Answer to Question #191896 in Economics for Beauty Magadlela

Question

South African Breweries’ (SAB) is listed on the Johannesburg Stock Exchange and the parent company, SABMiller is listed on the London Stock exchange. As such the SABMiller group of companies must comply with corporate governance rules set out for listed companies in various countries. Although corporate governance is the responsibility of every employee in the company the following structures are particularly responsible for corporate governance in the SABMiller group: The Board of Directors, the Executive Committee, Audit Committee and Chief Financial Officer.

If SAB’s corporate social responsibility policy is aligned to the company’s policy, vision and mission, it is using __________________.

1 a values-based system

2 a stakeholder-engagement process

3 a combination of options 1 and 2

4 None of the above

Answer 1

Stakeholder engagement is the process by which companies communicate and get to know their stakeholders.

A values-based organization is a culture shaped by a clear set of ground rules establishing a foundation and guiding principles for decision-making, actions and a sense of community.

If SAB’s corporate social responsibility policy is aligned to the company’s policy, vision and mission, it is using both options.

So, the correct answer is 3.