Assignment 2
Semester 2
Due August 2025
, MRL2601
Assignment 2
Semester 2
Due August 2025
COMPANY AND CLOSE CORPORATION LAW
Question 1:
The Principle of Corporate Social Responsibility and Its Reflection in the
Companies Act 71 of 2008
1.1 Defining Corporate Social Responsibility
Corporate Social Responsibility (CSR) refers to a company’s commitment to operate
ethically, considering its impact on society, the environment, and stakeholders beyond
profit maximization (Carroll, 1991). CSR encompasses economic, legal, ethical, and
philanthropic responsibilities, requiring businesses to balance financial performance
with social and environmental contributions.
In South Africa, CSR is particularly significant due to historical socio-economic
inequalities, emphasizing redress and sustainable development (Klopper & Du Plessis,
2020).
Philosophical Stance: CSR assumes that businesses have a moral obligation to
contribute positively to society, creating a tension between profit-driven motives and
broader societal welfare. This raises questions about whether CSR is a genuine ethical
commitment or a strategic response to regulatory and public pressure.