MRL2601
ASSIGNMENT 2 SEMESTER 2
2025
Detailed Answers, Solutions
and References
100% PASSS
, QUESTION 1
The concept of corporate social responsibility entails an exercise by a business which
adds to the sustainable development of a community by way or means of delivering
economic, social and environmental benefits for every stakeholder.1 It is utilised to
track and balance the interest of shareholders and the interest of other people that
may be influenced by such conduct in an attempt to ensure that there is some
accountability by the company and in the same breath ensuring that the company has
the maximum level of efficiency and profit.2 In this way, modern companies are
equipped to being responsible members of the community they operate in and such a
responsibility requires some form of management.3 A way in which companies
become responsible members of the community in which they operate is through
social projects.4
The Companies Act 71 of 20085 reflects the corporate social responsibility (CSR) in
various ways ad these are discussed as follows
- Section 7 (b)(iii) of the Act provides that the purpose of this Act is to encouraging
transparency and high standards of corporate governance as appropriate,
given the significant role of enterprises within the social and economic life of
the nation. What this means is that the Act promotes the development of the
South African economy by encouraging transparency and high standards of
corporate governance.6 Furthermore, it shows that the role of companies is not
only limited to the economy of the country but to the social life of that country
as well.7
- Section 7(d) of the Act provides that the purposes of the Act are to reaffirm the
concept of the company as a means of achieving economic and social benefits.
1
University of South Africa, Study Guide for MRL2601 (University of South Africa 2017) 6.
2 University of South Africa, Study Guide for MRL2601 13.
3 University of South Africa, Study Guide for MRL2601 13.
4 University of South Africa, Study Guide for MRL2601 13.
5 Hereinafter referred to as the ‘Act’
6 University of South Africa, Study Guide for MRL2601 15.
7 University of South Africa, Study Guide for MRL2601 15.
ASSIGNMENT 2 SEMESTER 2
2025
Detailed Answers, Solutions
and References
100% PASSS
, QUESTION 1
The concept of corporate social responsibility entails an exercise by a business which
adds to the sustainable development of a community by way or means of delivering
economic, social and environmental benefits for every stakeholder.1 It is utilised to
track and balance the interest of shareholders and the interest of other people that
may be influenced by such conduct in an attempt to ensure that there is some
accountability by the company and in the same breath ensuring that the company has
the maximum level of efficiency and profit.2 In this way, modern companies are
equipped to being responsible members of the community they operate in and such a
responsibility requires some form of management.3 A way in which companies
become responsible members of the community in which they operate is through
social projects.4
The Companies Act 71 of 20085 reflects the corporate social responsibility (CSR) in
various ways ad these are discussed as follows
- Section 7 (b)(iii) of the Act provides that the purpose of this Act is to encouraging
transparency and high standards of corporate governance as appropriate,
given the significant role of enterprises within the social and economic life of
the nation. What this means is that the Act promotes the development of the
South African economy by encouraging transparency and high standards of
corporate governance.6 Furthermore, it shows that the role of companies is not
only limited to the economy of the country but to the social life of that country
as well.7
- Section 7(d) of the Act provides that the purposes of the Act are to reaffirm the
concept of the company as a means of achieving economic and social benefits.
1
University of South Africa, Study Guide for MRL2601 (University of South Africa 2017) 6.
2 University of South Africa, Study Guide for MRL2601 13.
3 University of South Africa, Study Guide for MRL2601 13.
4 University of South Africa, Study Guide for MRL2601 13.
5 Hereinafter referred to as the ‘Act’
6 University of South Africa, Study Guide for MRL2601 15.
7 University of South Africa, Study Guide for MRL2601 15.
