CASE-STUDY ANALYSIS

Apartheid Regime in South Africa and Reaction of Texaco and SoCal Limited

Apartheid Regime in South Africa and Reaction of Texaco and SoCal Limited

Introduction

The case is set in the era of the apartheid regime in South Africa. The apartheid system systematically separates non-white majority in South Africa and enforces inferiority and excludes them from economic and social participation. The system also excludes them from political participation, and it is the political process, which control their lives and denies them their rights. There are many laws, which are used to seclude non-whites population. The Group Areas Act forces the occupation of 87% of land by 16% of population.

There is various influx controlling laws which forces or restrains the movement of non-whites within state. Texaco and SoCal are two large investors operating in South Africa. Caltex, which is jointly owned by SoCal and Texas, is engaged in oil related operations, in South Africa. Oil plays a crucial but, controversial role in South Africa. Certain laws make illegal to refuse sale of petroleum products to South African citizen, and/or organization. The government actively intervenes in oil market. Caltex is restricted to impose any restriction on sale of petroleum products to police or military. This entire scenario means that oil producing companies in South Africa have major social responsibility to the people of South Africa. In this regard, a resolution is proposed. There were four principles proposed by a religious.

Potential Benefits of Building the Plant

Oil production and manufacturing is an important economic activity in any country. The most important benefits of building a plant would be job creation in South Africa. New plant means an increase in capacity and; therefore, increases in production, which eventually leads to increase in oil exports. Increase in exports improves balance of payment. The economic activities such as development of plants also affect labor market. Demand for labor increases, which improves wage structure and competition. According to SoCal and Texaco, their presence in South Africa was helping in improving social condition in the country. If this is fact, then building a new plant would strength the position of Texaco and SoCal in South Africa and then, companies can continue to support social change in the country. Other potential benefits include the transfer of technology, taxes collected by South African government and the indirect effects on the US foreign policy. Finally, the establishment of new plant will help in fulfilling rising oil needs of the country (Smith, 1977).

Potential Violations of Rights and Justice

The violation of justice and rights of indigenous people was not directly linked to the building of a plant. However, due to particular laws and vested interests, there is an indirect link. Ironically, during the apartheid regime, the large non-white population was controlled by small white population. This domination of non-whites by whites means the prevalence of racial discrimination. Non-whites are not given the right to vote, bargain collectively, wages are discriminatory. Blacks are not allowed to occupy more than 13% of ...