The Role Of Business In Human Rights and Good Governance

IN 1948 the United Nations adopted and proclaimed the Universal Declaration of Human Rights – this applies to every person irrespective of nationality, age, religion, prevailing political system or any other consideration.

President Pohamba has again labelled corruption as a cancer that must be rooted out. PROTECTING HUMAN RIGHTS I will follow the format of the Universal Declaration of Human Rights, commenting on the relevant articles: Article 1: “All human beings are born free and equal in dignity and rights…and should act towards one another in a spirit of brotherhood.”A business is a community of people organised to achieve an economic objective.In the past century management philosophy moved from the command and control approach of so-called “scientific management” to the latest philosophies of the psychological contract which recognise the dignity of each person’s job and provide opportunities for career development.The highly competitive, globalised, knowledge-based economies rely on employees being fully committed to their jobs as members of the corporate family.Article 2: “Everyone is entitled to all the rights and freedoms set forth …without distinction of any kind such as race, colour, sex, language, religion….or the political jurisdictional or international status of the country…” In the business context, the essence of pay and promotional opportunities must be on displayed job competence, not on racial, gender, political or other affiliations.Developing employees’ competence is the foundation of Namibia’s Affirmative Action Act.Regrettably a culture of racial entitlement is often expressed as a substitute for development and must be resisted.Article 10: “Everyone is entitled in full equality to a fair and public hearing by an independent and impartial tribunal in the determination of his rights and obligations…” Employees who breach the rules of conduct in a business are entitled to the protection of a fair disciplinary system which ensures that there are established rules of conduct; that the employee knows the rules and that evidence is tabled to prove that the employee broke the rules.It is important to bear in mind that both employer and employee have rights and obligations to fulfil.Article 12: No-one shall be subjected to… attacks upon his honour and reputation”.A regrettable feature of labour relations in Namibia is the tendency of union leadership to resort to defamatory remarks in the name of representing the workers’ interests – including threats to close down the very businesses that provide jobs for their members.Businesses are not obliged to recognise any trade union that will not be a reliable and honest bargaining partner – an employer’s first duty is to protect employees’ jobs, not to pander to union bosses.Article 16(3): “The family is the fundamental group unit of society and is entitled to protection by society and the State.”A sound family life is the foundation of our national development – it is within the family unit that children are inculcated with values such as honesty, self-confidence, the joys of learning and of teamwork – all fundamentals that prepare them for the world of work.The recognition of “work-life” balance in ensuring that employees have time off to be with their families, and are encouraged to participate in their children’s education can only have a positive impact.Article 20: “Everyone has the right to freedom of peaceful assembly and association” The International Labour Organisation amplifies these rights in its Conventions which Namibia has ratified, the Namibian Constitution and the Labour Act 1992, as well as individual company policies further clarify employees’ rights of freedom of association.Such rights are a foundation of the pluralistic society in which we live – it is a recognition that different groups have a right to express their interests.It is important that these rights are upheld and we do not slip into a unitary trade union framework where individual employees’ concerns are ignored or over-ridden in the interests of “solidarity”.Article 23 (1): “Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment”.Namibia’s is reported to have an unemployment rate of 36 per cent, which is steadily increasing.The major cause of unemployment is a demand-deficient labour market – i.e.the economy is just too small for the number of entrants into the labour market.Until such time as the Government recognises that it must take steps to encourage investment and growth, this situation will remain.The private sector does not just “create” jobs – the private sector invests in response to opportunities.A second cause of unemployment is the structural mismatch popularly identified as a skills shortage.It is not a figment of the private sector’s imagination – the Government’s current importation of nurses, magistrates, teachers etc simply exemplifies the problem.By its actions in discouraging employment through labour legislation that makes Namibia an uncompetitive regionally and globally, through maintaining expensive and inefficient government structures, through denying the skills shortage – the Government of Namibia is failing the private sector and Namibia at large.The right to work implies a duty to work – Namibia’s productivity as measured in unit labour cost is declining.Management are responsible for productivity – for training and developing each employee.This must be offset by management’s right to terminate employees who are unwilling or unable to work at the required standard – labour laws protecting inefficiency can only undermine our economy.Media reports of employees suspended on full pay for over a year are not unusual and are indicative of failure.Article 23 (3): “Everyone has the right to just and favourable remuneration….”The phrase “just and favourable” is obviously open to value-laden interpretation.I doubt if there is anyone who feels that he is over-paid! The reality of globalisation is that we can never hope to compete against the billions of Asian workers who, willingly or not, are paid at rates far lower than demanded in Namibia.Our economy needs to find those niches where we can provide higher-paid employment opportunities – to exploit these, the skills shortage and the education crisis must be addressed.Article 26: “Everyone has the right to education… elementary education shall be compulsory… technical and professional education shall be made generally available” The over-supply of poorly educated school leavers is a national crisis – education implies preparation for life, which in the knowledge-based economy implies the willingness and ability to enter life-long learning, to take responsibility for one’s actions and to have a strong internal locus of control based on sound ethical values.Some 25 per cent of the national budget is spent on education – in per capita terms by far the highest in the region, with almost the worst results.As a businessperson I have committed both money and management time to the ETSIP programme in an effort to identify the systems blockages to improved education performance.The success of this project will hinge on the will to succeed of the managers in the Ministry of Education.COMBATING CORRUPTION It is now time to turn to my second theme – the role of the business sector in combating corruption.If we look at the generic sources of corruption you will see how a modern business minimises the risk of corruption.These lessons are, I suggest, generic to all organisations including the Government.Governance Structures: Good corporate governance, whether in the public or private sector, requires well-designed business processes and systems with built-in monitoring mechanisms which can determine if they are operating as planned.Generic to good corporate governance is a schedule of delegated authorities from the Board to senior managers empowering them to take decisions within specified policy parameters.In other words, they are not allowed to
take out-of-policy decisions.Such a regime of policies and delegated authorities is designed to ensure the most efficient execution of normal duties.In the absence of such a regime, managers may feel that they can take authority into their own hands – opening up the possibility of corrupt practices.Secondly, and obviously allied to this, corruption finds a healthy breeding ground in inefficiency.Where incompetence or laziness are allowed, work piles up and provides a smokescreen behind which defalcation can take place.Sound management and supervision, including internal audits of major risk areas, are essential elements in containing the opportunities for corruption.Disciplinary action is essential.If systems are well designed and employees well trained, then there will be established rules well known by the employees.If they break the rules they must face the consequences, including not only dismissal but also criminal and civil charges to recover the losses.Holding the organisation together must be a commonly held set of ethical standards which determine how employees are expected to behave towards all stakeholders – customers, the Government, the community, other employees etc.In my group of companies this is codified in our ‘Statement of Business Principles’, available in five languages to each member of staff.It would be fair to say that an efficient, productive and well-managed organisation presents less opportunity for corruption and less need for outsiders to try and bribe staff to “do them a favour”.The corollary is that where common values have not been clarified, where systems are poorly designed and management accountability and controls are slack, there will be more room for corrupt practices.Corrupt Officials: The private sector is often “blamed” for corrupting Government officials.This is a facile excuse to cover up a failure of values, systems and management as detailed above.In all walks of life there will always be individuals trying to gain advantage through corrupt practices – it is our common duty, public and private sector alike, to deny them the fertile ground they need.CONCLUSION The protection of human rights and combating corruption should be primary aims for all parts of society – our families, schools, religious organisations, business organisations and politicians.We can only aspire to reaching Vision 2030 if we have a solid foundation of respect for human rights and a passion for honesty, productivity and efficiency in all our organisations, public and private.The big question is – do we have the will to succeed, to put in the hard work and take the necessary decisions? * The author is executive chairman of Pupkewitz Holdings (Pty) Ltd.This is an edited version of a speech he delivered on May 29 at a seminar in Windhoek.PROTECTING HUMAN RIGHTS I will follow the format of the Universal Declaration of Human Rights, commenting on the relevant articles: Article 1: “All human beings are born free and equal in dignity and rights…and should act towards one another in a spirit of brotherhood.”A business is a community of people organised to achieve an economic objective.In the past century management philosophy moved from the command and control approach of so-called “scientific management” to the latest philosophies of the psychological contract which recognise the dignity of each person’s job and provide opportunities for career development.The highly competitive, globalised, knowledge-based economies rely on employees being fully committed to their jobs as members of the corporate family. Article 2: “Everyone is entitled to all the rights and freedoms set forth …without distinction of any kind such as race, colour, sex, language, religion….or the political jurisdictional or international status of the country…” In the business context, the essence of pay and promotional opportunities must be on displayed job competence, not on racial, gender, political or other affiliations.Developing employees’ competence is the foundation of Namibia’s Affirmative Action Act.Regrettably a culture of racial entitlement is often expressed as a substitute for development and must be resisted. Article 10: “Everyone is entitled in full equality to a fair and public hearing by an independent and impartial tribunal in the determination of his rights and obligations…” Employees who breach the rules of conduct in a business are entitled to the protection of a fair disciplinary system which ensures that there are established rules of conduct; that the employee knows the rules and that evidence is tabled to prove that the employee broke the rules.It is important to bear in mind that both employer and employee have rights and obligations to fulfil.Article 12: No-one shall be subjected to… attacks upon his honour and reputation”.A regrettable feature of labour relations in Namibia is the tendency of union leadership to resort to defamatory remarks in the name of representing the workers’ interests – including threats to close down the very businesses that provide jobs for their members.Businesses are not obliged to recognise any trade union that will not be a reliable and honest bargaining partner – an employer’s first duty is to protect employees’ jobs, not to pander to union bosses. Article 16(3): “The family is the fundamental group unit of society and is entitled to protection by society and the State.” A sound family life is the foundation of our national development – it is within the family unit that children are inculcated with values such as honesty, self-confidence, the joys of learning and of teamwork – all fundamentals that prepare them for the world of work.The recognition of “work-life” balance in ensuring that employees have time off to be with their families, and are encouraged to participate in their children’s education can only have a positive impact. Article 20: “Everyone has the right to freedom of peaceful assembly and association” The International Labour Organisation amplifies these rights in its Conventions which Namibia has ratified, the Namibian Constitution and the Labour Act 1992, as well as individual company policies further clarify employees’ rights of freedom of association.Such rights are a foundation of the pluralistic society in which we live – it is a recognition that different groups have a right to express their interests.It is important that these rights are upheld and we do not slip into a unitary trade union framework where individual employees’ concerns are ignored or over-ridden in the interests of “solidarity”. Article 23 (1): “Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment”.Namibia’s is reported to have an unemployment rate of 36 per cent, which is steadily increasing.The major cause of unemployment is a demand-deficient labour market – i.e.the economy is just too small for the number of entrants into the labour market.Until such time as the Government recognises that it must take steps to encourage investment and growth, this situation will remain.The private sector does not just “create” jobs – the private sector invests in response to opportunities.A second cause of unemployment is the structural mismatch popularly identified as a skills shortage.It is not a figment of the private sector’s imagination – the Government’s current importation of nurses, magistrates, teachers etc simply exemplifies the problem.By its actions in discouraging employment through labour legislation that makes Namibia an uncompetitive regionally and globally, through maintaining expensive and inefficient government structures, through denying the skills shortage – the Government of Namibia is failing the private sector and Namibia at large.The right to work implies a duty to work – Namibia’s productivity as measured in unit labour cost is declining.Management are responsible for productivity – for training and developing each employee.This must be offset by management’s right to terminate employees who are unwilling or unable to work at the required standard – labour laws protectin
g inefficiency can only undermine our economy.Media reports of employees suspended on full pay for over a year are not unusual and are indicative of failure.Article 23 (3): “Everyone has the right to just and favourable remuneration….”The phrase “just and favourable” is obviously open to value-laden interpretation.I doubt if there is anyone who feels that he is over-paid! The reality of globalisation is that we can never hope to compete against the billions of Asian workers who, willingly or not, are paid at rates far lower than demanded in Namibia.Our economy needs to find those niches where we can provide higher-paid employment opportunities – to exploit these, the skills shortage and the education crisis must be addressed. Article 26: “Everyone has the right to education… elementary education shall be compulsory… technical and professional education shall be made generally available” The over-supply of poorly educated school leavers is a national crisis – education implies preparation for life, which in the knowledge-based economy implies the willingness and ability to enter life-long learning, to take responsibility for one’s actions and to have a strong internal locus of control based on sound ethical values.Some 25 per cent of the national budget is spent on education – in per capita terms by far the highest in the region, with almost the worst results.As a businessperson I have committed both money and management time to the ETSIP programme in an effort to identify the systems blockages to improved education performance.The success of this project will hinge on the will to succeed of the managers in the Ministry of Education. COMBATING CORRUPTION It is now time to turn to my second theme – the role of the business sector in combating corruption.If we look at the generic sources of corruption you will see how a modern business minimises the risk of corruption.These lessons are, I suggest, generic to all organisations including the Government.Governance Structures: Good corporate governance, whether in the public or private sector, requires well-designed business processes and systems with built-in monitoring mechanisms which can determine if they are operating as planned.Generic to good corporate governance is a schedule of delegated authorities from the Board to senior managers empowering them to take decisions within specified policy parameters.In other words, they are not allowed to take out-of-policy decisions.Such a regime of policies and delegated authorities is designed to ensure the most efficient execution of normal duties.In the absence of such a regime, managers may feel that they can take authority into their own hands – opening up the possibility of corrupt practices.Secondly, and obviously allied to this, corruption finds a healthy breeding ground in inefficiency.Where incompetence or laziness are allowed, work piles up and provides a smokescreen behind which defalcation can take place.Sound management and supervision, including internal audits of major risk areas, are essential elements in containing the opportunities for corruption.Disciplinary action is essential.If systems are well designed and employees well trained, then there will be established rules well known by the employees.If they break the rules they must face the consequences, including not only dismissal but also criminal and civil charges to recover the losses.Holding the organisation together must be a commonly held set of ethical standards which determine how employees are expected to behave towards all stakeholders – customers, the Government, the community, other employees etc. In my group of companies this is codified in our ‘Statement of Business Principles’, available in five languages to each member of staff.It would be fair to say that an efficient, productive and well-managed organisation presents less opportunity for corruption and less need for outsiders to try and bribe staff to “do them a favour”.The corollary is that where common values have not been clarified, where systems are poorly designed and management accountability and controls are slack, there will be more room for corrupt practices.Corrupt Officials: The private sector is often “blamed” for corrupting Government officials.This is a facile excuse to cover up a failure of values, systems and management as detailed above.In all walks of life there will always be individuals trying to gain advantage through corrupt practices – it is our common duty, public and private sector alike, to deny them the fertile ground they need.CONCLUSION The protection of human rights and combating corruption should be primary aims for all parts of society – our families, schools, religious organisations, business organisations and politicians.We can only aspire to reaching Vision 2030 if we have a solid foundation of respect for human rights and a passion for honesty, productivity and efficiency in all our organisations, public and private.The big question is – do we have the will to succeed, to put in the hard work and take the necessary decisions? * The author is executive chairman of Pupkewitz Holdings (Pty) Ltd.This is an edited version of a speech he delivered on May 29 at a seminar in Windhoek.