Sep 07, 2012
Redefine corporate success to include generation of social value - BusaBack
Africa|Lonmin|Africa|South Africa|Solutions|Jabu Mabuza|Kgalema Motlanthe|Zwelinzima Vavi
© Reuse this
Addressing the seventeenth National Economic Development and Labour Council (Nedlac) summit, in Ekurhuleni, on Friday, Business Unity of South Africa (Busa) president Jabu Mabuza said that this shared-value vision was premised on improved integration between the creation of economic and social value.
To achieve this, companies would need to develop a far deeper understanding of community needs and challenges. “Business must reconnect company success with social development,” Mabuza argued at a gathering overshadowed by the recent tragic events at Marikana, in the North West province.
“At a very basic level, the competitiveness of a company and the health of the communities around it are closely intertwined. Business needs a successful community and a successful community needs business.”
In his address on behalf of organised labour, Congress of South African Trade Unions (Cosatu) general secretary Zwelinzima Vavi asserted the recent events near the Lonmin operation also highlighted the need for greater urgency in addressing inequality – a "ticking bomb" that became an "exploded bomb" at Marikana.
The poor and marginalised were saying, "wake up and do something about our situation", Vavi averred.
Mabuza, Vavi and Deputy President Kgalema Motlanthe, who also addressed the meeting, reaffirmed the commitment of government business, labour and organised community groups to using social dialogue as a tool to finding solutions to the current breakdown in social cohesion, which was the result of poverty, unemployment and inequality.
But all stakeholders also called for Nedlac, which some felt had run its course and should be closed, to become a more effective platform for such dialogue.
Motlanthe lamented a declining quality of participation in Nedlac structures, some of which had been reduced to a "talk shop", owing to the fact that some social partners were sending junior representatives, who had no mandate, or authority to take decisions.
Business and government expressed a desire for the forging of a new “social compact”, based on a common vision and supported by pragmatic short- and long-term action plans.
Taking his lead from the recently published National Development Plan 2030, which was earlier officially endorsed by Cabinet, Motlanthe said that, despite low trust levels and the problems of representivity, a “social contract could contribute to providing the political, economic and social conditions for long-run development”.
“We should strive to find a common vision to take us forward. Now is the time to begin laying the basis for a social contract for our labour relations and our labour market that will contribute to achieving a more equitable and inclusive form of economic growth,” he added.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines (150 word limit)
Other Macro and Micro News
While South Africa may have the strongest reputation in Africa, the nation needed to enhance harmony with the continent’s other inhabitants to further spread the benefits of the “Africa rising” trend through boosting regional trade. Brand South Africa (SA) had been...
Russian nuclear energy group Rosatom confirmed on Friday that it had canvassed funding options with South African government officials during a recent “nuclear vendor parade workshop” held in the Drakensberg on October 23. The company said the options discussed were...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...