QUESTION 2 [30] Read the following case study and then answer question 2.1: Zen Paper is a paper manufacturing company in KwaZulu-Natal that is highly profitable. Its return on investment is known to be high above average and its employees are paid well. The company contributes 15% to the gross domestic product (GDP) of the province through the taxes it pays. The company is a real asset to the provincial government. However, the paper manufacturing activity of this company has caused a lot of pollution in the surrounding community, and the company has not been proactive in addressing the pollution. Employees of the company are also not immune from the challenges related to pollution. Some of the employees have been hospitalised because of breathing problems. The local community has been the most affected by the activities of the company. The lake, the only source that supplies water to the community, has been affected the water is now heavily contaminated. Representatives of the community recently went to the Department of Environment to detail the communitys challenges with the company. They mentioned that they have had several meetings with the companys senior management and, every time, promises were made that were not fulfilled. They want to see the company removed from their community, but not before it has addressed all the destruction it has caused in the community. Representatives of the Department of Environment have paid visits to the company several times to try to help it work with the community in attending to the issue of pollution and complying with environmental laws. The local newspapers have also covered the pollution caused by the company. According to the community, it looks like there is only one solution the company must go. Source: Compiled by Gumede (2023)

2.1 Critically discuss the neglect of corporate responsibility at Zen Paper (5 marks). Refer to the socio-economic view of corporate responsibility in your discussion (5 marks) (10).

Read the following case study and then answer questions 2.2 and 2.3: An economics professor at Star University thought when he got hired that he understood his employment relationship with his employer and what would be extended to him in respect of salary and benefits. According to the university rules, he had to publish two quality research articles in a reputable journal and present one conference paper yearly. He would be paid R25 000 for each research article that was published in a journal and R15 000 for each conference paper that got accepted and published in the conference proceedings. He was satisfied with this plan. He then went overboard and produced three research articles and a conference paper in his first year at the university. To his surprise, he was paid R30 000 for all three research articles and R10 000 for his conference paper. A letter sent to him clarified the reason for the low pay it stated that the university had added a new criterion to its measurement of pay for research articles, which entailed scrutinising the quality of every article. The letter stated that his articles lacked academic rigour and were of poor quality, hence the low pay.

After receiving this pay and the letter, the professor felt like his employer was not giving him what he had signed up for. He had expected to be paid handsomely for his research articles. Instead, he was not rewarded satisfactorily. As a result, he started to cut down on his research. He resorted to producing one research article and one conference paper per year. The university wrote to him and informed him that, over a six-year period, he had not produced enough research and his job was in danger. He got very irked by this unfair letter. He felt that the employer was preventing his progress by shifting goalposts and constantly changing criteria to disadvantage him. Source: Compiled by Gumede (2023)

2.2 What type of contract was violated in this scenario? (1) 2.3 Two types of violations of the contract referred to in 2.1 can occur. What type of violation relates to the scenario? Substantiate your answer with two reasons.