Corporate Social Reporting in South Africa

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Once the disclosure and dialogue have been completed the firm can then undertake development to change its corporate behaviour to reflect the pre-determined goals and values. However the company’s original attitudes and beliefs may determine the level of effort exerted to meet the new values. Hess (2008) states, “…moral development of the corporation is consistent with the requirements of New Governance regulatory approaches” (p.460). Examples of behaviours that companies in South Africa could develop, would be to improve their corporate social responsibility is to support human rights, labour issues, environment and anti-corruption (Wise & Ali, 2008). The company will need to critically analyse the current behaviours as to attain these goals and live up to the values. This analysis may combine feedback from stakeholders to improve their behaviours, processes or complete operations. If a company is to absorb these values, they will incorporate them into strategic and operational decision-making (Hess, 2008). In reality most managers disregard the stakeholders suggestions when considering changing behaviours. Company’s need to seriously take into consideration the views and opinions of stakeholders and reflect these in their changed behaviours, although, this needs to be a balanced compromise otherwise the controlling interest of the firm can become that of the stakeholders (Hess, 2008).

This review concludes that New Governance is a favourable concept. When compared to strict mandatory regulation, new governance provides a user-friendly approach and allows for differences in companies resources and capabilities to disclose quality information. It is a very equitable notion as it levels the playing field for all socially responsible companies. New governance is beneficial to all parties as it considers stakeholder values in the values of the company. Thereby increasing the support received by the company through higher levels of identification. The development under new governance is important as it reflects the improved behaviours and accountability, which can lead to improved performance in all areas of society. The cycle of the three pillars will lead to continued national growth through encouraged stakeholder support.

References

Albareda, L. (2008). Corporate responsibility, governance and accountability: from self-regulation to co-regulation. Corporate Governance, 8(4), 430-439.

Dawkins, C., & Ngunjiri, F. W. (2008). Corporate social reporting in South Africa: A descriptive and comparative analysis. Journal of Business Communication, 45(3), 286-307.

Hess, D. (2008). The three pillars of corporate social reporting as new governance regulation: disclosure, dialogue and development. Business Ethics Quarterly, 18(4), 447-482.

Ho, V. (2010). "Enlightened Shareholder Value": Corporate governance beyond the shareholder-stakeholder divide. Journal of Corporation Law, 36(1), 59-112.

Wise, V., & Ali, M. (2008). Case studies on corporate governance and corporate social responsibility. South Asian Journal of Management, 15(3), 136-149.