Investor Relations: New Trends

This videos illustrates the new trends in the Investor Relations Industry 

Investor Relations

Investor Relations (IR) is a strategic management responsibility that integrates finance, communication, marketing and securities law compliance to enable the most effective two-way communication between a company, the financial community, and other constituencies, which ultimately contributes to a company's securities achieving fair valuation. (Adopted by the NIRI Board of Directors, March 2003.) The term describes the department of a company devoted to handling inquiries from shareholders and investors, as well as others who might be interested in a company's stock or financial stability.

Typically investor relations are a department or person reporting to the Chief Financial Officer (CFO) or Treasurer. In some companies, investor relations are managed by the public relations or corporate communications departments, and can also be referred to as "financial public relations" or "financial communications". Investor relations are considered a specialty of public relations by the U.S. Department of Labor. (Month. "Public Relations Managers and Specialists: Occupational Outlook Handbook : U.S. Bureau of Labor Statistics." U.S. Bureau of Labor Statistics. N.p., n.d. Web. 16 Apr. 2012. <http://www.bls.gov/ooh/Management/Public-relations-managers-and-specialists.htm>.)

Dealing with the investment community is extremely difficult. It requires mastery of a variety of communication vehicles, including road shows, earnings releases, press releases, annual reports, fact sheets, and more. In addition, one must know how to deal with investment bankers, brokers, institutional investors, and retail investors. To make things more difficult, all communications are subject to strict disclosure requirements. Running an Effective Investor Relations Department addresses all of these issues and many more, including blue sky laws, short sellers, proxy solicitations, and metrics. (Bragg, Steven . "Investor Relations Book - AccountingTools." Accounting Books & CPE - AccountingTools. Accounting Tools.com, n.d. Web. 16 Apr. 2012. <http://www.accountingtools.com/book-investor-relations>.

 

The following are some of the major duties that are to be performed by any one occupies the Investor Relations Officer :

Develops and maintains a company investor relations plan 

Performs a comprehensive competitive analysis, including financial metrics and differentiation.

Develops and monitors performance metrics for the investor relations function

Establishes the optimum type and mix of shareholders, and creates that mix through a variety of targeting initiatives.

Monitors operational changes through ongoing contacts with company management, and develops investor relations messages based on these changes.

Provides Regulation Fair Disclosure training to all company spokespersons.

Creates presentations, press releases,  and other communication materials for earnings releases, industry events, and presentations to analysts, brokers, and investors.

Oversees the production of all annual reports, SEC filings, and proxy statements.

Manages the investor relations portion of the company web site.

Monitors analyst reports and summarizes them for senior management.

Serves as the key point of contact for the investment community.

Establishes and maintains relationships with stock exchange representatives.

Organizes conferences, road shows, earnings conference calls, and investor meetings.

Provides feedback to management regarding the investment community's perception of the company.

Represents the views of the investor community to the management team in the development of corporate strategy.

Provides feedback to the management team regarding the impact of stock repurchase programs or dividend changes on the investment community. 

For more information visit this website http://irwebreport.com/20110414/social-media-investor-relations-reaches-tipping-point/. 

Multi-Generational Workforce

Summary : this article has mainly focused on the issue of understanding the generations in order to be able to manage . This article addresses the issue of knowing the similarities if exist and the differences which the article assures that it does exist between these generations .

In the workplace, the managers who have such concern need to come up with new concepts that would be able to put together those employees from different ages and who necessarily have different values , perceptions, preferences, and more importantly in regard to the communications they have different preferential .

The article studied the idea of the major factors that shape each generation’s perspectives, opinions, values, and all related issues that might be integrated into the nature of work .

This will enhance and enrich the process of understanding , and as a result the management will be able to handle any problems that could have resulted from the differences between these generations .

The author suggested that by offering more choices and more channels of communications , the workers from all generations would more likely feel satisfied , this will enhance the cooperation and facilitate and ease the communications between them. He also suggested that the training for all employees will enhance the idea of cooperations and will ease the communications , and suggested that building a dynamic environment in the workplace will also contribute in involving all employees in a successful strategy for communications.

Leading a Multi-Generational Workforce

by Dr. Joanne Sujansky, Ph.D., CSP (Certified Speaking Professional)

Before making assumptions about employee retention based on past experience, consider that you are about to see a new wave of employees with a whole new set of expectations swarm the workplace. Known as Generation Y, they have been entering the workforce since 1998 and will continue to do so in burgeoning numbers.  Managers need to prepare for the unique requirements of Gen Y and the inevitable clash between Gen X, Gen Y, Baby Boomers, and Traditionalists as they mix in the workplace.

To begin with, it is helpful to understand the environment that shaped each group. With this information, you can then adopt an innovative management style, motivate them to work together, and minimize conflict among the different generations.

What Shaped Them
Born before 1945, Traditionalists were influenced by the Great Depression and World War II. After the war, this generation rebuilt America by having faith in and partnering with institutions. In so doing, they displayed a strong work ethic and fueled the economic boom. Fifty percent of Traditionalist men are war veterans.

Born between 1946 and 1964, Baby Boomers grew up in optimistic times of expansion, watching and living “Happy Days.” They had great expectations and the world had great expectations of the Boomers. Where their parents fought wars abroad and came home victorious, Boomers fought for their glory at work.

Generation X was born between 1965 and 1980. They experienced economic difficulties during the early ‘90s just as they were entering the workforce. Many were forced to take temp work, wait tables, and accept jobs outside of their area of study in college. Because Gen X came of age during a bleak job market amid soaring national debt, the harsh economic realities of the time shaped their worldview. They are armed with the knowledge that there are no guarantees.

Gen Y was born between 1981 and 1999. They grew up in a time of economic expansion and unprecedented prosperity, and until now have never experienced a downturn. Those in this generation have seen more at an earlier age than most in previous generations, such as the Oklahoma City bombing, the Columbine shootings and the tragedy of September 11. Exposure to these events through 24-hour media has brought the world instantly to them. This is a techno-savvy generation who has “seen” the world. 

Generational differences represent a critical new aspect to workplace diversity.  At no other time in history have organizations been faced with four generations of employees working together.  But the differences that separate these generations do not have to result in conflict and lost productivity.  Below are suggestions for leading all groups successfully.

Offer Choices
While different, Gen X and Gen Y have some similarities. Both will demand a more innovative workplace, with flexible hours, state-of-the-art resources, cooperative scheduling, and understanding supervisors. Both want to build a portfolio of skills and are committed to career development. They will continue to negotiate a work-life balance.  While Traditionalists and Boomers may not request as many choices, make the same options available to them as you do to the other generations.

Offer Training Opportunities
To retain employees of all generations, it is important to appeal to their desire to learn. Emphasize career growth, paid training, and skill development. Coach team members as they continue to develop new skills and acknowledge their progress.

Create a Dynamic Workplace
Because the incoming group of Gen Y employees will be so large, the workplace will have to change to accommodate their unique attributes. Leaders have to evolve as well. They will have to be creative in developing new motivational techniques if they want to retain their employees and to obtain the highest performance and output possible. Managers must be innovative to retain the best people.

Build a Successful Multi-Generational Environment
To enhance the work environment, recognize that these groups will have different perspectives, and respect that they differ in the view of the world. It will be necessary to implement and reward collaborative activities with a multi-disciplinary approach. This will support positive relationships among all your employees and go a long way toward retaining your best team members.

About the Author:
Dr. Joanne Sujansky, CSP, has over 25 years of experience helping leaders increase organizational growth and profitability by creating and sustaining what she calls a “vibrant entrepreneurial organization.”  She is an international keynote speaker, founder of KEYGroup® and the author of numerous books on leadership, change and retention.  A member of the National Speakers Association, she holds their highest earned designation, Certified Speaking Professional.  Reach her at 724-942-7900 or atwww.joannesujansky.com.

Reference:

Sujansky, Dr. Joanne. "Leading a Multi-Generational Workforce."Comprehensive Employee Assessments by Key Group. N.p., n.d. Web. 4 Apr. 2012. <http://keygroupconsulting.com/multige

ARTICLE 2 :

The presence of different generations in the work place has become a major concern for the executives to deal with especially if we know that we are talking about four generations now which are :

Seniors , Baby Boomers, Gen X, Millennial

Each has different preferences , different skills , different opinions about any particular event , different perceptions , therefore, if these generations are to put together in the same workplace , there would likely be either clashes or mutual agreement that can be reached , or there would also be a kind of battling for survival , battling for gaining the boss’s satisfaction , battling to force the other party to prove its righteous . However, this diversity could be useful as I personally think if the managers can successfully put a strategy how to manage the work environment taking into considerations this very important factor .

In order for a manager to do so , he/she needs to define the generations that are exist in the workplace , define all the potential differences , define the effects of all differences on both sides and the impact on the work effectiveness and efficiency , define the barriers that shapes the gap between the exist generations regarding to the communications . After doing so a manager can come up with a plan that will satisfy all generations at the workplace  . By better understanding each party’s best ways regarding to all potential issues that Might arise in the workplace, a manager can successfully handle the situation and at least maintain mutual respect and understanding between the different generations in the workplace  .

A study conducted by two researchers (Susan Hannam and Bonni Yordi, explore these cultural differences and changes and what they mean for government executives trying to ensure their entire workforce is engaged in the mission.  Their report, “Engaging a Multi-Generational Workforce:  Practical Advice for Government Managers,” observes that each of the four generations brings a different set of skills and life experiences to the workplace which can be used positively to increase diversity of knowledge and perspectives.)

·         Communication Tips.  Each of the four generations now in the workplace have different preferences on how they like to both receive and send communication, as well as how they like to interact with colleagues.   The report outlines suggested ways!

·         Work-Life Balance Tips. Each of the four generations has different work-life balance needs and the flexible work arrangements should be designed to meet the specific needs of the four generations.  For example, leaders need to rethink what work is, and where it can be done.  Another IBM Center report focuses on telework, but there are other strategies as well, such as compressed work schedules, which the federal government pioneers two decades ago.

·         Growth and Development Tips.  Each of the four generations has different learning styles and preferences as to how they like to obtain information and knowledge.  For example, actively embracing social networking – instead of banning it – can dramatically improve productivity and serve as a way to attract talent.

·         Tips for Providing Recognition and Rewards.  A multi-generational workplace requires organizations to develop new types of reward and recognition programs, including rewarding contribution.  While traditional workers like tangible symbols of recognition, such as plaques and certificates, people from the Gen Y period prefer other recognition such as time off or upgraded resources.  Tailoring recognition to be meaningful to the recipient needs to be a factor.

·         Employee Engagement Tips.  A multi-generational workplace requires organizations to increase their mentoring initiatives and offer various types of mentoring programs, including opportunities for younger generations to mentor older generations, for example, in the uses of new social media technologies.  This can be one way to increase skill development but also can be a way to create and maintain cross-generational engagement.

Some federal agencies have approached this challenge head-on.  For example, NASA developed a program to attract and retain new, younger employees and found that the other generations wanted to be included as well, so the program was expanded.

Citation:  Hannam, Susan, and Bonni Yordi. "Engaging a Multi-Generational Workforce: Practical Advice for Government Managers." Businessofgovernment.com. Businessofgovernment.com. Web. 4 Apr. 2012.

Strategic Communication

In the era of a constantly changing business environment , all the continued development in the Information Technology , and the restructuring processes that are taking place especially after the economical downward in the post 2007 aftermath , all companies have been trying to strategically organize the process of communication at the internal level and the external level , in other words , all the insiders and the outsiders who may have stake in the company and what it does.

Strategic Communication can mean either communicating a concept, a process, or data that satisfies a long term strategic goal of an organization by allowing facilitation of advanced planning, or communicating over long distances usually using international telecommunications or dedicatedglobal network assets to coordinate actions and activities of operationally significant commercial, non-commercial and military business or combat and logistic subunits. It can also mean the related function within an organization, which handles internal and external communication processes. Strategic communication can also be used for political warfare.(http://en.wikipedia.org/wiki/Strategic_communication). 

Strategic Communication (SC) provides a conceptual umbrella that enables organizations to integrate their disparate messaging efforts. It allows them to create and distribute communications that, while different in style and purpose, have an inner coherence. This consistency can, in some instances, foster an echo chamber that reinforces the organizational message and brand. At minimum, it prevents contradictory, confusing messaging to different groups across all media platforms. 

Case study on CSR

This is a case study from Harvard Business Review , You guys may take a look at it and I have provided my presentation also . This case relates also to Social Responsibility role that a company could play in those regions where people are poor and suffer from political fraud and instability . 

The CEO of a watchband manufacturer considers opening up a factory within a "safe zone" in North Korea, but is it too risky? This fictional case study will appear in a forthcoming issue of Harvard Business Review, along with commentary from experts and readers. If you'd like your comment to be considered for publication, please be sure to include your email address.

***

"You know, this isn't just business as usual..."

Park Jeehee, the CEO of the watchband manufacturer Timepiece, listened carefully as a guide talked her and her small executive team through the details of the Kaesong Industrial Complex (KIC), a South Korean manufacturing zone in North Korea.

"As you can see, this is a sophisticated operation," he boasted. Pointing to the blazer-clad workers exiting several factories, he added, "The KIC is a physical example of the prosperity Koreans can create when peacefully working together."

As a South Korean, Park was more than a little skeptical: She'd grown up fearing the government in the North. But she understood why Hyundai Asan, a division of the South Korean Hyundai Group, had in the early 2000s led efforts to develop the KIC. The complex, supported by both Korean governments, was intended to promote "coexistence and co-prosperity"; indeed, it represented the largest area of economic cooperation between the two nations. It had already attracted more than 100 companies, with tens of thousands of employees. South Koreans served predominantly as managers, and North Koreans provided most of the unskilled and semiskilled labor.

Park had not given much thought to doing business in the KIC until a fellow CEO, who had moved his manufacturing plant there in the past year, encouraged her to visit. Government officials looking to draw more companies to the complex had set up the trip. And now she and her team were north of the Demilitarized Zone in one of Korea's oldest cities, Kaesong — not even 70 kilometers from Seoul, although it felt a world away.

The previous day, despite constant chaperoning, the group had glimpsed some of the abject poverty of the North — sights that had heightened Park's doubts. But as she took in the sprawling complex, set against a traditional agrarian backdrop, she realized that it truly felt different from the North Korea she had always imagined. The workforce appeared to be organized and efficient. The manufacturing facilities, although basic, were well maintained and up-to-date. The gated complex even contained branches of a South Korean bank and a popular South Korean convenience store.

"This is impressive," Park whispered to her CFO, Kim Jaehyun, as they readied for the journey home.

Nodding in agreement, he said, "It certainly gives us something to think about."

But they would need to think fast: Park would be meeting with Timepiece's board the following week to make a recommendation.

Real Benefits, Real Risks
The next morning, back at the company's headquarters in downtown Seoul, Park sipped a cappuccino and looked across her desk at Kim. "Now that you've had a chance to sleep on it, what do you think?" she asked.

"Well," Kim began, "I phoned a few of the CFOs who have operations in the complex, and the labor savings and productivity estimates in the KIC literature seem real."

Park recalled reading a few years ago that the monthly wages of North Korean workers at the KIC averaged $57.50 — far less than those of similarly skilled workers in Qingdao ($100) and Ho Chi Minh City ($134). There would be no language barrier to contend with, and shipping between Seoul and Kaesong was substantially cheaper and easier than shipping to and from China or Vietnam.

"Capital risk also seems low," Kim continued, "because of the South Korean government's guarantee of up to 90% of our capital investment, along with privileged access to low-interest loans. For now the government appears committed to the KIC as a way of peacefully engaging the North. But there are other risks involved. On several occasions North Korea has threatened to send its workers out on strike. And just last year it unilaterally canceled all contracts and demanded huge wage increases. We could lose a lot of time and money if such incidents continue. And we have to consider how manufacturing in North Korea, given the international sanctions it's under, would affect customs and trade agreements. Exporting goods made in the KIC could be problematic."

"Of course," Park replied. "But the companies already doing business in the KIC don't appear to be suffering from the uncertainty. And global firms have always operated in politically volatile regions, often quite profitably — look at oil and mining in sub-Saharan Africa. Without risk, there's really no reward."

People First
"Honestly, Jeehee, I'm uneasy," said Mark Lee, Timepiece's vice president of human resources. He tugged anxiously at his watchband, twisting it around his wrist. "You're as aware of the potential problems as I am. After the shooting on Mount Kumgang and the detainment of that Hyundai employee, I'm hesitant to send our people in."

Two years earlier, North Korean soldiers had shot and killed a middle-aged woman on a South Korean-run tour of a resort in the North. More recently, North Korean authorities had arrested a Hyundai Asan employee in Kaesong for allegedly encouraging a local waitress to run away with him.

"Not to mention that our managers will have to stay in the complex for extended periods, with limited communication with their families," Lee added. "And we haven't even talked about the North Korean workers. Are we comfortable with how they may be treated?"

Lee was broaching a sensitive issue. Two days before her visit, Park had gotten a call from an old college friend who now worked for a human rights group in London. The picture he painted of Kaesong was grim. The wages earned by North Korean KIC workers were paid to the government, which supposedly distributed some of the money to them — but it was impossible to know how much. And there were unconfirmed rumors that North Koreans working in the KIC were considered "contaminated" by exposure to outside practices and were not allowed to return home.

"But wouldn't we be giving North Korean employees a better quality of life?" Park asked.

"That's possible," Lee conceded. "Our factory would provide a better work environment than what they're used to. But we would have no transparency and very little autonomy. The North Korean regime wouldn't allow us to make any substantial changes to our plant; we'd be bound by the agreements signed several years ago by the KIC's founders. Add that to the questions about our employees' safety and the broader human rights situation in the North, and I'm not sure
it's worth it."

"Everything you're saying is true," Park replied. "But does it mean we can't do business there? Furniture makers in places like Pakistan deal with the risk of human rights violations all the time. It just means they must set a higher standard for themselves. Couldn't we do the same?"

Hold the Politics
Later that day, at lunch with a friend who was a member of the South Korean parliament, Park pushed a small pile of noodles around her plate. Across the table, Keel Young-hoon provided a politician's perspective and a counter to Lee's apprehensions.

"How could you pass up an opportunity for patriotism and profit?" he asked.

Keel belonged to the liberal minority party — the second-largest political faction in South Korea and a strong supporter of the KIC.

"This isn't just a business decision, Jeehee," he contended. "Opening a factory in Kaesong would be an act of public service. The KIC was founded with reunification in mind, and look at all the good it's already doing. North and South Koreans are working side by side for the first time in decades! North Koreans are getting exposure to market economics. And it's a fantastic show of goodwill toward the North."

"I can definitely see that," Park said. "But there's a lot of uncertainty, not only for businesses but also for the future you envision. It's far from a slam-dunk proposition."

"You need to view it as a long-term investment," Keel told her. "Just as the West Germans' Ostpolitik was pivotal in unifying the two Germanys, the KIC will be a key factor in our reunification."

Park admired his optimism, but she remembered that only two decades earlier, providing resources to the North Koreans had been considered treason. She knew that attitude had not entirely disappeared. In fact, majority-party politicians had tried on numerous occasions to shut down the KIC. Park did see merit in the argument that the KIC might aid reunification — something that she, with distant relatives still in the North, would be thrilled to see. But the political aspects of the project worried her. For every person happy about a decision to open shop in the KIC, there would certainly
be another person opposed.

"I'm not sure I'm ready to be a politician yet," Park said, smiling at her friend. "I'll leave that to you. But it's hard not to want this to work."

Tick tock, Tick tock
Late that afternoon Park sat in her office, prototypes of two watchband designs resting atop the KIC documents on her desk. As she thought about the conversations she'd had throughout the day, she gazed at the Han River below. In a way, she envied the Han: Its waters flowed from two rivers, one originating in South Korea and the other in the North, merging easily with no concern for national boundaries.

Although those she'd spoken with had agreed that economic benefits could accrue from the proposed arrangement, her talks had also driven home the other concerns she had to weigh. She could think of lots of relevant case studies — textiles in Bangladesh, divestiture from apartheid South Africa, business engagement with East Germany. But every situation was different. Methodically, Park listed the pros and cons on the legal pad in front of her, using quick, precise strokes of her pen.

If Timepiece opened a Kaesong plant, it could improve the quality of life for many North Korean workers. But would the communist regime interfere with the company's good intentions, threatening the business as well as its employees? Were the potential economic benefits worth the human risks? And how should politics and national pride factor into the decision?

Park had to move carefully, but she knew that time was of the essence. The board meeting was coming up soon. She set her pen down on her pad, closed her eyes, and thought hard about whether to expand Timepiece's operations to North Korea.

Should Park set up shop in Kaesong or not? .


What do you suggest?

—

CSR . Article

we have just discussed the issue of corporate social responsibility,this issue has increasingly become a main concern especially after the financial crisis in 2007-2008 and its aftermath. Some of the big corporations were involved in unethical transactions and they were pursuing profits and money without paying any attention to the society.However,as a result , most of the companies have renewed and changed their code of ethics to be more socially responsible and top show that they care about the community and they do good.

I found an interesting article which was written and published on Forbes website by Dr. David Vogel (David Vogel is a professor at the Haas School of Business at the University of California, Berkeley and the author of The Market for Virtue: The Potential and Limits of Corporate Social Responsibility (Brookings, 2005). 

In his article he argued that behaving responsibly can be debated as its not going to be rewarded and would likely not result in real benefits as a returns on those who do so. Although, he supported this idea and called on keep doing so. 

He included these companies which have been involved in such activities and tried to show that there was no real benefits from their activities., 

Starbucks (nasdaq: SBUX - news - people ) provides a good example of the limited importance of CSR to financial performance. The firm enjoys a strong CSR reputation due to its generous labor policies and its commitment to improve the earnings and environmental practices of coffee growers in developing countries.

Yet since the beginning of 2008, its shares have recently declined nearly 50% (at last glance the S&P 500 is down "only" 36%). The stock's disappointing performance has absolutely nothing to do with CSR: It is entirely due to the firm's overexpansion and, most recently, the increasing unwillingness of consumers to pay as much for a cup of coffee as for a gallon of gasoline.

Other CSR icons, such as Levi Strauss, Gap (nyse: GPS -news - people ), Whole Foods (nasdaq: WFMI - news - people) and Timberland (nyse: TBL - news - people ), have also fared poorly in the marketplace.

General Electric (nyse: GE - news - people ) has been widely applauded by environmentalists for its "Ecomagination" line of more energy efficient and environmentally responsible products. These products have sold well, prompting many observers to conclude that for corporate America, "green" has become the new "green."

Before the recent market chaos, GE's share price had been stagnant for nearly six years. Whatever GE's current or projected earnings from Ecomagination, as well as from the firm's substantial investments in alternative energy, they have been overshadowed by Wall Street's disappointment with GE's overall earnings. In fact, GE performed much better under Jack Welch, who was not known for his interest in environmental responsibility. Moreover, GE also continues to make substantial, and highly profitable, investments in the financing and construction of coal-fired power plants, indicating that there is still money to be made by less environmentally responsible behavior.

The firm with possibly the world's poorest environmental reputation is Exxon Mobil (nyse: XOM - news - people ), largely due to its reputed indifference to the problem of global climate change and its continued focus on fossil fuels. Yet Exxon-Mobil is one of the world's most profitable corporations. Over an extended period of time, it has performed far better financially than BP (nyse: BP - news - people ), which changed its brand to Beyond Petroleum to emphasize its responsibility to help reduce the world's dependence on fossils fuels, and which, unlike Exxon-Mobil, has supported mandatory greenhouse gas reductions.

The contrast between Exxon-Mobil and BP reveals another limitation of the business case for corporate responsibility. It is often difficult to distinguish responsible and irresponsible firms. While BP may have a more responsible record than Exxon-Mobil when it comes to the issue of global climate change, Exxon-Mobil has recently been far more successful in preventing accidents and avoiding oil spills. It is thus not obvious which firm is more 'responsible.'

To take another well-known example: Merck (nyse: MRK -news - people ) has been widely applauded for its development and free distribution of a drug to cure river-blindness, a dreadful disease which affects tens of millions of the world's poorest people. Yet this same company withheld important information regarding the safety of its highly profitable drug Vioxx.

These examples are not unusual: Few firms are consistently responsible--or irresponsible--across all their business operations.

One can find examples of successful firms for whom CSR has been a core element of their business strategy. Patagonia and Seventh Generation come readily to mind. Other firms such asDupont (nyse: DD - news - people ), Alcoa (nyse: AA - news -people ) and IBM (nyse: IBM - news - people ) have reaped substantial savings from reducing their energy use whileToyota (nyse: TM - news - people ) has successfully marketed hybrid cars.

But it is important not to generalize from these examples. To assume that the business environment has fundamentally changed and that we are entering a new world in which CSR has become critical to the success of all or even most firms is misinformed. The market has many virtues, but reconciling corporate goals and public purposes is unfortunately not among them. Managers should try to act more responsibly. But they should not expect the market to necessarily reward them--or punish their less responsible competitors.

Corporation Social Responsibility and Success

Eskom Company

The company that anticipated the history.

The company that read the future.

Background:

The Government Gazette of 6 March 1923 announced the establishment of The Electricity Supply Commission (Eskom), effective from 1 March 1923. Dry Hendrix Johannes van der Bill, a leading research scientist appointed by the Smuts government as a "Technical Advisor on Industrial Development to the Department of Mines and Industries", was appointed first Chairman of Eskom. The Commission was made responsible for establishing and maintaining electricity supply undertakings on a regional basis. Electricity was to be supplied efficiently, cheaply and abundantly to government departments, railways and harbors, local authorities and industry. The Commission met for the first time on 20 March 1923 in Cape Town. The Commission’s headquarters opened in Johannesburg on 1 May 1923 on the first story of Hoffman’s Buildings. The headquarters moved to Electricity House in 1924. (“About - Company Information." Heritage. Nap. nod Web. 11 Sept. 2011. <http://heritage.eskom.co.za/heritage

Eskom generates approximately 95% of the electricity used in South Africa and approximately 45% of the electricity used in Africa. Eskom generates, transmits and distributes electricity to industrial, mining, commercial, agricultural and residential customers and redistributors. Additional power stations and major power lines are being built to meet rising electricity demand in South Africa. Eskom will continue to focus on improving and strengthening its core business of electricity generation, transmission, trading and distribution.

During the 1980s period, South Africa was still under the apartheid's regime, and it was not permitted “according to the racist legislations “to provide the electricity for everyone in south Africa and of course the blacks were the target.

But from its first day the company adopted a very impressive and challenging mandate which is “electricity for all” , it believed that without electricity is the base of living life because without it there will be no education , there will be diseases everywhere and also the living in homes without electricity cannot be possible especially during the adverse weather.

This social responsibility which has been embraced by the company, allowed it to play a very significant role in establishing the social transformation in South Africa. (“The Company that Anticipated History." Policy Innovations. Nap. nod Web. 11 Sept. 2011. <http://www.policyinnovations.org/ideas).

The vision and strategy

Purpose

To provide sustainable electricity solutions to grow the economy and improve the quality of life of people in South Africa and the region.

 Values: Zero harm, integrity, innovation, sinobuntu (caring), customer satisfaction and excellence.

Priorities and contributions:

2010 FIFA World Cup™:  Eskom made a significant contribution to the successful hosting of the 2010 FIFA World Cup™

 Back2Basics project: Eskom has implemented a “Back2Basics” programmer across all business units to enable effective decision making and improve operational performance by simplifying, standardizing and optimizing processes and systems

Corporate review: This project entails analyzing corporate functions, benchmarking this against similar institutions and identifying possibilities for rationalization within existing operations. This project aims to improve the effectiveness and efficiency of corporate functions.

 Reputation management: The objective is to stem the flow of negative media coverage in the short term and recover and turn around Eskom’s image and reputation in the long term, while at the same time gearing Eskom’s corporate communication strategy

 Generation Business: Over the past year the aim was to add new capacity, manage existing plant, strive for cost efficiencies, and focus on operational excellence and safety

 Customer Network Business: The objective was to integrate demand management across Eskom, improve revenue management, sign power purchase agreements, and facilitate the national integrated resource plan

 Participation in subcommittee of Inter-Ministerial Committee (IMC) on Energy: Government established the Inter-Ministerial Committee on Energy to address the key challenges in the electricity industry and to facilitate progress towards an optimal regulatory and policy environment – one that is credible, predictable, legitimate and transparent. Eskom is providing input into this important process.

Ethics in Eskom

Ethics in Eskom is about accomplishing preferred ethical behaviors by living the Eskom values through its Code of Ethics, complying with laws and regulations, and taking into account the interests of all stakeholders in its actions and decisions. Eskom’s processes and practices are based on good corporate governance practices, which are underpinned by the ethical values of responsibility, accountability, fairness, and transparency.

Eskom has established an ethics office within its Corporate Governance Department to maintain an ethics programmer within the Eskom, which promotes ethical behavior within the workplace through the development and implementation of ethical standards, rules and frameworks for the organization, and by providing an ethics advisory service (helpline), as well as ethics training to employees and directors. Eskom’s programmer is also externally focused, encouraging anyone acting on behalf of Eskom or conducting business with Eskom to commit to the highest standard of ethical conduct in all actions and decisions.