‘Business as Usual’: Understanding the response of the corporate sector to xenophobic violence

By Annsilla Nyar
Gauteng City Region Observatory (GCRO)

Part I: Executive Summary

1. This work set out to fulfil two principal objectives: to investigate the contribution of the corporate sector with particular reference to the mining sector with its reliance on foreign labour, and thereafter to reflect on civil society’s response to the xenophobic violence of May 2008. Explicitly in terms of the future, this work looks to offer insights into the future of civil society activism as reflected through the lens of the xenophobic violence.

2. The starting point of this work is the large scale mass mobilization and activism of various parts of civil society following the May 2008 xenophobic violence. This paper conveys an understanding of the corporate sector’s stance of serious concern about the a situation often described as ‘simmering’ and ‘potentially destabilising’ but nonetheless resistant against more meaningful interventions by a prevailing sense of pragmatism and a limited and apolitical understanding of its role and responsibilities as a key stakeholder in society. It raises broader questions about the developmental and transformative responsibilities of corporate capital in South Africa vis a viz its compatibility and ‘fit’ with issues of social justice.

3. This study identified a number of findings:
• The response to the xenophobic violence, has helped to create an understanding of the comparative advantage of civil society organizations to deliver at local level, but also to lobby and advocate
• The corporate sector response was primarily about short term emergency assistance by means of a small number of financial contributions as well as in kind donations.
• The xenophobic violence had limited impacts upon the operating environment of business.
• The rationale of business for intervention or the lack of it, is related directly to matters of pragmatism/self interest and a belief that it is not the mandate of business to intervene
• A general perception exists amongst both civil society and corporate sector stakeholders of the limitations of the state as a vehicle for social change and there are serious concerns in both civil society and the corporate sector about the efficiencies of state delivery mechanisms.
• Civil society’s scope for meaningful partnership with the corporate sector appears to be limited