PROPERTY OF
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Question 1 [10 Marks]
Corporate Social Responsibility (CSR): Meaning and Application under the Companies Act 71 of 2008
Definition of CSR
Corporate Social Responsibility (CSR) refers to a company’s ethical obligation to contribute positively to
society and minimise its negative impacts. It encompasses voluntary actions taken by companies to
operate in an economically, socially, and environmentally sustainable manner, beyond mere legal
compliance (Tricker, Corporate Governance: Principles, Policies and Practices, 2015).
CSR under South African Law
The Companies Act 71 of 2008 reflects CSR by incorporating stakeholder interests into corporate
governance, recognising that companies do not operate solely for shareholder profit but also have duties
towards employees, communities, and the environment.
Examples from the Companies Act:
1. Section 7(d): Purpose of the Act
One of the stated purposes is “to reaffirm the concept of the company as a means of achieving
economic and social benefits”. This shows that companies are not viewed merely as profit-making
tools but also as vehicles for social good.
2. Section 72(4) – Social and Ethics Committee
Disclaimer:
The materials provided are intended for educational and informational purposes only. They
Regulation
should not be43 submitted
requires certain companies
as original work or(particularly publicofand
used in violation anystate-owned companies) to appoint a
academic institution's
social and
policies. ethics
The buyercommittee. Its role is to
is solely responsible formonitor
how thethe company’s
materials are activities
used. in
Contact details:
VarsityTimes
Feel free to contact us if you need:
https://t.me/varsity_times
• Personal and unique assignments.
• Help with a specific question. +27 79 813 2475
PREVIEW:
Question 1 [10 Marks]
Corporate Social Responsibility (CSR): Meaning and Application under the Companies Act 71 of 2008
Definition of CSR
Corporate Social Responsibility (CSR) refers to a company’s ethical obligation to contribute positively to
society and minimise its negative impacts. It encompasses voluntary actions taken by companies to
operate in an economically, socially, and environmentally sustainable manner, beyond mere legal
compliance (Tricker, Corporate Governance: Principles, Policies and Practices, 2015).
CSR under South African Law
The Companies Act 71 of 2008 reflects CSR by incorporating stakeholder interests into corporate
governance, recognising that companies do not operate solely for shareholder profit but also have duties
towards employees, communities, and the environment.
Examples from the Companies Act:
1. Section 7(d): Purpose of the Act
One of the stated purposes is “to reaffirm the concept of the company as a means of achieving
economic and social benefits”. This shows that companies are not viewed merely as profit-making
tools but also as vehicles for social good.
2. Section 72(4) – Social and Ethics Committee
Disclaimer:
The materials provided are intended for educational and informational purposes only. They
Regulation
should not be43 submitted
requires certain companies
as original work or(particularly publicofand
used in violation anystate-owned companies) to appoint a
academic institution's
social and
policies. ethics
The buyercommittee. Its role is to
is solely responsible formonitor
how thethe company’s
materials are activities
used. in
