MRL2601
Assignment 2
Due 2025
, MRL2601
Assignment 2
Entrepreneurial Law – Semester 2, 2025
Question 1 (10 Marks)
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) is the concept that companies should operate in
a way that not only pursues financial success but also considers ethical standards and
the well-being of broader society. CSR encourages businesses to be accountable for
the social, environmental, and economic effects of their actions. It is grounded in the
belief that companies should contribute positively to the communities and environments
in which they operate.
Instead of focusing solely on profit for shareholders, CSR emphasizes the interests of a
wider group of stakeholders—including employees, consumers, suppliers, the natural
environment, and the general public. A company that embraces CSR might implement
fair labor practices, minimize environmental harm, support community development, or
uphold consumer rights.
In South Africa, the Companies Act 71 of 2008 integrates the principle of CSR in
several key areas:
1. Section 7 – Purpose of the Act
This section outlines the objectives of the Act, one of which is to align corporate
practices with the values enshrined in the Constitution’s Bill of Rights—such
as human dignity, equality, and freedom. By promoting responsible and ethical
business conduct, the Act supports CSR principles.
Section 72(4) and (5) – Social and Ethics Committee
The Act requires certain large companies to establish a Social and Ethics
Assignment 2
Due 2025
, MRL2601
Assignment 2
Entrepreneurial Law – Semester 2, 2025
Question 1 (10 Marks)
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) is the concept that companies should operate in
a way that not only pursues financial success but also considers ethical standards and
the well-being of broader society. CSR encourages businesses to be accountable for
the social, environmental, and economic effects of their actions. It is grounded in the
belief that companies should contribute positively to the communities and environments
in which they operate.
Instead of focusing solely on profit for shareholders, CSR emphasizes the interests of a
wider group of stakeholders—including employees, consumers, suppliers, the natural
environment, and the general public. A company that embraces CSR might implement
fair labor practices, minimize environmental harm, support community development, or
uphold consumer rights.
In South Africa, the Companies Act 71 of 2008 integrates the principle of CSR in
several key areas:
1. Section 7 – Purpose of the Act
This section outlines the objectives of the Act, one of which is to align corporate
practices with the values enshrined in the Constitution’s Bill of Rights—such
as human dignity, equality, and freedom. By promoting responsible and ethical
business conduct, the Act supports CSR principles.
Section 72(4) and (5) – Social and Ethics Committee
The Act requires certain large companies to establish a Social and Ethics
