'Enlightened shareholders approach is different from shareholder inclusive approach.' Elucidate.

Enlightened Shareholders' approach is different from stakeholders' inclusive approach. This concept was propounded while laying down the principles of Corporate Social Responsibility in South Africa. The guiding principles governing CSR are summarised in The King Report on Governance for South Africa 2009 ("The King Report"). This Report promotes good social and environmental practices as part of good corporate governance, which is closely oriented to the standards of international corporate governance. The King Report applies to "all entities regardless of the manner and form of incorporation or establishment and whether in the public, private or non-profit sectors." Sustainability is the primary moral and economic imperative of the 21st century. It is one of the most important sources of both opportunities and risks for businesses. Nature, society, and business are interconnected in complex ways that should be understood by decision-makers. Most importantly, current incremental changes towards sustainability are not sufficient - we need a fundamental shift in the way companies and directors act and organize themselves This Report seeks to emphasise the inclusive approach of governance. It is recognised that in what is referred to as the 'enlightened shareholder' model as well as the 'stakeholder inclusive' model of corporate governance, the board of directors should also consider the legitimate interests and expectations of stakeholders other than shareholders. The way in which the legitimate interests and expectations of stakeholders are being treated in the two approaches is, however, very different. In the 'enlightened shareholder' approach the legitimate interests and expectations of stakeholders only have an instrumental value. Stakeholders are only considered in so far as it would be in the interests of shareholders to do so. In the case of the 'stakeholder inclusive' approach, the board of directors considers the legitimate interests and expectations of stakeholders on the basis that this is in the best interests of the company including the shareholders, and not merely as an instrument to serve the interests of the shareholders.