Speech delivered on occassion of the Launch of the book: The Best Company to Work for in South Africa - 2004 by Patricia de Lille
2004-09-06. Let me first say congratulations to the Corporate Research Foundation and all those associated with the publishing of this book - The Best Companies to Work for in South Africa- 2004 - such as Finance Week, City Press, the Black Management Forum and the Afrikaanse Handelsinstituut. Let me also congratulate the companies that have succeeded in being included in the book. It must be a very proud and exciting moment to be recognized in such a manner.
When I looked through the book, I was
struck by the depth of research and consultation that took place in
order to judge a company as one of the best to work for. This is not a
window- dressing exercise, but an analysis of what sets companies
apart. In an ever increasingly globilised world where the slightest
competitive edge can mean the difference between triumph and failure,
it is essential to identify what makes a company more
competitive. It is a cliche that a company's most valuable asset
is its people; but it is nonetheless absolutely true. It is the way
these people are treated by the company that is the deciding
factor.
The question the book raises is what makes company A better to work for than company B in South Africa
There are a number of factors that would attract one to a particular company. These factors on their own or even combined are often more important than remuneration or salary. For me, these would include:
1. A company's commitment to issues of good corporate governance
2. A company's commitment to supporting and strengthening South Africa's democracy
3. A company's commitment to concepts such as corporate responsibility to society and the environment.
4. A company's commitment to the principle of transforming its workforce to be reflective of the country's demographics
Transforming the Workforce
Despite attempts, such as the Employment Equity Act and affirmative action to rectify the imbalances created by the apartheid regime, the demographics of the South African population remains skewed. This is particularly true in the area of the employment of women and of disabled people. In its Annual Report for 2002-3 the Commission for Employment Equity states Limited improvement was observed in a number of employment practices with respect to race. For example, while Blacks (Africans, Coloureds and Indians) constituted the majority of the total workforce covered in the Employment Equity Reports, their representation in key positions in the workforce profile remained very low. They only accounted for the following in key decision and policy-making positions:
> 19 % of all top management positions
> 22% of all senior management positions.
With regards to the employment of women, the picture is not much rosier:
Females accounted for only:
> 14% of all top management positions
> 21% of all senior management positions.
With regards to disability there has been little or no improvement in the employment of this group of historically disadvantaged individuals; when compared to the statistic that disabled people comprise between 10-14% of the entire South African population, the percentage of the South African workforce that is disabled is a paltry 1%. Much needs to be done in this particular segment.
The stick in the form of the legislation has been introduced to promote transformation in the workplace. What is required however is for the carrot to be introduced. This could take many forms not only tax incentives and tax holidays. What is evident from an analysis of the companies included in this publication is that many recognize affirmative action, not as an onerous employment Equity task, but as a significant economic partner with a huge opportunity. In other words the challenge for corporate South Africa is to recognize ability rather than disability; to convert what many see as an onerous legal requirement into a positive driver on the bottom line.
Corporate Governance
The hugely publicized corporate failures, such as Enron, have clearly shown that corporate governance has been neglected. A clear framework is beginning to develop on transparency and accountability. Accountability is essential to ensure that all those stakeholders, such as the investors, the employees and their families receive a proper return on their investment, on the sacrifices and risks that they have individually and collectively contributed to an enterprise.
Strongly linked to good corporate governance and accountability is the fight against corruption. Corruption in this country, whether it be in the public or in the private sector is unfortunately rife and reaching pandemic proportions. Much focus is correctly given to corruption of politicians, but I would like to suggest to you today, that an important link in this immoral ¡®value chain' is missing; we forget too easily that in order to have a corrupt politician, you need to have a corrupt business person. In order to have someone that is guilty of bribery you need to have a briber. While I continue to fight the fight against corrupt politicians and officials, it is the duty of every one in this room to remain vigilant and to take a stand against these practices, whether it be in the board room, in the sales office, or on the golf course. We live in a country, and in a world where, unfortunately, giving a sweetner, or a bribe, or whatever you would like to cloak the term in, has become the norm and the accepted way of doing business.
Supporting and Strengthening SA's Democracy
10 years after this country's freedom, is an important milestone to reflect on where we have come from, have we achieved the goals we set for ourselves and looking forward to the next ten years and beyond. There is no doubt that we have achieved much; our crowning glory is a Constitution that is the envy of the entire world. However, it is merely a document, and as such can not be left in the dark corners of some library, but continually need to be examined and quoted and protected. This is what defines our existence and underpins our young democracy. As a young democracy the Constitution will come under attack from various quarters including, but not limited to, politicians and business.
It is the responsibility of people such as me, as a politician, and you, as business people, to continually be on the watch for any threat that may undermine our constitution and the rights and privileges enshrined in this great document.
It is also my strong belief that business cannot do without politics, and politics cannot do without business. They are not mutually exclusive and work hand in hand. We live in a world of marketing and advertising, where the more money you spend on these components of your business, the more products you will sell. The same can be said of politics, the more money you spend on your election campaigns, the more voters you will get, and the more money you have between elections, the more resources you can allocate to servicing your voters. This is a discussion that needs to take place in this country, and an issue that I am particularly passionate about; the funding of political parties. This funding should not take place behind closed doors, with promises of kick backs and ministerial authorizations, but should be done in an accountable and transparent manner. This funding should not be done on a basis of future government contracts, but on a basis of principle and which party policies and values best represent my own. This funding should take place on a basis of open disclosure and without fear of victimization. But, most of all, this funding must take place. Because without it, existing political parties will become bankrupt, and we will lose the concepts of competition and diversity, which are essential in our democracy.
Corporate Responsibility and Re-building
One of the greatest problems facing this country is that of poverty. Poverty is all-consuming and pervasive. Poverty is a threat to the very existence of an individual and society at large. Poverty attacks a person's dignity and self worth, and nibbles at a person's self esteem. It creates moral dilemmas between choosing a life of crime and basic survival responsibilities such as shelter, food and education for oneself and one's family.
One of the greatest dangers our new democracy faces is that of poverty. If we are unable to turn the tide of the ever increasing levels of poverty in South Africa, many of the hard fought victories for freedom and democracy would have been for naught.
Not only government, but Business in South Africa too, has a responsibility in becoming engaged in the fight against poverty. Obviously, a business's primary responsibility, as well as being a legal requirement, is for maximizing profits for the benefit of its' shareholders. However, it is my view that this requirement should be balanced against the needs of other stakeholders in a company, such as society at large and the environment. Investment into society is not a yoke around the neck of company, but a long-term investment that not only reaps major rewards for the company concerned, but also for society at large.
In conclusion, HIV/AIDS remains the biggest challenge facing South Africa. Already we are feeling the impact on the economy in the public and private sectors. The solution Government cannot do alone, but must form partnerships with the private sector, churches and NGO's.
The question the book raises is what makes company A better to work for than company B in South Africa
There are a number of factors that would attract one to a particular company. These factors on their own or even combined are often more important than remuneration or salary. For me, these would include:
1. A company's commitment to issues of good corporate governance
2. A company's commitment to supporting and strengthening South Africa's democracy
3. A company's commitment to concepts such as corporate responsibility to society and the environment.
4. A company's commitment to the principle of transforming its workforce to be reflective of the country's demographics
Transforming the Workforce
Despite attempts, such as the Employment Equity Act and affirmative action to rectify the imbalances created by the apartheid regime, the demographics of the South African population remains skewed. This is particularly true in the area of the employment of women and of disabled people. In its Annual Report for 2002-3 the Commission for Employment Equity states Limited improvement was observed in a number of employment practices with respect to race. For example, while Blacks (Africans, Coloureds and Indians) constituted the majority of the total workforce covered in the Employment Equity Reports, their representation in key positions in the workforce profile remained very low. They only accounted for the following in key decision and policy-making positions:
> 19 % of all top management positions
> 22% of all senior management positions.
With regards to the employment of women, the picture is not much rosier:
Females accounted for only:
> 14% of all top management positions
> 21% of all senior management positions.
With regards to disability there has been little or no improvement in the employment of this group of historically disadvantaged individuals; when compared to the statistic that disabled people comprise between 10-14% of the entire South African population, the percentage of the South African workforce that is disabled is a paltry 1%. Much needs to be done in this particular segment.
The stick in the form of the legislation has been introduced to promote transformation in the workplace. What is required however is for the carrot to be introduced. This could take many forms not only tax incentives and tax holidays. What is evident from an analysis of the companies included in this publication is that many recognize affirmative action, not as an onerous employment Equity task, but as a significant economic partner with a huge opportunity. In other words the challenge for corporate South Africa is to recognize ability rather than disability; to convert what many see as an onerous legal requirement into a positive driver on the bottom line.
Corporate Governance
The hugely publicized corporate failures, such as Enron, have clearly shown that corporate governance has been neglected. A clear framework is beginning to develop on transparency and accountability. Accountability is essential to ensure that all those stakeholders, such as the investors, the employees and their families receive a proper return on their investment, on the sacrifices and risks that they have individually and collectively contributed to an enterprise.
Strongly linked to good corporate governance and accountability is the fight against corruption. Corruption in this country, whether it be in the public or in the private sector is unfortunately rife and reaching pandemic proportions. Much focus is correctly given to corruption of politicians, but I would like to suggest to you today, that an important link in this immoral ¡®value chain' is missing; we forget too easily that in order to have a corrupt politician, you need to have a corrupt business person. In order to have someone that is guilty of bribery you need to have a briber. While I continue to fight the fight against corrupt politicians and officials, it is the duty of every one in this room to remain vigilant and to take a stand against these practices, whether it be in the board room, in the sales office, or on the golf course. We live in a country, and in a world where, unfortunately, giving a sweetner, or a bribe, or whatever you would like to cloak the term in, has become the norm and the accepted way of doing business.
Supporting and Strengthening SA's Democracy
10 years after this country's freedom, is an important milestone to reflect on where we have come from, have we achieved the goals we set for ourselves and looking forward to the next ten years and beyond. There is no doubt that we have achieved much; our crowning glory is a Constitution that is the envy of the entire world. However, it is merely a document, and as such can not be left in the dark corners of some library, but continually need to be examined and quoted and protected. This is what defines our existence and underpins our young democracy. As a young democracy the Constitution will come under attack from various quarters including, but not limited to, politicians and business.
It is the responsibility of people such as me, as a politician, and you, as business people, to continually be on the watch for any threat that may undermine our constitution and the rights and privileges enshrined in this great document.
It is also my strong belief that business cannot do without politics, and politics cannot do without business. They are not mutually exclusive and work hand in hand. We live in a world of marketing and advertising, where the more money you spend on these components of your business, the more products you will sell. The same can be said of politics, the more money you spend on your election campaigns, the more voters you will get, and the more money you have between elections, the more resources you can allocate to servicing your voters. This is a discussion that needs to take place in this country, and an issue that I am particularly passionate about; the funding of political parties. This funding should not take place behind closed doors, with promises of kick backs and ministerial authorizations, but should be done in an accountable and transparent manner. This funding should not be done on a basis of future government contracts, but on a basis of principle and which party policies and values best represent my own. This funding should take place on a basis of open disclosure and without fear of victimization. But, most of all, this funding must take place. Because without it, existing political parties will become bankrupt, and we will lose the concepts of competition and diversity, which are essential in our democracy.
Corporate Responsibility and Re-building
One of the greatest problems facing this country is that of poverty. Poverty is all-consuming and pervasive. Poverty is a threat to the very existence of an individual and society at large. Poverty attacks a person's dignity and self worth, and nibbles at a person's self esteem. It creates moral dilemmas between choosing a life of crime and basic survival responsibilities such as shelter, food and education for oneself and one's family.
One of the greatest dangers our new democracy faces is that of poverty. If we are unable to turn the tide of the ever increasing levels of poverty in South Africa, many of the hard fought victories for freedom and democracy would have been for naught.
Not only government, but Business in South Africa too, has a responsibility in becoming engaged in the fight against poverty. Obviously, a business's primary responsibility, as well as being a legal requirement, is for maximizing profits for the benefit of its' shareholders. However, it is my view that this requirement should be balanced against the needs of other stakeholders in a company, such as society at large and the environment. Investment into society is not a yoke around the neck of company, but a long-term investment that not only reaps major rewards for the company concerned, but also for society at large.
In conclusion, HIV/AIDS remains the biggest challenge facing South Africa. Already we are feeling the impact on the economy in the public and private sectors. The solution Government cannot do alone, but must form partnerships with the private sector, churches and NGO's.
