Abstract
The aim of this dissertation was to assess the effectiveness of the social and ethics committee when carrying out its function specifically focused on the function to prevent and report corruption with its current formulation and accounting structures. An empirical component was explored in which different companies‟ social and ethics committee reports were investigated in order to assess the effectiveness of the committee. The sample reports were evaluated against guidelines published by the CIPC. Observations made from the study is that it is important for the committee to monitor and report on all six criteria contained in the published guidelines of the CIPC on their report, as the criteria are inter-linked with each other. The lack of independence and accounting structure of the committee threatens its effectiveness, it is for this reason why the legislator should consider codifying some of the principles recommended by the King Code. If the committee is to combat corruption and/or report any company activities that are not in line with the Act and regulation 43, especially bribery and corruption, it needs to function independently and needs to be allowed to report contravention of the Act and any corrupt activities to the regulator and police where necessary. The Public Finance Management Act, Prevention and Combating of Corrupt Activities Act, the King Code and the JSE listing requirements are useful supplementary mechanisms that the committee can utilise in their effort to reduce or prevent corruption in companies It is important to give the committee the right mandate and clear terms of reference to allow it to function independently and objectively, in order to effectively fulfil its function. It is also important to ensure that the committee works effectively given its role which is to protect the company‟s social responsibility and non-financial aspect of the business.
LL.M. (Corporate Law)