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Are
we Responsible for our Actions? Towards Corporate Accountability
People or Profit First?
High unemployment has forced
many developing countries such as Swaziland to rely on direct foreign investment.
This has in many cases exposed such nations to receiving "dirty" industries.
Further, foreign companies are said to be plundering poor countries’ resources
due to poor legislation. It has been argued that companies have been enjoying
a five year free tax incentive and after the expiry of the five years they
would close down and come back to reinvest in the country using a different
name so that they could benefit from the five year free tax incentive.
Maloma coal mine was reported
to be the country’s leading minerals revenue earner recording a 7.0% increase
in production of 94 431 tonnes in March this year compared to 88 260 tonnes
produced the same period the previous year. The mine earned the country
revenue of about E16.8 million through exports to South Africa, Ireland
and South America. According to the Times of Swaziland of 18 March 2002,
a quarterly industrial review indicated that export earnings, which exclude
quarried stone receipts also, surged by 32% to E24.3 million from E18.3
million, registered the same period the previous year. Despite Maloma’s
contribution to the country’s economy, it has been in recent times plagued
by problems. An American company called Carbonx, which holds 75 percent
of the shares, originally owned the mine and Tibiyo TakaNgwane which has
25 percent, shares. A South African company called Xstrata and Tibiyo TakaNgwane
now owns the company.
The 2001 explosion at Maloma
Colliery left untold suffering, which is still lingering on the memory
of many Swazis. One worker died while twelve others were burnt by hot methane
gas until their skin peeled off leaving bare flesh. Of the twelve2 injured
workers four later died. The wounds of the surviving workers could heal
but memories of the tragedy still remain. One may ask how the wounds could
heal while each time similar disaster strikes. Maloma recently hit the
headlines yet again when on 12 April 2002, one worker died, while three
others were injured by a rock that fell on them invoking wounds and memories
of past disasters.
In another incident a 3 year-old
boy nearly lost his life when he picked up a detonator used when lighting
explosives. He was badly injured on his right hand and eye and will live
with these wounds and memories his entire life. On 13 July 2001, Miners
at Maloma called upon government labour inspectors to investigate conditions
they were working under. Among the long list of concerns included; lack
of safety precautions, no compensation to injured or killed workers, no
medical cover, inadequate underground lighting, poor wages and others.
What is Corporate Accountability?
The NGO statement submitted
to the United Nations in 1997, defines Corporate Accountability as "the
legal obligation of a company to do the right thing." The aim of corporate
accountability is to ensure that a company’s products and operations are
in the interests of society and are not harmful. In other words companies
should carry out their businesses without harming people’s health and the
environment.
At the launch of the Global
Compact, the UN Secretary General, Kofi Anan, asked world business leaders
to uphold in their individual corporate practices based on 9 principles
on human rights, labour and the environment. Disregard of business ethics
and environmental and social justices is most rife in developing countries.
The key areas where corporate unaccountability persists include:
-
Labour conditions- poor living
conditions, low wages, child labour
-
Human rights - health precautions
-
The rights of women and children
-
Environmental protection - toxic
waste deposits, air pollution
-
Product safety and consumer rights
- poisoned or expired goods
International corporations often
abuse labour, human rights and the environment in other countries, especially
poor countries while following regulations in their home countries. It
has been argued that large companies like Shell have violated the most
basic standards of human rights and fair labour prices.
Smoke emitted from a boiler
stack in Matsapha |
Some international corporations
have been colluding in tax evasions and money laundering schemes, hiding
funds in "off-shore" locations while driving millions into poverty and
plunging whole national economies into disorder and crisis. |
This has been the situation in
the African context where Multi National Corporations (MNC) has plundered
states heedlessly. The situation is further worsened by poor legislation
accounting for corporations.
River water polluted by
dumpsite
It was reported that Havelock
was closed down without rehabilitation of the environment. "High dangerous
walls and bare surfaces of waste products are posing a serious threat to
the environment," says Phesheya Dlamini, Attorney General. In addition,
lives are at risk of contracting the notorious asbestosis diseases caused
by asbestos particles, which are being deposited into the Nkomazi River
by the nearby mine dumpsite.
Asbestos particles carried
by the Nkomazi dam |
Further, this problem is likely
to affect the multi million Maguga Dam, which is about 10km away from Bulembu
as asbestos particles are likely to be transported by the tributaries of
the Nkomazi River into the dam. Aqua life is also likely to be affected
by these particles. According to a report published in the Times of Swaziland
of 22 May 2002, HVL wanted to flee the |
country without fulfilling
their environmental obligations. It is time that companies take responsibility
of their actions.
Since Rio, there has been a
marked increase in corporate influence over the international social and
environmental debate. Corporations have been since then legitimised as
'stakeholders' whose inputs must be reflected in all major social and environmental
treaties. Employees, communities, consumer and public interest groups are
raising concerns about the performance and impacts of corporations on employment
practices, pollution, genetic engineering, product safety, essential public
services and many other matters. The most serious concerns tend to be over
corporate practices in poorer countries, where governance and financial
constraints have made it more difficult for legal, environmental, health
and safety standards to match those in developed countries.
Some corporations have, however,
made changes in the direction of social and environmental sustainability.
They are now more likely to admit that they have an impact on communities
and the environment and some positive steps have been taken to remedy this.
There are still limits to such change. Companies are eager to point to
their 'best practices' as examples of corporate environmentalism and social
conscience. However, core business practices in major sectors continue
to be wholly unsustainable, and the deeper changes are not being made.
At the launch of the Global
Mining Initiative (GMI), in Canada 12-15 May 2002, the UN Secretary General
Kofi Anan said that the mining and minerals industry is one in which there
are real discrepancies between wealth creation for the few, and environmental
and social costs for the many. We need to ask ourselves what are
we doing to ensure that our practices are environmentally and socially
just?
Community exposed to air
pollution from a pulp industry |
The Swaziland Environment
Authority (SEA), which was established through the Swaziland Environment
Authority Act of 1992, is responsible for administering environment issues.
Among other functions, the Authority is also responsible for establishing
standards |
and guidelines relating
to the pollution of the air, water and land as well as those relating to
noise and other forms of environmental pollution. The government has instituted
the draft Waste Regulations in April 2000. However these are not yet enforceable.
Further an Environment Management Bill was drafted and passed in parliament.
However, it is currently awaiting royal assent before it becomes law and
enforceable.
What can communities do
to avoid being victims of bad environmental practices?
There are a number of opportunities
available to communities such as:
-
Organise yourself into environment
watch groups
-
Discuss problems you are facing
as a result of bad practices caused by industries in your neighbourhood
-
Document evidence by taking pictures
or recording what you are smelling or seeing
-
Approach the industries authorities
and discuss your concerns
-
Invite media to your neighbourhood
and expose the polluting industries
-
Invite environment organisations
to your neighbourhood or seek advice
-
Report the industry to SEA which
has the mandate to enforce SEA Act and guidelines
As responsible corporates and
advocates of sustainable development, we should ensure that our production
practices are not harmful to people’s health and the environment. "The
historic challenge to all living beings is to leave the world in a better
state than they find it," says Thabo Mbeki, South Africa’s president. The
upcoming World Summit on Sustainable Development will enable civil society
to push for an effective legally binding international framework on corporate
accountability and liability.
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