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Global Compact International Yearbook Ausgabe 2013

The UN Global Compact is the world’s leading platform for corporate sustainability. In describing the future aims of the Global Compact, UN Secretary-General H.E. Ban Ki-moon says: “A growing number of business in all regions recognize the importance of reflecting environmental, social, and economic considerations in their operations and strategies. Now the challenge is to move from incremental process to transformation – in society and markets alike.” The new 2013 edition of the Global Compact International Yearbook offers proactive and in-depth information on key sustainability issues and focuses on recent developments of stakeholder management such as managing corporate legitimacy, for example. Concomitant to this is the call for a more holistic reporting of companies’ financial and nonfinancial performance, which is expressed in the idea of integrated reporting. Furthermore, this edition highlights the connection between the sustainable development of African societies and the ways of managing and governing their natural wealth. The newest developments concerning the move toward a low-carbon economy are shown in the chapter on climate change, which emphasizes the importance of reducing the output of greenhouse gases. Corresponding to the idea of mutual learning, the Global Compact International Yearbook includes 43 good practices of corporate participants that showcase different approaches to the implementation of the Ten Principles of the Global Compact. The Global Compact International Yearbook is a product of the macondo media group and United Nation Publications in cooperation with the Global Compact Office in support of the UN Global Compact and the global advancement of corporate sustainability. It contains 196 pages.

The UN Global Compact is the world’s leading platform for corporate sustainability. In describing the future aims of the Global Compact, UN Secretary-General H.E. Ban Ki-moon says: “A growing number of business in all regions recognize the importance of reflecting environmental, social, and economic considerations in their operations and strategies. Now the challenge is to move from incremental process to transformation – in society and markets alike.”

The new 2013 edition of the Global Compact International Yearbook offers proactive and in-depth information on key sustainability issues and focuses on recent developments of stakeholder management such as managing corporate legitimacy, for example. Concomitant to this is the call for a more holistic reporting of companies’ financial and nonfinancial performance, which is expressed in the idea of integrated reporting. Furthermore, this edition highlights the connection between the sustainable development of African societies and the ways of managing and governing their natural wealth. The newest developments concerning the move toward a low-carbon economy are shown in the chapter on climate change, which emphasizes the importance of reducing the output of greenhouse gases.

Corresponding to the idea of mutual learning, the Global Compact International Yearbook includes 43 good practices of corporate participants that showcase different approaches to the implementation of the Ten Principles of the Global Compact. The Global Compact International Yearbook is a product of the macondo media group and United Nation Publications in cooperation with the Global Compact Office in support of the UN Global Compact and the global advancement of corporate sustainability. It contains 196 pages.

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Agenda<br />

CSR in Africa<br />

This is a significant challenge. On the one hand, some companies<br />

are beginning to fill this gap because they recognize that<br />

some minimum provision of public goods and rule enforcement<br />

is necessary for their business, and also desired by local<br />

stakeholders. On the other hand, this is problematic because<br />

it may create a dependency on companies. This is not just a<br />

phenomenon in places such as the DRC; it is also happening<br />

in South Africa, where some municipalities are just unable<br />

to provide public services. I think the big challenge is for<br />

companies to contribute to developing state capacity, without<br />

co-opting the state to suit their interests.<br />

Environment and Green Business<br />

Woolworths’ managers in South Africa set out to develop a program<br />

of direct engagement with the farmers in their supply chain to enhance<br />

their productivity, focusing in part on irrigation techniques. Is this a rare<br />

example of “green economy,” or is this sector on the rise in South Africa?<br />

What is its status today when compared to industrialized countries?<br />

I think the Woolworths “Farming for the Future” (FfF) program<br />

is quite unusual. You have a company with significant public<br />

sustainability commitments made by the CEO, and you also<br />

have a sophisticated middle management that was capable of<br />

sensing the problems encountered by farmers. Also pertinent<br />

is this company’s emphasis on high-quality, fresh produce<br />

and emphasis on long-term relationships with key farmers …<br />

these factors provided the motives and the capabilities for the<br />

FfF program. Though I have said that initiatives such as FfF<br />

are unusual, I think more companies are recognizing their<br />

reliance on a sustainable value chain, and they are thinking<br />

about more systemic approaches to addressing these problems.<br />

Another prominent example is SAB’s work on water.<br />

In the run-up to Rio+20, you said there will be much discussion on the<br />

transfer of environmental technologies to developing countries. Has the<br />

2012 conference resulted in any real progress for African companies’ CSR?<br />

social impacts, mines, of course, also have far-reaching environmental<br />

impacts, which, in turn, have social implications.<br />

Has the “Marikana incident” led to a rethinking among mining companies<br />

about the way in which they tackle social wrongs around mining<br />

sites? (In August 2012 more than 40 people died in a wildcat strike at<br />

Lonmin’s Marikana mine.)<br />

There has been much debate and some important suggestions<br />

have been made, for example changing the migrant labor<br />

arrangements so that migrants return home more often. But<br />

I have not heard of any actual changes being implemented.<br />

There is a discussion about the “de facto government” of mining companies<br />

in the informal settlements around mining sites, in addition to<br />

some social investments that are territorial. Is there a real risk of mining<br />

communities being at the sole mercy of those “mining governments,”<br />

instead of a local government?<br />

Yes, some communities are becoming very dependent on mining<br />

companies. This is a problem because the companies are<br />

not formally accountable to the communities. Of course the<br />

problem is amplified when the mine scales-down or closes.<br />

Anti-Corruption<br />

Corruption is a significant problem in South African society.<br />

Local <strong>Global</strong> <strong>Compact</strong> Network advised the sectors of healthcare<br />

and construction, and the awarding of mining licenses should<br />

be more closely scrutinized. What are your recommendations?<br />

UN <strong>Global</strong> <strong>Compact</strong> companies should collectively emphasize<br />

the transparency movement, including a call for all party<br />

funding to be made public. The fact that this is being resisted<br />

by the African National Congress and opposition parties is<br />

deeply problematic. It would be great for companies to make a<br />

committed stand on this. It would have far-reaching effects.<br />

None that I am aware of.<br />

Labor Standards<br />

For which reasons do mining companies take a special role in the South<br />

African and sub-Saharan African private sector when it comes to CSR?<br />

Mining is the foundation for the development of the southern<br />

African economy, as well as the development of the state and<br />

colonial and apartheid economic systems. The migrant labor<br />

system had significant implications for the development of<br />

towns, as well as the (under) development of rural areas. Mining<br />

still has significant economic significance and employs large<br />

numbers of unionized workers. In areas such as Rustenburg,<br />

mining accounts for an overwhelming proportion of employment<br />

and economic development. Over and above significant<br />

Ralph Hamann is research director<br />

and associate professor at the<br />

Graduate School of Business,<br />

University of Cape Town (UCT).<br />

<strong>Global</strong> <strong>Compact</strong> <strong>International</strong> <strong>Yearbook</strong> <strong>2013</strong> 65

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