A critical assessement of socially responsible investing in South Africa
- Authors: Viviers, Suzette
- Date: 2007
- Subjects: Investments -- Moral and ethical aspects
- Language: English
- Type: Thesis , Doctoral , DCom
- Identifier: vital:9293 , http://hdl.handle.net/10948/637 , http://hdl.handle.net/10948/d1011340 , Investments -- Moral and ethical aspects
- Description: This research deals with socially responsible investing (SRI) in its broadest context in South Africa and includes an analysis of the risk-adjusted performance of local SRI funds. SRI refers to an investment strategy whereby investors integrate moral as well as environmental, social and governance (ESG) considerations alongside conventional financial criteria in evaluating investment opportunities. Typical SRI strategies include screening, shareholder activism and cause-based (targeted) investing. The primary objective of this research was to obtain a deeper understanding of SRI in South Africa as it represents a powerful means whereby private sector capital can be channelled into areas of national priority. Data and methodological triangulation strategies were adopted to investigate the research problem, respond to the research questions and test the research hypotheses of this study. The phenomenological component of the research consisted of an extensive literature review as well as in-depth, face-to-face interviews conducted with twelve SRI fund managers and industry experts. The positivistic dimension of this research centred on the construction of the first complete database of SRI funds in South Africa, the sourcing of quantitative primary data and the testing of eight pairs of null and alternative hypotheses. Risk-adjusted performance was evaluated by means of the Sharpe, Sortino and Upside-potential ratios during three sub-periods, namely 1 June 1992 to 31 August 1998, 1 September 1998 to 31 March 2002 and 1 April 2002 to 31 March 2006. Forty-three SRI funds have been launched in South Africa since June 1992 and it is estimated that SRIs constitute approximately 0.7 percent of the total investment capacity in the country. It was found that most local SRI funds combine a cause-based investment strategy with a positive or best-of-sector screening approach. ESG screens were found to focus on the promotion of broad-based Black Economic Empowerment and the development of social infrastructure in South Africa. The FTSE/JSE SRI Index and the Financial Sector Charter were identified as the most prominent drivers of SRI in South Africa, whereas a lack of skills and a shortage of new SRI opportunities, asset classes and funds were seen as impediments to the growth of the local SRI sector. The empirical evidence shows that: - local SRI funds underperformed relative to their respective benchmark indices during the first two sub-periods but significantly outperformed them during sub-period three (the resurgence period of SRI in South Africa); - local SRI fund performance is not significantly different from that of a matched sample of conventional (non-SRI) funds; and - local SRI funds significantly underperformed relative to the general equity market in South Africa during sub-period two (the decline period of SRI in South Africa) but performed on a par with the FTSE/JSE All Share Index during sub-periods one and two. The findings of this research therefore suggest that investors can consider SRI funds as part of a well-diversified investment strategy. It is strongly recommended that a Social Investment Forum be established in South Africa to address the educational needs of stakeholders in the local SRI sector. It is also recommended that local asset managers adopt a focused differentiation strategy to take advantage of the growing SRI sector in South Africa.
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- Date Issued: 2007
The effect of HIV and AIDS on the viability and management of forestry contracting businesses in South Africa
- Authors: Steenkamp, Jacob Cornelus
- Date: 2007
- Subjects: Forest products Industry -- South Africa -- Employees -- Disease , AIDS (Disease) -- Economic aspects -- South Africa
- Language: English
- Type: Thesis , Doctoral , DBA
- Identifier: vital:8768 , http://hdl.handle.net/10948/735 , Forest products Industry -- South Africa -- Employees -- Disease , AIDS (Disease) -- Economic aspects -- South Africa
- Description: The aim of the research is to quantify the HIV prevalence in human resources of forestry contracting businesses and to develop a management framework to promote economic sustainability of forestry contractors. HIV tests were conducted in the forest industry on the employees of contracting concerns from 2002/2003 to 2004/2005 with an accompanying questionnaire to collect demographic data. The HIV test results were analyzed with the demographic data to determine relationships between HIV prevalence and demographic factors. Contractors responded to a questionnaire on the effect of HIV and AIDS prevalence on (their) contracting businesses. The questionnaire also collected information about HIV and AIDS interventions and assistance to HIV and AIDS affected employees. Key stakeholders of other forestry sub-sectors were interviewed to facilitate comparison of the different sub-sectors and to establish if there were major differences between the sub-sectors, however, the focus was on the human resources of the forestry contracting sub-sector. The research results indicated that the HIV prevalence was increasing for the research period and was, in some regions, exceeding 40 per cent. The highest prevalence was recorded in the Highveld and Zululand regions and the lowest prevalence in the North-Eastern Cape. The HIV prevalence for females was constantly higher than the incidence for males and the ratio of males to females (all regions) approximated 68 per cent to 32 per cent. The high prevalence of HIV results in major social and economic impacts. The economic impact is aggravated through regulation (due to perceived market failure) and a bid for more equal distribution of wealth in the economy. The result of the sum of the impacts alludes to a conversion from labour to capital; however, to make well-informed decisions, various scenarios should be simulated to establish the optimum labour to capital ratio. The research further established that appropriate staffing is increasingly difficult and that the development of human capital is under pressure due to the high prevalence of HIV and AIDS. HIV and AIDS mitigation programmes will make a significant contribution to the return on human capital assets, as the economic life and productivity of such assets will be enhanced by such interventions. The management framework developed was assessed to be visually acceptable and useful by domain experts; however, to realise the full potential of the framework it should be used with anticipation of the research results regarding prevalence and future estimated AIDS releases and in conjunction with industry cost simulation models.
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- Date Issued: 2007