MRL2601
Assignment 2 Semester 2 2025
2 2025
Unique Number:
Due date: September 2025
QUESTION 1
Corporate Social Responsibility and the Companies Act 71 of 2008
Corporate Social Responsibility (CSR) refers to a business approach in which companies
voluntarily take accountability for their economic, social, and environmental impacts. It
promotes sustainable development by ensuring that businesses contribute positively to
society while still aiming for profitability. CSR encourages companies to engage ethically
with all stakeholders, including shareholders, employees, suppliers, communities, and the
environment, acknowledging that corporate decisions affect more than just the bottom line.
In South African company law, CSR is closely linked to corporate governance, which
ensures responsible corporate conduct while pursuing efficiency and profitability.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
Corporate Social Responsibility and the Companies Act 71 of 2008
Corporate Social Responsibility (CSR) refers to a business approach in which
companies voluntarily take accountability for their economic, social, and
environmental impacts. It promotes sustainable development by ensuring that
businesses contribute positively to society while still aiming for profitability. CSR
encourages companies to engage ethically with all stakeholders, including
shareholders, employees, suppliers, communities, and the environment,
acknowledging that corporate decisions affect more than just the bottom line.
In South African company law, CSR is closely linked to corporate governance, which
ensures responsible corporate conduct while pursuing efficiency and profitability.
The Companies Act 71 of 2008 reflects the principle of CSR in several provisions.
For example, section 7(b)(iii) highlights that one of the Act’s purposes is to promote
the development of the economy through high standards of corporate governance.
Section 7(d) further recognises companies as vehicles for achieving both economic
and social benefits.
The Act also extends legal standing (locus standi) to a wide range of stakeholders,
not just shareholders. For example, section 165 allows derivative actions by various
parties, and section 162 enables applications to declare directors delinquent,
reflecting accountability towards the broader public. Section 218(2) establishes
liability for anyone who contravenes the Act, ensuring that those harmed by
irresponsible corporate conduct can seek redress.
Moreover, section 72 and Regulation 43 require certain companies—such as listed
public companies, state-owned entities, and companies with high public interest
scores—to appoint a Social and Ethics Committee. This committee monitors the
company’s commitment to social and economic development, good corporate
citizenship, environmental responsibility, consumer protection, and labour relations.
CSR is also embedded in broader policy frameworks like King IV, which promotes
inclusive, stakeholder-centred governance. Through these measures, the
Companies Act 71 of 2008 reflects the shift from a purely profit-driven corporate
model to one that balances profitability with social and environmental responsibilities.
Assignment 2 Semester 2 2025
2 2025
Unique Number:
Due date: September 2025
QUESTION 1
Corporate Social Responsibility and the Companies Act 71 of 2008
Corporate Social Responsibility (CSR) refers to a business approach in which companies
voluntarily take accountability for their economic, social, and environmental impacts. It
promotes sustainable development by ensuring that businesses contribute positively to
society while still aiming for profitability. CSR encourages companies to engage ethically
with all stakeholders, including shareholders, employees, suppliers, communities, and the
environment, acknowledging that corporate decisions affect more than just the bottom line.
In South African company law, CSR is closely linked to corporate governance, which
ensures responsible corporate conduct while pursuing efficiency and profitability.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
Corporate Social Responsibility and the Companies Act 71 of 2008
Corporate Social Responsibility (CSR) refers to a business approach in which
companies voluntarily take accountability for their economic, social, and
environmental impacts. It promotes sustainable development by ensuring that
businesses contribute positively to society while still aiming for profitability. CSR
encourages companies to engage ethically with all stakeholders, including
shareholders, employees, suppliers, communities, and the environment,
acknowledging that corporate decisions affect more than just the bottom line.
In South African company law, CSR is closely linked to corporate governance, which
ensures responsible corporate conduct while pursuing efficiency and profitability.
The Companies Act 71 of 2008 reflects the principle of CSR in several provisions.
For example, section 7(b)(iii) highlights that one of the Act’s purposes is to promote
the development of the economy through high standards of corporate governance.
Section 7(d) further recognises companies as vehicles for achieving both economic
and social benefits.
The Act also extends legal standing (locus standi) to a wide range of stakeholders,
not just shareholders. For example, section 165 allows derivative actions by various
parties, and section 162 enables applications to declare directors delinquent,
reflecting accountability towards the broader public. Section 218(2) establishes
liability for anyone who contravenes the Act, ensuring that those harmed by
irresponsible corporate conduct can seek redress.
Moreover, section 72 and Regulation 43 require certain companies—such as listed
public companies, state-owned entities, and companies with high public interest
scores—to appoint a Social and Ethics Committee. This committee monitors the
company’s commitment to social and economic development, good corporate
citizenship, environmental responsibility, consumer protection, and labour relations.
CSR is also embedded in broader policy frameworks like King IV, which promotes
inclusive, stakeholder-centred governance. Through these measures, the
Companies Act 71 of 2008 reflects the shift from a purely profit-driven corporate
model to one that balances profitability with social and environmental responsibilities.
