Wednesday, March 7, 2012

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.


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