Question 1 Consider the following diagram indicating the four areas Describe at least three ways in which Dithaba Construction is neglecting its corporate responsibility in the area of the workplace.Briefly discuss the concerns you have with Dithaba in relation to the company’s responsibility towards the local economy. Explain why Dithaba cannot be considered a ‘responsible corporate citizen’ (King IV) insofar the social environment is concerned. Your answer should also include possible consequences for Dithaba from not being a good corporate citizen in relation to its disrespect of the social environment. In relation to the natural environment, comment on how Dithaba is internalising benefits and externalising costs. It is said that responsible corporate citizenship is gaining ground over corporate social responsibility (CSR). Explain why this is the case and clearly indicate in your answer which of these options is more voluntary in nature for a company to follow and which is more mandatory in nature.Question 2Given the information provided in Issue 1 about the behaviour of the CFO and COO, i) provide at least 4 reasons why the economic (financial) sustainability of Dithaba Construction might be under threat. Your answer should also include ii) an explanation of why it is important for Dithaba’s stakeholders that the company is economically (financially) sustainable. Question continues on next page…Select two of the United Nation’s 17 sustainable development goals (SDGs), and, in a paragraph each, explain how Dithaba Construction could help advance those SDGs through its business operations as a responsible corporate citizen. The SDGs are as follows:No Poverty, Zero Hunger, Good Health and Well-Being, Quality Education, Gender Equality, Clean Water and Sanitation, Affordable and Clean Energy, Decent Work and Economic Growth, Industry - Innovation - Infrastructure, Reduced Inequalities, Sustainable Cities and Communities,Responsible Consumption and Production, Climate Action, Life Below Water, Life on Land,Peace and Justice, Strong Institutions, Partnerships for the Goals.

Question

Question 1 Consider the following diagram indicating the four areas Describe at least three ways in which Dithaba Construction is neglecting its corporate responsibility in the area of the workplace.Briefly discuss the concerns you have with Dithaba in relation to the company’s responsibility towards the local economy. Explain why Dithaba cannot be considered a ‘responsible corporate citizen’ (King IV) insofar the social environment is concerned. Your answer should also include possible consequences for Dithaba from not being a good corporate citizen in relation to its disrespect of the social environment. In relation to the natural environment, comment on how Dithaba is internalising benefits and externalising costs. It is said that responsible corporate citizenship is gaining ground over corporate social responsibility (CSR). Explain why this is the case and clearly indicate in your answer which of these options is more voluntary in nature for a company to follow and which is more mandatory in nature.Question 2Given the information provided in Issue 1 about the behaviour of the CFO and COO, i) provide at least 4 reasons why the economic (financial) sustainability of Dithaba Construction might be under threat. Your answer should also include ii) an explanation of why it is important for Dithaba’s stakeholders that the company is economically (financially) sustainable. Question continues on next page…Select two of the United Nation’s 17 sustainable development goals (SDGs), and, in a paragraph each, explain how Dithaba Construction could help advance those SDGs through its business operations as a responsible corporate citizen. The SDGs are as follows:No Poverty, Zero Hunger, Good Health and Well-Being, Quality Education, Gender Equality, Clean Water and Sanitation, Affordable and Clean Energy, Decent Work and Economic Growth, Industry - Innovation - Infrastructure, Reduced Inequalities, Sustainable Cities and Communities,Responsible Consumption and Production, Climate Action, Life Below Water, Life on Land,Peace and Justice, Strong Institutions, Partnerships for the Goals.

Answer 1

Question 1:

In the area of the workplace, Dithaba Construction is neglecting its corporate responsibility in several ways:
1. Safety and Health: Dithaba Construction is not providing a safe working environment for its employees. This neglect can result in workplace accidents and injuries, leading to a lack of care for the well-being of its workers.
2. Fair Labour Practices: The company is not ensuring fair labour practices for its employees, such as paying fair wages and providing adequate benefits. This lack of consideration for its workforce can lead to discontent and low morale among employees.
3. Work-life Balance: Dithaba Construction is not promoting a healthy work-life balance for its employees, leading to potential burnout and decreased productivity. This neglect of employee well-being can create a negative work environment.

Concerning the local economy, Dithaba Construction is not fulfilling its responsibilities towards the community. This can be seen in several aspects:
1. Lack of Local Sourcing: The company is not prioritizing the use of local suppliers and resources, which could have a positive impact on the local economy by supporting local businesses.
2. Employment Opportunities: Dithaba Construction may not be providing enough job opportunities for the local community, thus not contributing to economic growth and development in the area.
3. Corporate Social Responsibility: By neglecting its responsibilities towards the local economy, Dithaba Construction cannot be considered a ‘responsible corporate citizen’ as outlined in the King IV report. This neglect can lead to reputational damage and lack of trust from the community.

In terms of the natural environment, Dithaba Construction is internalizing benefits and externalizing costs by not taking sustainability seriously. The company may be profiting from unsustainable practices, such as pollution and resource depletion, while passing on the costs of environmental degradation to society and future generations.

Responsible corporate citizenship is gaining ground over corporate social responsibility (CSR) because it encompasses a broader and more holistic approach to corporate behavior. While CSR may be seen as more voluntary in nature, responsible corporate citizenship is viewed as a mandatory aspect of doing business in today’s globalized world. Companies are increasingly expected to consider their impact on society and the environment in all aspects of their operations.

Question 2:
i) Reasons why the economic (financial) sustainability of Dithaba Construction might be under threat include:
1. Mismanagement of Funds: The behavior of the CFO and COO may lead to financial mismanagement, embezzlement, or fraud, putting the company's financial stability at risk.
2. Lack of Transparency: If financial information is not accurately reported or disclosed, it can lead to distrust from stakeholders and investors, impacting the company's financial sustainability.
3. Legal Issues: Illegal practices or non-compliance with financial regulations can result in fines, legal action, and damage to the company's reputation and financial status.
4. Stakeholder Confidence: If stakeholders lose confidence in the company's financial management and decision-making, it can affect investment, partnerships, and overall sustainability.

ii) It is important for Dithaba's stakeholders that the company is economically (financially) sustainable because it ensures the company's long-term viability and success. Financial sustainability allows the company to attract investors, retain employees, fulfill its obligations to suppliers and creditors, and contribute positively to the local economy.

Selecting two of the United Nations' sustainable development goals, Dithaba Construction could help advance them through its business operations as a responsible corporate citizen.

1. Sustainable Cities and Communities: Dithaba Construction can focus on sustainable construction practices, such as using eco-friendly building materials, reducing waste, and implementing energy-efficient technologies. By contributing to the creation of sustainable cities and communities, the company can help achieve this SDG.
2. Decent Work and Economic Growth: Dithaba Construction can prioritize fair labour practices, provide decent wages and benefits to its employees, and promote a healthy work environment. By supporting decent work and economic growth, the company can contribute to this SDG and ensure the well-being of its workforce.