Corporate South Africa Research Articles

Do fiscal deficits influence private savings in South Africa? An empirical note

Orientation: The neoclassical loanable funds theory predicts that fiscal deficits reduce the pool of available savings in the economy, but heterodox scholarship disputes the claim.Research purpose: The paper sets out to test the relationship between fiscal deficits and private savings.Motivation for the study: Scholars are divided on whether corporate South Africa is building up excess savings, with some arguing that it is not and others arguing that it is because of mistrust of government and uncertainty largely. The trends of net private savings and fiscal deficits suggest that something contrary to the postulation of the neoclassical loanable funds theory could be happening in the South African context.Research approach/design and method: The paper used data for the period 1960–2021 within the Toda-Yamamoto vector autoregressive modelling framework.Main findings: The results show that fiscal deficits increase savings but reduce interest rates in line with the heterodox view that the financial asset creation effect of debt-financed deficits improves savings and reduces interests through the liquidity channel.Managerial/practical implications: The lesson for policy is that fiscal deficits are healthy for the economy. However, the government must manage them at some reasonable level to maintain a constant flow of net financial assets to the private sector, thus bolstering savings. An unhealthy pursuit of fiscal surpluses can shift deficits to households and firms, and breed systemic financial instability.Contribution/value-added: The paper contributed to a nuanced understanding of the role of fiscal deficits in expanding savings, which runs counter to the theoretical underpinnings of fiscal conduct that pursues budget surpluses.

Integration of enterprise social media into corporate South Africa: An investigation into data protection

Integration of enterprise social media into corporate South Africa: An investigation into data protection

Internal communication in a diverse and developing world context: Challenges for corporate South Africa

Internal communication plays a pivotal part in an organisation’s survival. It is regarded as an investment in an organisation’s success and underpins organisational effectiveness. However, when organisations face internal communication challenges, these can threaten internal relationships, with dire consequences for the organisation. This is particularly so in the volatile, uncertain, complicated and ambiguous South African corporate context, which presents direct challenges for internal communication management. Internationally there has been an increase in studies exploring challenges for internal communication, with various authors indicating a need for further research. Our study addresses this gap by probing the internal communication challenges experienced in the South African corporate environment as a developing world view, to make recommendations for mitigating action. This exploratory qualitative interview-based study focused on the perceptions of practitioners working in large organisations, as well as consultants with acknowledged expertise in the field of internal communication. The findings confirmed that internal communication is a complex and multifaceted profession full of challenges. We identified 12 challenges, grouped into four clusters, namely access to technology, lack of formal communication training, parameters for inclusion of internal stakeholders, and management styles and structures. Contributions include recommendations for practice, together with suggestions for further research.

The influence of language and culture on a South African corporate

This study investigates whether the different home languages of the employees in a SouthAfrican corporate have an influence on their perception of the organisational structureand processes. The study was conducted in the context of the ABSA financial institutionin the Western Cape.The authors conducted a series of interviews with management-level employees whospeak Afrikaans, English and Xhosa as home languages, in an attempt to ascertain theextent of the influence of individual cultures on perceptions and actions in corporatesociety. Specific attention was given to how these individuals perceived meetings,decision-making processes and conflict.These interviews were transcribed verbatim and studied by means of narrative analysisusing a specialised software package to provide better insight into the roles that languageand culture play in a South African organisation. Based on the narratives provided by therespondents in this study, the authors concluded that individual culture plays a significantrole in the perceptions of organisational structures such as conflict management,interaction during meetings, decision-making and the acceptance of authority.South Africa is now celebrating more than ten years of democracy following the country’sfirst democratic election in 1994. In the past decade, corporate South Africa has seenan unprecedented cultural diversity in its workforce. The dynamics of local organisationshave changed to incorporate the various cultural representations. In an attempt to explorethe multicultural phenomenon that exists in the workplace, the authors conducted astudy among the supervisory and managerial staff of a prominent South African financialinstitution, ABSA, in the hope of providing better insight into the roles language andculture play in a South African organisation. Such an understanding could not onlyestablish a more effective organisational culture, but also ultimately help South Africanbusiness to deal with cultural diversity and conflict in the workplace in a more creativeway. This article describes a qualitative research project utilising narrative analysis toinvestigate how employees’ home language influences their perception of corporateculture.

The appropriate leadership styles in times of crisis: a study of women in senior leadership positions in corporate South Africa

PurposeAs women increasingly take on leadership roles during these turbulent times, the differences in their leadership styles in comparison to males in similar positions will continue to attract attention as it has in the past. The aim of this paper is to explore appropriate leadership styles that women in senior leadership positions facing the glass cliff have at their disposal.Design/methodology/approachThis research method was qualitative. Data was collected through semi-structured interviews from a total of 17 participants in corporate South Africa; purposive and snowball sampling was used to select women in senior leadership positions.FindingsParticipants expressed overwhelming support for a transformational leadership style due to its characteristics; however, women leaders believe a style or combination of styles are used based on the situation at hand.Research limitations/implicationsUsing only qualitative research has limited the scope and applicability of this study significantly.Practical implicationsThe representation of women in senior leadership positions has increased over the years more especially in organisations where there is crisis, attention now is the difference in kind of leadership styles they use.Originality/valueVery few research studies have gone in-depth into the effectiveness of the leadership styles that were used by women in corporate South Africa. The study, therefore, presents a major implication indicating that to show positive results, women need to be able to identify an appropriate leadership style based on carefully reviewing their specific organisational situation.

Do We or Don’t We? Muslim Women Wearing the Hijab in the South African Work Environment

Abstract This article examines the experiences of Muslim women who wear hijab in corporate South Africa. Muslim women from diverse organisations wearing hijab were interviewed. The study produced mixed results. While women who don the hijab were discriminated against in some organisations, in the majority of organisations religious pluralism is embraced. The results further indicate that although South Africa is a secular country, there are various pieces of legislation that protect employees from religious discrimination in the workplace. Employees who don the hijab at lower levels experienced more discrimination compared to those at higher levels. The study further revealed that donning the hijab for Muslim women is viewed from a holistic perspective which includes behaving appropriately and not attending social functions where their religious convictions are jeopardized. The results indicate that wearing the hijab does not impede their career advancement although it does have a negative impact when they attend job interviews in organisations other than their own.

When state corruption becomes a ‘Sunday school picnic': A response to media reports on corruption.

This contribution is part of a festschrift in honour of emeritus professor, Nico Adam Botha, who laboured tirelessly for the concretization of justice to all citizens in the boundaries of South Africa and beyond. His academic treatise offers volumes to matters of justice/injustice, in most cases particularly related to those with economic power, abusing the resources that cripple the economy and result in the most vulnerable (the poorest of the poor!) suffering. This contribution also reflects critically on the unequal representation of media reports on government corruption, as opposed to corruption in corporate South Africa. Moreover, it transposes beyond such media reporting. The author argues in this contribution that the academic corpus of Nico Botha provides a theoretical framework that can be used as a diagnostic analysis and probe, but also to re-imagine the causes and eradication of corruption in South Africa.

South African corporate ethics codes: establishment and communication

PurposeThe purpose of this study is on the top 500 companies in South Africa (as per the TopCo, 2014 list) that have a code of ethics, to see the current state of development in this area after 20 years of focus by the government and business on making corporate South Africa a more ethical environment, in which to conduct business.Design/methodology/approachA structured questionnaire survey method was used to gather the data and it was directed to the company secretaries of these top 500 companies.FindingsMany companies in South Africa have a well-established set of protocols to enact the ethos of their code of ethics, indicating that they are becoming increasingly aware of the benefits to them of having a code. South African companies are, therefore, implementing both a code of ethics and strategies that contribute to creating an ethical corporate culture.Research limitations/implicationsThis study provides an opportunity to further research assessing and comparing other companies in non-Western and emerging economies.Practical implicationsAfter 20 years of endeavours by business people and lawmakers to improve the ethical framework of South African business, there is still plenty of work to be done, as so many top companies do not appear to have a code of ethics.Originality/valueThere have been limited studies in the area of business ethics in South African companies. This study is the first of its kind in the South African context and establishes the current practice 20 years after the King I report.

Behind the Mask: Hybrid Identity Work of Indian Women Managers in Corporate South Africa

Abstract There is a dearth of research on how women managers engage in hybrid identity work during their career transitions, and the aim of this study was to fill this gap. Interviews were conducted with 13 Indian women managers in senior and top managerial positions, and the data obtained were analysed using thematic analysis. The narratives indicate that previously disadvantaged groups (Indian women in this case) are caught between subscribing to cultural values and concurrently conforming to organisational norms. Participants’ answers to the question: “Who am I as an Indian female manager?” reveal that during their career ascendency these women engage in a tremendous amount of hybrid identity work and rework related to their self-concept of being an “ideal” Indian female and simultaneously being a “perfect” manager. Nevertheless, in their career transitions to managerial positions, these women are selective in the hybrid identity work they engage in.

Debunking the myth of job hopping amongst black professionals in corporate South Africa

PurposeThe purpose of this paper is to critically examine the facticity of the dominant construction of black professionals as job hoppers that derail workforce reforms in corporate South Africa particularly in leadership roles.Design/methodology/approachHistorical literature review was conducted to trace the genesis of the alleged racialised job hopping phenomenon. Melissa Steyn’s (2015) idea of Critical Diversity Literacy was also applied to critically examine the implicit power dynamics, strengths, limitations and biases involved in the construction, valorisation, circulation and contestation of this dominant narrative.FindingsThe authors found the popular racialised job hopping phenomenon to be an overgeneralisation that lacks credible evidence. It ignores multiple variables that are crucial in studying employee turnover behaviour.Research limitations/implicationsThe paper is conceptual. It is mainly based on critical literature reviews. Empirical studies could be undertaken within this domain in the future to confirm or disconfirm some of the findings of this paper.Practical implicationsThese allegations are emblematic of the endemic systemic racism in South Africa’s corporate labour market that remains an enclave of whiteness.Social implicationsRace is a highly contentious phenomenon and a major field of social inequality. Black bodies confront numerous challenges that undermine their human rights and opportunities to participate meaningfully in society and the economy. This paper calls for organisations to play an active role in healing racial divisions and building social cohesion by critically examining, challenging and changing discourses that propel inequality.Originality/valueBy addressing one of critical socio-economic and political issues confronting the world’s most unequal society, the paper hopes to stimulate healthy debate that can bring real change for marginalised groups in workplaces.

The In-Betweeners: Racio-ethnic and Masculine Identity Work of Indian Male Managers in the South African Private Sector

This article examines the extent to which minority Indian male managers engage in identity work in their efforts to gain career ascendancy in the private sector in South Africa. Indian male managers occupying diverse management posts at middle management and senior management levels in various sectors were interviewed. Results indicate that Indian men worked and reworked their managerial and cultural identities to form coherent identities which they were comfortable enacting in corporate South Africa. Race hierarchy in some workplaces placed Indian males at a disadvantage related to promotional opportunities. There is no simple solution to the problem as race hierarchy still dominates corporate South Africa, and Western norms still prevail.

Developing leaders by supporting their transitions into senior positions

The need for social transformation in South Africa is intrinsically linked to the transformation of corporate South Africa. Strong senior leadership is required to ensure that organisations remain sustainable during this transformation. There is, however, a shortage of skilled senior leaders, hence the need for leadership development. When leaders transition into senior positions, they face a plethora of personal and systemic challenges. Many fail with resulting disastrous effects on individual (micro) and organisational (macro) levels. This research investigates the challenges faced by newly promoted senior leaders in order to lay the groundwork for designing support strategies for individuals and organisations. The qualitative findings suggest that leadership transitions present unexpected challenges on a personal and systemic level to such individuals and that they do not receive adequate support from their organisations. For transformation to be successful and sustainable on macro level, concurrent and appropriate micro-level support and development are essential.

Embedding the ethos of codes of ethics into corporate South Africa: current status

Purpose This study aims to examine and describe ways that organisations in corporate South Africa try to embed ethos of corporate codes of ethics in their organisations. Design/methodology/approach The study followed a quantitative research approach. The target population was the top 500 companies operating in the corporate sector by revenue. Data were collected using a structured questionnaire from 222 company secretaries and heads/managers responsible for ethics in the companies. Findings The findings show that the majority of companies have regulations that can help promote ethics ethos. The most prevalent artefact in the area of regulation was found to be conduct of ethical audits. Training was found to be the most prevalent artefact under staff support. Research limitations/implications The study was limited to large organisations in South Africa. The findings can thus not be generalised to include small- and medium- sized businesses which make up the largest segment of all businesses in South Africa. Practical implications The research provides information that can be used to compare companies operating in different contexts on practices that help promote corporate ethics quality. It provides business managers with information that they can use to evaluate and benchmark their companies on practices that help promote the ethos of corporate codes of ethics. Originality/value The study is the first of its kind to examine how organisations go about institutionalising codes of ethics in South Africa. The findings can be used by all sectors of South African business as a point of reference in their efforts aimed at embedding the ethos of ethics in their respective organisations.

Indian husbands’ support of their wives’ upward mobility in corporate South Africa: Wives’ perspectives

Orientation: Spousal support is a crucial area to explore, particularly due to the increased prevalence of dual-career couples in South Africa and the dynamics facing them.Research purpose: The main objective of this study was to explore Indian wives’ perceptions regarding the support they receive from their husbands and the impact that such support has on their career progression.Motivation for the study: The limited qualitative research available globally on the subject and the dearth of research that focuses on Indian professional females in the South African context motivated the study.Research design, approach and method: A qualitative research approach was followed, and the data were collected through in-depth, life-story interviews. Purposeful and snowball sampling methods yielded a sample of nine Indian female managers who were in dual-career marriages.Main findings: Spouses are essential sources of support for Indian professional women. The findings revealed that there are various marital and socio-cultural dynamics that impact on the spousal support received by these women, which ultimately influences their career advancement.Practical/managerial implications: The findings provided valuable information regarding the marital challenges that Indian women face in their career progression. The awareness of such dynamics can assist management in devising strategies to accommodate and retain the unique talent that Indian women have to offer.Contribution/value-add: The study contributes to the evolving body of knowledge on dual-career couples by focusing on an under-researched, but essential aspect of the dual-career arrangement.

The Price of Corporate Social Responsibility: The Case of Black Economic Empowerment Transactions in South Africa

Since the demise of apartheid in South Africa, corporations have been encouraged to participate in the governmental goal of increasing corporate ownership by the black majority population. One vehicle that has arisen to help facilitate an increase in corporate ownership has been black economic empowerment (BEE) transactions. BEE transactions are essentially private placements of equity. Firms that have taken this socially activist position of selling portions of their equity, usually at a substantial discount, to black empowerment groups have received positive media attention in the name of good corporate citizenship. This study investigates the market performance of these BEE transactions, specifically addressing three questions. The first question is whether BEE transactions create or destroy wealth. To address this question we use an event study methodology to calculate the cumulative abnormal returns (CARs) associated with public announcements of BEE transactions. The second question is whether specific types of BEE transactions did better or worse than others. We address this question by analyzing the cross-sectional variation in the CARs associated with public announcements of BEE transactions. The third question is whether firms that engage in BEE transactions experience negative post-announcement price performance. This last question is motivated by popular press accounts of the exploitation of black empowerment groups by white-owned South African corporations. To address this question, we test whether BEE transactions have benefited white corporate South Africa at the expense of the participating black empowerment groups.

Corporate South Africa and biodiversity in a green economy

Environmental protection and conservation efforts pose a major challenge the world over, more so for newly industrialising countries that need to strike the precise balance between environmental preservation and future economic development. An arduous challenge for business and the government is the reconciliation of economic growth, development and natural resources conservation. Biodiversity conservation is no longer the preserve of national organisations or state bodies. Companies as users of biodiversity and contributors to its degradation and loss should be a part of the solution as well. The general business world has since entered a new era in terms of its role in aiding and disabling the move towards sustainable development. This is partly attributed to an evolution in policy making from treating the corporation as a problem to perceiving it as a vehicle for economic development and, in this context, integral to the concept of an African renaissance. It is against this backdrop that the article takes stock of the manner with which the corporate sector is conserving and preserving biodiversity as well as methods and modes that are used to do this. It also highlights some of the theories that have been posited to do this which in turn can assist in mapping future engagement. This article aims to present a case for further including the private sector in conserving and preserving biodiversity as a sub stream of environmental issues facing the world today.

Corporate South Africa and carbon disclosure: A differential analysis of 2011 and 2012 carbon disclosure performance

This paper examined the performance of corporate South Africa in the 2012 Carbon Disclosure Project [CDP]. It is motivated by the growing shift to climate performance amongst the JSE listed companies in South Africa; hence the paper showcases the commitment of corporations in South Africa towards carbon disclosure. It thus shows exemplary commitment by corporations in an emerging economy to curb GHG emission through disclosure. The paper compared corporate South Africa carbon disclosure performance in 2012 with the 2011 disclosure performance. First, the performance of the Johannesburg Stock Exchange (JSE) 100 carbon performance leaders were examined; and using a statistical t-test of difference in means, the paper finds that the 2012 carbon performance improved remarkably over the 2011 performance; hence the T-test indicates a significant difference in means between the 2012 and 2011 carbon performance. Secondly, the paper also examined the climate performance of the JSE 100 companies and also found a significant difference between the 2011 and 2012 performance which also depicts an improvement over the 2011 climate performance. It is perceptible that the 2011 UN Climate Conference in South Africa, coupled with the SA’s outstanding role in global climate change negotiations and the Carbon Disclosure Project is driving corporate SA to ‘walk the talk’ on climate change. In conclusion the paper highlights the need for further corporate climate initiatives, and calls on governments of developing countries to take a bold stance on climate negotiations as this is a key to encouraging the corporate toward climate friendly and carbon reduction initiatives

AngloGold Ashanti: the dawning of a new age

Title AngloGold Ashanti: the dawning of a new age. Subject area Change management, leadership, human resources management and organisational behaviour. Study level/applicability Business and organisational behaviour students at a Master's level of study. Case overview This case study explores the challenges facing one of the jewels of corporate South Africa, AngloGold Ashanti, as it seeks to introduce and implement vast changes across its global operations within a pre-established time frame. It explores those factors that impact the introduction and implementation of a successful and sustainable change initiative at AngloGold Ashanti. Expected learning outcomes By understanding the manner in which the company's new business improvement initiative is sought to be introduced at the organisation, students are better able to understand the role of leadership and the impact of change on a global workforce. Students will gain an appreciation of how to manage the change process, key actions that ought to be taken by all levels of management and staff, pitfalls that should be avoided and challenges that need to be addressed to ensure that the organisation can emerge stronger and take its rightful place in the competitive global arena. Supplementary materials Teaching notes are available; please consult your librarian for access.

A proposed scholarly framework for measuring business responsibility to climate change in South Africa

Businesses are engaging with climate change at various levels. Many have started integrating climate change into their strategies with a view to addressing risks associated with global warming and climate change. With this in mind, this article focuses on how a scholarly framework could be used to inform the measurement of business response to climate change<br />in South Africa. Business response to climate change in South Africa has been evaluated mainly using voluntary benchmarks such as the Johannesburg Stock Exchange Socially Responsible Index (JSE SRI) and the Carbon Disclosure Project (CDP). It is argued in this article that such <br />benchmarks set the bare minimum requirements on climate change criteria. To assess business thinking around the subject under discussion, a<br />proposed scholarly framework was circulated to key climate change experts<br />within corporate South Africa and comments invited. The preliminary responses have shown that corporate South Africa is highly sensitive to detailed and scholarly reporting on business response to climate issues as part of corporate social responsibility. In addition, bodies responsible for the reporting frameworks expressed concern over the proliferation of reporting requirements in South Africa and globally. The same views were also expressed by some key respondents from industry.

‘Seyiyakhuluma’: IsiZulu as a new language for political and corporate mass communication through mobile telephony

Jacob Zuma's political and personal escapades have unleashed in unprecedented forms a mobile phone culture that has for the first time transgressed dominant European linguistic boundaries. From the moment of a build-up of his case on alleged involvement in the arms deal scandal and subsequent firing from the vice-presidency, the rape case and the Polokwane fall-out between Zuma and Mbeki's supporters, mobile ringtones and communication between users predominantly moved beyond English or Afrikaans linguistic boundaries. Ringtones of songs, popularised by a maskandi musical group, Izingane zoMa, later used by the ‘friends of Jacob Zuma’ as income generation strategies in order to pay for his many court cases, were distributed and circulated through a network of mobile phone users in isiZulu language. The success of isiZulu-language ringtones spurred on further experimentations with other forms of broad-based communication models using this new media form. The company, Peach Mobile, which describes itself in its webpage as the creators of the ‘most insane mobile content and comedy tones’, was the next conspicuous entity to offer some of its funniest ringtones in isiZulu language. From then on a host of other companies ranging from record companies to life and burial insurance companies such as Clientele, started to offer mobile content in isiZulu language. This article, in line with recent studies on mobile phone culture, demonstrates, firstly, how the ‘unofficial’ mass communication form embodied in this technology has been made to foster alternative perceptions which were in line with mass perception about Zuma, thereby contributing to unsettling and derailing scathing mainstream media perspectives of him. Secondly, it also demonstrates how this new form of mobile telephony has been appropriated and used by corporate South Africa to exploit certain marginal cultural notions – related to life, death and spirituality, for the improved penetration of remote and initially excluded markets and for the maintenance of a brand presence even if it is outside mainstream advertising space.