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Together, Sapia companies probably have a wider and more fundamental impact on the South African economy than any other industry or business sector. They acknowledge that their own welfare and future is bound up with the advancement and prosperity of their thousands of employees and millions of consumers. They recognise their responsibilities, inherent in their key role in the economy, and their duty to the community as a whole. Each member of Sapia has its own philosophy, its own priorities, its own programmes and preferred projects for:
Their social programmes are the result of a careful study of the needs of their community and of the resources available. Their investments in people or projects are made over several years and are based on capacity building. EXAMPLES OF CORPORATE SOCIAL INVESTMENT The number of voluntarily funded activities conducted by Sapia ’s member companies makes it impractical to describe all of the endeavours here. However, a typical profile of the programmes conducted by members has been compiled from two multinational refiners and marketers; a synfuel producer, and a new entrant oil company. HOW THEY WORK The multinational companies – the founding members of Sapia – adopted empowerment and social development policies many decades ago, before RDP and other current labels became fashionable. Many of their traditional social investment schemes are today conducted on a regional, even national scale, and are constantly adapted to meet changing needs. Commencing with extensive consultation with all sections of the community, including those in exile, one oil company developed a social investment strategy more than 20 years ago centering on education, environmental concerns and community development. Its activities were publicised through corporate advertising and through publication of bi-annual Social Reports beginning in 1980. Today the oil company looks at its social performance and impact in a wider business context. It sees its social programmes as important, but also focuses on its pay scales and employee benefits. Its social investments are focused on fewer, but larger, innovative and sustainable projects with clear and measurable impacts. The emphasis is on people and the schemes are conducted on a regional basis, developing common themes, aligning social investment with business objectives and brand attributes. The company has five schemes underpinning this:
NATION BUILDING The concept of nation building is the one central issue, which informs all the social investment activities of another member of Sapia. Its range of social investment falls under five headings that work towards this goal. EDUCATION Investment in education in the past eleven years has made this oil company a key player in the field of early childhood development, mathematics, science and technology, bursaries, compensatory education and teacher training. The investment policy has a special emphasis on improving the quality of teaching in mathematics, science and technology. A Professional Teacher Development programme, which will significantly improve the skills of 1200 teachers in the areas of mathematics and science over a three-year period, will be launched shortly. The company facilitated the establishment of the industry-wide Vukani Petroleum and Energy Institute, which was launched in September 2000. The Institute is the first of its kind in Africa to focus specifically on the development of skills for all involved in the petroleum and energy industry. SUSTAINABLE JOB CREATION The Open Africa Initiative has been funded by the oil company since inception in 1993. This initiative was established to optimise the synergies between job creation, tourism and conservation in Africa, resulting in the concept of Afrikatourism and the vision to link the splendours of Africa in a continuous network of tourism routes from the Cape to Cairo. In order to accomplish this vision, it had to be enabled through a systemized process dynamically displayed on a unique website. The site already contains more than 4000km of routes along which local economic development can be stimulated. BLACK ECONOMIC EMPOWERMENT BEE has been embraced by all Sapia members. In this case the oil company provides opportunities to independently run blackowned enterprises to service the company 's needs. The major client also provides training and capacity building to these small suppliers. PEACE AND SECURITY The Africa Peace Awards was conceptualised by ACCORD - the African Centre for the Constructive Resolution of Disputes - to recognise those people or communities who had brokered lasting peace in South Africa, and latterly, extended to the entire continent. The awards, presented biennially have been sponsored by the oil company since inception in 1993. The latest award was presented to Nigeria in 2000. The company continues to support Business Against Crime, district community policing forums as well as road safety projects like the Arrive Alive campaign, and other initiatives that aim to create an environment of peace and security. SPORTS DEVELOPMENT To foster national (and African) pride, the Sapia member focuses on development in three codes of sport, including:
WORKING FROM HOME A new entrant oil company which has joined Sapia has decided to start its social investment programme by focusing inwards. Its first priority is to gain staff and create new opportunities by recruiting, rewarding and retaining skilled individuals from historically disadvantaged communities. The Sapia member is currently formulating its corporate social investment policy, and when this is completed, its priorities will expand. It is planning to concentrate on community development with a bearing on:
The company has already identified its first project for public sponsorship. It is a programme at Shakaskraal in KwaZulu-Natal where the honourable Chief Albert Luthuli, South Africa’s first Nobel Prize winner, is buried. The new oil company, together with its retail entrepreneurs, intends to “plough back into this noble community” by providing for various local educational projects. WORKING ON SITE Another new member of Sapia, a giant refining concern, intends to create businesses close to its refinery for black empowered small businesses. Various initiatives have been identified as diverse as waste recycling, medicinal waste incineration, and fresh-water prawn farming. A supplier development centre is planned which can assist black suppliers not only in commercial skills but also relevant technical ones. An “incubator project” is also scheduled. This includes a full analysis of corporate business to see which activities may lend themselves to out-sourcing to black entrepreneurs. The Sapia member is looking at the possibility of engaging and setting up local black enterprises in secondary business activities linked to the refinery. This “incubator project ”will see the corporation running a full development programme until the start-up businesses are fully fledged. Nearby premises have been earmarked for the project and negotiations are underway. The company wishes to establish a local business advice and support centre along the lines of a Local Business Services Centre (LBSC). To implement this fast-forward strategy, the company hopes to simplify tender conditions and procedures; to educate SMMEs on the procedural and technical aspects of tendering; to register suitable blackowned businesses and interlink them. An Empowerment Trust will be set up to assist emerging black businesses and companies. |