SUSTAINABILITY AND SOCIAL RESPONSIBILITY

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Sustainability and Social Responsibility

Poor corporate governance poses a threat to the success of any organizational goals. The 2030 South African National Development Plan (NDP) seeks equality and an eradication of poverty through engaging the society in development of the economy. The National Planning Commission established the goals with the help of South African citizens in order to ascertain a better future for the country (Kanyenze 2017, p. 74). It ensures that the citizens achieve full potential based on the available opportunities and experience freedom while being connected to other people. The action plan is supported by a rigid implementation system that will ensure the administration establish a democratic nation.

The NDP has a strategic vision for 2030 that comprises of several objectives to be met along the way. The national initiative seeks to unite all South Africans irrespective of class or race under a common program for the alleviation of inequality and poverty. Another objective for NDP entails promoting economic growth by focusing on exports and making the economy more labor absorbing. The move is meant to increase employment opportunities for South Africans. The development plan equally aspires to establish a capable economy by improving skills, social security, foreign relations and key infrastructures. A capable economy revolves around heightening education and health standards for the South African populace for better economic performance. Another objective is to increase private-public partnerships as a function of increasing investment in provincial and local governments. All the aforementioned objectives sum up to two primary milestones. The first landmark is the reduction of poverty rates. According to NDP, there should be a reduction in the averagenumber of homes surviving under a monthly income of R420 from 39% to 0%. The second landmark is a reduction in inequality from 0.69 to 0.6 as determined by the Gini co-efficient.

South Africans need to find unity under a common program in order to eliminate inequality and poverty under different classes and races. A major goal is to establish a capable and developmental state that requires solid leadership in different parts of the society. It also motivates citizens to become proactive in personal development and ensuring that the government is accountable for the development of the country (Mensah, Katerere, Hachigonta, & Roodt 2018, p. 116). By 2030, the country aims at elevating economic development and ensuring that it is absorbing. Finally, it intends on concentrating essential capabilities such as skills and infrastructure with different partners.

While implementation has been established to ensure that the goals are met, poor corporate governance proves to be a major challenge. Sustainable energy production falls under the 2030 goals established by the commission. However, SOEs such as Eskom have made it difficult to achieve strong leadership in the energy sector that displays the people’s ability to work together and solve the energy problems. For instance, in 2014 and 2018, South Africa experienced national rolling blackouts that threatened its economic development (Jaglin & Dubresson 2016). The blackouts were experienced at a time when the country was struggling with low development and underemployment.

Transnet is the leading railway, transport, and pipeline SOE in South Africa. In the recent years, the company has recorded swindling revenues and expenditure that have interfered with the ability of the country to meet its economic and development goals. The SOE has been associated with unauthorized spending that is linked to an increase on corruption. Restructured governance in Transnet has been attributed to the rent seeking experienced in South Africa (Brown 2005, p. 29). However, this interferes with the 2030 NDP goals of eliminating poverty and inequality. This is because resources that should be allocated for development of the transport infrastructure are being misappropriated leading to impaired growth. It takes longer to achieve national economic development with administrators engaging in corruption.

South African Broadcasting Corporation (SABC) displays features of poor governance owing to the allegations of corruption, use of consultants during labor lawsuits, procurement irregularities, and inappropriate treatment of employees. SOEs are required to display leadership in their dealings, which implies meeting the corporate requirements of the law (Kubbe & Engelbert 2017). However, SABC has run the company oblivious of the effects of their irregular practices. The NDP goals identify that South Africa should attain improved capabilities among its people which includes stronger associations and partnerships with internal and international partners.

Poor corporate governance threatens achievement of national goals. South Africa experiences immense challenges through its SOEs that constantly engage in unethical and undesirable practices. For instance, SABC and Transnet leaders have been accused of corruption and misappropriation of funds that increases the level of inequality and poverty owing to impaired economic development. Poor corporate government affects NDP mostly in its ability to foster collaboration between the public and the government, which is one of the primary goals. South Africa faces the impediment of poor anti-corruption collaboration and without public and private engagement; NDP cannot effectively establish the structures necessary for eradicating poverty and inequality. Corporate governance is a regulated concept in S.A. and poor compliance negates the sustainability of the NDP initiative.

References

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Brown, S 2005, Conflict and governance, Cape Town, Institute for Justice and Reconciliation.

Jaglin, S, & Dubresson, A 2016 Eskom: Electricity and technopolitics in South Africa, Cape Town, South Africa UCT Press.

Kanyenze, G 2017, Towards democratic development States in Southern Africa, Harare, Zimbabwe, Weaver Press.

Kubbe, I, & Engelbert, A 2017, Corruption and norms, Why informal rules matter, Basingstoke, Hampshire, Palgrave Macmillan.Bottom of Form

Mensah, P, Katerere, D, Hachigonta, S, & Roodt, A 2018 Systems Analysis Approach for Complex Global Challenges, Cham, Springer International Publishing.

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