Abstract:
In a world where corporate strategies must seamlessly incorporate environmental concerns into all stages of their operations, this research underscores the imperative need for integrating environmental factors into corporate activities. Growing international and domestic environmental laws significantly influence the corporate arena, with environmental degradation emerging as a paramount concern. The study highlights how vital it is for companies to evaluate the environmental impact before investing in a project and consider the environmental consequences when making decisions. In South Africa, despite environmental regulations, the Companies Act of 2008 (the 2008 Act) which governs corporate operations, remains silent on environmental matters. The central focus of this study revolves around exploring the potential roles of the board of directors and the social and ethics committee in addressing environmental challenges. Presently, it appears that this role is underutilised, which motivates the purpose of this study. Ultimately, this research underscores the need for corporate laws to address environmental concerns better and to encourage the board of directors, and the social and ethics committee to give greater attention and weight to these concerns. This can be achieved through developing the duties of the board of directors and the social and ethics committee in the 2008 Act, to ensure that directors adhere to environmental concerns. Section 7 of the 2008 Act reaffirms that a company serves as a vehicle for achieving both economic and social advantages. Ultimately, the study aims to contribute to a refined legal framework that fosters a more environmentally conscious and responsible corporate sector in South Africa.
