Reducing executive and employee wage disparities in South Africa: the environmental, social and governance principle

Abstract

Wage inequality has been proven to be one of the crisis in South Africa, considering the reports that South Africa is now one of the countries with high inequalities in the international level. The Supreme law of the republic speaks against inequalities and any form of unfair discriminations, furthermore there has been law enacted to effect of the Constitution in promoting fairness and equality. These are legislations that need to be followed in exercising equality, however despite such laws in place South Africa still remains a country with concerning wage disparities between executives and employees. The Environmental. Social and Governance (ESG), required businesses to exercise fairness between employees which includes fair remunerations and fair working environments. It further necessitates companies to exercise transparency and disclosure of remunerations of employees to enhance companies in ensuring there is fair remuneration practices in their business. Provided the nature of ESG, this research seeks to find out how ESG can intervene in reducing wage disparities in the Republic, by looking at its nature and any positive developments other countries businesses encountered in complying with the ESG framework. We are to further discuss the laws in place and their effectiveness in complying with ESG frameworks to minimised remuneration inequalities between employees of different ranks.