Breadcrumb

South Africa

The role of CSR

Companies’ social responsibility is an important topic in South Africa with respect to the economy, the state, and public opinion. There is active support from the government as well as domestic and foreign companies. In response to a 2005 survey by Trialoge of more than 100 stock exchange-noted companies in South Africa, 73.5% of those surveyed said that they take corporate citizenship “very seriously,” 24.5% said that they take it “seriously.”

The social involvement of companies in South Africa reaches back to the time of social grievances during apartheid. Until 1994, many companies invested actively in social initiatives since the state saw no need to act on behalf of the colored groups in the population. Business recognized that the poor living conditions of the black majority were putting the brakes on economic development. In this context, the “Urban Foundation,” which was established in 1976 (today: National Business Initiative, NBI) set as its goal the improvement of the quality of life of the black communities.

Since 1994, political change and the efforts to balance out the unequal distribution of wealth from the times of apartheid have driven CSR forward in South Africa. Decisive for the involvement today is the “Black Economic Empowerment Act” (BEE) of 2003, which was set up by the government and specifies the advancement of historically-disadvantaged groups in the population. Especially the “Corporate Social Investment” guidelines of the BEE have a supporting effect since with their assistance, CSR programs are formalized and the results can be communicated.

In 2003, companies spent 2.35 billion RAND (approximately 193.4 million EUR) for social programs in South Africa. Companies’ expenditures in the CSR sector thus correspond to approximately half of what international donors gave for comparable activities, however only 1% of the total that the state invests in social projects each year. The trend indicates increasing expenditures in the CSR sector.

Sources: German Embassy, Pretoria / Stef Coetzee, CSR-Towards a new paradigm

CSR understanding

Following the international trend, since 1994 CSR programs in South Africa have developed from purely charitable programs into a sooner strategic investment in activities directed towards the social development of South Africa.

Companies’ social activities have increased dramatically in recent years. CSR is encouraged especially by the following facto

  • The new constitution of 1994 and the reform of the legislature have brought social and environmental topics to the top of companies’ agendas.
  • The “Black Economic Empowerment Act” (BEE) of 2003, which specifies the advancement of historically-disadvantaged groups of the population, prescribes particular activities to companies for the more equal distribution of resources.
  • A lack of qualified workers has caused a more intensive promotion of profession-specific training.
  • South Africa’s massive HIV/Aids problem encourages companies' involvement in the health field.

How companies view CSR

Many companies in South Africa have an appreciation of CSR. German companies present in South Africa describe the benefit of social involvement as follows:

  • Establishment of a social network; increase of the social integration of the company in the location
  • Gaining of the trust of investors
  • Increasing of the appeal as an employer
  • Promotion of the communities in which they are active

Most large and multinational companies carry out projects for social involvement as a part of their business activity. This also applies for German companies. This involvement usually goes beyond the specifications of the state “Black Economic Empowerment” (BEE). These companies plan CSR measures strategically, they measure their progress, and publish the results. In some cases companies use “public private partnership" models of the BMZ in order to implement social involvement.

Many smaller companies, by contrast, do not plan their involvement as fully and they fulfill the legal requirements only insofar as required. For example, they donate to welfare organizations. Here, CSR has a sooner philanthropic character.

For South African companies that do not represent brand names or are not suppliers for multinational groups, frequently no social and ecological minimum standards are adhered to. This situation is common in agricultural enterprises, including viniculture.

A strong driving force of CSR is the Johannesburg Stock Exchange (JSE), which sets standards in the CSR sector for all exchange-noted companies. The “JSE Socially Responsible Investment Index," which has been published once a year since May 2004, was created borrowing from the FTSE4Good index and adapted to South African conditions.

For the future it would be desirable to see the programs of the "Black Economic Empowerment” (BEE) flow increasingly into companies’ CSR strategy since the debate surrounding BEE runs largely in parallel to the CSR activities. The combination of both topics conceals significant synergy potential.

Sources: German Embassy, Pretoria / Stef Coetzee, CSR-Towards a new paradigm
 

How politics views CSR

The state plays a prominent role in the CSR discussion in South Africa. The young democracy cannot sufficiently master the many challenges in South African society today without the help of business. These challenges include fighting poverty and initiating a comprehensive education offensive. Therefore, partnerships with companies are actively sought.

However, the appreciation of politics has only recently turned from the philanthropic approach to a more comprehensive concept of social, economic, and ecological development.

Therefore, until the present (2008) there has been no fixed body of rules and regulations, political procedures or institutions that concern themselves explicitly with the topic of CSR.

The most important contribution of politics is the rules of the “Black Economic Empowerment” (BEE). The BEE regulations make special requirements of domestic and foreign companies in the CSR sector. The government’s BEE scorecard requires companies to guarantee social groups that were “historically-disadvantaged” by apartheid preferred access to jobs and equity stakes, manager positions, as well as professional training measures.

Vice-versa, politicians have become sensitized to CSR topics through the BEE campaign and are therefore very positive with respect to the involvement of companies.

Sources: German Embassy, Pretoria / Stef Coetzee, CSR-Towards a new paradigm / Bertelsmann Stiftung, CSR-Naviga

How society views CSR

“Black Economic Empowerment” (BEE) is firmly anchored in South African politics and society; social involvement of companies, by contrast, is understood largely as philanthropic initiatives in the areas of education or health.

Despite the still-young democracy, the country has a distinct civil society with more than 100,000 organizations. Most of the NGOs that provide social services are friendly towards companies. The pressure on companies in the direction of CSR therefore, comes less from the social side than from the political guidelines. Only NGOs that see themselves as the advocate for their interest groups have a critical view of business.

Consumers in South Africa do not play as large a role as in Europe, since purchasing power is not yet a relevant motor for CSR activities. According to a study by the UNISA center for corporate citizenship, only 22% of South African consumers have purchased a company’s products based on its good CSR reputation.

CSR still plays a subordinate role in the media. BEE topics, by contrast, are a daily topic in the press. Individual initiatives such as reporting in the context of the “Mail & Guardian’s Invest in the Future” award, mention the CSI reporting.

A significant driver of CSR is the unions. Especially when it comes to labor law and working conditions, they have an influential voice. Some of the unions work with the companies’ management in order to distribute HIV/Aids medications to employees, for example. Essentially the unions advocate obligatory CSR guidelines.

Expectations towards companies

Society expects of companies in South Africa that they fulfill at least the specifications of "Black Economic Empowerment." The economic advancement of historically-disadvantaged population groups is therefore an obligation for every company. This includes involvement in health, in (professional) education, as well as in regional development.

In particular, international companies encourage involvement in topics such as poverty and community development.  Companies profit from the cheap labor of Africa, therefore they should give back something of their success to the country and its citizens.

Basic conditions

State regulation and international guidelines

In addition to the specifications of the “Black Economic Empowerment” (BEE), there are no special laws in South Africa that regulate CSR. However there are a series of laws relating to the responsibility of companies.

Added to the national laws are a series of CSR-relevant international treaties and accords that South Africa has ratified. These include the ILO standards, environment protection and human rights treaties. The implementation of these treaties in national law, however, is proceeding very slowly. In some cases there are difficulties with the adherence to and monitoring of environmental protection laws, for example.

CSR-relevant laws

National Black Economic Empowerment Act No. 53 (2003)
Establishes the national basic conditions for the advancement of BEE. The law specifies a series of semi-obligatory and voluntary measures that are implemented by the Ministry of Trade and Industry (DTI). The DTI sets standards, provides the guide values for the implementation of CSR, and stipulates that companies must address BEE in their actions. Only those who fulfill the BEE criteria can participate in public bid tenders, for example.

Mineral and Petroleum Resources Development Act No. 28 (2002)
Ascribes all mining rights to the state. Demands that companies must continuously apply for licenses. Companies that adhere to the BEE specifications are preferred here. In addition, companies can be made liable for environmental damage.

Promotion of Access to Information Act No. 2 (2000)
Law that implements the constitutional right of access to information. Permits access to nearly all information that the state or private people are holding.

Promotion of Equality and Prevention of Unfair Discrimination Act No. 4 (2000)
Aims to prevent discrimination, encourage equality, and eliminate unfair treatment. The law is applicable to all areas of society.

National Water Act No. 36 (1998)
Declares that water is a national resource and requires that consumers acquire a license from the state. The law also contains strict rules for keeping water clean.

Employment Equity Act No. 55 (1998)
Forbids unfair treatment in the workplace and specifies programs for particular groups such as blacks, women, and disabled people.

Skills Development Act No. 97 (1998)
This law specifies that companies pay a particular percentage of their expenditures for salaries and wages to the "National Skill Fund.“ Training measures and programs are paid for from these funds.

National Environmental Management Act No. 107 (1998)
Among other things, encourages long-term development, access to natural resources as well as the participation of the public in decisions in the environmental realm. Specifies that companies can be made responsible for environmental damage.

South African Constitution (1996)
South Africa has a very progressive constitution that contains detailed citizens’ and human rights. Among other things, the constitution guarantees access to medical care as well as sufficient food and drinking water.

Labor Relations Act No. 66 (1995) / Basic Conditions of Employment Act No. 75 (1997)
Both laws specify the basic working conditions, encourage the signing of collective labor agreements, and codetermination in the workplace.

Occupational Health and Safety Act No 85 (1993) /Mine Health and Safety Act No. 29 (1996)
The "Occupational Health and Safety Act“ includes the requirements of systems for health and safety management in the workplace. The “Mine Health and Safety Act” focuses on the necessity of reducing accidents and deaths in mining.

Sources: German Embassy, Pretoria / Bertelsmann Stiftung, CSR-Navigator, Hamann et al. 2005

 

Economic initiatives

In addition to the “Black Economic Empowerment” (BEE) framework, there are few voluntary standards that support CSR in South Africa. A few industry initiatives – for example in mining – provide that companies must submit their environmental management plans to the government. However, they only have to do this is they are not ISO 14100 certified.

The guidelines of the Global Reporting Initiative (GRI) also play a role; the state especially appreciates this form of reporting. In the local network of the Global Compact of the United Nations (GC), the principles of the pact are borne to companies in South Africa.
An internationally-recognized standard is the “King 2 Report on Corporate Governance.”

Among other things, it contains a broadly-conceived body of rules and regulations for companies’ reporting about CSR activities.

CSR instruments in the business community

Index of the Johannesburg Stock Exchange (JSE):
The “JSE Socially Responsible Investment Index” sets standards in the area of CSR and long-term investments. http://www.jse.co.za/sri

King 2 Report on Corporate Governance in South Africa (2001)
Reports about the principles of responsible corporate management; they demand expressly of companies that they report about their non-financial achievements. http://www.iodsa.co.za/king.asp

Human Rights Compliance Assessment Tool
Danish tool that is currently being adapted to South African basic conditions together with the "African Institute of Corporate Citizenship“ and the support of the "South African Human Rights Commission.“ www.humanrightsbusiness.org

International Trade Administration Commission of South Africa (2003)
The commission’s goal is to create favorable basic conditions for "fair trade.“ http://www.itac.org.za

National Anti-Corruption Forum
This forum founded in 1999 brings the government and business together to prevent and fight corruption. Among other things, it coordinates industry strategies against corruption and publishes best practice examples. www.nacf.org.za

Kimberley Process Certification Scheme (since 2002)
International initiative for controlling the trade in diamonds from conflict areas. The South African government is playing a significant role in this process. http://www.dfa.gov.za/foreign/Multilateral/profiles/kimberly.htm

Business Against Crime
Since 1996, this organization has supported the government’s crime-fighting efforts with knowledge in the entrepreneurial and technological areas. http://www.bac.co.za

Global Compact South Africa
The local network of the UN Global Compact in South Africa was established in 2000 and is coordinated by the National Business Initiative. In recent years, this active, constantly-growing network has conducted seminars about the topics of long-term investments, anti-corruption, and HIV/AIDS. http://www.nbi.org.za

Sources: Bertelsmann Stiftung, CSR-Navigator

Areas of activity

Poverty

Despite the improvement of living conditions for broad segments of the population since the election in 1994, there is still a very sharp divide between the rich and poor in South Africa. The percentage of people who live below the poverty line is 40 percent. Among the black population, the percentage is 60 percent.

Basic information

  • Life expectancy: 49 years
  • Infant mortality rate: 87.4/1,000 (children under 5 years)
  • Malnutrition: 12% of children under 5 years
  • Access to clean water: 87% of the residents
  • Access to sanitary facilities: 67% of the residents
  • Human Development Index (HDI): 121st of 177
  • Human Poverty Index (HPI-1): 56th, with a value of 30.9% (0% minimal, 100% maximal poverty)
  • Gini index (unequal distribution of income and assets): 2000: 57.8 (0 = completely equal distribution, 100 = completely unequal distribution)

Large parts of the poor population live in underserved rural areas or in poor quarters outside the cities (so-called townships). During apartheid in South Africa, the townships served as residential areas for the black, colored, and Indian population.  Supplying the people in the townships with sufficient living space, electricity, and water is an immense challenge for the government.

Participants

  • National Business Initiative (NBI)
    The NBI (established in 1995) is the successor organization to the “Urban Foundation” and the “Consultative Business Movement.” It is the best-known economically-driven CSR consortium in South Africa. It coordinates projects and encourages voluntary action agreements on the part of business with respect to long-term development. www.nbi.org.za
  • New Partnership for Africa’s Development (NEPAD) and NEPAD Business Foundation (NBF)
    It unites the African economic associations of the NEPAD countries; organization with primarily South African members that follows the "Corporate Governance Principles“ (including the King 2 Report). www.nepadbusinessfoundation.org  /   http://www.nepad.org/
  • African Institute of Corporate Citizenship (AICC)
    Non-profit organization (established in 2000); encourages responsible growth and competitive ability in Africa; hosts congresses on the topic "corporate citizenship" (2002 and 2004) and is a local partner for international CSR initiatives. www.aiccafrica.org
  • Centre for Development and Enterprise (CDE)
    The CDE is one of the most important independent research and consulting organizations in South Africa. It investigates national development topics and their relationship to economic growth and democratic development. Here it is especially interested in which role companies can play in the development of the country. http://www.cde.org.za
  • Southern African Regional Poverty Network (SARPN)
    The SARPN is a non-profit organization that wants to create effective political guidelines, strategies, and examples in the area of combating poverty. For this, SARPN moderates the exchange of ideas, encourage networking, and collects knowledge on this topic. http://www.sarpn.org.za/focus.php
  • Centre for the Analysis of South African Social Policy (CASASP)
    The CASASP of Oxford University has set as its goal to support the elimination of poverty and the establishment of a bourgeoisie in South Africa. The center conducts empirical research on the highest level and training measures on an international level. http://www.casasp.ox.ac.uk

With poverty comes also insufficient access to basic social services and training and education opportunities as well as high delinquency rates and a high HIV infection rate. The democratic government elected in 1994 therefore made combating poverty and inequality a priority in the context of its national developmental program.

Company examples

Otto

„Cotton made in Africa“   

BMW Group

AIDS is already the most frequent cause of death in South Africa. HIV/AIDS hinders social development the most where – as in South Africa – wealth and social security are urgently needed. Due to this worrisome situation, the BMW Group sees itself called as a “corporate citizen” to assume social responsibility and make a contribution to combating this problem. In South Africa, the BMW Group offers its employees, their families, and communities extensive support in the fight against HIV/AIDS through information, prevention, and medical care.

CSR WeltWeit case study (German): Engagement gegen HIV/AIDS

Peter Riegel Weinimport GmbH

CSR WeltWeit case study (German): Menschenwürdige und sozial faire Lebens– und Arbeitsbedingungen auf dem Bioweingut Stellar Organics

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO – Voluntary Service Overseas 

Companies have also begun to talk about the need to act against poverty. In 2006, a “Bottom of the Pyramid Learning Lab” was established at the University Stellenbosch Business School (USB) together with the National Business Initiative (NBI). It serves as a forum in which companies can talk about the possibilities for opening up the “markets of the poor.” The main idea here is to supply disadvantaged citizens with necessary goods and in this manner to open up access to new and underserved markets. Source: Foreign Office (among others); UNDP

Education

The improvement and encouragement of education if one of the primary concerns of the South African government since insufficient education and professional training represent the greatest hurdles on the path to the long-term development and future prospects of the country.

Basic information

  • Public spending on education (share of GDP): 5.4 %
  • Mandatory school attendance: From 7 – 16 years
  • Rate of school enrollment: Elementary school: 89 %; Secondary school: 66 % (2002/2003)
  • Illiteracy rate: Men 16%, women 19%
  • Universities: 21, the largest in Johannesburg and Pretoria
  • HDI Education Index: Ranking 121 out of 177: 0.806 (1 = max., 0 = no education)

The educational system separated by race due to apartheid politics was always a striking symbol of oppression and discrimination. In April 1994, the public schools opened their doors to all children. Since then, the goal has been the creation of a uniform, non race-oriented educational system, the consideration of the linguistic variety of the country, as well as the introduction of mandatory schooling for all.

The focal point of corporate engagement in South Africa in the area of education has been especially on education and further education. Here, special attention is paid to the ability to read and write. In addition, companies encourage professional and technical training. The CSR activities of German companies in the area of education make an important contribution to the elimination of the dearth of trained workers.

Participants

  • Readucate
    The Readucate Trust is a non-profit organization that encourages the education of blacks. http://www.readucate.org/pages/our_trust.htm 
  • Unicef South Africa
    The children’s assistance arm of the UN supports a series of educational projects in South Africa. http://www.unicef.org/infobycountry/southafrica.html 
  • Department of Trade and Industry (DTI)
    The DTI is the most important state participant with respect to Black Economic Empowerment (BEE) and topics of "corporate governance.“ The DTI encourages economic growth and the creation of jobs through a positive investment climate. www.thedti.gov.za 
  • Department of Labour
    The Department of Labour established the “Nedlac” initiative, which brings business associations, employees’ associations, and community groups to the table for discussions and negotiations about topics in economics and social politics. www.ppp.gov.za 
  • Department of Social Development
    The Department of Social Development maintains some partnerships with companies, especially in areas of "corporate social investments," that is, purely charitable projects. www.welfare.gov.za 
  • National Business Initiative (NBI)
    NBI is the best-known economically-driven CSR association in South Africa. It coordinates projects and encourages voluntary action agreements on the part of business with respect to long-term development. www.nbi.org.za 
  • NEPAD Business Foundation (NBF)
    It unites the African economic associations for the NEPAD countries; organization with predominantly South African members that follow the “corporate governance principles“ (including the King 2 report). www.nepadbusinessfoundation.org  
  • African Institute of Corporate Citizenship (AICC)
    Non-profit organization (established in 2000); encourages responsible growth and competitive ability in Africa; hosts congresses on the topic "corporate citizenship" (2002 and 2004) and is a local partner for international CSR initiatives. www.aiccafrica.org

Opportunities and risks related to educational initiatives
Companies see in their involvement the opportunity to actively address the dearth of qualified workers. So that the trained workers do not leave the company after their training is complete, additional services such as free health care are offered as an initiative to remain with the company.

Company examples

Global Reporting Initiative

CSR WeltWeit case study (English): Transparency in the Supply Chain

Peter Riegel Weinimport GmbH

CSR WeltWeit case study (German): Menschenwürdige und sozial faire Lebens– und Arbeitsbedingungen auf dem Bioweingut Stellar Organics

Daimler AG

CSR WeltWeit case study (German): Automotive Academy Network

Including:

- Baja Competition (to promote science, mathematics, and technology)
- Dinaledi Schools (equipping of 102 schools with technical equipment; in cooperation with Telkom Foundation)
- Support and sponsoring of Rhodes University in Grahamstown, Witwatersrand University in Johannesburg, and the University of Cape Town

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO – Voluntary Service Overseas  

Deutsche Schule Johannesburg (German School of Johannesburg)

General: Offer of additional school hours (in English, art, and mathematics) for 75 students from 43 different elementary schools in Soweto on Saturdays

- Training of teachers
- Establishment of particular projects (e.g. experiments in scientific laboratories)
Diversity management (active integration of German and South African students and thus a contribution to better intercultural understanding):
For registration and admission into the fifth grade, applicants from so-called underprivileged areas are given preference (especially non German-speaking blacks and colored children)
-Weekend trips and summer camp for the development of team spirit and capability

Additional information: www.dsj.co.za/site

Siemens AG

Global education program called “Generation21”: informs young people about the Siemens company and tries to awaken their interest in innovation, technology, mathematics, and science generally.

Siemens has spent more than ZAR 180 million (13.6 million EUR) in the last 10 years on professional training, whereby the large part of the money was spent on historically-disadvantaged population groups

-Internal programs train employees in the administration and management areas-Each year, Siemens invests ZAR 1 million (0.8 million EUR) in students who are studying at universities and technical colleges (80% of the funds for students who come from historically-disadvantaged population groups)- In order to counteract the dearth of trained personnel in the telecommunications sector in the whole region south of the Sahara, Siemens has established an information and communication institute in Pretoria-Joint training program with Telkom, government institutions, partnerships between public and private institutions-Siemens Business Services is working on improving capabilities and competencies in the IT sector with the help of “learnerships.” These train students in the workplace and at the same time, communicate technical knowledge- “Sitrain,” part of the Siemens Park in Midrand, coordinates training units for the customers of the energy and industry group.

Health

In the health sector, the entrepreneurial involvement focuses primarily on the fight against HIV/AIDS. The HIV/AIDS pandemic has reached horrible dimensions in South Africa: according to the WHO, in 2004, 21.5% of all adults were infected with the virus. Of the affected, however, only 21% had the opportunity to receive antiretroviral therapy. The influence of HIV/AIDS on the economy is massive since companies are immediately affected, e.g. by the loss of employees and technical knowledge, increased health care and training costs, as well as lower productivity.

Basic information

  • Public spending on health (share of GDP): 3.5 %
  • Medical care: Doctors: 0.8/1,000 residents
  • Infant mortality: 55/1,000 births
  • Maternal mortality: 230/100,000 births
  • Child malnutrition: 11.5 %
  • HIV/AIDS: 21.5 % of people between 15 and 49 (2003 est.)/ 5.3 million people
  • HIV/AIDS deaths: 370,000 / year (2003 est.)

Most companies therefore make explanatory information, free tests and medical advice, and anti-retroviral medications available to their employees. The majority of German companies carry out an HIV/AIDS program of their own accord and support informational campaigns by health insurance companies.

Participants

  • Rural Health Initiative (RHI)
    The RHI and the “Rural Doctors Association of South Africa” (RuDASA) invite doctors and medical personnel to work in hospitals and rural areas. This project is carried out especially in the provinces where medical care is insufficient. http://www.rhi.org.za/index.php?ref=contact 
  • Health System Trust (HST)
    The HST carries out research in the health sector, advances the development of the health system, and counts as the leading knowledge-holder in this area. Since 1992, the HST has contributed significantly to the development of effective health care in South Africa and it is also active in other countries in the SADC region. http://www.hst.org.za/generic/1 
  • South African Business Coalition on HIV and AIDS
    Business association with a focus on HIV/AIDS; makes tools and knowledge available to companies so that they can fight HIV/AIDS effectively. www.sabcoha.co.za 
  • Department of Social Development
    The ministry for social development maintains some partnerships with companies, especially in areas of "corporate social investments," that is, purely charitable projects.  www.welfare.gov.za 
  • National Business Initiative (NBI)
    NBI is the best-known economically-driven CSR association in South Africa. It coordinates projects and encourages voluntary action agreements on the part of business with respect to long-term development. www.nbi.org.za

Opportunities and risks related to health initiatives
Surveys of companies in South Africa show that the pressure to act is great, especially among the large companies, who are trying to limit the negative effects of the pandemic on their business activities. Smaller companies, by contrast, still require great support for the integration of a HIV/AIDS policy into their corporate culture. In the rarest cases, small and medium-sized companies can raise the financial means for concrete support of their own workers, their families, or even affected people in the company’s community.

Company examples

BMW Group

AIDS is already the most frequent cause of death in South Africa. HIV/AIDS hinders social development the most where – as in South Africa – wealth and social security are urgently needed. Due to this worrisome situation, the BMW Group sees itself called as a “corporate citizen” to assume social responsibility and make a contribution to combating this problem. In South Africa, the BMW Group offers its employees, their families, and communities extensive support in the fight against HIV/AIDS through information, prevention, and medical care.

CSR WeltWeit case study (German): Engagement gegen HIV/AIDS

Peter Riegel Weinimport GmbH

CSR WeltWeit-Fallstudie: Menschenwürdige und sozial faire Lebens– und Arbeitsbedingungen auf dem Bioweingut Stellar Organics

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO – Voluntary Service Overseas 

Daimler AG

CSR WeltWeit case study (German): Das Siyakhana-Projekt: HIV/AIDS Arbeitsplatzprogramm für kleine und mittlere Zulieferbetriebe

Including: Victim Empowerment Centre Soshanguve (trauma center)
- Hillcrest HIV/AIDS Center (provision of transport; in cooperation with Deutsche Welthungerhilfe and the provincial government of Kwa-Zulu Natal)
- House on the Rock (care of HIV-positive children)

Siemens AG

HIV/AIDS should no longer be a taboo in the workplace: The goal of the campaign is to minimize the risk that the disease will affect employees, customers or suppliers
- Employees who are HIV+ are not terminated due to the disease
- All programs use young, volunteer helpers who offer advising sessions for employees, solve problems, and clarify myths associated with the disease
- Main elements of the HIV/AIDS program: Access to a 24-hour hotline for health problems, condom vending machines in strategically-relevant places, list with contact details of clinics and help lines, regular monitoring of the progress of the disease and extensive patient care by nurses
- Effectiveness of the HIV/AIDS program has been recognized internationally: in 2004, Siemens received the “Global Business Coalition on HIV/AIDS Award” for “Business Excellence in the Workplace.”

Participation in society

The South African state actively advocates – due to experiences from the era of apartheid – for the advancement of historically-disadvantaged groups of the population (the so-called “Black Economic Empowerment” – BEE). Companies’ involvement in the BEE area is thus already determined by many guidelines and laws (such as, e.g. the BEE scorecard, the King reports, and the index of the Johannesburg Stock Exchange (JSE)). For example, the government’s BEE scorecard demands of companies that they provide preferred access to equity stakes, manager positions, fairness in the allocation of jobs, and encouragement of the further advancement of their capabilities for South Africans who were disadvantaged in the era of apartheid (historically-disadvantaged South Africans or HDSAs). With the implementation of the legal specifications of the BEE, many companies are already making an important contribution. However, lacking controls and too little public attention for the topic ensure that there is still a significant gap between the actual implementation and the implementation that is striven for. Therefore, there are no more precise insights about adherence to the BEE specifications.

Basic information

  • Percentage of women of employed people: 38,2 %
  • Ethnic groups: Africans 79%, Whites 9.6%, Colored 8.9%, Indians/Asians 2.5% (2001 census)

Desirable would be company strategies that incorporate BEE into the broader company policy in the CSR sector. The combination of BEE and CSR offers potential for success. The government, investors, and the public are sensitized by the BEE campaign and the poverty problem and are generally positively inclined with respect to CSR initiatives.
According to the African Institute for Corporate Citizenship, however, there is the danger of a one-sided concentration on BEE and the specific South African challenges. This could scare investors away. BEE should therefore be associated with the international trend in the CSR sector.

Participants

  • BEE Expert Group
    The “BEE Expert Group” assists its members with the implementation of the specifications of the BEE-Act. http://www.bee-expert-group.co.za/
  • Department of Trade and Industry (DTI)
    The DTI is the most important state participant with respect to BEE and topics of "corporate governance.“ The DTI encourages economic growth and the creation of jobs through a positive investment climate. www.thedti.gov.za
  • Department of Labour
    The Department of Labour established the “Nedlac” initiative, which brings business associations, employees’ associations, and community groups to the table for discussions and negotiations about topics in economics and social politics. www.ppp.gov.za
  • African Institute of Corporate Citizenship (AICC)
    Non-profit organization (established in 2000); encourages responsible growth and competitive ability in Africa; hosts congresses on the topic "corporate citizenship" (2002 and 2004) and is a local partner for international CSR initiatives. www.aiccafrica.org
  • National Business Initiative (NBI)
    NBI is the best-known economically-driven CSR association in South Africa. It coordinates projects and encourages voluntary action agreements on the part of business with respect to long-term development. www.nbi.org.za
  • NEPAD Business Foundation (NBF)
    It unites the African economic associations of the NEPAD countries; organization with predominantly South African members that follow the “corporate governance principles“ (including the King 2 report). www.nepadbusinessfoundation.org 

Opportunities and risks related to initiatives to promote participation
Companies that advocate above and beyond the legal specifications for the participation of historically-disadvantaged groups see the benefit of their involvement primarily in the improvement of the company’s image and the integration and advancement of the communities in which they are active. They also use participation to take proactive action against the dearth of qualified workers, something that purposeful encouragement of the HDSAs can counteract.

Company examples

Global Reporting Initiative

CSR WeltWeit case study (English): Transparency in the Supply Chain

Peter Riegel Weinimport GmbH

CSR WeltWeit case study (German): Menschenwürdige und sozial faire Lebens– und Arbeitsbedingungen auf dem Bioweingut Stellar Organics

Deutsche Schule Johannesburg (German School of Johannesburg)

Diversity management (active integration of German and South African students and thus a contribution to better intercultural understanding):

For registration and admission into the fifth grade, applicants from so-called underprivileged areas are given preference (especially non German-speaking blacks and colored children)
-Weekend trips and summer camp for the development of team spirit and capability

Additional information: www.dsj.co.za/site

Siemens AG

The diverse population of South Africa requires daily “diversity management" at Siemens
- The company's personnel policy wants to actively support the historically-disadvantaged members of society: the agenda of the government, to advance the transformation of society by strengthening its weakest members (also with the help of Black Economic Empowerment), should be supported
- Structure of the “diversity management” at Siemens fulfills all specifications of the Ministry of Economics’ “BEE Scorecard”
- Progress of “affirmative action” is measured annually
- At the end of September 2005, 51% of the goods and services were delivered by supplier companies that either belong to blacks or fulfill the BEE Scorecard: total volume of ZAR 792 million (60 million EUR).
Three committees within the company concern themselves with “diversity management”

Environment

Basic information

  • South Africa has signed and ratified the Kyoto Protocol.
  • Total emissions: 2004: 436.8 million t CO2
  • With 0.7% of the world’s population, South Africa contributes 1.5% of the global emissions – on average, 9.8 tons of CO2 per person.
  • Energy consumption per capita: 2,829 kg
  • Protected areas: 6.1% of the land area

Ecological issues play a sooner subordinate role given the country’s severe social problems. However, environmental awareness definitely exists. Numerous laws and ordinances to protect natural resources are in force. The environmental profile for South Africa of the United Nations Environment Programme (UNEP) provides an overview of the environmental area. The national strategies for environmental policy are formulated the Ministries of the Environment and Tourism. This also includes the National Framework For Sustainable Development, whose draft was placed on the Internet for public discussion by the Ministry of the Environment (http://www.environment.gov.za/nssd_2005/nssd_11082005_new.htm).
South Africa is known for its rich flora and fauna. The unique ecosystem on the cape is among the three regions in the world with the greatest biodiversity. It is maintained by a network of public and private sanctuaries.

Participants

  • Earthlife Africa
    Earthlife Africa is an organization that has been dealing with environmental topics and their effects on society in South Africa and Namibia since 1988. The focus of the work is on lobbying the government, informational campaigns in the communities, and the provision of information to the media and the public. http://www.earthlife.org.za
  • African Foundation
    This non-profit organization is the voice of the people who live in rural conservation areas of the ”Conservation Corporation Africa” or in adjacent areas. The foundation creates partnerships between the communities and the initiatives that support the conservation areas.  http://www.africafoundation.org/
  • Endangered Wildlife Trust
    This non-profit organization is devoted to maintaining endangered species and the maintenance of South Africa’s ecosystem. https://www.ewt.org.za/home.aspx
  • Wildlife and Environment Society of South Africa
    This organization, founded in 1926, is the oldest environmental protection organization in South Africa. http://www.wessa.org.za/
  • South African Education and Environment Project (SEAP)
    SEAP was founded by the American lawyer Norton Tennille in 1994 and carries out projects in the areas of environmental protection and education. http://www.saep.org/
  • Ground Work / Friends of the Earth South Africa
    Ground Work fights to improve the living conditions of disadvantaged people in southern Africa who are especially affected by environmental pollution. This NGO gives civil society a voice for environmental protection topics, encourages stricter regulation of multinational companies, and maintains contact with NGOs that are critical of CSR. http://www.groundwork.org.za/
  • Department of Environmental Affairs and Tourism
    The Department of Environmental Affairs and Tourism develops and implements environmental protection laws. These include topics concerning long-term development, in particular the “National Framework for Sustainable Development”. www.environment.gov.za
  • National Business Initiative (NBI)
    NBI is the best-known economically-driven CSR association in South Africa. It coordinates projects and encourages voluntary action agreements on the part of business with respect to long-term development. www.nbi.org.za
  • NEPAD Business Foundation (NBF)
    It unites the African economic associations of the NEPAD countries; organization with predominantly South African members that follow the “corporate governance principles“ (including the King 2 report). www.nepadbusinessfoundation.org 
  • African Institute of Corporate Citizenship (AICC)
    Non-profit organization (established in 2000); encourages responsible growth and competitive ability in Africa; hosts congresses on the topic "corporate citizenship" (2002 and 2004) and is a local partner for international CSR initiatives. www.aiccafrica.org

Opportunities and risks related to environmental initiatives Due to its comparatively-advanced industrialization, South Africa suffers from air and water pollution due to the chemical industry and power companies. There are now initial approaches to clean production in this field. One of the biggest environmental problems in South Africa is the dearth of water. Less than 10 percent of the rain is usable as surface water, one of the lowest rates worldwide.

Despite the high priority given to environmental protection on the global agenda, this area of action is not often tackled in South Africa and it receives little financial support.  The expenditures on the part of companies in 2002 accounted for only 4% of their total expenditures for CSR activities (Source: Foreign Office).

For entrepreneurial involvement in the area “environment,” the topic “handling of waste” is dominant, followed by measures to protect wild animals and measures to prevent environmental pollution. Smaller companies are seldom active in this area.

Company examples

Global Reporting Initiative

CSR WeltWeit case study (English): Transparency in the Supply Chain

Peter Riegel Weinimport GmbH

CSR WeltWeit case study (German): Menschenwürdige und sozial faire Lebens– und Arbeitsbedingungen auf dem Bioweingut Stellar Organics

Randstad Deutschland GmbH & Co.KG

CSR WeltWeit case study (German): VSO – Voluntary Service Overseas 

Daimler AG

- Endangered Wildlife Trust (program for protecting native species of animals threatened with extinction)
- Sisal Fibre Project (creation of jobs and technology transfer): Planting of sisal for use as natural fiber materials for automobile manufacture (long-term development)

Other

Daimler AG

Art, culture, and sport- Art Collection DCSA Zwartkop (support for up-and-coming artists from historically-disadvantaged population groups)- DISSA (support of physically-disabled athletes)- Border Cricket Development Program (brings cricket to children from disadvantaged families in rural areas)

Business Against Crime
This organization was founded in 1996 in response to President Nelson Mandela’s invitation to companies to join the government’s fight against criminal activity. Daimler funds programs to combat organized crime.

Business Fund
Partnership that combines the resources of company and government in order to achieve national development goals such as the creation of jobs, the expansion of capacities, and the strengthening of trust.

CIDA (Community & Individual Development Association) City Campus:           
The university offers virtual courses for financially-disadvantaged students, especially in the areas of IT, finance, marketing, investments, HR, management, and building and construction. For their part, the students offer various communities help in promoting general education and specific training. They also participate actively in programs that support HIV/AIDS patients.

Daimler Education and Visitor Center
A unique ecotouristic educational institution in East London, Eastern Cape Province, where Daimler's assembly plant is located. The surrounding nature reserve is part of an untouched coastal landscape that is unique in this area.

HIV & Aids Siyakhana Project
A partnership between the public and private sectors. The public health system is strengthened on the community level in the Eastern Cape Province, small and medium-sized companies are encouraged. The project is also supported by DEG and USAID.

Laureus Foundation South Africa
The goal is the promotion of social projects in historically-disadvantaged communities. Sport is understood as the most important intervention strategy. International and local prominent sports figures are used as friends and ambassadors and as mentors for young people.

Mdantsane Community Development Focus
Daimler supports various initiatives of the provincial government, e.g. by helping with the creation of the development and growth plan of the Eastern Cape Province, with the urban renewal program, with the encouragement of institutions that take care of orphans and defenseless children, as well as with a project to improve city services.

Paralympic Team
The national team was sponsored from 2005-2008. Support for preparation for the Olympic/paralympic games

Rally to READ
Daimler in East London has established this annual event with the support of the Ministry of Education. The focus is on training literacy. Books selected on the basis of the school curriculum as well as writing utensils, winter things, equipment for classrooms, and sporting activities, scientific kits, etc. are provided.

Siemens AG

Art and culture
The goal is the active encouragement of various art forms, especially in the areas of sculpture, painting, music, ballet, photography, and theater: Wide-ranging number of projects for the support of young talents.

Data & facts

Country: Republic of South Africa
Capital: Tshwane/ Pretoria
Area: 1,219,912 qkm (= 3.4 x Germany)
Population: 49.32 million inhabitants (July 2009)
Economic system: Free market economy
Polity: Presidential democracy with federal elements
Unemployment rate: 24.9 % (2009)
Inflation rate (CPIX): 2008: 11,5% 2009: 5,8%
GDP: 277.4 billion USD (2009 est.)
GDP/Head: 10,244 USD (2009 est.)
Religions: Christians: 75.5 %, at least 17.5 %, of these Hindus: 1.4 %, Muslims: 1.4 %, Muslims: 0.2 %
HDI: 129st of 177 (2009)
CPI: 55th of 145 (2009)
BTI: 31st of 128 (2010)