Amazon reported to OECD over ‘no-whites’ programme in South Africa

Solidarity filed a complaint against Amazon Web Services (AWS) with the Organisation for Economic Co-operation and Development (OECD) in Washington, DC.

The OECD sets standards for how multinational enterprises should conduct themselves, including with regard to human rights, labour relations, and discrimination.

This complaint is based on its exclusion of businesses with any white ownership from a development programme for South African small businesses.

This followed a Newsday report on Amazon Web Services’ (AWS) Equity Equivalent Investment Program, which promotes diversity and inclusion in South Africa.

The programme only accepts 100% black-owned businesses and disqualifies any company where a white person is a shareholder.

According to Solidarity, Amazon’s 100% race-based exclusion violates the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct.

Of the 52 countries that are members of the OECD and endorse the guidelines, the United States is one.

According to Dirk Hermann, Chief Executive of Solidarity, the 100% exclusion goes further than anything South African law requires.

Solidarity argued in its complaint that the race-based exclusion violates United Nations conventions.

Hermann said that Solidarity will also inform the US government of the complaint and the alleged violation.

“The US government is right to put pressure on South Africa to scrap race laws that impose trade restrictions on American businesses,” he said.

“However, an American giant is using race-based requirements to enforce trade restrictions in South Africa.”

Hermann said that if Amazon is found guilty, Solidarity will also call on the United States government to take further action.

The argument against exclusion based on race

The AWS programme at the centre of the complaint is described as a development and acceleration programme.

It is aimed at businesses looking to grow their AWS business and develop as partners in the Amazon Partner Network.

“However, the first eligibility requirement is that a business must be 100% black-owned,” Hermann said.

“Businesses with even partial white ownership are automatically excluded, regardless of their size, needs, potential or the composition of their workforce.”

Hermann said that this is absurd, given that Amazon presents this absolute exclusion as inclusivity. White and black entrepreneurs are prevented from working together.

“The 100% requirement creates a racial barrier, based on the false premise that only businesses with exclusively black ownership deserve support,” he said.

“It also signals that the needs and potential of other small businesses can simply be disregarded because of the skin colour of their owners.”

According to Solidarity, Amazon’s defence that it is relying on South Africa’s black economic empowerment policy is wholly inadequate.

“There is no South African law that requires 100% black ownership,” Hermann said in a press statement.

The OECD Guidelines state that multinational enterprises must respect human rights even where local governments fail to protect them adequately.

Solidarity also argued that the programme does not meet South Africa’s constitutional requirements for race-based programmes.

Solidarity is asking the US National Contact Point to facilitate mediation between the parties.

“If no agreement can be reached, the OECD is asked to recommend that Amazon remove the race-based requirements for participation in the programme,” he said.