Global Compact International Yearbook 2013
65
CSR in Africa
Agenda
This is a significant challenge. On the one hand, some compa-
nies are beginning to fill this gap because they recognize that
some minimum provision of public goods and rule enforce-
ment is necessary for their business, and also desired by local
stakeholders. On the other hand, this is problematic because
it may create a dependency on companies. This is not just a
phenomenon in places such as the DRC; it is also happening
in South Africa, where some municipalities are just unable
to provide public services. I think the big challenge is for
companies to contribute to developing state capacity, without
co-opting the state to suit their interests.
Environment and Green Business
Woolworths’ managers in South Africa set out to develop a program
of direct engagement with the farmers in their supply chain to enhance
their productivity, focusing in part on irrigation techniques. Is this a rare
example of “green economy,” or is this sector on the rise in South Africa?
What is its status today when compared to industrialized countries?
I think the Woolworths “Farming for the Future” (FfF) program
is quite unusual. You have a company with significant public
sustainability commitments made by the CEO, and you also
have a sophisticated middle management that was capable of
sensing the problems encountered by farmers. Also pertinent
is this company’s emphasis on high-quality, fresh produce
and emphasis on long-term relationships with key farmers …
these factors provided the motives and the capabilities for the
FfF program. Though I have said that initiatives such as FfF
are unusual, I think more companies are recognizing their
reliance on a sustainable value chain, and they are thinking
about more systemic approaches to addressing these problems.
Another prominent example is SAB’s work on water.
In the run-up to Rio+20, you said there will be much discussion on the
transfer of environmental technologies to developing countries. Has the
2012
conference resulted in any real progress for African companies’ CSR?
None that I am aware of.
Labor Standards
For which reasons do mining companies take a special role in the South
African and sub-Saharan African private sector when it comes to CSR?
Mining is the foundation for the development of the southern
African economy, as well as the development of the state and
colonial and apartheid economic systems. The migrant labor
system had significant implications for the development of
towns, as well as the (under)development of rural areas. Mining
still has significant economic significance and employs large
numbers of unionized workers. In areas such as Rustenburg,
mining accounts for an overwhelming proportion of employ-
ment and economic development. Over and above significant
social impacts, mines, of course, also have far-reaching envi-
ronmental impacts, which, in turn, have social implications.
Has the “Marikana incident” led to a rethinking among mining compa-
nies about the way in which they tackle social wrongs around mining
sites? (In August 2012 more than 40 people died in a wildcat strike at
Lonmin’s Marikana mine.)
There has been much debate and some important suggestions
have been made, for example changing the migrant labor
arrangements so that migrants return home more often. But
I have not heard of any actual changes being implemented.
There is a discussion about the “de facto government” of mining com-
panies in the informal settlements around mining sites, in addition to
some social investments that are territorial. Is there a real risk of mining
communities being at the sole mercy of those “mining governments,”
instead of a local government?
Yes, some communities are becoming very dependent on min-
ing companies. This is a problem because the companies are
not formally accountable to the communities. Of course the
problem is amplified when the mine scales-down or closes.
Anti-Corruption
Corruption is a significant problem in South African society.
Local Global Compact Network advised the sectors of healthcare
and construction, and the awarding of mining licenses should
be more closely scrutinized. What are your recommendations?
UN Global Compact companies should collectively emphasize
the transparency movement, including a call for all party
funding to be made public. The fact that this is being resisted
by the African National Congress and opposition parties is
deeply problematic. It would be great for companies to make a
committed stand on this. It would have far-reaching effects.
Ralph Hamann is research director
and associate professor at the
Graduate School of Business,
University of Cape Town (UCT).