Abstract
Stakeholder demands and the introduction of the ‘triple bottom line’ as a means of reporting corporate performance, make it critical that South African companies assess why they should undertake corporate responsibility initiatives. This exploratory study (part two of a two-part study) investigated the issues that are being or should be addressed by companies under the banner of corporate responsibility and the reasons for this. The views of a convenience snowball sample of consultants, academics and practitioners of corporate responsibility, was gained by means of a Delphi technique. Content analysis was employed to categorise the views into themes. The findings indicate the need for corporate responsibility action in the areas of ecology, the environment, health and well-being, building human capital and in the encouragement of economic development. Cost benefit and defensive arguments dominate the case for corporate responsibility. There is little indication that organisations have identified the opportunity of corporate responsibility initiatives to increase innovation and organisational learning and its contribution to risk management. Recommendations are made regarding the assessment of investment in this area.
Highlights
Corporate responsibility is often regarded as a response to the imbalances resulting from the acceleration of the globalisation process and the underdeveloped international governance systems on environmental and social issues when compared to those for economic governance (Swift & Zadek, 2002; Zadek, 2004)
The following propositions are posited: Proposition No 1: South African companies do not incorporate into their corporate responsibility strategies, issues that are critical to sustainable business such as HIV/AIDS, economic development and education
Proposition 1 posited that: South African companies do not incorporate into their corporate responsibility strategies, issues that are critical to sustainable business such as HIV/AIDS, economic development and education
Summary
Corporate responsibility is often regarded as a response to the imbalances resulting from the acceleration of the globalisation process and the underdeveloped international governance systems on environmental and social issues when compared to those for economic governance (Swift & Zadek, 2002; Zadek, 2004). Changes in the organisational environment appear to be forcing organisations to approach corporate responsibility more scientifically, requiring them to effect and measure initiatives as dictated by recent regulation in this area, for example by the Code of the King Committee on Corporate Governance (Institute of Directors, 2002) These changes include: a growing media focus on corporate practices, an increase in voluntary codes (such as the Global Compact, ISO 14001, the Global Reporting Initiative and the A A1000 series), tightening of legislation, a more socially-engaged and better educated population with higher expectations around corporate conduct, increased willingness of investors to invest in companies that promote socially responsible practices and increased activism from non-governmental organisations (McKinsey & Company, 2002; Paine, Deshpande, Margolis & Bettcher, 2005; Visser, 2005; Vogl, 2003). The danger currently exists that corporate responsibility will become merely another reporting requirement and will not be integrated into corporate strategy (Paine et al, 2005; Straughan, 2003)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
