Business needs to help drive inclusion, says Sipho Pityana

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The Business Unity SA president says growth on its own does not reduce inequalities, ‘it plays a part but it’s far from adequate’

Business needs to play its part in driving inclusion, Business Unity SA president Sipho Pityana said.

“While government was pushing this agenda [for inclusion], we were pushing the agenda for growth. GDP growth on its own does not reduce inequalities. It plays a part but it’s far from adequate,” he said at the investment for inclusion forum at the Gordon Institute of Business Science on Wednesday. “The investor community has not used its muscle enough to drive the agenda.

Speaking at the same event, JSE CEO Nicky Newton-King said the exchanges are “gently” coming on the journey, led by emerging-market exchanges. “We have to tackle the actual model of capitalism if we’re serious about tackling inequality. There’s a long way to go between changing behaviour and for the economic disadvantaged to feel it,” she said.

Netwon-King said there needs to be more disclosure about environmental, social and corporate governance ventures for investors to better understand the risks to a company. There also needs to be a greater focus on transparent disclosure and a long-term view on business that looks at environmental, social and corporate governance as a new asset class in addition to total return indices.

 

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