Plessis et al., 2020).
Question 2: Separate Legal Personality (5 marks)
Assignment 2
Semester 2 2025
, Assignment 2, Semester 2: Year 2025
Question 1: Corporate Social Responsibility (10 marks)
Corporate Social Responsibility (CSR) is the idea that a company doesn’t exist only to
make profits for shareholders, but also has a duty to consider the social, environmental,
and economic impact of its actions. In South Africa, this concept ties into the
constitutional values of dignity, equality, and the advancement of human rights.
In the Companies Act 71 of 2008, CSR isn’t enforced in a strict way, but some parts of
the Act show how the principle is reflected. For example, section 7(d) says one of the
purposes of the Act is to promote the development of companies within all sectors of the
economy, especially to encourage investment and employment. This shows a broader
focus on economic inclusion.
Also, section 72(4) allows the Minister of Trade and Industry to prescribe the
requirement for certain companies (especially state-owned ones or large firms) to
appoint social and ethics committees. These committees must monitor company
activities in areas like:
• Employment equity,
• Environmental responsibility,
• Consumer relationships, and
• Community development (Companies Regulations, 2011, Reg. 43).
These requirements highlight that companies are expected to behave ethically and
contribute to society not only chase profit. A real-world example of CSR in action is large
retail chains like Woolworths, which have environmental sustainability initiatives and
supplier development programs.
Even though CSR isn’t a hard legal obligation across the board, the Act reflects it in
ways that guide corporate behaviour toward public benefit (Du Plessis et al., 2020).
Question 2: Separate Legal Personality (5 marks)
