A South African Investment
The two side
of utilitarian benefits of building the Caltex plant
The construction of the
Caltex plan was important to the South African black majority as it
provided jobs for their families and dependants albeit to a lower
fraction of those who were luck. The American companies alone
employed more that 60,000 people by 1976. The Caltex also supported
the economy of the South African Government hence this helped to
level parts like price controls as inflations was a bit manageable
then and the black majority could afford basic commodities. Caltex
also argued that it was making progress toward the implementation of
the code of conduct draft by Rev. Dr. Leon Sullivan which had
detailed six principles. (Investor Research 1986)
Thus, there continued presence in general was
positively aiding the plight of the blacks. There were also some
advances in the front of equal payment for equal work as well as
benefit schemes to all irrespective of race where Caltex had made a
40% positive progress. The last justification for their expansion was
that the wages were well above minimum South African government level
as a move to advance the black welfare whose per capita was at 30% by
1980 while wages had gone up by 118% in Johannesburg alone. (Investor
Research 1986)
On the other hand the construction of the Caltex plant had
several issues that turned out to be tragic and desperate for the
moral and justice of the black majority. The oil company, under
coercion and duress were supplying oil to the same government engines
of the military and police wing. This department would then enforce
the bad and lame laws that were used to oppress the South African
black along racial lines and colored classifications. Worst still due
to segregation policies, there were frequent retaliation and violence
especially in black townships, and as long as the government got
economic and material support from foreign investor such as Caltex
and affiliates, it was business as usual and further oppression.
(Timothy 1977)
This was making it more dangerous and
retrogressive to both the blacks and white. The presence of the
Caltex amongst other companies was reassuring to the Apartheid
government to which consisted of only 18% of the population as whites
to take control of 87% of the country’s vast lands and control over
95% of the resources. But, in as far as the black’s political power
was usurped, transfer of technology not guaranteed, taxes increased
and freedom of movement sabotaged and apartheid glorified, then this
Caltex expansion was not at all justified and not a priority.
(Nickel, n.d.)
The opinion votes for the
Chevron resolutions
As a stockholder in the Chevron Company, I would
have voted variedly in the three resolutions that were presented in
the respective annual general meeting. In the first resolution vote
to try and get the Texaco and SoCal out of South Africa, I would have
voted for the termination
of operations and affiliate business. This would however been a
warning shot in the air, and I knew very well that such a position
would not win at the end of the day. My vote would perhaps attract a
psychological and later a preparation for paradigm shift in the human
rights and apartheid regime’s operations. This would be a vote from
the soul.
In the second vote asking that Caltex stop selling oil
to the military and police, I would have again votes for that stand.
Here I would be making a strong vote irrespective of the reaction of
the Apartheid regime in South Africa. The objective of investing in
South Africa did not include using the oil to further the apartheid
interests, at least, primarily. This move would cripple there
unnecessary expenditure on violence, deaths, segregations and
unwarranted imprisonment. Though it is expected that with the
beauracracy the government would find its way round in the sales and
re- sales maneuvers to oil the police and military, at least the
message would have been passed across. The police and the military
actions were the heartbeat of the Apartheid so anything including
internal Caltex restriction to them would do. This would be a vote
from the heart. (Jack 1979)
On the third resolution asking Caltex to Implement
Tutu’s principles, I would vote with my mind for the implementation
of the four principles. In this case Tutu, though considered
moderate, wished to perform a psychological black mail to the
apartheid government by advancing cleverly written principles.
Particularly impressive is