A NEW SOCIAL COVENANT · The philosophical underpinnings of the concept of a social covenant were...

EVENT REPORT

27 - 29 AUGUST 2014 | STELLENBOSCH | SOUTH AFRICA

A NEW SOCIAL COVENANT

CONTENTS

A NEW SOCIAL COVENANT IN THE MAKING 3

THE STELLENBOSCH PROGRAMME 3

A NEW SOCIAL COVENANT – A PHILOSOPHICAL PERSPECTIVE 4

15 TOASTS TO DIGNITY 5

A NEW SOCIAL COVENANT ROUND TABLE 6

A NEW SOCIAL COVENANT PUBLIC EVENT 10

CONCLUSION 11

APPENDICES 12

OPINION PIECES 12

JIM WALLIS - 3 WAYS TO LEAD FOR THE COMMON GOOD 12

GAYATRI SPIVAK - WE CANNOT IMPROVE THE WORLD FROM THE TOP DOWN 14

DANIEL MALAN - HOW DO WE DEFINE THE VALUES THAT GUIDE US? 15

MARIA RAMOS - SA NEEDS SOCIAL COVENANT TO BEAT INJUSTICE OF INEQUALITY 16

NEWSPAPER ADVERTISEMENT 19

BANNERS 20

DEDICATION TO THE LATE RUSSEL BOTMAN 21

A NEW SOCIAL COVENANT EVENT REPORT 3

A NEW SOCIAL COVENANT IN THE MAKINGAT THE ANNUAL MEETING OF THE WORLD ECONOMIC FORUM IN 2013, ITS GLOBAL AGENDA COUNCIL ON VALUES RELEASED A DISCUSSION DOCUMENT ENTITLED A NEW SOCIAL COVENANT. THE DOCUMENT DESCRIBED HOW OLD SOCIAL CONTRACTS HAVE UNRAVELLED, AND HOW FORMER ASSUMPTIONS AND SHARED NOTIONS ABOUT FAIRNESS, RECIPROCITY, MUTUAL BENEFITS AND SOCIAL VALUES HAVE ALL BUT DISAPPEARED.

Proposing the establishment of a new social covenant, the Council called for a period of global reflection and

dialogue on this concept. Stellenbosch University and the World Economic Forum Global Agenda Council on

Values arranged a series of events to investigate how the concept of a social covenant can make a contribution

to the improvement of society. From 27 to 29 August 2014, global and local business leaders, academics and

civil society leaders convened in Stellenbosch to share their ideas on a new social covenant within a South

African context, with specific reference to the South African government’s National Development Plan (NDP).

The event was covered extensively by CNBC Africa. A 30 minute summary of the three day event

can be accessed here: http://www.cnbcafrica.com/video/?ytid=1IBU3CbgaTQ

In brief, the New Social Covenant document puts forward a compelling argument. There is growing distrust

in the way the global economy operates and how decisions are made. The historic social contract between

business, government and society seems to be broken. Many economies are seen as unsustainable, unfair,

unstable and deeply unfulfilling.

It is proposed that a new social covenant between citizens, businesses and government urgently needs to be

designed. By definition, this will require the engagement and collaboration of all stakeholders – governments,

business and civil society groups.

It is envisaged that there will be multiple covenants that will vary between countries and industries, and

acknowledged that it is not possible to be prescriptive about either content or process. It is expected, though,

that certain universal values, such as the dignity of the individual, the primacy of promoting the common good,

and the responsibility for stewardship of the planet will feature in all of them. These actual covenants will make

the difference between lip service and real impact.

The Global Agenda Council on Values believes that the World Economic Forum – as the key convener of

representatives of all three stakeholder groups – is ideally placed to host and catalyse such a dialogue.

THE STELLENBOSCH PROGRAMMETHE PROGRAMME, WHICH WAS SPONSORED BY BARCLAYS, COMPRISED FOUR MAIN EVENTS, OF WHICH TWO WERE CLOSED: A ROUND TABLE DISCUSSION BETWEEN 50 BUSINESS LEADERS, ACADEMICS AND CIVIL SOCIETY REPRESENTATIVES AND A PRIVATE “15 TOASTS” DINNER WHERE THE CONCEPT OF DIGNITY WAS DISCUSSED. TWO PUBLIC EVENTS EXPLORED THE PHILOSOPHICAL UNDERPINNINGS AND THE POTENTIAL PRACTICAL APPLICATION OF THE CONCEPT OF A SOCIAL COVENANT.

LIVE COVERAGE ON CNBC AFRICA


A NEW SOCIAL COVENANT – A PHILOSOPHICAL PERSPECTIVEThis event took place on 27 August 2014 and was attended by approximately 100 delegates. The philosophical

underpinnings of the concept of a social covenant were explored, with specific reference to social contract

theory. The guest speakers were:

• Gayatri Chakravorty Spivak, Professor and founding member of the Institute for Comparative Literature and

Society, Columbia University, USA

• Tom Donaldson, Mark O. Winkelman Professor of Legal Studies and Business Ethics, the Wharton School,

University of Pennsylvania, USA

Figure 1: Tom Donaldson Figure 2: Gayatri Spivak

The session was moderated by Johan Hattingh, Dean of the Arts Faculty and Professor of Philosophy,

Stellenbosch University.

A report on the session as well as link to a video recording can be found here:

http://www.sun.ac.za/english/Lists/news/DispForm.aspx?ID=1738


15 TOASTS TO DIGNITYTHIS EVENT TOOK PLACE AT SOLMS-DELTA WINE ESTATE ON 27 AUGUST 2014 AND WAS ATTENDED BY 20 DELEGATES, COMPRISING A COMBINATION OF BUSINESS, CIVIL SOCIETY AND STUDENT LEADERS. THE EVENING WAS OPENED BY PROF MARK SOLMS AND MODERATED BY DANIEL MALAN, AND FOLLOWED THE SAME FORMAT OF PREVIOUS 15 TOASTS DINNERS THAT HAVE TAKEN PLACE AROUND THE WORLD.

According to Wayde Groep (21), a human life sciences student who attended the evening, “the 15 Toasts to

Dignity dinner provided individuals with an opportunity to be vulnerable. I was reminded that there is power in

narrative. By sharing our stories and hearing the stories of others we are able to grow and develop. Our basic

connection is our humanity and this event reminded me of that truth.” Brian van Vuuren (23), a Masters student

in engineering, said the following: “The 15 Toasts to dignity event was an unbelievable experience for young

people like myself. The diverse and interesting group of guests were understated and humble in their status and

this, combined with the format of the event, aided in such easy, genuine conversation which transcended age

and position to provide an eye-opening and inspiring experience”.

Figure 3: Bob Garratt, Lord Hastings of Scarisbrick, Tom Donaldson Figure 4: Gayatri Spivak, Mark Solms

Figure 5: Guests at 15 Toasts to Dignity Figure 6: Nkosana Moyo, Alex Dyers

The event was arranged in partnership with the Frederik van Zyl Slabbert Institute for Student Leadership Development at

Stellenbosch University. More information is available on http://15toasts.com/


A NEW SOCIAL COVENANT ROUND TABLETHIS EVENT TOOK PLACE ON 28 AUGUST 2014 AND WAS ATTENDED BY APPROXIMATELY 50 INVITED GUESTS. THE GUESTS INCLUDED THE FOLLOWING PEOPLE:

NAME SURNAME ORGANISATION

Charles Adjasi University of Stellenbosch Business School

Nicolaas Albert Investec

Haiko Alfeld Sasol

Haroon Bhorat University of Cape Town

Siobhan Cleary Johannesburg Stock Exchange

Cas Coovadia Banking Association of South Africa

Thomas Donaldson The Wharton School

Stan Du Plessis Stellenbosch University

Anton Du Plessis Institute for Security Studies

Thulani Fakude Sage Pastel / World Economic Forum Global Shaper

Richard Foster Institute of Directors

Bob Garratt Centre for Corporate Governance in Africa

Ketso Gordhan PPC

Malcolm Gray Investec

Michael Hastings KPMG

Garth Japhet Heartlines

Mohammad Karaan Stellenbosch University

Nico Koopman Stellenbosch University

Frik Landman USB Executive Development

Daniel Malan Stellenbosch University, World Economic Forum GAC

Jabulane Mabuza Telkom

Trevor Manuel Former Minister of Finance

Katherine Marshall Georgetown University

Lynn Mcgregor Centre for Corporate Governance in Africa

Gugu Mclaren Discovery

Michèle Mischler World Economic Forum

Dolly Mokgatle Peotana Group Holdings

Nkosana Moyo Mandela Institute for Development Studies

Peter Moyo Vodacom

Trevor Ncube Mail & Guardian

Ansie Ramalho Institute of Directors

Maria Ramos Barclays


NAME SURNAME ORGANISATION

Johan Reyneke Reyneke Wines

Leigh Roberts SAICA

Fred Robertson Brimstone Investment Corporation Limited

Vasti Roodt Stellenbosch University

Louise Scholtz WWF

Arnold Schoonwinkel Stellenbosch University

Katinka Schumann Industrial Development Corporation

Thina Siwendu Centre for Corporate Governance in Africa

Arnold Smit USB Executive Development

Gayatri Spivak Columbia University

Peter Staude Tongaat-Hulett

Anton Steenkamp Labour Court of South Africa

Phillip Sutherland Stellenbosch University

Stephen Van Coller Barclays

Leslie Van Rooi Stellenbosch University

Victor Van Vuuren International Labour Organisation

Jim Wallis Sojourners, World Economic Forum GAC

Samantha-Anne Wilkins Barclays

Minka Woermann Stellenbosch University

Derek Yach Vitality Institute

Dianna Yach Mauerberger Foundation Fund

The programme is outlined below – each session was initiated by a few conversation starters, followed by discussion and feedback.

09h00 OPENING SESSION

• Prof Arnold Schoonwinkel, Vice Rector, Learning and Teaching, Stellenbosch University • Klaus Schwab, Founder and Executive Chairman, World Economic Forum, Switzerland

(by video link) • Maria Ramos, Chief Executive, Barclays Africa Group Limited, South Africa

09h30 A NEW SOCIAL COVENANT Session objectives: Introduce historical and philosophical roots of the New Social Covenant concept

• Jim Wallis, World Economic Forum Global Agenda Council on Values, President and Founder, Sojourners, USA

• Tom Donaldson, Mark O. Winkelman Professor of Legal Studies and Business Ethics, the Wharton School, University of Pennsylvania, USA


11h30 THE NATIONAL DEVELOPMENT PLAN OF SOUTH AFRICA Session objectives: Investigate how the concept of a New Social Covenant can support the National

Development Plan • Trevor Manuel, former Minister in the Presidency for the National Planning Commission and

Minister of Finance, South Africa • Nkosana Moyo, Founder and Executive Chair, Mandela Institute for Development Studies,

South Africa • Mohammad Karaan, Acting Vice-Rector: Community Interaction and Personnel, Stellenbosch

University, member of the National Planning Commission, South Africa

14h00 THE COMMON GOOD, DIGNITY AND STEWARDSHIP OF THE PLANET Session objectives: Investigate how the New Social Covenant can be applied in practice, i.e. through the design and implementation of localised covenants, with a specific focus on the common good, dignity and stewardship of the planet.

• Lord Michael Hastings, Global Head, Corporate Citizenship, KPMG International • Cas Coovadia, Managing Director of the Banking Association of South Africa and caretaker

chief executive of Business Unity South Africa • Ketso Gordhan, Chief Executive Officer, PPC

15h30: TEA AND COFFEE BREAK

16h00: GOVERNANCE, MEASUREMENT AND REPORTING Session objectives: Investigate how a New Social Covenant as well as local covenants can be governed, and how measurement and reporting can be embedded in the process.

• Derek Yach, Executive Director of the Vitality Institute, former Executive Director for Chronic Diseases at the World Health Organization

• Bob Garratt, Chairman of the Centre for Corporate Governance in Africa, University of Stellenbosch Business School, South Africa

16h50: CLOSING REMARKS

• Stephen van Coller, Chief Executive Officer, Corporate and Investment Banking, Barclays Africa • Stan du Plessis, Dean, Faculty of Economic and Management Sciences, Stellenbosch University


Figure 7: Maria Ramos Figure 8: Stephen van Coller, Maria Ramos, Ketso Gordhan

The Chatham House Rule applied to the entire round table event. All participants were enthusiastic and

endorsed the concepts, but highlighted the need for practical application. Some of the practical suggestions for

initiatives and / or further focus that came from the group are (in no particular order of preference):

• The need to develop peer-reviewed metrics on how to decrease inequality, followed by voluntary

disclosure by participating companies

• The need to focus on the health and wellbeing of employees

• The importance of incorporating shared value into business strategy

• The development of micro social covenants within industry clusters

• Salary sacrifices by senior executives, with funds invested in projects that are measurable, specifically in

terms of the creation of new job opportunities

• Education was identified as the sector that require the most urgent attention

• Without negating the value of voluntary initiatives, there was acknowledgement that there would have to

be a conversion to formal policies and legislation in some instances

• Well-implemented employee ownership schemes

• The need for a platform to share experiences where companies experiment with the New Social Covenant

concept – it would be important to share both positive and negative experiences

• The need to involve shareholders, especially institutional shareholders, in the conversation about a New

Social Covenant


A NEW SOCIAL COVENANT PUBLIC EVENTTHIS EVENT TOOK PLACE ON 29 AUGUST 2014. IT WAS THE MAIN PUBLIC EVENT AND ATTRACTED AN AUDIENCE OF 250 PEOPLE FROM BUSINESS, SOCIETY AND THE UNIVERSITY.

The session was a live broadcast of CNBC Africa and reached 48 African countries.

Speakers on the panel were:

• Klaus Schwab, Founder and Executive Chairman, World Economic Forum, Switzerland (by video message)

• Trevor Manuel, former Minister in the Presidency for the National Planning Commission, and former

Minister of Finance, South Africa

• Jim Wallis, Chairman, World Economic Forum Global Agenda Council on Values, and President and Founder,

Sojourners, USA

• Derek Yach, Executive Director of the Vitality Institute, former Executive Director for Chronic Diseases at the

World Health Organization

• Suzanne Ackerman-Berman, Transformation Director, Pick n Pay

Figure 9: Trevor Manuel Figure 10: A student asks a question from the floor

Figure 11: Jim Wallis Figure 12: Suzanne Ackerman-Berman Figure 13: Derek Yach

The full event can be viewed here: http://www.cnbcafrica.com/video/?ytid=eOhvH16xtKk

The University report on the event can be accessed here: http://www.sun.ac.za/english/Lists/news/DispForm.aspx?ID=1745

LIVE COVERAGE ON CNBC AFRICA


CONCLUSIONIT IS IMPORTANT TO DISPEL A FEW MISCONCEPTIONS ABOUT THE PROPOSED NEW SOCIAL COVENANT. THE COVENANT IS NOT ENVISAGED AS A PETITION WHICH MERELY ASKS PEOPLE OR COMPANIES TO SIGN UP. IN FACT, IT IS NOT INTENDED THAT THERE WILL BE ONE – FINAL – NEW SOCIAL COVENANT. HOWEVER, THE EXISTING DISCUSSION DOCUMENT IS THE FIRST ITERATION IN A PROCESS THAT WILL PROVIDE A FRAMEWORK AND GUIDELINES FOR ACTION, WHICH COULD POTENTIALLY LINK TO OTHER INITIATIVES SUCH AS THE UNITED NATIONS GLOBAL COMPACT, THE UNITED NATIONS PRINCIPLES FOR RESPONSIBLE INVESTMENT AND THE GLOBAL REPORTING INITIATIVE.

There are many historical examples of social contracts /covenants in South Africa. For example, in the 1980’s –

during one of the most oppressive periods in the country’s history – Middelburg Steel and Alloys, a Barloworld

subsidiary, established the Middelburg Forum, an initiative that transformed the town and saved the local economy.

The Stutterheim Development Foundation is a well-known example of a hugely successful local economic

development partnership in the Eastern Cape. On a larger scale, the Convention for a Democratic South Africa

(CODESA) illustrated the transformative power of a social covenant at the national level. Possibly recent tragic

events such as Marikana, the Western Cape farm violence and the forced closure of schools in the Northern Cape

could have been prevented through social covenants. Globally, companies like Nestlé and Unilever have created

exciting partnerships to create values-based shared value and sustainable living conditions.

In the South African context, there is a logical link between the philosophy of the New Social Covenant and our

National Development Plan (NDP), which uses the terms ‘social contract’ and ‘social compact’ interchangeably:

“There is now an urgent need to craft a social contract that will enable South Africa to achieve higher growth

and employment, increase investment and savings. The idea of a social compact is a relatively simple one: all

stakeholders buy into a clearly articulated vision; have a shared analysis of constraints and are committed to

finding solutions; and parties understand the objective of the compact. The compact should offer attractive

(indeed compelling) benefits to each party and all parties should believe that the necessary sacrifices are

relatively equitably shared amongst all participants”.

The benefits are clear for all to see, but the unavoidable need for sacrifices is a harder sell. As the philosopher

John Rawls pointed out many years ago, “persons are not indifferent as to how the greater benefits produced by

their collaboration are distributed, for in order to pursue their ends they each prefer a larger to a lesser share”.

The challenges are huge in a country where there are major concerns in a variety of areas, as neatly articulated in

the NDP, such as poverty, unemployment, crime, corruption, an unequal education system and poor healthcare.

There are already many initiatives underway to address these challenges. These can be strengthened, and new

initiatives can be fast-tracked with the support of a global framework provided by the World Economic Forum.

After a mere twenty years of democracy in South Africa, we should not underestimate what it will take to

eradicate the deep-rooted legacy of our unjust past. The NDP reminds us that the “shadow of history still lingers”,

and that the country continues to be divided and to suffer from massive, and growing, inequality.

Oliver Goldsmith’s famous and oft-quoted poem from 1770 aptly states: “Ill fares the land, to hastening ills a

prey, where wealth accumulates, and men decay”.

The challenge of setting and upholding standards of the common good, dignity and stewardship is universal,

and therefore a single guiding framework will suffice. However, it is too complex to have only one solution.

This is where a two-pronged approach – of a new high-level social covenant supported by multiple, practical and

localised covenants – can be immensely helpful.

Daniel Malan • Stellenbosch, 21 September 2014


APPENDICES - OPINION PIECES

JIM WALLIS - 3 WAYS TO LEAD FOR THE COMMON GOOD

IN 2013 AT THE WORLD ECONOMIC FORUM IN DAVOS SWITZERLAND, THE

GLOBAL AGENDA COUNCIL ON VALUES HELD A SERIES OF DISCUSSIONS

WHICH INITIATED A YEAR-LONG DIALOGUE ABOUT THE NEED FOR A

NEW “SOCIAL COVENANT” BETWEEN CITIZENS, GOVERNMENTS, AND

BUSINESSES. THIS COVENANT COMMITS INDIVIDUALS AND SOCIETY TO

PROMOTE AND MAINTAIN THE DIGNITY OF THE HUMAN PERSON, TO PURSUE

THE COMMON GOOD, AND TO EMBRACE STEWARDSHIP.

The presence of rampant inequality, youth unemployment, austerity,

retrenchment, constraints, mal-distribution and growing conflicts over resources

and a moral agenda to overcome extreme poverty raises deep questions about

our values. The New Social Covenant calls for a global discussion about how we

will address the many difficult challenges and choices the world is now facing.

The introduction to the covenant produced by Global Agenda Council on Values reads:

“The choices made about each issue are determined by the values we hold – the values applied by government, business, civil society, and individuals. Those choices need to be self-conscious – not based on the inertia of accumulated interests. This is not merely a philosophical enterprise; it is an urgent matter that requires moral courage. The stakes are high.”

While the social covenant acknowledges the great diversity of global values, there are three which express a

consensus across cultures and religions, and which constitute shared human aspirations. They are:

• The dignity of the human person

• The importance of the common good which transcends individual interests

• The need for stewardship of the planet and posterity

The dignity of the human person

To support the dignity of the human person, we must ask ourselves difficult questions. How do we, as decision

makers, treat the people our institutions impact, directly or indirectly, as human beings and not as mere

commodities? How can our supply chains become value chains? To begin to answer these questions, here are a few

goals we could pursue:

• Education systems which are open to all and which foster equality of opportunity

• A goal of providing enough ‘good’ jobs. This requires a much greater focus on ‘good’ jobs for non-graduates;

strong technical education opportunities; apprentice schemes, a pro‐active tax and incentive system and 21st

century industrial strategy

• Fair rewards for hard work and contributions to society


• A commitment to reduce inequality and to keep income and rewards within ‘fair’ bands at the top and bottom

of the scale

• Strengthening the reality of both opportunity and social mobility

• The promotion of human well-being, happiness, flourishing and equality of freedom to live a valued life

The common good

Is our primary metric our isolated bubble, our executive team, our shareholders’ quarterly profit and loss

statements? Corporations, governments, and institutions of all kinds are given their charter with the hope that they

will seek the common good. But what happens when the invisible hand of the market lets go of the common good?

How do we restore the common good and even make that part of our bottom line? Here are a few goals we should

work towards:

• Agreement on basic, universal ethical values

• Agreement on the need for these values need to be reflected in the legislation adopted and regulations

promulgated by individual countries, and in the international economic agreements that define countries’

duties to each other

• Moving from a shareholder model of companies and a client model of other vital institutions (like schools and

universities) to a stakeholder model

• Financial sectors that are widely perceived to be stable, socially useful and accountable

Stewardship

How does the ethic of stewardship, care for both our planet and our posterity, compare to the short-termism of

market fundamentalism? What if we moved closer toward a value of indigenous people: judging success by how

our decisions impact the seventh generation out? To answer these questions, we should commit to the following:

• Stewardship of the environment and a commitment to preserve natural capital for the benefit of future

generations

• Converting an economy of endless growth to an economy of sustainability

• Adapting new measurement systems to measure progress at both national and company levels

• Engaging the next generation in designing new models and practices

As we continue the dialogue around the New Social Covenant that began in 2013, I want to call for bold action and

encourage our better instincts. What we most need is leadership on behalf of values where it matters most, where

it is most difficult and where it can have the greatest impact. All our prophets have said that the moral measure of

a society — is not its GDP, military firepower, or the success of its popular culture — but, rather, how it treats the

poorest and most vulnerable. So let us pursue this New Social Covenant with courage and hope, that we may truly

improve the state of the world for all humankind.

Author: Jim Wallis, President and Chief Executive Officer, Sojourners, USA Vice-Chair for the Global Agenda Council on Values.

http://forumblog.org/2014/08/new-social-covenant/


GAYATRI SPIVAK - WE CANNOT IMPROVE THE WORLD FROM THE TOP DOWN

THE WORLD ECONOMIC FORUM IS DEDICATED TO IMPROVING THE WORLD. WE

CANNOT IMPROVE OUR WORLD TOP DOWN. OUR NEW SOCIAL COVENANT

HAS POTENTIAL FOR REALIZING THIS.

Its itemized list calls for the re-arrangement of desires. For it begins with

“agreement on basic, universal ethical values” and continues with “the

promotion of human well-being, happiness, flourishing and equality of freedom

to live a valued life,” although it also imposes practical tasks. These last are

directed towards corporate and nation state policy makers and may be done

by other methods, but even here the desires at the top must be generally

changed so that the prime emphasis changes in turn from sustaining economic

development. And the broad ones – the philosophical ones – definitely require

going beyond usual knowledge management techniques. Perhaps we should

have separated them into two different categories. One talking the talk (basic

human values), the other walking the walk (‘good’ jobs for non-graduates; strong technical education opportunities;

apprentice schemes, a pro-active tax and incentive system and 21st century industrial strategy). One cannot walk

the walk by merely agreeing to do so. It is a collective decision, not merely something enforced from the top. You

have to learn the habit of thinking about other people as equal though not same, exactly the situation between the

reading pupil and the one who produced the literary work.

Let me explain this last statement. I am a teacher of literature as well as a member of the Council on Values, so

perhaps I emphasize literary reading too much. But I have also given time and skill (not just money and site visits)

for 30 years, training teachers and children at six small elementary schools established by me among the landless

illiterate Dalits in western West Bengal. So, however impractical I may seem, hear me out.

Normally our desire is to do things ourselves or for ourselves. In good literary teaching, the student is taught

carefully to hang out in the space of the other, to understand what the author confronts. This is the secret of the

ethical and the democratic. One has to stay with it, not follow easy steps so that one can say “I have helped you”.

We at the Council have begun with one teaching module, and I hope we will proceed to many others. The long-term

implementation of our covenant’s values, in addition to persuading CEOs and heads of state, calls for the teaching

of the humanities at all levels in all places so that the desire for social justice (spelled out in the various items of the

covenants) can inhabit the soul long-term, and not be evaluated by checking statistically how each item on a list is

institutionally fulfilled. Huge and detailed country-by-country statistical tables are no doubt useful, but in terms of

sustaining an improved world, we have to look at the fact that nations are not monolithic abstract averages, and

that evaluations are remote fact-gathering that often do not reflect everyday reality.

With respect, religion (when mobilized for good) also opens itself up to producing the opposite. It encourages a

sort of belief that often leads to the expectation of results by following a kind of spiritual toolkit. We teachers of the

humanities – literature and philosophy – at our best train the imagination into knowing ourselves differently, and

knowing the world differently, so that we want to do the good things contained in the covenant.

Today the emphasis in education is on acquiring digital speed. In order to be able to use the digital for social

justice, the soul has to be trained slowly, and that is where literary training as I have described it comes into play.

Recently, at the celebration of the Nigerian writer Chinua Achebe‘s life, the positive effect of his literary writings was

repeatedly emphasized. With my experience of work in Africa, I was obliged to say that, below a certain class line,


Nigerians had no idea who he was and what he wrote. The task therefore was to expand the circle of Nigerians who

could not only read, but also learn from the literary – just as we would say that, to meet the covenant’s work, we

must attempt to expand the circle of people for whom working the covenant is meaningful.

“Why is there such an upsurge of interest in knowledge?” asks Laurence Prusak, editor of Knowledge in

Organizations. Such a question ignores the plain fact that the word “knowledge” has changed since the pre-

Socratics. There was of course no English at that time. And if we are thinking about the world, we must – absolutely

– remember the many languages that make meaning for its peoples. As a doctor working in Kenya (who refuses

to be a top-down health worker) remarked: “The people will understand Swahili, but you can’t speak to their heart

unless you speak their language – ‘I’m getting what you’re saying, but I’m not taking it in’.”

That is a basic human value: talking to the heart. If you think it is inconvenient (as indeed it is) don’t dream of

improving the world. Our New Social Covenant, at least in the ethical rather than the merely responsible sections,

understands that real knowledge depends on cooking the soul with slow learning, not the instant soup of a one-

size-fits-all toolkit. The world is not populated by humanoid drones. You cannot produce a toolkit for “a moral

metric”, or if you do, you will be disappointed.

Author: Gayatri Chakravorty Spivak is a professor at Columbia University.

http://forumblog.org/2014/08/new-social-covenant-top-down-leadership/

DANIEL MALAN - HOW DO WE DEFINE THE VALUES THAT GUIDE US?

AT THE 2013 ANNUAL MEETING OF THE WORLD ECONOMIC FORUM, THE

GLOBAL AGENDA COUNCIL ON VALUES RELEASED A DOCUMENT ENTITLED

“A NEW SOCIAL COVENANT”. IT DESCRIBES HOW OLD SOCIAL CONTRACTS

HAVE UNRAVELLED, HOW FORMER ASSUMPTIONS AND SHARED NOTIONS

ABOUT FAIRNESS, RECIPROCITY, MUTUAL BENEFITS AND SOCIAL VALUES

HAVE ALL BUT DISAPPEARED, AND IT PROPOSES THE ESTABLISHMENT OF A

NEW SOCIAL COVENANT, BASED ON PRINCIPLES OF THE COMMON GOOD,

DIGNITY AND STEWARDSHIP OF THE PLANET.

The Global Agenda Council called for a period of global reflection and dialogue

on this concept. Between 27 and 29 August 2014, global and local business

leaders, academics and civil society leaders will participate in an event at

Stellenbosch University to discuss the New Social Covenant, with specific

reference to the South African National Development Plan.

How do you link the concept of a covenant contained in a discussion document to action that will have a real and

positive impact on people’s lives? This is the key challenge that will make the difference between lip service and

real impact. It is important to dispel a few misconceptions about the New Social Covenant. It is not a petition where

people or companies will be asked to sign up. It is not the intention that there will be one final New Social Covenant

that will inform all global discussions. However, it is possible that there will be a global working document

that will provide a framework and guidelines for action, and link to other initiatives such as the United Nations

Global Compact. The existing discussion document is the first iteration in this process, but much more extensive

stakeholder engagement will be required.


There is a logical link between the philosophy of the New Social Covenant and the National Development Plan,

which proposes as its first critical action point the creation of “a social compact to reduce poverty and inequality,

and raise employment and investment, founded on partnerships with all sectors of society”.

After 20 years of democracy in South Africa, one should not underestimate the legacy of apartheid. The National

Development Plan reminds us that the “shadow of history still lingers”, and that the country is still divided and suffering

from massive, and growing, inequality. This reminds us of the chilling words of Oliver Goldsmith, from his famous and

oft-quoted 1770 poem: “Ill fares the land, to hastening ills a prey, where wealth accumulates, and men decay.”

The challenge is so universal that it needs one major guiding framework, but it is too complex to have only one

solution. This is where the double-pronged approach of a high-level New Social Covenant based on the values

of the common good, dignity and stewardship, supported by multiple, practical and localized compacts, can be

immensely helpful.

Author: Daniel Malan is the director of the Centre for Corporate Governance in Africa at the University of Stellenbosch Business

School (South Africa) and is also a member of the World Economic Forum’s Global Agenda Council on Values.

http://forumblog.org/2014/08/new-social-covenant-forum-stellenbosch/

MARIA RAMOS - SA NEEDS SOCIAL COVENANT TO BEAT INJUSTICE OF INEQUALITY

ACROSS THE GLOBE, NEW UNCERTAINTIES ARE REPLACING OLD

CERTAINTIES. BONDS THAT TRADITIONALLY TIED COMMUNITIES AND

COUNTRIES TOGETHER IN COMMON CAUSE HAVE BEGUN TO UNRAVEL.

THIS IS ALSO TRUE IN AFRICA WHERE THE OLD IDEOLOGICAL CERTITUDES OF

THE COLD WAR HAVE BEEN REPLACED BY A MULTITUDE OF CONFLICTING

AGENDAS.

The most obvious manifestation of this new reality is the visible signs of

growing distrust of leaders and of institutions. The erosion of trust is evident

across the board — between communities, between individuals and their

governments, and between key stakeholders in society. This decline in trust in

politics and institutions is undermining citizens’ involvement in policy.

The effect has been a breakdown in collective responsibility as individuals and organisations have withdrawn from

public participation and hunkered down, jealously guarding their own narrow interests. Can anything be done to

break the cycle of mutual distrust and destruction? I believe it can, but only if we have a clear understanding of

what divides us so that we can begin to forge a common agenda around what binds us.

The most divisive issue of our age, particularly but not exclusively in developing economies, is the absence of a

“just economy”. Millions of people around the world have lost hope that the political and economic systems of

governance that we have chosen can provide sustainable solutions to our biggest challenges, chief among them

rising inequality.


The growing disparity between rich and poor is well documented and has become common cause. As the World

Bank notes in its Inequality in Focus series, this is despite the fact that the world has become considerably less poor

over the past 30 years.

In the UK, inequality is the highest in recorded history. In the US, 80% of the real increase in wealth between 1980

and 2005 went to only 1% of the population.

The African Development Bank says six out of the 10 most unequal countries in the world in 2010 were in sub-Saharan

Africa. To overcome this legacy and restore confidence, as a starting point we need to do three things: commit to

values-driven decision making; break the pattern of short-termism, and listen to and learn from our youth.

In the aftermath of the global crisis, the World Economic Forum (WEF) asked 130,000 business people what they

thought lay behind the events of 2008. Seventy-five percent said they believed the crisis was a values crisis, not just

an economic one.

More recently, a lack of values in leadership was identified as one of the top 10 key global issues in the Outlook on

the Global Agenda 2014.

In a bid to address this challenge, the WEF identified a core set of values that transcend cultural and national

differences. These are:

• The dignity of each individual, despite their race, gender, sexual orientation, background or belief;

• The importance of a common good that transcends individual interests; and

• The need for stewardship — a concern, not just for ourselves, but for future generations and posterity.

Creating a values-based culture in organisations across all sectors is imperative.

At Barclays, we are on a journey of embedding a values-based culture within the organisation by individually

committing to live by the values of respect, integrity, service, excellence and stewardship. Our aim is to deliver on

our purpose, which is to help people to achieve their ambitions in the right way.

We embarked on this journey after learning from mistakes we made that fundamentally broke the trust between

ourselves and society. Serious reflection in the private, public or not-for-profit sectors is also required on how we

go about our business.

Are we preoccupied with short-term goals? Do we sacrifice considerations about the longer-term effects of our

decisions for the sake of quarterly, six-monthly or annual targets? Are governments adequately managing the

tensions between delivering long-term solutions and their need to respond to short-term political demands?

The answers to all these questions point to an urgent need to review and reorder priorities if we are to build a more

resilient and inclusive future.

Lastly, I believe that we can learn from our youth. Many believe they have little stake in society and are showing

increasing disillusionment with “politics as usual”.


Most are abandoning their parents’ tight affiliation to traditional political parties and increasingly building a

portfolio of political engagement by channelling their political activism to single-issue campaigns. Individual choice

is trumping ideology.

The increasing availability of technology, low-cost data and smartphones has helped make co-ordination easier

while social media networks have become game-changing platforms of interaction.

Although there are potential dangers to this more fluid approach to political activism, we should all welcome the

fact that youth are showing their commitment to a more just society through active citizenry.

The notion that we learn from the young is rooted in the belief that, whatever decisions we take, our starting point

should be taking into account the interests of the future generation. This idea lies behind a major study, Now for

the Long Term, the report of the Oxford Martin Commission for Future Generations. Its purpose was “to take a step

back to examine how our actions (or inactions!) today will affect the next generation, and to think through what

institutional arrangements will allow us to build a more sustainable and equitable future”. The immediate challenge

is how we break the cycle of distrust so that we can move forward, jointly, to create this future.

One idea that has been put forward is that citizens, businesses, the government, civil society and faith groups

should design a “social covenant” based on a set of common values. These could include the dignity of individuals

and the primacy of promoting the common good.

The covenant, distinct from a “social contract”, which would be transactional, would be morally binding on all

parties, providing the scaffolding on which a new structure of trust could be built.

Given our present impasse, the social covenant is an initiative that should be given serious consideration. We can

undo past injustices and leave a legacy we can all be proud of. This we should do through forging a “coalition of the

willing” and binding ourselves in common cause to a just and more equitable world that we can proudly bequeath

to our children and our children’s children.

Ramos is CEO of Barclays Africa, which, in partnership with the World Economic Forum and Stellenbosch University,

is sponsoring a conference, A New Social Covenant, that ends today

http://www.bdlive.co.za/opinion/2014/08/29/sa-needs-social-covenant-to-beat-injustice-of-inequality


A NEW SOCIAL COVENANTSTELLENBOSCH UNIVERSITY AND THE WORLD ECONOMIC FORUM

GLOBAL AGENDA COUNCIL ON VALUES HAVE ARRANGED A SERIES OF

EVENTS TO INVESTIGATE HOW THE CONCEPT OF A SOCIAL COVENANT

CAN MAKE A CONTRIBUTION TO THE IMPROVEMENT OF SOCIETY.

COME JOIN THE CONVERSATION!

Only 300 seats available per event. REGISTRATION IS FREE, but required. Visit www.anewsocialcovenant.org to register. VENUE: Stellenbosch Institute for Advanced Research, 10 Marais Road, Stellenbosch.

27 - 29 AUGUST 2014 STELLENBOSCH | SOUTH AFRICA

A NEW SOCIAL COVENANTA PHILOSOPHICAL PERSPECTIVE

WEDNESDAY, 27 AUGUST 2014 13H00 TO 14H30, FOLLOWED BY RECEPTION

SPEAKERS:

• Gayatri Chakravorty Spivak, Professor and founding member of the Institute for Comparative Literature and Society, Columbia University, USA

• Tom Donaldson, Mark O. Winkelman Professor of Legal Studies and Business Ethics, the Wharton School, University of Pennsylvania, USA

• Moderated by Johan Hattingh, Dean of the Arts Faculty and Professor of Philosophy, Stellenbosch University, South Africa

A NEW SOCIAL COVENANT FRIDAY, 29 AUGUST 2014

13H00 TO 14H30, FOLLOWED BY RECEPTION

This session will be a live television broadcast on CNBC Africa and all members of the audience must be seated by 12h45. No late arrivals will be accommodated.

SPEAKERS:

• Klaus Schwab, Founder and Executive Chairman, World Economic Forum, Switzerland (by video link)

• Trevor Manuel, former Minister in the Presidency for the National Planning Commission, and former Minister of Finance, South Africa

• Jim Wallis, Chairman, World Economic Forum Global Agenda Council on Values, and President and Founder, Sojourners, USA

• Derek Yach, Executive Director of the Vitality Institute, former Executive Director for Chronic Diseases at the World Health Organization

• Suzanne Ackerman-Berman, Transformation Director, Pick n Pay

• Moderated by Bronwyn Nielsen, Senior Anchor, CNBC AfricaSponsored by Barclays

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