YONGE NAWE
ENVIRONMENTAL ACTION GROUP
Yonge Nawe Environmental Action Group
Supporting communities through environmental action
Home

About Yonge Nawe

Programmes

Resources

Press Information

Membership

Links

Search

Contact Us
 

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.

Yonge Nawe
Yonge Nawe
Environmental Action Group
Email: yonawe@realnet.co.sz
P O Box 2061
Mbabane
Swaziland
Tel: +268 404 7701
         +268 404 1394
Fax: +268 404 7701