SECTION A $[50$ MARKS$]$ Read the case study carefully and answer ALL the questions in this section. TotalEnergies SA faces scrutiny over 'misleading' sustainability claims By Karabo Ledwaba $19$ Aug $2024$ TotalEnergies Marketing South Africa is under scrutiny for allegedly presenting misleading sustainability claims, according to a recent ruling by the Advertising Regulatory Board $($ARB$)$ dated $14$ August $2024.$ The decision raises significant questions about corporate transparency and the prevalence of greenwashing in the industry. Source: www$.$unsplash.com Claims contested The ARB's decision centered on TotalEnergies$$ assertion of being $$committed to sustainable development and environmental protection". This claim, prominently featured in the company$$s communications, was contested by a complainant who pointed out discrepancies between the company's advertised commitment and its actual environmental record. The complainant highlighted TotalEnergies' involvement in projects such as the East African Crude Oil Pipeline and its significant greenhouse gas emissions, which, they argued, undermine the company$$s purported sustainability efforts. TotalEnergies, while not a member of the ARB, defended its stance by arguing that the statement in question was part of corporate communication rather than direct advertising and insisted that its sustainability initiatives were genuine. However, the ARB was unconvinced by these arguments. The board determined that the media slightly misrepresented the company$$s environmental impact, presenting an overly positive image not supported by the company$$s actual practices. Not an advertisement In its response, TotalEnergies stated: "The content under review does not promote or advertise the sale, leasing, or use of goods or services". The content is a corporate communication about TotalEnergies$$ partnership with SANParks to encourage visits to South Africa$$s national parks. Accordingly, the challenged content disseminates information about this sustainability initiative but does not promote any product or service. Given that this communication is not an advertisement, it should not be subjected to the ARB$$s review." The company has outlined its plans to align its trading portfolio with its production and sales portfolio by $2050,$ shifting towards renewable energy sources like solar and wind, while also investing in transitional sources such as natural gas. Despite this, TotalEnergies will continue investing in oil production to address ongoing transportation needs. Different perspectives The ARB acknowledged the different perspectives and evidence presented by both the complainant and the advertiser but focused its review on the specific claims made in the advertisement. The advertisement, which featured the #FuelYourExperience competition and promoted TotalEnergies$$ partnership with SANParks, emphasised claims of "sustainable development" and "environmental protection". The ARB$$s Directorate found that these claims were aspirational in nature and understood by the public within the context of corporate social investment. While the support for SANParks was recognised as contributing to environmental protection, the claim of "sustainable development" was deemed misleading. The Directorate noted that the company's core business of fossil fuel exploitation is inherently at odds with the principles of sustainable development, and there was no direct evidence linking the SANParks partnership to this goal. In light of these findings, the ARB has ordered TotalEnergies to either withdraw or amend the advertisement to prevent further misleading of the public. Read more: environment, advertising, sustainability, SANParks, ESG, ARB, TotalEnergies, Karabo Ledwaba Source : TotalEnergies SA faces scrutiny over 'misleading' sustainability claims $($bizcommunity$.$com$)$ QUESTION $1(10$ Marks$)$ What was the ARB$$s finding regarding the claims made by TotalEnergies? QUESTION $2(10$ Marks$)$ How did TotalEnergies defend itself against the complaint? QUESTION $3(30$ Marks$)$ Name and discuss FIVE $(5)$ ethical issues from the above article. SECTION B $[50$ MARKS$]$ Answer ALL the questions in this section. QUESTION $4(25$ Marks$)$ Discuss what the utilitarian theory is$,$ and from your reflection, how can this theory be applied to businesses. QUESTION $5(25$ Marks$)$ What are the main business benefits of adopting CSR practices $($e$.$g$.,$ brand reputation, customer loyalty, employee engagement$)?$ END OF PAPE