July 2, 2008
Mugabe’s banknote buddy in CSR epiphany (sort of)
Under pressure from the German government, Giesecke & Devrient has agreed to stop supplying Robert Mugabe’s despotic and incompetent regime with banknote paper. Hyperinflation has forced the Zimbabwean central bank to print more and more banknotes, a trend that fuelled demand for the German group’s wares.
Here is an excerpt from the Giesecke & Devrient press release:
The company has taken this step in response to an official request from the German government and calls for international sanctions by the European Union and United Nations.
“Our decision is a reaction to the political tension in Zimbabwe, which is mounting significantly rather than easing as expected, and takes account of the critical evaluation by the international community, German government and general public,” explains Dr. Karsten Ottenberg, Chairman of the Management Board and CEO of Giesecke & Devrient GmbH.
I asked a Giesecke & Devrient spokesman what would happen to the profits it had made as a result of Zimbabwe’s calamitous hyperinflation. The spokesman wouldn’t answer the question but said that the company was unable to make its own political assessments of state customers but had to rely on international bodies such as the UN to take the lead.
Corporate social responsibility experts: I think you have a case study in the making here.
Perhaps this will stop the hyperinflation- unless Mugabe finds another supplier.
If not he will move on to loot another sector of the economy- how about shares?
Posted by: andrew storer | July 3rd, 2008 at 8:44 pm | Report this commentThe German government should also declare its position regarding corporation tax received or receivable on profits made by this company.
Posted by: George Ng'ambi | July 7th, 2008 at 11:02 pm | Report this commentThe Wall Street Journal has an interview with Gideon Gono, the governor of the Zimbabwean central bank today. It quotes him as saying: “Traditional economics do not fully apply in this country.”
He is also quoted as saying that a central banker should be loyal to his president in the same way that the disciples were loyal to Christ.
Posted by: Adam Jones | July 8th, 2008 at 10:32 am | Report this comment