Case Study of a South African Investment
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This paper will address the case study of a South African investment and will answer the following four questions in regard to the investment. First question – In your judgment, were the possible utilitarian benefits of building the Caltex plant in 1977 more important that the possible violations of moral rights and of justice that may be involved?
In my judgment, the possible utilitarian benefits of building the Caltex plant in South
Africa seems more important than the human rights and moral rights. Most businesses are in business to become profitable, notwithstanding, some are ethical and fair. Caltex did try to improve the economic conditions of its workers. South Africas apartheid system legalized racial discrimination in all aspects of life and deprived the black population of their most basic human rights. The building of the plant did allowed the Black South Africans to gain meaningful employment. The company moved 40 percent of its 742 black workers into refinery jobs formerly held by whites. Regarding laws and investment, business managers should limit their actions and decisions regarding the law. If Caltex, Texaco and Standard Oil have the resources to support the government military forces, then I would believe there should not be a problem for them to be supportive of the views of the majority in South Africa.
If you were a stockholder in Texaco or Standard Oil (now named Chevron), how do you believe you ought to vote on the three kinds of stockholders resolutions that were proposed (the first asking Caltex to terminate its operations, the second asking Caltex not to sell to the military or police of South Africa, and the third asking Caltex to implement the Tutu principles)? Justify each of your answer fully.
If I were a stockholder, I would vote yes to all three resolutions. In the first resolution, yes I would ask Caltex to terminate its operations in South Africa, until the government completely stops Apartheid. If they had continued their service and the country had not abolished Apartheid, then I believe that Caltex would have been just as guilty as the government of South Africa. To the second resolution asking Caltex not to sell to the military, or police of South Africa, I would have vote affirmative. The second and the third resolutions are connected, and an affirmative for necessitates an affirmative for the other. “Desmond Tutu asked for the company to take an active role in working toward removal of Apartheid and move towards the establishment of the full rights for the Black South Africans. If Caltex had no problem stopping sales to the police and military of the government, then they should not have any problem with the Desmond Tutu principles. “Tutu courageously called on the worlds multinationals to exert economic pressure on South Africas White government by threatening to leave and not return until apartheid