Thesis (MBA)--Stellenbosch University, 2003. / ENGLISH ABSTRACT: The main problem area this dissertation studied is whether there is a place for the social audit
in corporate governance, or if it is only used as a marketing tool by organisations to positively
influence public opinion in this era where public opinion heavily influences an organisation's
bottom line profits. The King II report proposes that all JSE listed companies include nonfinancial
issues in their statutory reports. Many companies do not use the process of social
responsibility reporting merely to give back what they had previously taken from society, or
to ensure their continued existence in the years to come (sustainability) as part of good
corporate governance, they use this as a tool to manage their reputation - a marketing ploy.
The real issue where the big question lies is: does CSR contribute to good corporate
governance and therefore add value, or is it used as a risk management (reputation) tool by
most companies? The social report of British American Tobacco South Africa (BATSA) was
chosen as a case study to investigate this hypothesis.
The King II report brings corporate governance into the sphere of the social audit report - in
that companies must render an account! report if they are accountable to their stakeholders. In
terms of good corporate governance, stakeholders need to be taken into account and a social
audit needs to be done to report to them on it. A new governance theory has therefore
developed with the central concept being that of sustainability (the triple bottom line):
financial, envirorunental and social survival of a company and the reporting thereon. The
umbrella term is corporate governance and everything that goes with it: CSR, stakeholder
inclusivity and the social audit. In all of these, stakeholding (or stakeholder theory) is the
central concept - to create value.
The social audit is a tool or process of good corporate governance that uses a stakeholder
approach to gain information that is later used and embedded in company principles and
processes. An internal audit will provide assurance to the organisation as to the quality of its
social and ethical accounting/auditing and reporting process, as well as to the organisation's
social and ethical performance. It also provides the necessary support to the process of
external audit. The external audit process and report provide assurance to the organisation and
its stakeholders of the quality of the social and ethical accounting/auditing and reporting
process and build credibility in the reporting of the organisation's social and ethical
performance. This credibility is needed as a basis of effective engagement with the organisation's stakeholders, and of a common understanding of the organisation's
performance. It must establish methods for producing knowledge with application to
corporate governance and strategizing.
This dissertation comes to the conclusion that the social audit is not a new fonn of marketing;
there is a direct link between good corporate governance and the reporting thereon. Although
there is always the possibility that there might be a little bit of PR involved in the publishing
of a social audit, the process is not only very expensive, but the buy-in from the company as a
whole is needed. It does impact on the reputation of a company and on the corporate affairs
and governance thereof. So, if a company continues with this exercise, with the sole intention
to use it as reputation marketing, should this becomes known the effect might be disastrous.
The other side of the argument is that for a company to manage its reputation is definitely part
of risk management. Risk management can be seen as the flipside of the coin to perfonnance
management - the effect should be the same. How performance is managed is often similar to
the way in which risk is managed. It is therefore not true that the social audit is "wellpublicised
window-dressing" (Henderson, 2001: 5). On the contrary the social audit is
essential to good corporate governance; it is up to the leadership of a company to use it as
such. / AFRIKAANSE OPSOMMING: Die kern probleemgebied wat in die verhandeling bestudeer is, is of daar plek is vir die
maatskaplike audit in korporatiewe bestuur, en of organisasies dit net gebruik as 'n
bemarkingstrategie om die openbare mening positief te beinvloed in die era waar die
openbare mening 'n groot invloed het op 'n organisasie se wins.
Die King II-verslag stel voor dat alIe JSE-gelyste maatskappye nie-finansiele kwessies by huI
statutere verslae insluit. Talle maatskappye gebruik nie die proses van maatskaplike
verantwoordelikheid net om terug te gee wat hulle voorheen uit die samelewing geneem het
nie, of om as deel van goeie korporatiewe bestuur hul voortgesette bestaan in die komende
jare (volhoubaarheid) te verseker nie. Hulle gebruik dit as 'n manier om hul reputasie te
bestuur - 'n bemarkingstrategie.
Die kwessie waar die groot vraag Iê, is: dra korporatiewe maatskaplike verantwoordelikheid
by tot goeie korporatiewe bestuur en voeg dit derhalwe waarde by, of gebruik die meeste
rnaatskappye dit as 'n middel tot risikobestuur ter wille van hul reputasie? Die maatskaplike
verslag van British American Tobacco South Africa (BATSA) is gekies as 'n gevallestudie
om die hipotese te ondersoek.
Die King II-verslag bring korporatiewe bestuur binne die sfeer van die maatskaplike
ouditverslag met die dat maatskappye 'n verslag moet lewer as hulle verantwoordbaar teenoor
hul belanghebbendes is. lngevolge goeie korporatiewe bestuur moet belanghebbendes in ag
geneem word en moet 'n maatskaplike oudit gedoen word om aan hulle daaroor verslag te
doen.
'n Nuwe bestuursteorie het derhalwe ontwikkel waarvan die kernkonsep volhoubaarheid (die
driedubbele winsbasis) is: die finansiele, maatskaplike en omgewingsoorlewing van 'n
maatskappy en verslagdoening daaroor. Die sambreelterm is korporatiewe bestuur en alles
wat daarmee saamgaan: korporatiewe maatskaplike verantwoordelikheid, die insluiting van
belanghebbendes en die maatskaplike oudit. Met al die aspekte is die belanghebberteorie die
kernkonsep - om waarde te skep. Die maatskaplike audit is 'n werktuig of proses van goeie korporatiewe bestuur wat 'n
belanghebberbenadering gebruik om inligting in te win wat later gebruik en in die
maatskappy se beleid en prosesse vasgele word. 'n Interne oudit gee die maatskappy
sekerheid oor die gehalte van sy maatskaplike en etiese oudit- en verslagdoeningproses, asook
die organisasie se maatskaplike en etiese funksionering. Dit verskaf ook die nodige steun aan
die proses van eksterne ouditering.
Die eksterne ouditproses en -verslag verskaf sekerheid aan die organisasie en sy
belanghebbendes oor die gehalte van die maatskaplike en etiese oudit- en
verslagdoeningproses en bou geloofwaardigheid in die verslagdoening van die organisasie se
maatskaplike en etiese funksionering. Die geloofwaardigheid word benodig vir die
organisasie se belanghebbendes, en 'n gemeenskaplike begrip van die organisasie se prestasie.
Dit moet metodes om kennis te produseer vestig wat van toepassing sal wees op korporatiewe
bestuur en strategie-bepaling.
Die verhandeling kom tot die gevolgtrekking dat die maatskaplike oudit nie 'n nuwe vorm
van bemarking is nie - daar is 'n regstreekse verband tussen goeie korporatiewe bestuur en
verslagdoening daaroor.
Hoewel daar altyd die moontlikheid is dat 'n bietjie skakelwerk betrokke kan wees by die
publisering van 'n maatskaplike oudit, is die proses nie net baie duur nie, maar word die
betrokkenheid en steun van die maatskappy as geheel benodig. Dit het 'n invloed op die
reputasie van 'n maatskappy, asook die korporatiewe sake en die bestuur daarvan. Dus, as 'n
maatskappy met die oefening voortgaan met die enigste doelwit om dit as reputasiebemarking
te gebruik en dit word bekend, kan die resultaat rampspoedig wees.
Die ander kant van die argument is dat die bestuur van sy reputasie vir 'n maatskappy beslis
deel van risikobestuur is. Risikobestuur kan beskou word as die een kant van die muntstuk
met prestasiebestuur aan die ander kant - die uitwerking behoort dieselfde te wees. Hoe
prestasie bestuur word, is dikwels dieselfde as die manier waarop risiko bestuur word.
Dit is dus nie waar dat die maatskaplike oudit "goed gepubliseerde vensterversiering"
(Henderson, 200 I: 5) is nie. Inteendeel, die maatskaplike oudit is noodsaaklik vir goeie
korporatiewe bestuur, en dit hang van die leierskap van 'n maatskappy af om dit as sulks te
gebruik.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/49801 |
| Date | 12 1900 |
| Creators | Vorster, Heidi |
| Contributors | Esterhuyse, W. P., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 122 p. |
| Rights | Stellenbosch University |
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