For profit or the environment?: an analysis of the relationship between the motor vehicle manufacturing industry and the green economy in South Africa
Date
2018
Authors
Mutumi, Prue Portia Jacqueline
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Abstract
Motor vehicle manufacturing plays a key role in the South African economy and in 2015
contributed 7,2% to the GDP of the country but at the same time consumes large amounts of
raw materials and discharges various forms of waste into the environment (Lamprecht, 2015).
The manufacturing industry, within which motor vehicle production in South Africa is
located, has been identified as an industry in which sustainability principles can be pursued in
spite of the adverse effects manufacturing processes generally pose for the environment.
Sustainability concepts remain largely contested because of various and at times divergent
interpretations of what sustainability imperatives entail or mean. However, several studies
have suggested that the concept refers to the use of resources in a manner that ensures that
societal needs are met on an intergenerational scale, whilst ensuring ecological conservation.
Generally, corporations have a production and profit mandate and those within vehicle
manufacturing are not exempt from this mandate. Despite the variations in the understanding
and application of sustainability, the environmental ills and the profit mandate, vehicle
manufacturers as part of the manufacturing cohort are expected to facilitate the process of
mainstreaming a green agenda in production under the ‘Green Growth Path’ that South
Africa has adopted. This is largely because the vehicle manufacturing industries in South
Africa yield resources and power that can facilitate a green agenda in production. In the
context of this study, the interrelationships have been analysed within the setting of current
debates and discussions on the “Green Economy”, profitability and sustainable development
with an emphasis on environmental sustainability on a global, international and local scale.
Using data collected through case studies conducted within the vehicle manufacturing
industry, manufacturers’ sustainability/environmental reports, in depth interviews (with
managers, vehicle dealers, Departments of Environmental Affairs and Trade and Industry,
oral data, observations and revealed the tensions and conundrums that exist in the
manufacturing-green economy relationship. Conundrums exist in that sustainability is ill
defined and global companies have redefined sustainability to suit business ultimately
controlling decisions by sitting in environmental bodies and influencing decisions to favour
business agendas. Contentions arise in instances where environmental considerations
interfere with economic interests. The power corporations yield by virtue of their financial
muscle, the interpretations of sustainability and the profitability mandate over environmental
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concerns is evident in the life cycle of a vehicle from raw material sourcing up until the end of
life. Environmental preservation and manufacturing are concepts that therefore are at odds
with each other particularly given what they seek to satisfy, but the current drive has been to
advocate for harmonious co-existence between production and conservation.
The challenges in the relationship between manufacturing and green initiatives stem from an
almost insincere or hypocritical approach towards environmental protection adopted by
vehicle manufacturers as seen in sustainability reporting, supplier relations and a lack of fair
platforms that can be used to address environmental concerns. This is aggravated by an
overall lack of political will to address environmental concerns particularly in emerging
economies. Corporations are set up with a strong profitability mandate and pursue and
promote this mandate and deal aggressively with anything that hinders financial gain and this
is evident in the way in which the adoption of green initiatives is explained in line with cost
reductions, innovation, growth potential, potential savings, reputation protection or
competitive advantage.
The suggested recommendations include reviewing the meanings attached to sustainability in
relation to manufacturing to ensure preservation is not anchored on the business case for
sustainability. In addition manufacturers should also focus on the total effects raw materials’
extraction has on the environment and not just concentrate on the production sites. This can
also feed into aspects of sustainability reporting to ensure it is not conducted solely to fulfill
legal requirements or as a marketing tool but as a platform to create viable solutions. The
strengthening of the political framework will also help in controlling manufacturers’ capture
of the greening dialogue and restructuring CSR activities to give back into the environment
from which the raw materials are derived from.
Further research can be conducted to explore the sustainability-manufacturing link and the
complexities that arise in setting up manufacturing as the main area for greening the
economy. Building on this, more work can be conducted on teasing out the vested interests
that hinder the greening process emanating from various sources such as global companies,
local and host environment aspiration to cite a few. Finally, as raw materials are central in
production, tracing raw materials from source together with waste generated at every value
addition stage up to the production site until disposal of the manufactured component at end
of life would give insights into the components that pose the most threat on the environment
and these can then be used as a basis to develop less harmful and more viable alternatives
Description
A thesis submitted to the faculty of science, at the University of the Witwatersrand, Johannesburg, in fulfillment of the requirements for the degree
of Doctor of Philosophy
Johannesburg,
February 2018
Keywords
Citation
Mutumi, Prue Portia Jacqueline, (2018) For profit or the environment?: an analysis of the relationship between the motor vehicle manufacturing industry and the green economy in South Africa, University of the Witwatersrand, Johannesburg, https://hdl.handle.net/10539/26898