Corporate social responsibility

Question 1

Ways to embrace CSR

Answer 1

1. Being environmentally friendly and eco- conscious
2. Promoting equality, diversity, and inclusion in the workplace
3. Treating employees with respect
4. Giving back to the community
5. Ensuring business decisions are ethical

Question 2

Benefits of CSR

Answer 2

1. Environmental efforts
2. Philanthropy
3. Ethical labour practices
4. Volunteering

Question 3

Legal framework

Answer 3

-Companies Act doesn’t specifically regulate CSR
-2011 Companies Regulation:
1. Reg 43(1)
a) every state-owned company;
b) every listed and unlisted public company;
c) any other company that has in any two of the previous 5 years, scored above 500 points i.t.o reg 26(2) [Public Interest Score]
2. Composition? Reg 43(4)
a) Min. 3 directors and/or prescribed officers of the company
b) One must be a non-executive director
3. Functions? Reg 43(5)(a)-(c)
a) monitors companies’ activities regarding-
i) Social and economic development
ii) Good corporate citizenship
iii) The environment, health and public safety
iv) Consumer relationships
v) Labour and employment
b) To draw matters within its mandate to the attention of the Board as occassion requires; and
c) To report, through one of its members, to shareholders at the company’s annual general meeting on the matters within its mandate

Question 4

CSR and supply chain management:

Answer 4

Companies must be aware of the following areas of social responsibilities as they pertain to SCM:
-Human rights
-Occupational health and safety
-Sustainable production
-Environmental practices

Companies must navigate potential ethical, legal and economic concerns and risks that could arise if they choose a supplier that has e.g. poor safety conditions, employs child or slave labour, does animal testing etc.