Caltex in South Africa

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A South African Investment
American oil companies Texaco and SoCal (Caltex) were refining oil in South Africa. They planned to expand their refining capacity. However there was numerous discrimination issues pertaining to the status and treatment of the black citizens. At the time, the South African government maintained an apartheid system of governing their nation. Caltex was under scrutiny by American political parties and its stockholders for the way African workers were treated. Whites ruled South Africa’s apartheid government, blacks could not vote, and had no political rights. They also had little freedom, were forced to live in segregated areas and were paid a low salary compared to whites. They were not allowed to own their own land or homes. (Velasquez 2006 pg. 59). By Caltex doing business in South Africa, their long-term intent was to eventually change the apartheid government to a more equality based one, such as that of the American government. From a business standpoint, the benefits of Caltex being in South Africa outweighed the issues of violating human rights and moral ethics. Caltex assumed that if they pulled out of South Africa it would be a detriment to the African government and economy. By Caltex doing business there, they offered jobs to the poor and needy, they would also increase the economic and political growth. Even though the African government was harsh and unfair to the black people, Caltex presumed they would influence them in a positive way. If Caltex were to pull out of South Africa the effects would be more detrimental to the government and people. The poor and middle-class would no longer have jobs and the blacks would be forced to live on the streets rather than the segregated communities they currently lived in. Caltex claimed they complied with the Code of Conduct established by Reverend Dr. Leon Sullivan. The code incorporated six principles that corporations were to abide by. The principles were based on...
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