Page 11 - MiNDSPACE Issue 2 2022 - Old Mutual Corporate

ECONOMIC RECOVERY: PARTNERING WITH
GOVERNMENT
– Busisiwe Mavuso
CEO, Business Leadership South Africa
SUSTAINABILITY: IMPROVING STAKEHOLDER
ENGAGEMENT – Cathy Duff
Executive Director, Trialogue
For Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), the
For Cathy Duff, an executive director at responsible business and sustainability consultancy Trialogue, the Covid-19 pandemic has shown that business and the society in which it operates are intertwined, and that companies sideline environmental, social and governance (ESG) concerns at their peril.
country’s most pressing need is economic recovery – but it will take sustained stakeholder
‘Deepening inequality, more frequent unrest and labour disputes, widespread corruption and climate crises that threaten lives and livelihoods are forcing organisations to think more intently about ESG issues, but they need to consider how to incorporate them into their core strategy and business operations,’ she stresses.
collaboration to undo a decade of state capture and corruption along with the ravages of the Covid-19 pandemic. Government lacks the capacity and resources to lift the country out of its current slump, she says, and business can be one of the key actors who can make this a reality.
‘With an unemployment rate of 45.6%, according to the expanded definition, it is critical that we speed up pro-growth structural reforms, as the International Monetary Fund has recommended. However, we are moving far too slowly. We’ve been in a demographic recession for six years and are losing our position as the gateway to the African continent to the likes of Kenya, Ghana, Rwanda and Namibia. These countries are all smaller and less advanced, but because we have consistently failed to implement critical structural reforms, we continue to
fall behind.’
Trialogue research conducted in 2021 showed that 67%
of South African companies have already begun to integrate ESG into their business strategy, but more work needs to be done. Business leaders should not just focus on policies and frameworks – they need to work on embedding them and speak out on pressing issues affecting employees and communities, from the climate crisis to human rights and corruption.
Mavuso stresses that business can no longer be diplomatic in the face of our current crisis. ‘If companies are choosing to exit the country to invest elsewhere, they shouldn’t go quietly,’ she says. ‘Government should know why they’re leaving, and what we need to do to become more business-friendly. If government wants our balance sheets, it should have to toe the line.’
Most of the companies surveyed say they have spoken out against gender discrimination (61%), inequality (58%) and climate change (57%), but few leaders have taken a public stand on xenophobia (25%), the minimum wage (21%) and disproportionate executive pay (7%).
On a positive note, she believes the pandemic has helped
to alleviate some of the mistrust between government and the private sector – and that government departments are increasingly reaching out to business to explore ways of working together.
Duff believes that it is vital to advocate on behalf of all stakeholders, not just shareholders and investors. Employees are listed more and more as ‘stakeholder number one’ and if leaders fail to demonstrate that they are leading ethically and with purpose, they will fail to retain and engage the talent they need to meet their current and future needs.
‘BLSA focuses on three pillars: state capacitation; critical structural reforms; and inclusive socio-economic growth and transformation,’ says Mavuso. ‘Business can assist government in these areas – for example, through the Technical Assistance, Mentorship and Development (TAMDEV) programme, whereby skilled retired professionals help to strengthen public institutions, and the Eyes and Ears Initiative, a joint effort between the South African Police Service, Business Against Crime South Africa,
a division of BLSA, and the private security industry that
tackles crime.’
In the greater community, businesses need to become service providers and neighbours of choice if they are to renew their licence to operate. Encouragingly, many have done just that during the pandemic, with the result that the 2021 Edelman Trust Barometer found that most people now trust businesses more than any other institution, including government and the media.
One of the biggest challenges to South Africa’s economic recovery is our lack of a truly long-term vision. ‘China’s Belt and Road Initiative is a 50-year strategy and will be implemented no matter who leads the country,’ Mavuso points out. ‘It’s a problem when a government thinks it can run a country in five-year steps – our vision has to be broader than that.’
‘All organisations will have to plan how to reach net zero –
not just in terms of mitigation and avoiding emissions, but by building resilience in supply chains and communities, and making adaptations,’ she says. ‘This is crucial in terms of both South Africa’s nationally determined contribution plan for climate change and strategic framework to achieve the United Nations’ Sustainable Development Goals.’ M
The deepening needs of global communities along with changing stakeholder expectations have helped to drive momentum around ESG since the pandemic started. The obvious and increasing impacts of climate change have also led many companies to commit to net zero emissions targets.
impactSPACE stewardship
oldmutual.co.za/corporate | 9