Impact of Corporate Social Responsibility on International Corporations as Exemplified by Broad-Based Black Economic Empowerment in the Republic of South Africa

Thèse de Master , 2014 , 105 Pages , Note: Summa Cum Laude

Droit - Autres

This Master’s thesis examines the impact of “Corporate Social Responsibility” (CSR) on international corporations. Therefore, it extensively investigates this voluntarily concept, which focuses on the commitment to social, environmental and economic responsibility from different angles. At first, the paper analyses the conceptual development, as well as the different understandings of CSR and its demarcation from related terms. It describes in detail the common principles and guidelines underlying the concept of CSR as a legal basis and furthermore, it expands explicitly the main dimensions of CSR.

The present study primarily aims to give an overview of the pros and cons of CSR and the impact of its implementation on international corporations. In the absence of an unanimously agreement, the discussion regarding this issue is still going on between corporations, interest groups, states and business institutions all over the world.

Finally, this Master’s thesis particularly examines the approach to CSR in the Republic of South Africa as a currently significant emerging market. Due to the nation’s challenging historical background, its government launched a programme, namely the Black Economic Empowerment (BEE) and in further development the Broad-Based Black Economic Empowerment (B-BBEE), to redress the inequalities of apartheid. The study describes the development of these programmes and analyses the main issues of B-BBEE, such as content, enforceability and future amendments.

Table of Contents

Section 1: INTRODUCTION

I. Overview

II. Personal Statement

III. Gender-Neutral Formulation

Section 2: BASICS OF CSR

I. Conceptual Development and Geographical Origin of CSR

II. The Role of Public Authorities and Other Stakeholders

Section 3: DEFINITION OF TERMS

I. Definitions of CSR

II. Demarcation between CSR and Related Concepts

1. Corporate Citizenship

2. Corporate Social Performance

3. Corporate Governance

4. Sustainable Development

III. Excursus: Morality and Ethics

1. Morality

2. Ethics

Section 4: LEGAL BASIS – PRINCIPLES AND GUIDELINES

I. OECD Guidelines

II. United Nations Global Compact

III. Global Reporting Initiative

IV. ISO 26000

V. ILO Declarations

1. Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy

2. Declaration of Fundamental Principles and Rights at Work

VI. United Nations Guiding Principles

Section 5: DIMENSIONS OF CSR ACTIONS

I. Overview

II. Triple-Bottom-Line

1. Social Responsibility

1.1. Internal Dimension

1.2. External Dimension

2. Environmental Responsibility

3. Economic Responsibility

Section 6: IMPACT OF CSR ON INTERNATIONAL CORPORATIONS

I. Today’s Role of CSR

II. Pros and Cons of CSR

1. Pros of CSR

2. Cons of CSR

3. “SWOT-Analysis”

III. Impact on the Profitability

1. The Business Case for CSR

2. Interaction between CSR, CSP and CFP

2.1. Corporate Financial Performance

2.2. Relation between CSP and CFP

Section 7: HISTORICAL BACKGROUND OF B-BEEE

I. The System of Apartheid

II. Transition to Democracy

III. Composition of the Population in South Africa

Section 8: DEVELOPMENT FROM BEE TO B-BBEE

I. Affirmative Action

1. Principle of Equality

2. Content of Affirmative Actions

3. Justification of Affirmative Actions

II. Black Economic Empowerment (BEE)

III. Broad-Based Black Economic Empowerment (B-BBEE)

Section 9: CONTENT AND ENFORCEABILITY OF B-BBEE

I. B-BBEE Act

II. B-BBEE Strategy

III. Codes of Good Practice

IV. Scorecards

1. Generic Scorecard

1.1. Direct Empowerment

1.1.1. Ownership

1.1.2. Management Control

1.2. Human Resources Empowerment

1.2.1. Employment Equity

1.2.2. Skills Development

1.3. Indirect Empowerment

1.3.1. Preferential Procurement

1.3.2. Enterprise Development

1.4. Socio-Economic Development

2. Qualifying Small Enterprises (QSE) Scorecard

3. Exempt Micro Enterprises (EME)

4. Scorecard Overview and Calculation

4.1. Scorecard Overview

4.2. Calculation of the B-BBEE Status

V. Transformation Charters and Sector Codes

Section 10: B-BBEE AMENDMENT BILL 2013

I. Objectives

II. Amendments

1. Overview

2. Generic Scorecard

3. Qualifying Small Enterprises (QSE) Scorecard

4. Exempt Micro Enterprises (EME)

5. Scorecard Overview and Calculation

5.1. Scorecard Overview

5.2. Calculation of the B-BBEE Status

Section 11: CONCLUSION

Research Objectives and Key Topics

This master's thesis explores the impact of Corporate Social Responsibility (CSR) on international corporations, with a specific focus on the South African governmental program known as Broad-Based Black Economic Empowerment (B-BBEE). The research aims to evaluate how international companies adapt to these specific socio-economic requirements as a form of CSR.

• Conceptual development and understanding of global CSR standards.
• Evaluation of the legal basis for CSR via international principles and guidelines.
• The role of B-BBEE as a specific manifestation of CSR in South Africa.
• Analysis of the historical and social background behind the B-BBEE transformation.
• Detailed breakdown of compliance mechanisms, scorecards, and future legal amendments.

Excerpt from the Book

I. Overview

“Corporate Social Responsibility” (CSR) received considerable attention in practice and literature over the past years. As a result, nowadays, this concept plays a decisive role in the market place all over the world. Great value is attached to its impact on international corporations in many ways.

CSR means that corporations should act in a socially, environmentally and economically responsible manner and thus, make an important contribution to sustainable development in the future as good as possible. This voluntary concept concerns actions by companies over and above their legal obligations towards society and the environment. It is requested to go beyond compliance and to promote the interaction with internal and external stakeholders. CSR has become an increasingly significant issue in our global society.

The concept of CSR is relevant in all types of companies and in all sectors of activity. Many voluntary guidelines, codes, principles and standards describing responsible business practices have been published over the past years, but there is still no overall, legally binding agreement as to what these responsibilities mean exactly. Although the concept of CSR is widely discussed in theory and practice, there is no general consensus about its definition. Nevertheless, its many different understandings often have certain elements in common. In particular, the importance of responsible behaviour with regard to social policies, the environment and the economy are mainly emphasised.

Summary of Chapters

Section 1: INTRODUCTION: Outlines the significance of CSR in global business and introduces the South African context of B-BBEE as a strategic governmental approach.

Section 2: BASICS OF CSR: Reviews the conceptual history of CSR and discusses the complementary roles of public authorities and stakeholders.

Section 3: DEFINITION OF TERMS: Provides definitions of CSR and distinguishes it from related concepts like Corporate Citizenship and Sustainable Development.

Section 4: LEGAL BASIS – PRINCIPLES AND GUIDELINES: Explores international guidelines such as the UN Global Compact, OECD Guidelines, and ISO 26000.

Section 5: DIMENSIONS OF CSR ACTIONS: Details the Triple-Bottom-Line approach (social, environmental, economic) and its implementation.

Section 6: IMPACT OF CSR ON INTERNATIONAL CORPORATIONS: Analyzes the benefits and risks of CSR implementation and investigates the correlation between social and financial performance.

Section 7: HISTORICAL BACKGROUND OF B-BEEE: Covers the legacy of Apartheid and the political transition to democracy in South Africa.

Section 8: DEVELOPMENT FROM BEE TO B-BBEE: Examines the shift from narrow Affirmative Action policies to the broader B-BBEE framework.

Section 9: CONTENT AND ENFORCEABILITY OF B-BBEE: Breaks down the B-BBEE Act, the strategy, scorecard components, and sector-specific codes.

Section 10: B-BBEE AMENDMENT BILL 2013: Discusses updates to the B-BBEE framework, including changes to scorecard elements and thresholds.

Section 11: CONCLUSION: Summarizes the thesis findings regarding CSR as a long-term strategic necessity for international corporations.

Keywords

Corporate Social Responsibility, CSR, B-BBEE, South Africa, Triple-Bottom-Line, Sustainability, Corporate Governance, Affirmative Action, Business Ethics, Scorecard, Sustainable Development, International Corporations, Broad-Based Black Economic Empowerment, Economic Growth, Stakeholder Management.

Frequently Asked Questions

What is the fundamental focus of this thesis?

This thesis examines the impact of Corporate Social Responsibility (CSR) on international corporations, focusing on how these entities engage with societal, environmental, and economic responsibilities.

What are the central thematic fields covered?

The work covers the conceptual understanding of CSR, international standards, the historical and legal context of South Africa, and specific corporate compliance mechanisms under B-BBEE.

What is the primary research objective?

The objective is to provide a comprehensive analysis of CSR as a global concept while using South Africa's B-BBEE program to exemplify how specific government-led initiatives influence corporate strategies and outcomes.

Which scientific methods are utilized?

The thesis employs a literature-based analytical approach, reviewing legal documents, government strategy papers, meta-analytic studies on performance correlation, and recognized international CSR standards.

What is discussed in the main body of the work?

The main body details the evolution of CSR, the legal frameworks governing business ethics, the specific South African history of Apartheid leading to B-BBEE, and the practical application of B-BBEE scorecard systems.

Which keywords characterize this work?

Key terms include Corporate Social Responsibility, B-BBEE, Triple-Bottom-Line, Sustainability, and Corporate Governance.

How does B-BBEE differ from general CSR practices?

While general CSR is often voluntary and business-driven, B-BBEE is a specific South African legislative framework designed to redress the systemic inequalities caused by the history of Apartheid.

What is the role of the B-BBEE scorecard?

The scorecard is a quantitative measurement tool that allows government authorities and the private sector to evaluate a company's progress and compliance with transformation goals in areas such as ownership, management control, and skill development.

How do the 2013 amendments affect the B-BBEE framework?

The 2013 amendments introduced a shift from seven to five evaluation categories, increased the total reachable points, and adjusted the revenue thresholds for qualifying small and micro enterprises.

• Université: University of Vienna
• Note: Summa Cum Laude
• Auteur: Dr. Theresa Adamek (Auteur)
• Année de publication: 2014
• Pages: 105
• N° de catalogue: V285098
• ISBN (ebook): 9783656850601
• ISBN (Livre): 9783656850618
• Langue: anglais
• mots-clé: Corporate Social Responisbility, CSR, Black Economic Empowerment, Broad-Based Black Economic Empowerment, B-BBEE, South Africa, Corporate Citizenship, Corporate Social Performance, Corporate Governance, Sustainable Development, OECD, United Nations Global Compact, Global Reporting Initiative, ISO 26000, ILO Declaration, United Nations Guiding Principles, Triple-Bottom-Line, Social Responsibility, Environmental Responsibility, Economic Responsibility, SWOT-Analysis, CSP, CFP, CG, Apartheid, Nelson Mandela, BEE, Affirmative Action, Codes of Good Practice, Scorecard, Direct Empowerment, Ownership, Management Control, Human Resources Empowerment, Employment Equity, Skills Development, Indirect Empowerment, Preferential Procurement, Enterprise Developent, Socio-Economic Development, Qualifying Small Enterprises Scorecard, Exempt Micro Enterprises, Transformation Charter, Sector Code