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Investing in Apartheid a Guide to U.S

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Investing in Apartheid a Guide to U.S General Motors outfits South Africa's security forces workers, while the black, "Coloured" and Asian labor with military vehicles. .. Sperry and Mohawk Data force alone is estimated at 7.9 million. Thus even if all Sciences are computerizing South Africa's white­ the U.S. corporations in South Africa rigorously enforced controlled local government agencies. .. Fluor the Sullivan Code and hired only non-white workers, it Corporation has multibillion dollar contracts for South would only benefit less than one percent of the African, Africa's nuclear and coal-to-oil facilities ... IBM Control "Coloured" and Asian workforce combined. Data and Amdahl computer hardware streamline work Although the Sullivan reforms may have helped at Pretoria's largest government research agency which some workers, the scale of oppression in South Africa does work for the military.... is overwhelming. Ultimately, companies that want to Despite growing repression of Blacks, nearly 300 U.S. "play ball" in South Africa have to play by Pretoria's corporations are deeply and directly involved in the rules . Even though the plant bathroqm facilities may be South African economy. These firms benefit from and desegregated, it is impossible to keep apartheid out sustain the system of white rule known as apartheid. of the workplace. Corporations in the Pretoria­ Their involvement spans several critical sectors of the Witwatersrand area, for example, are prohibited from INVESTING IN APARTHEID A GUIDE TO U.S. CORPORATIONS IN SOUTH AFRICA economy: U.S . corporations control up to 33 percent of hiring more than 2.5 Africans for every white worker. the motor vehicles market; 44 percent of the oil market Overall, the relatively small white labor force takes and 48 percent of the computer market. Direct U.S . home 59% of the nation's wages, while the African labor investment (subsidiaries) in South Africa has grown to force receives a mere 29% . over $2 billion. A classified State Department cable When necessary, the South African government can leaked to the press in 1983 put the total level of U.S . intervene directly to make sure foreign-owned com­ financial involvement in South Africa (including sub­ panies support the status quo. Pretoria's "National Sup­ sidiaries, loans and investments) at S14.6 billion. plies Procurement Act" and the "Defence Act" permit Are U.S. companies "agents of social change" in the regime to simply commandeer the technology or South Africa? Are they setting the stage for majority rule resources it needs. The government can invoke another and helping dismantle apartheid? law to curb the flow of business information out of the U.S. businesses point to the Sullivan Principles, a country, a measure which has been used to prevent U.S. corporate code of conduct advanced by Reverend companies from furnishing information to Washington Leon Sullivan of Philadelphia, as proof that the for the enforcement of U.S. trade restrictions. companies are a positive force for change. Yet, less Once U.S. technology is sold in South Africa, Ameri­ than half of all U.S. companies doing business in South can companies are powerless to prevent its diversion Africa have signed the Sullivan Principles and the code or end-use by the government, police, army, military re­ itself has come under considerable criticism from searchers or the local arms industry. Some companies church, student and labor groups. Consensus is eroding are apparently willing to assist the government: "Multi­ even within the business community. In the assessment nationals, including U.S. subsidiaries, are determined of one U.S. risk analysis firm, although the Sullivan Code to undercut any sanctions action and have already has desegregated some plants and aided certain com­ made plans to camouflage their operation through munity projects, "there is a growing feeling that it is subterfuges arranged with affiliates in other countries," ineffectual in one of the most crucial objectives - the according to a classified 1978 State Department cable advancement of black workers to more senior jobs." released to NARMIC. The cable continued: "SAG's (the U.S. companies in South Africa have created rela­ South African Government's) stake in the multinationals tively few jobs. They employ approximately 123,000 is very large, not only for obvious economic reasons but because they exercise a restraining effect on policy­ workers in South Africa. Local government leaders, stu­ makers abroad." dents and communtity activists are working to see that Apartheid is growing to be a major issue for U.S. university, municipal and state funds are not invested investors. For those who are associated with churches in companies that support apartheid. Many organiza­ or religious institutions, concern about investment in tions are addressing the issue through shareholders' South Africa is a matter of conscience. For others, such actions, selective divestment or by complete divestment as trade union members, concern about the investment of stock in corporations operating in South Africa. of union funds is a way of expressing solidarity with This guide to U.S. corporations with subsidiaries press reports. Due care was used in researching and and affiliates in South Africa represents only the most compiling the guide, however NARMIC assumes no direct form of U.S. business involvement. It does not legal liability for any inclusions or exclusions. This include less obvious forms of U.S. support such as guide does not list U.S. subsidiaries in South Africa bank loans, scientific exchanges, franchises, whose primary function is newsgathering and licensing agreements, and sales of U.S. -origin reporting. technology through South African distributors or third countries. NARMIC Staff: Thomas Conrad (Project Several sources were used to compile this survey. Coordinator), Eva Gold, David Goodman, Bob Siedle­ They include: information filed with the Securities and Khan: NARMIC Fellow: Aaren Perry. Special thanks to Exchange Commission: business references such as NARMIC Intern Steven Stone for research and editorial the Directory of American Firms Operating in Foreign work. Design: Bob Siedle-Khan. Countries; Foreign Investment in South Africa, which NARMIC produces a range of publications and was published by the Investor Responsibility Research audio-visual resources on disarmament and the Third Center Inc.: the International Directory of Corporate World. Write us for a free literature list. For information Affiliations; information from the Reverend Sullivan 's about other educational materials and action ideas International Council for Opportunity Principles and on Southern Africa, write to the AFSC Southern Africa the most recent (1982) list of companies in South Program at the address on the back. Africa compiled by the U.S. Consulate General in Johannesburg. Additional information also came from correspondence and interviews with the companies as well as from U.S. and South African September 1985. U.S. Parent Company Subsidiary or Affiliate Assets of Product/Service Sales of Number of in Soutb Africa Parent in Soutb Parent in Soutb Employees witb Location Africa, 1983 Africa, i983 ACF INDUSTRIES INC. Polypenco (Pty.) Ltd.' NA NA NA NA 750 Third Ave. NA New York, NY 10017 AM INT'L. INC AM Int'l (Pty.) Ltd. NA Communications $17 million 370 333 W. Wacker Drive Randburg Graphics, (=) Suite 900 Data Control Chicago, IL 60606 AMRINC.* American Airlines NA Travel Information None 4 60390ram Marshalltown Ticket Sales Dallas, TX 75206 ABBOTT LABORATORIES* -Abbott Laboratories SA (Pty.) $6.5 million Pharmaceuticals $15 million 141 Abbott Park Ltd. Hospital Products No. Chicago, IL 60064 Johannesburg -Abbott Hospital Products (Pty.) Ltd. NA ACCURA Y CORP. Accuray SA (Pty.) Ltd. NA Process NA 21 650 Ackerman Road Springs Control Systems Columbus, OH 43202 AIR EXPRESS INT'L. CORP. Air Express Int'l Corp. NA Air Freight NA 45 120 Tokeneke Rd . Kempton Park Fowarders Darien, CT 06920 Johannesburg AIR PRODUCTS Air Products SA (Pty.) $34 million Industrial Gases $17 million 313 AND CHEMICALS INC. Ltd. and Equipment P .O. Box 538 Sandton (Johannesburg) Allentown, PA 18105 ALBANY INT'L. CORP. Beier Albany Co. NA Industrial NA NA P.O. Box 1907 Pinetown Textiles and Albany, NY 12201 Fabrics ALEXANDER & ALEXANDER Alexander Howden $18 million Insurance $5.8 million 291 SERVICES INC.* Johannesburg Brokers 300 E. Joppa Rd. Baltimore, MD 21204 ALLEGHENY INT'L. INC. -The Lion Match Co. Ltd. NA Packaging and NA 2,025 P .O. Box 456 Durban Consumer Items Pittsburgh, PA 15230 -The National Match Co. Ltd. NA NA NA -Umtombeni Farm (Pty.) Ltd. NA NA NA -Interpak Holdings (Pty .) Ltd. NA NA NA -Wilkinson Sword (SA) (Pty.) Ltd. NA NA NA LOUIS A. ALLEN ASSOC. LTD. Louis A. Allen Assoc. NA Management NA 6 3600 W. Bayshore Inc. Consultation Palo Alto, CA 94303 Park wood ALLIS CHALMERS CORP. -AAF-Alta Corp.(Pty.)Ltd $11 million Air Pollution $13 million 90 1205 So. 70th St. Johannesburg Controls; Milwaukee, WI 53201 -Allis-Chalmers Services Electrical Inc. Equipment Johannesburg -AFF (Pty.) Ltd. Air Pollution Johannesburg Controls AMDAHL CORP.* -Amdahl Int'l. Corp. NA Computers NA 56 1250 E. Arques Ave. Booysens (Johannesburg) Sunnyvale, CA 94086 -Trans SA (Pty.) Ltd. Network Systems NA NA Booysens (Johannesburg) An asterisk(*) indicates that the corporation has signed the Sullivan Code. Sales in South Africa are from 1983; the symbol (=)indicates sales in 1984. SA means South Africa and "NA" means not available. I. Polypenco is jointly owned with Chesebrough-Pond's. 3 U.S. Parent Company Subsidiary or Affiliate Assets of Product/Service Sales of Number of in South Africa Parent in South Parent in South Employees with Location Africa, 1983 Africa, 1983 AMERICAN CYANAMID CO. • -SA Cyanamid (Pty.) Ltd. $9 million Chemical, $50 million 1,025 One Cyanamid Plaza Eden vale (Johannesburg) Agricultural, Wayne, NJ 07470 and Medical Manufactures -Lederle Labs. (Pty.) Ltd. Eden vale (Johannesburg) -Shulton Africa Ltd. Edenvale (Johannesburg) -Decorative Boards (Pty .) Ltd.
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