The Level of Inequality Soars in South Africa

We live in a world of extreme riches and extreme poverty, and South Africa has the highest level of inequality in the world, says the chairperson of the Bench Marks Foundation.

Speaking at the launch of the Bench Marks Centre for Corporate Social Responsibility in Potchefstroom recently, Bishop Jo Seoka, chairperson of the watchdog organisation, said that the optimism for obtaining equality depends upon big businesses doing things differently in the new South Africa.

The Bench Marks Centre is as a result of the partnership between Bench Marks Foundation, North West University. It is aimed at contributing towards sustainable development through integrated research that involves communities and is based in the North West province with a focus their and in the Southern African Development Community (SADC).

“What we have seen over the past years in our research on mining companies is shocking. We see a ‘free for all’ approach to exploit not only labour, but communities and the environment,” he said.

“The focus of the Bench Marks Foundation on mining shows that, in almost every case, communities are in fact worse off thanks to the mining activities in the area.

He said that cultural shock, loss of livelihoods and all the attendant health problems communities face, due to emissions coming from mining sites, causes damage to many communities well-being. 

“Mines often relocate people into suburbs and do not take their rural lifestyles or subsistence livelihoods into account. They move from a rural existence into the market economy,” the bishop said.

Giving an example, Seoka mentioned that the Magobading community in Limpopo, who would not have considered themselves poor previously who made way for mining. In the process, they lost access to grazing land for their cattle, crop production and their way of life.

“The people of Magobading now consider themselves poor, lost, helpless and hopeless,” he added. “Contrary to flashy sustainability reports, we have yet to find a community that will tell you they are better off.”

He said that people should not be surprised by the pro-democracy uprisings currently sweeping the Middle East and North Africa, as well as the demonstrations in Europe and  the occupy Wall Street movement as well as  the demonstrations in Europe.

“We need to acknowledge that we live in a world dominated by greed and selfishness; a world where corporations dominate ideas and values,” he said. “We could say we live in a corporatised world. This dominance is reflected in government policies; playing by global economic rules, often to the detriment of our economy.”

According to the bishop, globalisation dictates that each country should do what it can do best. For South Africa, this means relying on mineral production and exporting this where it realises higher value through various beneficiation strategies elsewhere.

“We need to be talking about what economic sustainability means and how it can be translated into development for people, and how our minerals can develop this country. Not how it only benefits shareholders,” he said.

Additionally, during the launch of the research centre, the Bench Marks Foundation released the Rustenburg Community Report 2011; an examination outlining the misery faced by the Rustenburg communities due to the practices of mining companies in the areas.

The study reveals that the promises made by mining businesses to communities in which they operate, pertaining to corporate social responsibility, are half truths.

The Bench Marks Foundation was launched in 2001 by Archbishop Desmond Tutu in response to the churches’ call in 1993 to monitor and hold businesses accountable in the new South Africa and in Southern Africa. It is chaired by Bishop Jo Seoka.

Ends

Bench Marks Foundation is an independent organisation monitoring corporate performance in the field of Corporate Social Responsibility (CSR) with the focus on social sustainability and economic empowerment. The organisation encourages CSR that goes beyond reporting mechanisms and focuses on the gap between policy and practice, thereby assisting civil society groups and corporations to move beyond philanthropy to more strategic interventions that benefit both the corporations and society. Central to Bench Marks’ agenda is how CSR is integrated into companies’ operations and ensuring that it is at the core of every decision making process.

Issued by Quo Vadis Communications on behalf of Bench Marks Foundation.

For more information contact:

Media Contact

Ulwazi Mgwadleka
Tel: 011487 0026
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John Capel
Executive Director
Bench Marks Foundation
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E-mail: jcapel@eject.co.za

For more about the Bench Marks Foundation, refer to www.benchmarks.org.za.

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