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/ 25 October 2007
BEE charters and the broad-based BEE codes of good practice might move corporate social investment (CSI) into the boardroom as a serious subject of discussion. The codes represent a kind of supercharter, with which all charters will have to be "aligned". Industries and businesses are scored according to a balanced scorecard with seven elements, of which socio-economic development or CSI is one.
Our northern neighbour is in the process of passing an "empowerment Bill" to force transfer of the majority stake in private companies to black Zimbabweans. Though this is indigenisation rather than empowerment in the South African sense, it raises interesting parallels with South Africa’s draft Mining Charter, which led to the outflow of billions of rand in foreign investment.
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/ 10 September 2007
The new-look Anglo American Corporation was very much on display at the announcement last week of one of two of the biggest black economic empowerment deals in South African mining — and a real advance for black ownership of platinum reserves.
Black Economic Empowerment (BEE) ownership deals get the most attention, but their capacity to change the racial bias in the South African economy seems to be limited. Preferential procurement, however, is the sharpest tool in government’s transformation armoury. But it could also increase corruption and cronyism, writes Reg Rumney.
National Empowerment Fund chief executive Philisiwe Buthelezi has described the fund’s offer of discounted shares in MTN as "unique, exciting and historic". There have been other retail offerings reserved exclusively for black people over the years, most recently Telkom’s Khulisa scheme.
Never look a gift horse in the mouth. Unless it comes from the Greeks who have been besieging your citadel of Troy. As they say, <i>Timeo Danaos et dona ferentes</i> (beware of Greeks bearing gifts). I mention this because, as a professional sceptic, I am duty-bound to look at the downside of even the worthiest corporate schemes, writes Reg Rumney.
It amuses me that we commentators, analysts and consultants pore over the Broad-Based BEE Codes like technicians studying the manual of a motor vehicle to see how best to make it go. Then along comes a saga like the Holcim empowerment deal to remind us how profoundly political BEE is. Whatever codes and charters say, BEE is not a mere technical matter
Are we a nation of navel-gazers? Have South African economic commentators become so complacent that they no longer care about disinvestment? Or is it a sign of being grown up as a country that we now take in our stride a figure that may hint at foreigners’ lack of interest in the country’s long-term investment prospects?
What lies ahead this year in the area of corporate social responsibility (CSR), which concerns business and its role in society, and corporate social investment (CSI), which refers to the grant-making or corporate giving aspect of CSR? BEE will at once make both CSR and CSI more problematic, but also present new opportunities, this year as the BEE Codes of Good Practice start to filter through business.
Ralph Hamann, senior researcher at the University of Cape Town’s environmental evaluation unit, takes a broader view of corporate social responsibility, bringing in international trends. He sketches a number of new issues. “The international investment community is really developing a lot of steam on sustainability issues, especially climate change.