MRL2601 Assignment 2 Semester 2 (Comprehensive Answers) Due August 2025

MRL2601
Assignment 2
Semester 2
Due August 2025

, MRL2601

Assignment 2

Semester 2

Due August 2025



ASSIGNMENT 2: COMPANY AND CLOSE CORPORATION 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.



1. Understanding the Principle of Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) refers to a company’s legal and ethical duty to
contribute positively to society and the environment, beyond mere profit generation. It is
grounded in the belief that corporate actors must operate within a broader socio-
economic context, considering how their actions affect stakeholders such as
employees, communities, and future generations.

This principle challenges the narrow shareholder-centric model of governance,
advancing instead a stakeholder-inclusive philosophy. The assumption underlying CSR
is that sustainable corporate success is inextricably linked to social legitimacy,
environmental care, and ethical accountability.



2. CSR Reflected in the Companies Act 71 of 2008

While the Act does not define CSR explicitly, its structure and provisions reflect a strong
normative commitment to CSR ideals. Several sections and institutional mechanisms
incorporate CSR into the governance framework of South African companies.