Sep 07, 2012
Redefine corporate success to include generation of social value - BusaBack
Africa|Health|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 Economy News
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.