Lessons from South Africa about Sustainability

Key Researchers: 
Professor Stewart Lawrence, Department of Accounting, Waikato Management School
Dr Grant Samkin, Department of Accounting, Waikato Management School

Research Questions:
What has been the corporate response to the pandemic of HIV/AIDS in South Africa?
What are the lessons for corporate governance and reporting locally and globally?

Abstract:
The circumstances of South Africa have demonstrated the need for new ways of governance if businesses and society are to be sustainable. This research examines the new corporate principles, practices and reporting that that could lead to a sustainable future. Case studies and interviews are employed to gather evidence. The evidence is evaluated against a professed standard of inclusiveness and ‘blended value’ combining economic, social and environmental factors. The standards are enunciated in the reporting guidelines developed in South Africa under the aegis of the Global Reporting Initiative and the King Report on corporate governance. Both are uniquely South African initiatives, but have lessons for other countries, including New Zealand.

Keywords:
CSR, corporate governance, sustainable practices, sustainable reporting, triple-bottom line reporting.

Research Findings: 
The South African approach has been to encourage businesses to be proactive in the fight against HIV/AIDS. Direct government intervention has been minimal. This contrasts with other African countries such as Uganda. The response of business has been patchy, but positive.

Research Implications:
New forms of corporate governance have stressed the importance of businesses being embedded in their communities. New Zealand businesses can learn from the South African experience. The concept of ‘blended value’ incorporating social and environmental factors as well as financial offers a way forward for NZ businesses. The embeddedness of business in the community increases the importance of teaching and research in a holistic approach. Sustainable societies need businesses that take a broad view of their responsibilities to stakeholders.

Future Directions:
We propose to join forces with a research team that has examined the Ugandan experience and contrast the approaches of Uganda and South Africa. Uganda has taken a communitarian approach, providing funds to village communities to alleviate the effects of HIV/AIDS on their members.

Contact Details: 
Stewart Lawrence, (07) 838 4466 ext: 8794, stewartl@waikato.ac.nz
Grant Samkin, (07) 838 4466 ext: 8942, grantsam@waikato.ac.nz    

Funding:   
Waikato Management School research grant - $11,000 to visit South Africa July 2003 and $9,500 to visit August / Sept 2004

Timing:  
Start July 2003 - ongoing

Publications:
Lawrence S. & Samkin, G. (2007) Corporate and institutional responses to the challenge of HIV/aids: the case of South Africa, in May, S., Cheney, G. & Roper, J. (eds). The Debate over Corporate Social Responsibility: Ethical business as a necessity, not a luxury, Oxford University Press, New York.

Samkin G. & Lawrence, S. (2005) Accounting at the macro and micro level for social justice – the case of South Africa, AFAANZ Conference, Melbourne, Australia, July

Lawrence, S. & Samkin, G. (2004) A challenge to corporate social reporting: the HIV/aids epidemic in South Africa, Asia Pacific Interdisciplinary Perspectives in accounting (APIRA) Conference, Singapore, 4-6 July

Lawrence, S. & Samkin G. (2004) Doing business in post-apartheid South Africa – social transformation or business as usual? Critical Perspectives on Accounting Conference, New York, November. (Submitted to Critical Perspectives on Accounting Journal)

Lawrence, S & Samkin, G. (2004) The praxis of social reporting: a South African experience with HIV/AIDS, Southern African Accounting Association and the International Association for Accounting Education and Research Biennial International Research Conference, Durban - KwaZulu-Natal, South Africa, 30 June - 2 July

Lawrence, S. & Samkin G. (2004) Towards inclusivity – the South African approach to corporate governance, Corporate Governance and Ethics Conference, Macquarie Graduate Business School, Sydney, Australia, 28 - 30 June