The dynamics of corporate governance in South Africa: broad based black economic empowerment and the enhancement of good corporate governance principles

Esser, I.-M. and Dekker, A. (2008) The dynamics of corporate governance in South Africa: broad based black economic empowerment and the enhancement of good corporate governance principles. Journal of International Commercial Law and Technology, 3(3), pp. 157-169.

Abstract

This paper illustrates the effect of BBBEE on good corporate governance. Corporate governance and specifically directors’ duties relating to stakeholder protection are focused on. Traditionally, directors are expected to manage a company in the best interests of the shareholders collectively. The question arises as to whether directors should also consider the interests of other stakeholders, inter alia employees, creditors, the environment and the community. The South African Broad Based Black Economic Empowerment Act 53 of 2003, not only aims at correcting racial imbalances, but also strives to promote social investment and the empowerment of communities. By adhering to this act, directors will by implication consider the interests of the community and give effect to the triple-bottom line approach when managing a company. This paper will illustrate the unique dynamics of corporate governance in South Africa.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Esser, Professor Irene-Marie
• Authors: Esser, I.-M., and Dekker, A.
• College/School: College of Social Sciences > School of Law
• Journal Name: Journal of International Commercial Law and Technology
• Publisher: International Association of IT Lawyers
• ISSN: 1901-8401
• ISSN (Online): 1901-8401
• Copyright Holders: Copyright © 2008 The Authors
• First Published: First published in Journal of International Commercial Law and Technology 3(3):157-169
• Publisher Policy: Reproduced in accordance with the copyright policy of the publisher