QUESTION $1(29$ marks$)$

Tim is a Chief Financial Officer $($CFO$)$ and a CA$($SA$)$ of Forestry Ltd$,$ a JSE listed

company that is in the business of paper manufacturing. Tim reviewed the annual

integrated report prepared by the Chief Executive Officer $($CEO$).$ Tim noticed that the

disclosure in the annual report was incomplete; however, it was ticked and signed as

disclosed and complete.

Environmenrtal Health issues not disclosed

Tim approached the board members on the matter and the CEO replied by saying

$$We know that all our production plants are a measure cause of the greenhouse gas

emissions, we are accused of deforestation, dumping the wastes in the nearest rivers

and dams and not complying with the environmental health laws and regulations $$I

mean who cares$$ these laws and regulations will slow us down and there$$s quite a lot

to comply with, some we can and for some, we can$$t$.$ We want to create wealth for our

shareholders but we are also creating jobs and paying taxes in the process, I don$$t

see the problem. Just like our Corporate Social Responsibility $($CSR$)$ definition

states: maximise shareholder$$s value, create more jobs, and pay taxes.$$

The CEO told Tim that he reviewed the report and according to him everything is fine

and should be signed as proof of it being reviewed, and complete. Tim however is

adamant that the disclosure is not complete.

REQUIRED:

$1\mathrm{.}1$ Briefly explain the concept of Corporate Social Responsibility.

$(2$ marks$)$

$1\mathrm{.}2$ Compare the definition of CSR with the definition provided by the CEO of

Forestry Ltd$.$

$(3$ marks$)$

$1\mathrm{.}3$ Describe the six capitals of integrated reporting that Forestry Ltd should have

considered for CSR reporting purposes.

$(16$ marks$)$

ANNEXURE I: FORMATIVE ASSESSMENT $2$

$93$ HETA$231-1-$Jan$-$Jun$2024-$FA$2-$NM$-$V$2-03012024$

$1\mathrm{.}4$ Propose recommendations for improving Forestry Ltd$\text{'}$s CSR$,$ considering the

identified CSR ethical issues.

$(8$ marks$)$