The value of Ubuntu – moral and governance case for ethical and responsible financing and investment practices in South Africa

Abstract

This paper sets out to examine the application of Responsible Investment (RI) principles through the lens of Ubuntu philosophy, as an alternative corporate governance approach. We seek to understand why African investment managers are more grounded in Western philosophies compared to Ubuntu. Data were collected via archival data on the Institutional investors' Environmental, Social and Governance (ESG) practices in South Africa, and the interview of 7 institutional asset owners. Evidences indicate that apart from weak regulatory environment, corporate governance standards in many developing countries do not resonate with native cultural values and philosophies. Although the Ubuntu philosophy is a growing phenomenon, increase in contextualisation of its economic and financial cases through business education is warranted for it to be well grounded.