THE SULLIVAN PRINCIPLES: NO CURE FOR A Public Statement

Public debate on the issue of whether U.S. com strengthen the existing unjust system, with its potential panies should do business in South Africa continues to for national and international conflict. grow. The Sullivan Principles, a voluntary business We urge that the question of U.S. economic involve initiated by the Reverend Leon ment in South Africa be made an issue of public policy. Sullivan, have become an important element in this And we urge that instead of being applauded for en debate. dorsing the Sullivan Principles, companies be pressed Signers of the six Sullivan Principles pledge to sup vigorously to end all economic ties to South Africa. port a seribs of workplace reforms in South Africa, in cluding the ending of segregation in locker and dining facilities; the provision of training and advancement op portunities for blacks; and the payment of equal wages THE SULLIVAN PRINCIPLES ARE NOT for equal work. Signatory companies als'o agree to try to help improve health and other services for blacks. AN ACTION BUT A REACTION The Principles were signed originally in early 1977 by 12 major U.S. firms, among them Ford, Mobil, General In 1970, the Polaroid Corporation, faced with Motors, IBM and Union Carbide. Additional companies employee demands to end ties to South Africa, an later added their endorsements, bringing the current nounced a highly publicized plan very similar to the total of signers to more than 130. Sullivan Principles and urged other companies to "join The Principles have developed rapidly into a major us in this program." The U.S. corporate community, however, remained silent. Africa. defense of U.S. business activity in South In 1977, by contrast, members of that same com Signatory companies invoke them to justify their con tinued Wesence in that country. Universities cite them munity signed the Sullivan Principles in large numbers, in opposing student calls for divestment. Sympathetic hailing it as a great step forward. Why was there this sudden interest in reforming a officials in Washington point to them as an argument against any efforts to pass legislation restricting U.S. century-old system? What has changed is not the investment. nature of apartheid or the nature of the corporations, but the nature of black resistance to apartheid. Current Signers of the Principles say they believe the code corporate support for proposed reforms in South Africa "will contribute greatly to the general economic welfare comes not in response to the apartheid system but in of all the people of the Republic of South Africa." Henry response to black resistance to apartheid. Ford has hailed them as "a better idea." Rev. Sullivan, The nationwide uprising which began in Soweto in who is a member of the GM board of directors, has 1976 signalled a new stage in the struggle for freedom referred to them as "a tremendous force for change, in South Africa. For long months thousands of young and a vital factor in ending apartheid." black men and women risked death defying police We, the undersigned, disagree. We believe the time guns, dogs and tear gas to demand an end to apartheid. has come to examine the Sullivan Principles critically, Many died under torture or in prison. and to register our opposition both to those principles In large part due to the events which began in and to all other workplace codes of conduct. Soweto, public indifference regarding the role of U.S. We see the Principles not as a result of genuine corporations ended. University students began calling change in corporate attitudes but as a public relations for divestment of stock in companies doing business in effort to respond to black demands which the com South Africa. Many churches, unions, and members of panies recognize as too strong to ignore. the black community demanded an end to bank loans We maintain that the Sullivan Principles do not and and corporate investments by U.S. firms. Called to ac cannot change the structure of apartheid, a system of count, the corporations felt obliged to justify their con legalized racism which reduces Africans to units of tinued presence in South Africa. labor. Nor do we believe they can significantly alter In this cohtext, the Sullivan Principles provided black working conditions in the country, particularly precisely what the companies were looking for: a when U.S. companies employ only about 1% of the guaranteed public relations success which promised total workforce. maximum credit for minimum change. The Principles Moreover, the Sullivan Principles allow a continuing sound impressive; they mandate nothing; and there is flow to South Africa of money and technology which no way they can be effectively enforced. THE SULLIVAN PRINCIPLES DO NOT AND CAN NOT This means that between one-third and one-half of all CHANGE THE STRUCTURE OF APARTHEID African workers, currently classified as migrants, have no legal right to belong to a union. While the amended excludes these workers in the text, a little The Sullivan Principles confine themselves almost act explicitly noticed provision also gives powers to the Minister of entirely to workplace reforms, raising no fundamental Labor to change the definition of who shall be included objections to the system of apartheid itself. Corporation "as he may deem expedient". (Act 94-1.b) Recently it executives are responsible to stockholders whose first was reported that the Minister announced that he concern has to be the profitability of operations. Neither would extend the definition of "employee" to include in the U.S. nor in South Africa do corporations exist to and commuters, an action which he can re reform society. South Africa has been a profitable place migrants voke at any time, solely at his discretion. It is also for U.S. companies to operate. As they point out unclear how inclusive this announcement will actually repeatedly in describing their position there, they are in be. South Africa as guests of the South African govern the question of keeping some jobs only for ment. To antagonize that government is to jeopardize On whites, so-called job reservation, a practice which the the companies' ability to function. Sullivan Principles oppose under a pledge of equal and Yet confrontation is inevitable if true change is to oc fair treatment, the Wiehahn Commission again offers cur. Non-segregation in the workplace-the first of the little hope of change. While proposing that job reserva Sullivan Principles-is the least of the objectives of tion be phased out in certain areas, it proposes keeping black South Africans. They demand real political power: it in others. More importantly, it provides for the con the right to vote, make laws, shape the economic future tinued existence of closed shops, which means that if a of the country. Africans want to be free to live with their white union has organized a given operation, there is no families where they choose, and to walk the streets way a black can work there-unless of course he is without worrying that policemen will arrest them for in made a member of the union. And Wiehahn has said fractions of the pass laws. Africans are not struggling there should be no mixing of races in unions except and dying to reform apartheid. They want nothing less under special circumstances. than the abolition of the system. When the government introduced legislation based on the Wiehahn proposals, not only did it endorse these THE SULLIVAN PRINCIPLES CANNOT ideas but it further reduced whatever small changes SIGNIFICANTLY ALTER BLACK WORKING Wiehahn proposed. CONDITIONS QUITE APART FROM In the absence of an organized black workforce, the WHETHER THEY WILL ALTER APARTHEID Sullivan Principles make little if any difference even in areas such as wages, where companies face no legal Corporations in South Africa operate with a con barriers. Late in 1978, the Finanacial Mail, a leading trolled labor force. The only time real change in working South African business periodical, reported that codes conditions ever occurs is when workers organize. In like the Sullivan Principles not withstanding, "the South Africa, the government has made it clear that it movement toward 'acceptable' minimum wages is has no intention of permitting blacks to acquire any snail-like." Between 1974 and 1978, African workers significant rights in this area. went from beng paid an average of $250 a month less For a time, corporations were able to say this was than whites doing the same job to $280 a month less. about to change. The Wiehahn Commission, set up by The vast majority continue to earn wages which fall the South African government to look into labor laws, below the South African poverty line. heard testimony from a number of signers of the As for advancement, to cite two examples of firms Sullivan Principles that they favored an end to all which have signed the Sullivan Principles, GM in South discrimination in these laws. Belatedly, an amplified Africa employs only four blacks in salaried jobs out of a version of the Sullivan Principles endorsed the right of workforce of more than 4,500. IBM has four black blacks to form trade unions. The companies made managers out of 1,443 employees. much of their "progressive stance". When the Commission issued its report in 1979, THE SULLIVAN PRINCIPLES ALLOW A CONTINUING however, it did not appear to have been much moved by the U.S. companies' statements. In fact, the report FLOW OF AID TO SOUTH AFRICA'S WHITE REGIME made it clear that one of its primary aims was to limit the influence of any "alien" labor codes. The Sullivan Principles were invented as part of a While it recommended that those non-registered plan to defeat demands for divestment by showing that African unions which currently exist be permitted modest changes could be made that would justify cor -indeed forced-to register, only those who are con porations' staying in South Africa. But the fact is that sidered "legal residents" of the country are included in many corporations, just by being present in South a recent amendment to the Industrial Conciliation Act Africa, give direct strategic assistance to South Africa which enacts some of the recommendations of the in its fight to defend itself against those who want to Commission. abolish apartheid. In early 1979 the Fluor Corporation of California an MANY AFRICANS BELIEVE THAT WITHDRAWAL, nounced that it had received a $2 billion contract to ex NOT SIGNING THE SULLIVAN PRINCIPLES pand an oil-from-coal plant it has been building for the OR ANY OTHER CODE OF CONDUCT, South African government. This plant is needed IS THE ONLY APPROPRIATE because all the major oil producing countries, most recently joined by Iran, have cut off oil supplies to South STEP FOR FOREIGN INVESTORS. Africa, which has no oil of its own. Thanks to Fluor, South Africa is taking an important step toward lessen No one really knows what the opinion of the majority ing its dependence on imported oil and thus becoming of South African blacks is toward U.S. investment and less vulnerable to world pressure. codes of conduct. But it is certainly true that many of the younger black leaders General Motors and Ford continue to supply trucks oppose all foreign invest ment and have called and other vehicles to the police and military, and defend on foreign companies to withdraw. their right to do so. Among this group is the South African laws require that all foreign companies late Steve Biko, the founder cooperate with the South African military when re of the Black Consciousness Movement, who died in police custody in 1977. Noting in quired. Contingency plans prepared by GM officials in a statement several South Africa indicate that GM's total operation would months before his death that it is a crime under the Ter be taken over by the Defense Department in a time of rorism Act to advocate withdrawal, Biko said, "Heavy emergency. investments in the South African economy, bilateral trade with South Africa ...are amongst.the sins of Yet Fluor, GM and Ford are all signers of the Sullivan which America is accused. All these activities relate to Principles. So, too, is Control Data, whose chairman whites and their interests and serve to entrench the commented in 1979 that "the little bit of repression that position of the minority regime." is added by the computer in South Africa is hardly Some South African church leaders share this view. significant" compared with the good the company feels Bishop Manas Buthelezi said in a discussion of interna it is doing. So, too, are Mobil and Caltex, which con tional economic pressure, "There is no doubt that if tinue to sell petroleum to the South African govern South Africa suffers, the black people will suffer as ment, including the military, and Citibank, whose hun well. But we must remember that even when a country dreds of millions of dollars in loans serve to strengthen goes to war, it does so knowing that some of its citizens the South African economy. are going to die in the process. The same thing applies here. We know that there will be suffering, but we realize that it is by suffering that something better may WHILE U.S. INVESTMENT IN SOUTH AFRICA happen. We don't mind taking the consequences." HAS INCREASED GREATLY IN RECENT YEARS Many black political organizations, including the African National Congress and the Pan Africanist Con CONDITIONS FOR SOUTH AFRICA'S gress, the recognized liberation movements, also have BLACK MAJORITY HAVE WORSENED. called for withdrawal. THE SULLIVAN PRINCIPLES Even the U.S. Embassy in South Africa appears to WILL NOT ALTER THIS TREND. have been convinced by early 1977 that blacks do not want codes of conduct, but withdrawal. A confidential U.S. corporate investment in South Africa has nearly memo written at that time by William Bowdler, then U.S. tripled in the last 10 years to close to $2 billion, or one ambassador to Pretoria, noted that an Embassy officer fifth of all foreign investment, while U.S. bank loans had visited Port Elizabeth, headquarters of Ford and have grown to well over $2 billion, dr about one-quarter GM, and had held a secret meeting with members of a of all South Africa's foreign loans. black workers committee. The growing U.S. presence has meant jobs for about According to the memo, the officer found that most 100,000 people-il% of the workforce. Of this number, of the workers were dissatisfied with their unequal about 70,000 are Africans, Asians and Coloureds. For treatment and favored U.S. withdrawal. It added, "Other Africans as a whole, however, the main fact of life in re community figures employed by motor companies also cent years has been that conditions have grown steadi leaned toward withdrawal. Conceding that the immedi ly worse. Africans have faced new restrictions on where ate consequence would be loss of the U.S. market they can live and work, and increased repression in the share to foreign and local competitors, the main point, form of arrests, bannings and detentions. they claimed, was one of morality." While 69 Africans were killed in Sharpeville in 1960 as Only the people of South Africa themselves can end police fired on a peaceful demonstration, 1,000 people apartheid. But there are ways in which the U.S. can are estimated to have been killed following the 1976 help. We call on American corporations, the American outbreak of protests by Soweto students. Whereas government, and the American people to act now to end Africans once had certain limited rights to live and work U.S. trade with South Africa; to halt bank loans and in in white South Africa, they have now been stripped of vestment in that country; and to join with the United Na their citizenship and told they are citizens of remote tions in urging the withdrawal of all companies with ex which many of them have never seen. isting operations in South Africa. 0 SIGNERS OF THE PUBLIC STATEMENT ON THE SULLIVAN PRINCIPLES*

Mia Adjali, Executive Secretary (Sr.) Regina Murphy, et al William F. Shulz, (Women's Division) United Methodist Intercommunity Center for Justice and Peace Executive Vice President Office for the United Nations Unitarian Universalist Association (Dr.) Leonard Jeffries, Chairman (Dr.) Gerald Bender, Professor Dept. of Black Studies, City College of CUNY (Dr.) Ann Seidman, Professor University of Southern California Clark University Willard R. Johnson, Professor (Rev.) Isaac H. Bivens, Massachusetts Institute of Tec.hnology Stanley K. Sheinbaum, Regent Assistant General Secretary for University of California Africa, Board of Global Ministries, (Rev.) Tracy Jones, General Secretary United Methodist Church Board of Global Ministries of the Jacob Sheinkman, Secretary-Treasurer United Methodist Church Amalgamated Clothing and Textile (Hon.) Julian Bond, Worker's Union, AFL-CIO Georgia State Senator William A. Jones, President Progressive National Baptist Convention Leon Shull, National Director (Hon.) William H. Booth, Justice Americans for Democratic Action New York State Supreme Court Charles R. Lawrence, President House of Deputies, General Convention Timothy Smith, Executive Director (Rev.) Robert Bossie, S.C.J. The Episcopal Church Interfaith Center for Corporate Priests and Brothers of the Responsibility Sacred Heart (Dr.) Tilden LeMelle, Professor Hunter College, CUNY Hope R. Stevens, Co-Chairperson (Rev.) Arie R. Brouwer, National Conference of Black Lawyers General Secretary, Robert Van Lierop, Director Reformed Church in America Mozambique Film Project Robert C. Stover, Attorney

Ramsey Clark, Lawyer Edgar Lockwood, Director (Hon.) Percy E. Sutton, Chairman Washington Office on Africa Inner City Broadcasting Corp. (Hon.) John Conyers, Jr. Member of Congress William Lucy, President (Dr.) James Turner, Director Coalition of Black Trade Unionists Africans Center, (Rev.) Charles W. Dahm, O.P., Cornell University 8th Day Center for Justice (Sr.) Barbara Lupo M.M., and (Rev.) John Collins, (Rev.) Richard E. Ullrich, Co-Ordinator Ruby Dee, Actress Co-Directors, Clergy and Laity Concerned Office of Justice and Peace, The Marianists (New York Province) James Farmer, Executive Director (Sr.) Mary Ann McGivern, SL Coalition of American Public Employees Midwest Coalition for (Rev.) Wyatt Tee Walker, Secretary General Responsible Investment International Freedom Mobilization Moe Foner, Executive Secretary District 1199, National Union Lois Miller, Associate (Rev.) James Weatherby, of Hospital and Health Care Employees General Secretary Human Services Counselor World Division of the Board Operation PUSH Carlton B. Goodlett, M.D., of Global Ministries, President, National Black United Fund United Methodist Church David Wiley, Director Africa Studies Center, Dick Gregory, Author Robert W. Neff, General Secretary Michigan State University Lecturer, Entertainer Church of the Brethren (Hon.) Franklin Williams, President Peggy L. Halsey, Frederick O'Neal, President The Phelps-Stokes Fund Women's Division, United Methodist Associated Actors and Artists Board of Global Ministries of America, AFL-CIO (Sr.) Patricia Wolf, RS.M, Co-Chairperson (Rev.) Donald Harrington, (Sr.) Nadine Ostdick, Provincial Coalition For Responsible Investment Senior Minister, The Community School Sisters of Notre Dame Church of New York (Sr.) Arlene Woelfel, Walter L. Owensby, Director School Sister of St. Francis Robert L. Harris, President Inter-American Design for National Bar Association Economic Awareness *affiliations listed for purposes of identification Charles Hayes, International Vice President (Canon) Robert C.S. Powell, United Food and Cofnmercial Workers, Director, Africa Office, AFL-CIO National Council of Churches

George M. Houser, Executive Director Randall Robinson, Executive Director American Committee on Africa TransAfrica

(Rev.) M. William Howard, President (Rev.) Lawrence Rich, Associate Director National Council of Churches Passionist Social Concerns Center

American Committee on Africa.198 Broadway.New York, N.Y. 10038.(212) 962-1210