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Business, Government and Society

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Submitted By sashmaharaj
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Nicky Oppeheimer (N.O.) in 14 pages stated what Donne, years before him, stated in 9 lines: no man is an island; we are all responsible for each other. N.O. speaks about a company’s responsibility to society as being about more than increasing profits. Whether profits are increased or not, he argues that companies have a moral obligation to better the living conditions of the societies within which they operate. And indeed, if one person is able to make a difference, imagine what a single company- with access to more resources, more manpower, and above all, more funds- could do for the community. Being a successful corporate citizen is about more than writing a cheque: companies must integrate corporate responsibility into their business models and focus on the areas where the greatest change is required. In the aftermath of apartheid, South Africa is faced with a new set of problems, vastly different to that, that was championed by Harry Oppenheimer. In the midst of political stability, and relatively steady economic growth, we are faced with the reality of abject poverty, illiteracy, HIV and growing inequality. Nearly 24 million people live below the poverty line and the recent spats of violence that erupted as a result of this volatile situation (such as the xenophobic attacks, and assault on Eskom staff in the rural areas) serve as a warning of what will come if the rich get richer and the poor, poorer. As Pravin Gordhan said, “we need business leaders who will say: “I have enough, I have to share for everyone’s benefit.”” In this paper, I will discuss 3 key areas that influence a company’s decision on whether to actively champion the rights of the society within which it operates. These areas are: profits, ethical custom and the laws of the land. Profits
Many people are of the opinion that business is divided into two distinct areas: the part that creates profit and generates economic activity, and the part that is non-profit and centres around social responsibility. A large proportion of these people share the views of Milton Friedman and are of the mind that as long as a company is maximizing profits within the boundaries of the law, it is fulfilling its social responsibility. The all-encompassing view (such as that of Nicky Oppenheimer) understands that a business has to find a balance. Embedded into the leaders of these companies is an understanding that the workers employed by them are hired from these communities, the people who purchase their products live in these communities, the infrastructure necessary for daily operation has to be present in order to produce the desired product, and a safe environment has to exist in order for people to come to work and focus on the job at hand. While profits and accountability are important, one cannot place a price on an ethical or moral decision and sometimes profits must be sacrificed for the greater good. Ethical custom
Corporates are seen to have a responsibility towards their shareholders- but what of society at large? It is no secret that the “principled” business person is an unusual creature, not often seen and very rarely heard. Integrity can increase or reduce profits. As consumers become more aware of the companies they are supporting, a lack of integrity and concern for the community in which a company operates can cause customers to switch to a rival product. A reputation can be destroyed in a matter of days- a far shorter amount of time than it takes to be built up. Corporates have to be spear-headed by people with a clear sense of right and wrong, if this mentality is to spread through an organisation.

Laws
Business is expected to abide by existing laws. However, as Anglo (with Harry Oppenheimer at the spear) did, individuals and organisations are expected to challenges the laws that are unjust, and rally behind the ones that are necessary for the good of society. Businesses should never use the power they have to seek favours from the government, but should instead use that influence to bring about change, and a better life. In light of the 3 areas discussed above, while there are individuals who do contribute towards the well-being of society, businesses in this country are still focused on maximizing profits and have not taken the next step into strongly expressing their opinions or championing causes. South Africa still lacks a strong philanthropic sector that could possibly offer guidance and as a result, South African businesses are not doing enough to combat the social issues that plague the country. Instead of floundering in the dark, corporates should look to government regarding which issues they are trying to address. Businesses need to move away from funding short term ventures, such as winter blanket schemes, and need to move towards a more strategic and holistic approach, such as providing housing to people. In South Africa, collaboration between government, business and society is necessary in order for the huge social problems we face to be overcome. By investing in CSI ventures that are focused, with an understanding of government’s aims, South African businesses stand a good chance of building the country through CSI ventures that have a measurable impact and will go a long way towards addressing the country’s social issues. Ending poverty is everyone’s business. The question, therefore, is not do corporates have a responsibility to the communities within which they operate, but rather, how far does this corporate responsibility stretch.

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