Microsoft Word 6-057 a gentler Capitalism Final version June 2006. doc



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Business organizations should work towards unified business structures 

provided there is a measurement commitment to implement BEE and to 

deliver services to members. 

 

Provide services to members (of business organizations) such as:  



management training, small business support and the marketing of 

Government programs and incentives. 

 

Promote compliance with the full spectrum of labor relations policies 



and legislation and encourage members to go beyond the minimum 

requirements of the law. 

 

Promote compliance with principles of corporate governance and 



encourage members to go beyond the minimum requirements of the law. 

 



Promote the development of new forms of ownership, including ESOPS 

and retail schemes, affirmative procurement practices and support for 

small businesses (including community and worker-owned businesses). 

 



Always include women and women-owned businesses in the economy. 

 



Empower local communities through procurement and programs in 

communities, focused on infrastructure provision and job creation, and 

as far as possible, encourage the use of local content.

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The BEECom report highlighted emerging black business leaders thinking deeply 

about the dynamics and goals of democratic capitalism.  Most black business leaders with 

whom we spoke voiced some commitment to improving the lives and livelihoods of the 

poor and marginalized.  But although the black business leaders agreed on the ends, they 

did not agree on the means.  Some argued that “business is simply about making profits” 

and the obligation of black business leaders is first and foremost to build profitable 

businesses and thereby create jobs and have the resources to engage in large scale 

philanthropy. Others suggested that South Africa had an opportunity to redefine how 

business is done—to provide a model of a “gentler capitalism” for the rest of the world. 

Irene Charnley clearly fell into the latter camp.  But of course, actions speak louder than 

words. 


A Gentler Capitalist in Action

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Like her other colleagues on the BEE Commission, Charnley believed that each 



black business executive had a responsibility to effect positive change in their particular 

company, and that through their collective efforts they could have a powerful collective 

impact on the country. By the time of the BEE Commission Charnley found herself at the 

top of the pyramid, but she had come from the bottom. Irene Charnley grew up in Elsies 

                                                 

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 Black Economic Empowerment Commission Report, 2001. p. 7. 



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 This narrative is based on data collected principally between 1997 and 2003.  Much of it is also included in a series of 

Harvard Business School cases, Irene Charnley at Johnnic Group (A), 9-405-059, (B) 9-403-171, and (C) 9-405-061.   



 

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River – an Afrikaans-speaking, Colored area



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 outside of Cape Town (see Exhibit 2 for a 

photograph of Charnley).  Her father was murdered when she was young, and her mother

a domestic worker, raised Charnley and her two siblings.  Like most blacks in South 

Africa, Charnley and her family lived in poverty.  Charnley recalled: 

 

We never had any money.  We didn’t have a ceiling in the house, so the rain 



would come through.  In the summer, the same leaks would sweat.  Sometimes you 

would be embarrassed about where you lived, a place where people were killed 

every day and stuff like that.  But, you learned to survive, and how to keep your 

head above water.  And finally, you learned how to achieve the things you wanted 

to achieve. 

In 1982, Charnley was one of a select group of black South Africans to receive a 

scholarship to attend university in the UK.  After earning a diploma in graphic arts and 

reproduction from the London College of Printing, she returned to South Africa.  When 

Charnley discovered she was being paid a quarter of her white counterparts in her first 

graphic arts position, she quit and accepted an offer to work for the National Union of 

Mineworkers (NUM) in South Africa. She had met the President, James Motlatsi, and its 

General Secretary, Cyril Ramaphosa, while studying in London at a fundraiser for the 

anti-apartheid movement and the British mineworkers strike. Charnley recalled her 

enthusiasm for the opportunity, “I really wanted to give the energies and the passion that 

I had back to the people who were most oppressed in society.”  

 

In 1985, Charnley started as a graphic designer for the NUM’s fledgling 



newspaper, and soon became a key negotiator with Ramaphosa’s encouragement. Over 

time, Charnley came to serve as a trustee on several of the NUM’s pensions and 

provident fund boards. The assets of the NUM were substantial and Charnley and her 

colleagues pressured those fund managers that serviced the funds to adopt more liberal 

policies, such as hiring and providing training for black professionals. Like many of her 

activist comrades this was a dangerous time for Charnley; on more than one occasion she 

was detained and interrogated by the police. 

Charnley’s unexpected introduction to a business career came through the NUM.  

In 1996, the NUM joined with other black investors in the National Empowerment 

Consortium (NEC) to purchase from Anglo American Corporation of South Africa 

(Anglo)

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 a 34.9% interest in Johnnic, a passive holding company with varying stakes in 



breweries, pharmaceuticals, foods, media, entertainment and telecommunications. 

 

Consequently, this BEE deal was one of the most important in the first wave of Black 



Economic Empowerment due to Anglo’s prominence (it was South Africa’s largest 

company employing 130,000 people) and the lucrative assets it divested.  After leading 

the negotiations with Anglo for the NUM, Charnley was asked to serve as one of the 

NEC’s ten non-executive directors on the fifteen-member board at Johnnic.  Her mandate 

                                                 

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 In 1950, the South African government mandated that individuals live only with people who were the same race.  



Charnley’s mother and father’s parents were Xhosa, White, Malay, and Italian respectively.  However, Charnley’s parents 

were classified as Colored. 

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In the mid-1990s, the company disposed of ‘non-core’ assets including those represented by Johnnic.  Its core activities 



were in mining gold, diamonds, platinum, ferrous metals, industrial minerals, and base metals. 


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