ESKOM’S SOCIAL RESPONSIBILITY
1. CORPORATE SOCIAL INVESTMENT
Corporate Social Investment (CSI) is a long-term investment in the future of the company and forms an integral part of its operations. It gives an organisation “licence to operate” and makes good business sense. By contributing to the
development of communities in which it operates, the organisation creates future consumers and potential employees. More companies all over the world report on their performance in terms of the triple bottom line with regard to their financial performance, their impact on and restoration of the environment in which they operate, and the contribution they make to the socio-economic development of communities in which they do business.
The Eskom Development Foundation
The Eskom Development Foundation was established in 1998 as a Section 21 company and a wholly owned subsidiary of Eskom Holdings Ltd. Its prime objective is to co-ordinate and integrate Eskom’s CSI initiatives to bring disadvantaged
communities into the mainstream of the economy, with particular emphasis on areas where Eskom is implementing its capital expansion programme.
The Foundation provides support to economic and social projects through grants and donations, targeting communities where we implement our new build programme and the communities in which we operate.
The government-led Accelerated and Shared Growth Initiative for South Africa (Asgisa) aims to ensure that the
country achieves economic growth, focusing on alleviating poverty and unemployment.
Eskom is ideally positioned to make a significant contribution to the Asgisa initiative through our core business of
supplying electricity, our massive procurement requirements and our capital expansion programme. Eskom’s
contribution to Asgisa is mainly through leveraging associated activities for developmental benefit.
Leveraging these associated activities includes the following:
- continuing the rollout of electrification
- maximising local content, the participation of black economic empowerment (BEE), small and medium enterprises
(SME) and black women-owned enterprises (BWO), as well as skills development for the rollout of the build
- maximising skills development by having 4 000 learners registered in our learner pipeline.
; Black Economic Empowerment (BEE)
Eskom’s BEE strategy aims to promote entrepreneurship in black communities and to give black businesses access
to business opportunities in the mainstream economy, by developing and empowering these businesses into
sustainable contributors of reliable, cost-effective products and/or services for the benefit of Eskom and the broader
South Africa. Black woman owned businesses will remain the single main focus for development since it has proven
that the classification is not easy to fulfil.
A target of 67% on BEE spend and 18% on BWO has been set aside from discretionary spend. This excludes
procurement from Eskom group businesses, state departments as well as costs relating to human resources such as
salaries and wages. It includes expenditure on coal and demand side management. As we change to the Codes of
Good Practice, we shall retain these targets for the next financial year - 2009/ 2010.
Eskom will in future place its emphasis on B-BBEE (Broad-based black economic empowerment) certificates. The
collections thereof will fast-track the achievements of all targets. A process has been put in place which will enable
Eskom to maintain its B-BBEE contributions level, thus ensuring attainment of targets.
We are proud to announce that Eskom, as a B-BBEE contributor, has attained level 2 status. This means that any
entity doing business with Eskom, can claim 125% on its B-BBEE procurement spend.
Since the inception of the electrification programme in 1991, a total of 3 638 188 homes have been electrified. The
DME began funding the Integrated National Electrification Programme (INEP) in April 2001. Eskom implements the
programme in its licensed areas of supply on the DME’s behalf. Operating costs relating to this electrification
programme are paid by Eskom as the licensed distributor supplying electricity to the consumers. Funding is currently
made available for new connection and infrastructure development projects that are part of the INEP. The
electrification of schools and clinics is funded by the DME through the National Electrification Fund. The programme
is focused on electrifying specifically identified schools and clinics.
; Rural development
The Eskom rural development programme supports government’s Integrated Sustainable Rural Development
Programme. In 2008, the programme focused on building permanent classrooms for schools and teaching educators
to manage their schools like a business. All planned projects were completed in the financial year with expenditures
in line with the R21 million budgets.
In line with the aims of the New Partnership for Africa’s Development (Nepad), and as an active member of the
Southern African Power Pool (SAPP), Eskom continues to support development studies and energy trading within the
Donations are given for the upliftment of the community and no return is expected. Cash donations up to R50 000 can be approved by the Foundation, as can donations of assets to non-profit registered organisations, preferably with welfare, education or training objectives.
Donations are only considered for a registered, non-profit, voluntary, community based organisation. The donation must support and promote the themes that Eskom has selected for that particular year, to harmonise its activities in the local communities and to promote goodwill in the community.
Donations are not considered for political party activities, churches, religious or for-profit organisations, individuals (including overseas trips or attendance of national and international conferences) or any activity/project/organisation which has objectives infringing on the Bill of Rights, Constitution and/or laws of South Africa.
Sponsorships are managed by the Branding Centre Section of the Group Communication Department. With sponsorships we expect some return on investment in the form of publicity, advertising, etc. Through sponsorships, Eskom contractually provides financial and/or other support to an organisation or individual in return for commercial or image related gain in order to attain specific marketing and corporate objectives. If successfully designed and carried out, sponsorships can be of real benefit to the community in providing events and facilities which would otherwise not be available.
All corporate sponsorship requests are evaluated by a sponsorship panel appointed by the GM of the Group Communication Department, according to the following guidelines:
; Sponsorships must add value to Eskom’s business by contributing to the achievement of one or more of Eskom’s
; Sponsorships should always compliment and enhance Eskom’s corporate image.
; Sponsorships should promote purposeful relationships with specific markets and/or stakeholders. ; Sponsorships must render a return on investment and this return must be pre-determined and measured.
Examples of return on investment are:
; Change in electricity consumption i.e. selling more or less or at different times.
; Change in share of mind.
; Change in share of market.
; Change in brand equity.
; Value of media exposure and publicity.
; Tax deductions.
Eskom’s Current Sponsorships
; Eskom Expo for Young Scientists
The Expo for Young Scientists has been running for more than 22 years and has established itself as the premier exposition for the South African youth to demonstrate their inventiveness and innovation in the fields of science and technology.
Eskom announced its sponsorship of the Expo for Young Scientists in July 2001. The aim of the Eskom Expo for Young Scientists is to promote maths, science and technology.
The Eskom Expo for Young Scientists involves scholars from around the country, who submit science and technology projects to 28 regional expositions starting in July and ending in September each year. The winners of the regional expos are invited to compete in the national final, which takes place at the University of Pretoria in October.
; Proudly South African Sponsorship
Eskom Management Board approved a sponsorship commitment with Proudly South African for an initial period of three years with a commitment of R6.75 million. The campaign is aimed at promoting South African-made products and services.
The founder sponsors are Old Mutual, SAA, Eskom, Telkom and SABC, contributing a total of R32 million. The Department of Trade and Industry is funding the campaign to ensure that all organisations that qualify, can begin to benefit from the campaign as it begins to influence consumer decisions.
; Create new jobs and protect existing jobs.
; Increasing demand for SA products and services.
; Encouraging companies to improve quality and competitiveness.
; Promoting consumer awareness of SA made products and their quality.
The eta Awards is a programme that is sponsored by Eskom and endorsed by the Department of Minerals and Energy. The objective of this programme is to encourage South Africans from all walks of life to become more energy conscious and energy efficient.,
Since inception in 1989, the eta Awards is one of the most effective campaigns in raising public awareness among companies and individuals, to promote more efficient use of energy through a broad range of innovative programmes and private and community initiatives.
The primary criteria is proof that a product, process or practice is energy efficient, with benefits that extend to reduction of
consumption or conservation of energy. Eskom is contributing R3, 5 million towards this programme.
Eskom has committed to providing a R1,5 million sponsorship to the Sci-bono Discovery Centre over a period of three years.
The Sci-bono Discovery Centre is a project of the Gauteng Department of Education and the local private sector. It is the largest science centre in Southern Africa and is a core element of the province of Gauteng’s strategy to improve mathematics, science and technology education.
Sci-bono works closely with all the science councils to promote awareness of South Africa’s current scientific research.
Produced by: Generation Communication
ES 0001 Revision 2 (May 2009)
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