Is the current regulatory environment sufficient to ensure that companies take into account more than just their profits? a look into the corporate social responsibility of companies in South Africa

LL.M. (Commercial Law)Abstract: Corporate Social Responsibility (CSR) has evolved and has become a significant part of public policy in South Africa and has become a globally recognised principle. Although there is no universal definition of CSR, a brief summary of the primary accepted definition is that, CSR is a principle which comprises the notion that companies are responsible not only towards their shareholders, but also to a broader set of stakeholders and to society at large. These stakeholders comprise of the so called triple bottom line, namely (the people, the planet and the company’s profits). In essence companies do not only have the responsibility to make profits for their shareholders but CSR shifts the ideology of a business from primarily focusing on shareholder value and the owner’s satisfaction. It further encompasses the notion that a company should focus on all its stakeholders, including employees, customers, suppliers, the environment and the community at large. This dissertation will focus on the question that has not only stirred up great debates and controversies but is also not clearly answered in law. The question is, is the current regulatory environment sufficient to ensure that companies take into account more than just their profits? The answer to this question will be found through the study of the CSR of companies in South Africa. This dissertation tackles the concept and the meaning of the CSR of companies. A brief historical overview will be tendered. This will include the origins and the historical overview of the concept together with the Constitution of South Africa which is the corner stone of our law, binding any legislation that is enacted in the country. The legal duties of companies, implications and the application of CSR towards the employees, society and the environment will also be discussed. The characteristics derived from the concept of CSR will be discussed further by looking into some of the existing regulations in the regulatory environment of companies in South Africa. A brief comparative study of the application of CSR policies in Indonesia will be undertaken. Indonesia has gone through great political and regulatory reform particularly in the natural resources industry and thus comparing the laws of South..