A South African Investment Paper Essay Example | Topics and Well Written Essays - 1250 words

A South African Investment Paper - Essay Example Therefore, the interfaith centre insisted that the companies should terminate their operations and leave South Africa, unless the then South African government ended apartheid, and enhanced human rights for the minority groups. This resolution occurred when Texaco and SoCal, the owners of Caltex, were planning to expand Caltex refinery plant in Milnerto, from 58,000 barrels per day to 108,000 barrels per day. This was an expansion that would cost Caltex $135 million, and as a result increasing the country’s refining capacity by 11%, (case study 4, N.d, p.9). Benefits The management was opposed to the interfaith centre resolution, which required them to abandon their business in South Africa due to ethical matters. Expansion of the Caltex firm would be associated with several economic advantages; first, the expansion plans would add up to 20% of annual returns on the initial investment, as a result, benefiting the country economically. The Caltex management also argued that wit h the expansion of the Caltex plant, the conditions of the blacks and the minority would be improved. The companies long adopted the 1977 Dr. Leon Sullivan principles, which included: i) Equal employment opportunities for all races ii) Equal pay for employees iii) Non- discrimination of races in terms of work facilities, and social life iv) Development of training programs that would prepare all workers for jobs v) The increasing of black workers in managerial positions vi) Improving the employee’s life quality, by fostering health facilities, transportation, school, and housing facilities, (case study 4, N.d, p10). Therefore, Caltex management believed that the expansion of the plant would bear more positive outcomes and foster equality and fairness within the organization. Despite the interfaith resolution, Caltex showed its commitment in improving its worker’s conditions, when it promoted 742 black employees into the former white-held jobs; 29 black employees were a lso moved into the white-collar job category. The management also advanced the worker’s wages by raising them above average, as it believed that the expansion of Caltex plant had all the interests of all the races considered. Needless say, if Caltex withdrew its operation from South Africa, many workers, regardless their race, would be left at a disadvantage, since their jobs would cease, hence becoming difficult for them to provide for their families. Therefore, the expansion of Caltex plant would be beneficial to the workers despite their race; however, the blacks would be mainly affected, because of the difficulties they face before attaining employment opportunities. Needless to say, the presence of these foreign companies had improved the wages of black workers, and therefore Caltex expansion is beneficial. Violation of Rights and Justice The expansion of the Caltex plant was faced with numerous critics from the Interfaith Center, who claimed that it violated the rights of blacks and other minority groups by abiding to the apartheid rules. Despite the companies abiding by the