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Daimler-Benz Social Partnerships
Past • Apartheid • Closed economy • Trade tariffs (insulation) & state incentives • Daimler-Benz • Superior wages • S.A. outreach programs • Militant work place • Supplied S.A. military • Unions have little power
Present • Open economy; growing union power • No Apartheid • Phasing out tariffs • Reduced levels of state intervention • Daimler-Benz • Not paying social acceptable wages • Implemented recognition programs to achieve minimum worker output which are possibly not aligned • Extra wages • Draws on consumer goods
Ethical Strategy Partnering with stakeholders Commitment align interests Betterment of internal and external community “good” corporate social citizen image For Profit and Gain Keeping costs as low as possible Exploiting local labor force Pre-empt gov’t involvement Cynical view on union behavior: “they’ll always want more” Ethical Strategies or for Profit?
Assumptions • Intent: • Daimler-Benz was in South Africa during Apartheid in order to profit • Daimler-Benz continues to work in S.A. in order to profit by using “social partnerships” as a means to justify financial profits
Daimler-Benz Should… • “Social partnerships” should result in greater ethical fairness and stronger financial output; aligning interests for the best outcome(s)