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The Sullivan Principles: Decoding Corporate Camouflage The Sullivan Principles: Decoding Corporate Camouflage http://www.aluka.org/action/showMetadata?doi=10.5555/AL.SFF.DOCUMENT.nuun1980_06 Use of the Aluka digital library is subject to Aluka’s Terms and Conditions, available at http://www.aluka.org/page/about/termsConditions.jsp. By using Aluka, you agree that you have read and will abide by the Terms and Conditions. Among other things, the Terms and Conditions provide that the content in the Aluka digital library is only for personal, non-commercial use by authorized users of Aluka in connection with research, scholarship, and education. The content in the Aluka digital library is subject to copyright, with the exception of certain governmental works and very old materials that may be in the public domain under applicable law. Permission must be sought from Aluka and/or the applicable copyright holder in connection with any duplication or distribution of these materials where required by applicable law. Aluka is a not-for-profit initiative dedicated to creating and preserving a digital archive of materials about and from the developing world. For more information about Aluka, please see http://www.aluka.org The Sullivan Principles: Decoding Corporate Camouflage Alternative title Notes and Documents - United Nations Centre Against ApartheidNo. 4/80 Author/Creator United Nations Centre against Apartheid; Schmidt, Elizabeth Publisher United Nations, New York Date 1980-03-00 Resource type Reports Language English Subject Coverage (spatial) South Africa, United States Coverage (temporal) 1980 Source Northwestern University Libraries Description INTRODUCTION. The economic roots of apartheid. American business in South Africa - agent or obstacle to change? Intensification of Government repression. Polishing the corporate image. The Sullivan Principles - a code for corporate reform. The cosmetics of corporate change. Decoding corporate camouflage. Paying lip service to reform. Abiding by the terms of South African law. Moderate reforms with limited scope. Working with white South Africa. Monitoring the monitors. The Clark Foundation. The Arthur D. Little Company. The strategic role of Sullivan signatories. The motor vehicle industry. General Motors. Ford. The computer industry. The energy industry. The Fluor Corporation. Gun-running to South Africa. Olin. Motorola. Armed aggression against its neighbours. A progressive force for white South Africa. Improving upon apartheid: the semblance of reform. A new strategy for apartheid. The Wiehahn Commission. The Riekert Commission. Plugging the loopholes. Annexes. Signatories to the Sullivan principles. Resolutions of the International Freedom Mobilization Summit. Excerpts from Foreign investment in South Africa by African National Congress. Sullivan signatories who are violators of United States Equal http://www.aluka.org Employment Opportunity Law. Amplified guidelines to South African statement of principles. Format extent 82 page(s) (length/size) http://www.aluka.org/action/showMetadata?doi=10.5555/AL.SFF.DOCUMENT.nuun1980_06 http://www.aluka.org NOTES AND DOCUMENTS* NOTES AND DOCUMENTS* 4/80 March 1980 THE SULLIVAN PRINCIPLES: DECODING CORPORATE CAMOUFLAGE by .-Eizabeth Schmidt L-Note: This paper published at the request of the Special Committee against Apartheid, was prepared by Miss Elizabeth Schmidt, a research associate of the Africa project, Institute for Policy Studies, Washington, D.C. The views expressed are those of the author.] * All material in these notes and documents may be freely reprinted. Acknowledgement, together with a copy of the publication containing the reprint, would be appreciated. Contents Page INTRODUCTION .. .. .. .. .. ....... 1 The economic roots of apartheid American business in South Africa - agent or obstacle to change? . 0...........__...* 0& 0 *& 2 Intensification of Governmebt repression. .. .. .. .. 9 Polishing the corporate image ...... ...... 10 I. The Sullivan Principles - a code for corporate reform . 12 The cosmetics of corporate change ........... 14 Decoding corporate camouflage ......... .... 18 Paying lip service to reform. ..... .......... 33 Abiding by the terms of South African law . 34 II. Moderate reforms with limited scope . 37 Working with white South Africa. ............ 37 Monitoring the monitors The Clark Foundation ................. 39 The Arthur D. Little Company ............ 40 III. The strategic role of Sullivan signatories ........ 43 Themotorvehicleindustry.0..... 44 GeneralMotors .................... 45 Ford * .9*#*..*.9 ...45 The computer industry ............... ... 48 The energy industry The Fluor Corporation. .............. .. 49 Gun-running to South Afiica ............. .. 53 Olin .*.. 9 9 ....... .... 53 Motorola .*......*. .. ..55 Armed aggression against its neighbours . 55 A progressive force for white South Africa . 57 IV. Improving upon apartheid: the semblance of reform . 58 V. A new strategy for apartheid .. ............ 61 The Wiehahn Commission ............ .... 62 The Riekert Commission .............. .. 64 Plugging the loopholes . .. 64 Annexes I. Signatories to the Sullivan principles . 66 II. Resolutions of the International Freedom Mobilization .. 68 Summit III. Excerpts from Foreign investment in South Africa by . 71 African National Congress IV. Sullivan signatories who are violators of United . 74 States Equal Ekployment Opportunity Law V. Amplified guidelines to South African statement of . 78 principles -1- Introduction Ihe parliamentary elections of 1948 were a turning point in the history of South Africa. Te Nationalist Party came to power, shifting control of the white minority Government from the English-speaking to the Afrikaans-speaking population. True to their campaign proises, the N.ationalists began to systematize and strengthen the pattern of racial discrimination already outlined in South African law. They embarked upon a plan for the total segregation of races, instituting for each race a special progranie for its "separate development." They called their new policy "apreid," which in Afrikaans means "apartness.' Under the apartheid system, the various races in South Africa are not permitted to live in the same areas. The Asian and Coloured. (mixed race) populations are confined to .ghettoes in the "white" urban and rural areas. The native black population is denied legal residency in all urban centres and all "white" rural areas. Blacks are pera.itted to live only in designated African homelands, Ahich have been whittled down to 13 per cent of the land. AlthougLh they constitute nearly three-quarters of the South African population, blacks are considered to be "migratorj citizens" in 87 per cent of the countr and are denied the political and social rights autanatically conferred upon whites. iThle apartheid law clearly separates the black and white populations, the total segregation of the races has not been achieved. Even the master-minds of apartheid knew that, if carried to its logical conclusion, the policy of separate development would devastate the white economy. Historically, the black population has served white farmers, mining magnates, and industrialists as a plentiful supply of cheap labour. As South Africa rushed to compete for its share in the post Second World War economic boom, the necessity for a ready supply of black labour became even more critical. Consequently, the concept of complete apartness was altered to accommodate the economic dependency of white South Africa on cheap black labour. Blacks were allowed into white areas, but only to work, and only on a temporary basis. l/ In order to take advantage of black labour while keeping the native population under control, the Kationalist Government instituted ]/ In 1922 the Stallard Commission recotmended that the black nan "... should only be allowed to enter the urban areas, which are essentially the white man's creation, when he is willing to enter and to minister to the needs of the w hite man, and should depart therefrom -hen he ceases so to minister." In 1068, Prime Minister Vorster elaborated: "It is true that there are blacks working for us. They will continue to work for us for generations, in spite of the ideal we have to separate then completely... The fact of the matter is this: we need them, because they work for us... but the fact that they work for us can never entitle them to claim political rights. Hot now, nor in the future." Workers and Apartheid. (London), International Defence -2- a series of "influx control" laws. According to these reguLatfVons, blacks are allowed into the urban areas only if they are already employed. If a black worker loses a job, he is forced to return to his homeland to await a new contract. Consisting of scattered parcels of over-populated land, devoid of mineral wealth and industrial development, the homelands cannot begin to support three quarters of the South African population. Consequently, they serve as vast reservoirs of cheap labour for the white economy. On contract from the homelands, black workers are channeled into the areas where their labour is needed, paid what the employer is willing to pay, and sent home when the job is completed. They live apart from their families eleven months out of twelve. The monitoring and enforcement of the influx control lawrs required the development of an elaborate "pass" system. rhe current pass laws require that every black South African over 16 years of age carry a permit confirming the right to work, travel, or reside in a given area. Failure to produce a valid pass on
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