ArcelorMittal SA has been in the news a lot lately, mostly for the wrong reasons. But effective reputation management and de facto internal regime with a new CEO could not only make it financially sustainable but even trusted by its many stakeholders, writes special correspondent Craig Kotze.
Nation states, it is often said, have only interests, not friends.
Post-modern states, in the form of multi-national corporations spread across continents like colonial empires, have often adopted the Machiavellian mores and methods of nation states, citing “Realpolitik” and the primacy of profit as both the ultimate means and end.
Worldwide, big oil and big steel have for decades epitomized the kind of predatory and extractory economic hegemony and unacceptable face of capitalism, all the while paying lip service to patriotism even as they funnel billions out of host countries and manipulate prices.
ArcelorMittal South Africa, many would say, has been no different. The sprawling steel empire from Khazakstan, the Ukraine, South Africa, France, Belgium and even the United States would have been the envy of the Communist Internationale in terms of penetration and economic influence and shenanigans.
Somewhat like the medieval Holy Roman Empire – which was neither holy, nor Roman nor even an empire, but was controlled as a wealth generation machine and conduit for personal interest of dynasts.
The very antithesis of South African patriotism in fact, despite protestations to the contrary.
But it would seem things are changing at Africa’s largest steelmaker, if its entrepreneur and enterprise development programme are anything to go by.
Perhaps because AMSA now seems to be firmly back under the control of born and bred South Africans – following the disastrous but fortunately reversed invasion of top German executives into AMSA in recent years, the company has finally realised that investment and not Merkelite austerity is the way to go.
AMSA’s clear intention to incubate, develop and sustain both entrepreneurship and enterprises at local level where it operates, represent the green shoots of change and economic revival for communities dependent on the steel and engineering sectors.
Now, perhaps AMSA would consider promoting these entrepreneurs into its own executive ranks and also place employees and contractors on its board?
After all, it’s CEO, along with almost every other CEO in the corporate world, is nothing but a fixed-term contractor, albeit with a salary that no traditional steel contractor could even conceive of.
Such steps would truly convince South Africa that companies such as AMSA are truly patriotic. That, and perhaps a genuine apology for the real economic damage caused by anticompetitive practices?
