An analysis of some environmental law provisions and alternative governance approaches for the promotion of corporate social responsibility in South Africa

Abstract

For years the focus of most corporate entities has primarily been on economic performance. Little emphasis was placed on the impact of production and operations on society and/or the environment. Corporate social responsibility (hereafter CSR) ever since became a burning issue on many companies' strategic agendas in response to a change of approach in which attention is paid also to the needs and position of society (people) and the environment. CSR is, however, still mainly a legally unenforceable and voluntary endeavour and is dependent on self-regulation that could hamper its ideals. This study aims, from a legal perspective, to determine the role of CSR in South Africa as well as the extent to which some existing South African environmental acts and alternative governance approaches facilitate its regulation and/or provides for the key values and principles that underpin CSR. The scope and meaning of CSR are explored with particular reference to sustainable development, corporate governance and the legal framework pertaining thereto. This study estimates, inter alia, the extent to which the Constitution of the Republic of South Africa, 1996 and environmental legislation, such as the National Environmental Management Act 107 of 1998, National Water Act 36 of 1998, National Environmental Management: Biodiversity Act 10 of 2004, National Environmental Management: Air Quality Act 39 of 2004, National Heritage Resources Act 25 of 1999 and the Minerals and Petroleum Resources Development Act 28 of 2002, as well as case law, translate the values and principles of CSR into legally enforceable terms for the corporate sector in South Africa. Furthermore, different alternative governance mechanisms are considered through which CSR principles and ideals could be realised. This study concludes with critical comments on the key concepts, South African environmental legislation, and alternative governance mechanisms and a number of recommendations are made in an attempt to contribute to the improvement of CSR within the South African corporate sector