South African Investment Paper

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Date Submitted: 03/14/2013 08:10 AM

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South African Investment Paper

The main goal of Caltex, like any business, was to expand their company to increase profits within their organization. When Caltex initially entered South Africa the utilitarian benefit of building the plant outweighed the wrongs being committed by Apartheid. In building in South Africa, Caltex was not condoning the behavior of Apartheid, rather to offer better jobs to blacks and other minorities.

Moral rights are, “usually thought of as being universal insofar as they are rights that all human beings of every nationality possess to an equal extent, simply by virtue of being human beings.” (Velasquez, 2006, p. 93, para. 3) Although the moral rights of the minorities are important, when Caltex entered South Africa there were more important basic needs that needed to be satisfied, such as food and shelter. Upon entering South Africa, Caltex was able to hire, educate, and provide alternative means for minorities to provide for their family. Initially, fulfilling moral rights were of little importance to minorities when their families were starving.

The government in South Africa did have a vested interest in keeping Caltex in their country. Caltex provided the government with about 7% of their oil sales and oil produced about 25% of South African energy needs. (Velasquez, 2006, p. 74) With that said, Caltex did have some political power with the government of South Africa. Caltex used some of this political power to push the boundaries with their hiring, treatment, and promotion of the minorities within the company. “In the 1970‘s foreign companies within South Africa helped black incomes rise by more than 150%.” (Velasquez, 2006, p. 75, para 3)

Caltex provided an overall benefit to these people by expanding their company to South Africa and again within South Africa. Utilitarianism means “taking a moral view in a situation that the right coarse of action will provide people the greatest benefit while...