1.

Origins of sustainable development

Sustainable development as defined by Brultand Commission is the development that meets
the needs of the present generation without compromising the ability of the future generation
to meet their needs (Borrow, 2013). Sustainability is the base for the Sustainable
Development Goals also known as the Global Goals. Sustainable Development Goals are a
set of objectives set within the worldwide agreement to attain a more sustainable future for
everyone. The Sustainable Development Goals (SDGs) were established at the United
Nations Conference on sustainable development in Rio de Janeiro (Brazil) in 2012(Morton et
al., 2017). These goals address the global challenges faced by everyone, including factors
such environmental degradation, poverty, prosperity, inequality and peace and justice.
Transnet is a huge South African port, rail and pipeline company and it was formally known
as the as Petronet. The Transnet’s pipelines help with the transportation of gas and petroleum
to variable destinations. Due to Transnet irresponsible management of transporting crude oil
through pipelines that were corrosive and rotten, has given rise to people-planet-profit trades-
offs that are unsupportable. The crude oil spillage into Umbilo River has come with its every
own consequence to the environment, humans as well as the businesse’s (Transnet) profit.
The oil spillage on Umbilo River has caused a major effect on the soil, fauna and flora, it has
poisoned the surface water as well as the groundwater and has also destroyed the aquatic life.

2.The impact of oil spillage on the environment, humans and profit

The oil spillage in the Umbilo River caused by the corrosive and rotten pipeline lead to an
instant and long-term environmental damage that could last for years. The spillage of crude
oil has caused oil pollution in the river and this could and will harm the animals and any other
living organisms surrounding the river. Due to fact that the oil contaminated the river it
caused the food chain to be disrupted and it may also lead to the prevention of photosynthesis
in plants. The organisms that are maintained in the environmental balance are killed due to
the oil spillages.
Residents along the Umbilo River are affected due to the water being polluted. Oil spillages
causes a great inconvenience to both the environment and the people living in the area. The
residents living along the river can be exposed to diseases caused by oil spillages. If the
people in the contaminated environment use the river for swimming, they could be also be
affected by the water. Consuming fish or water from this river can cause serious health issues
to people. Even if people do not live close to the affected area, if they consume food coming
from there they get affected. The people that are mostly affected and are a great risk are
those that are responsible for cleaning up the spills. Some of the many health issues that these
individuals can face is; breathing difficulties, skin and eye irritation, stress and can cause
harm to the neurologic system.
The oil spillage did not only impact the environment and humans, but also impacted the
business financially. Cleaning up the oils spill is very costly and expensive whereas the cost
could be thousands or billions of Rands. Transnet suffered a great loss on its profit because
management obligated to spend money on replacing the oil that was spilt into Umbilo River,
pay for the cost of cleaning the river and surrounding area that were affected. Since the
insurance company may not have paid for spillage because Transnet did not follow the
correct procedure and guidelines of transporting the crude oil.
3.Corporate social responsibility
Corporate social responsibility (CSR) also known as social responsibility concentrates on
moral and ethical issues which effects corporate decision making and behaviour (Jamali &
Mirshak, 2007) Social responsibility is the belief that a business can keep a balance between
giving to the society and making a profit for the business. Social responsibility gives a
business an indication of how a business should act so that there is a balance between its own
personal gain and societal benefits. Firms do need to make profits, but it should not be done
at the expense of the environment or the society. Businesses should practice ethical decision-
making to generate responsible decisions and to lessen the need for government interference
for example, Environmental Protection Agency (EPA) which is used to monitor business
decisions and practices that used to prevent pollution (United States,1995). Corporate socially
responsible organisations are aware of the trade-off concerning economic growth and the
safety of the society and environment. Hence, they stay away from socially dangerous
practices and they participate activities that are beneficial to the society, but Transnet failed
to do so. The oil spillage in Umbilo river shows that there is an urgent need for social
responsibility.

3.1Social responsibility practices used to reverse the damage caused in Umbilo River
The government as well as Transnet will work together to implement measures to prevent the
damage of oil spill to the environment by using CSR practices. Transnet has reported theft of
fuel and incidents of attempted fuel theft. Some prevention measures that Transnet can take
are applying anti- theft defence mechanisms such as putting fuel sensors and anti-siphoning
on the vehicles, also putting anti-tamper locks and steel cages for fuel wellheads. Transnet
can use the following tools to prevent the environment from getting damaged:
1.Compiste wells
2.Concrete berms
3.Plastic trays
4.Earthen berms
All these tools are used to keep oil in case of an oil spill.
Transnet will have to retrench some of its workers in order to get the equipment needed to
clean the damage the oil caused in Umbilo river. Due this some of their employees will
become unemployed and this will affect the employee’s standard of living. Transnet will
incur in a loss for a short period of time because they will use a lot of money due to the oil
spillage but will gain it back as many workers are replaced by machinery and the salary
meant for the workers will become profits.

For a business to prosper it needs to consider Corporate social responsibilities in order to

attain a sustainable future and to attain a sustainable future a business should consider the fact
that the needs of the future generation cannot be compromised. Transnet did not consider the
future generation when it made unethical decision of transporting crude oil through pipelines
that were corrosive and rotten knowing full well that those pipelines were not suitable enough
to transport crude oil. This caused a major impact on the people, planet and profit and it
caused damage to Umblio River and its surrounding areas. Therefore, this could have been
prevented if Transnet engaged in CSR practices, but they preferred making a profit that lead
to the environment being damaged.
References
Borrow, I. (2013). Defining sustainable development for our common future: A history of the
World Commission on Environmental and Development (Brundtland Commission).
Routledge.
Jamali, D., & Mirskhak, R. (2007). Corporate social responsibility (CSR): Theory and
practice in a developing country context. Journal of business ethic, 72 (3), 243-262.
Morton, S., Pencheon, D., & Squires, N. (2017). Sustainable Development Goals (SDGs),
and their implementationA national global framework for health, development and equity
needs a system approach at every level. British medical bulletin, 1-10.
United states. Environmental Protection Agency. Office of Pollution Prevention, & ICF
Incorporated. (1995). An introduction to environmental accounting as a business management
tool: key concepts and terms. US Environmental Protection Agency, Office of Pollution
Prevention and Toxics, 1995.