“SANITIZING” CORPORATE POLITICAL EXPENDITURE IN SOUTH AFRICAN CORPORATE GOVERNANCE

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Companies have become catalysts of socio-economic development due to various activities or initiatives they undertake in their countries of incorporation. Among the broad range of corporate activities, political expenditure has emerged as a new trend through which companies advance socio-economic development. Whilst there have been mixed reactions to companies availing financial resources to support political objectives, this article submits that, for South Africa, corporate political expenditure is an effective way for the country’s business entities to participate in nation-building, provided the practice is adequately regulated. With reference to developments in other jurisdictions, the article proposes a model to provide a starting point for the regulation of corporate political expenditure under South African company law.

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