Corporate Social Responsibility and Broad-Based Black Economic Empowerment Legislation in South Africa

Abstract

The South African government has been active in promulgating specific corporate social responsibility (CSR) regulations since 1994 directed at the economic empowerment of historically disadvantaged Black people. Government laws have sought to involve corporations in promoting social cohesion and in addressing problems of historical exclusion of Black communities from the mainstream economy. This objective of transformation within the economy culminated in the release of the Broad-Based Black Economic Empowerment Act in 2003. The Department of Trade and Industry finalized the Codes of Good Practice on February 9, 2007, to clarify and ensure consistency in the implementation of socially responsible behavior in one area, empowerment of historically disadvantaged Black people (other areas of CSR do not display this consistently) within organizations across industry sectors. In this article, the authors discuss the key principles of this legislation, approaches to monitoring and measuring Codes of Good Practice implementation, and their implications for social-change initiatives in local and multinational enterprises that operate in South Africa.