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Mancosa Introduction to Business Ethics past papers
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- Management College Of Southern Africa (MANCOSA)
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FINAL ONLINE SUMMATIVE ASSESSMENTPROGRAMME Bachelor of Commerce in Accounting
MODULE Introduction to Business Ethics
YEAR Two (2)
INTAKE January 2024 Semester 2
DATE 05 November 2024
TOTAL MARKS 100
, 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.
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