IBM Says It'll Stay in South Africa

As long as IBM's South African operations remain lucrative and a source of social progress, the multibillion dollar corporation will continue to do business in the apartheid state, IBM President and Chief Executive Officer John F. Akers last night told an Institute of Politics audience.

"As long as we're successful and as long as we believe that our presence in South Africa is a force for change, we're going to remain," said Akers before an audience of approximately 300 students, business executives and computer experts.

Akers said IBM would consider closing its South African operations if a majority of South African Blacks regarded his corporation's engagement in South Africa as detrimental.

The computer mogul spoke on corporate social responsibility after IBM was awarded the Kennedy School's George S. Dively Award for Corporate Public Initiative. The honor, which was awarded for the first time this year by the Kennedy School's Center for Business and Government, commends the corporation for its domestic programs which help the disabled, minorities and women to find jobs.

While the chief executive's speech centered on IBM's public service programs, questions from members of the audience focused on IBM's involvement in South Africa.

Campus divestment activists have sharply criticized Harvard's $65 million holdings in IBM stock. At least three members of the Southern Africa Solidarity Committee, the divestment group, challenged IBM's position during a question-and-answer period.

Akers cited IBM's support for Black entrepreuneurial efforts, donation of computer equipment to Black schools, and training of Black employees as proof of IBM's positive business role in South Africa. Akers said that IBM has made its opposition to apartheid "crystal clear to the South African government."