South Africa has one of the great pieces of legislation in our constitution – The South African Bill of Rights. Considered the cornerstone of South Africa’s democracy, it was profoundly influenced by 2 documents – the Universal Declaration of Human Rights and the South African Freedom Charter. It enshrines the rights of all people in South Africa and affirms the democratic values of human dignity, equality and freedom.
All organisations have a role to play in safeguarding these rights, and ensuring that the way business is conducted is fair, and following good corporate citizen guidelines is part of this. South Africa is still grappling with challenges to stabilise and grow our economy within all sectors and at all levels. We need to be a part of the solution by developing ethical business practices for our workplace and workforce that are able to tackle the issues at hand.
The publication of UN Guiding Principles on Business and Human Rights by the UN Human Rights Council, has meant that organisations and their stakeholders have a clear global standard for business with regards to human rights. The guidelines put a responsibility on businesses to respect human rights, to avoid contributing to adverse human rights practices and mitigate negative human rights impacts that are directly linked to their own operations, products, services or business relationships.
And while this may be easy to dismiss as a ‘soft sell’ there are actually a number of tangible, measurable and impactful ways in which business can impact on human rights (both internally and externally). A number of these policies will have already been implemented within reputable organisations.
An example of this is around Human Resources and Staffing. The correct pay policies, managing gender inequality along with mental and physical well-being impact significantly on staff trust, motivation within the work force and employee retention. Similarly, within procurement the business and labour practices of all suppliers need to be considered and any red flags probed prior to any contacts being signed. All of these impact the bottom line of a business and should therefore be considered part of a deliberate business strategy.
Additionally, these UN Guiding Principles can also have a bearing on greater access to commercial prospects with regards procurement for the business and external customers, along with greater access to capital. The business world has changed with the understanding that good corporate practices can and do benefit the bottom line. Corruption undermines the implementation of any such policies that may be in place and the ability for good businesses to thrive.
As a reputable and well established private equity firm, we focus on pursuing investments in diverse sectors in the South African market. Business is the major engine of economic growth and job creation and we seek to positively impact this. Having said that, Agile Capital is committed to investing in a responsible manner. This means that we look for partnerships with ethical and conscientious businesses that are looking for growth. Sustainable businesses require stable steady development which leads to jobs. It means that all stakeholders are impacted from staff to management and leadership along with the communities they operate in.
As we celebrate Human Rights day, it’s worth considering the benefit of developing successful ethical businesses. Particularly with regards the corruption dilemma that we face as South Africans. Constructing the space for worthwhile businesses to grow, lead and provide opportunities for all, being mindful of our cornerstone of democratic values.
