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.
As a responsible corporate citizen, Eskom has also committed to Government’s Accelerated Shared
Growth Initiative of South Africa (ASGISA) by 2014. Eskom’s most significant contribution to ASGISA
will continue to be through its core business of supplying affordable, reliable electricity, thereby facilitating economic growth.
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.
Amongst the applicants are formally constituted community-based projects and registered small, medium and micro enterprises who apply for grants for skills development, job creation, capacity building and poverty alleviation. In addition, donations are considered to registered welfare organisations with a philanthropic ethos.
; Black Economic Empowerment
Eskom can be counted among the South African corporate citizens that have clearly
demonstrated their commitment to black economic empowerment. The organisation has
encouraged the development and support of this sector through procurement of products and
services from businesses that are owned and controlled by the previously disadvantaged of our
country. This included the purchasing of coal from Eyesizwe Coal, a black empowerment colliery.
The organisation’s BEE efforts now also focus on women owned businesses.
Eskom’s electrification programme started in 1989 and today about 64% of households in South
Africa have electricity. In line with Eskom’s mission to satisfy all customers’ electricity needs in
the most cost-effective way, a 2,5-amp “starter pack” supply option was successfully launched
during 1998. This option makes electricity available to the lower end of Eskom’s market at an
affordable rate as a first step in their upliftment.
The momentum of the electrification programme continued to increase during 2001. In 1994 a
stringent target was set to electrify 1 750 000 homes between 1994 and the end of the year 2000.
After achieving the target a year ahead of schedule, a further 256 023 homes were electrified
during 2000, and 209 535 in 2001. This is an ongoing programme with many successes.
The Department of Minerals and Energy initiated changes to the electrification programme, but
such changes recognise Eskom as the primary role player in illuminating and energising our
Through this massive electrification programme, during which we have electrified over two million homes, the quality of life of millions of South Africans was vastly improved.
; Education support
Since 1997 Eskom has provided additional training to almost 40 000 unqualified and under-qualified teachers. We have also invested in the provision of training aids such as science laboratories, mathematical equipment, books and educational toys and have established edu-resource centres in three provinces.
Eskom also supports bursars and trainees, the majority of whom were black. Of the bursary intake the main focus is on women.
In the past few years, Eskom has invested R5 million in postgraduate research done in universities and technikons to strengthen the capacity in these institutions. Two new scholarship schemes were also designed to support black mathematics and science teachers as well as secondary school children who demonstrate potential in mathematics and science.
During 1998 Eskom took a comprehensive business approach to evaluate and respond to the impact of HIV and AIDS on its employees and their families. This resulted in the HIV/AIDS Response Strategies Project, comprising seven subprojects, including HIV/AIDS training, encouraging employees to get to know their status and changing organisational policies and practices to accommodate HIV/AIDS.
The organisation’s response to the pandemic has also been included in the Human Resources Sustainability Index, which forms part of the Management Board members’ performance contracts.
The Eskom Development Foundation furthermore contributed vast sums of money to the SA AIDS Vaccine Initiative (SAAVI), a research programme endeavouring to find an HIV/AIDS vaccine.
; Job creation and small business development
In addition to the efforts of the Eskom Development Foundation, Eskom has contributed financially towards the business initiative for job creation and human capacity development, which focuses on building a more resilient economy through employment opportunities.
Small business development support takes the form of entrepreneurial capacity building programmes, the facilitation of access to funds and Eskom’s procurement policies. These interventions enable Eskom to contribute towards job creation and the establishment of small and medium enterprises (SMME's) in the national economy.
Eskom has invited its SMME’s to participate in a management development programme, developed by Eskom’s Management and Business Development Fund, which focuses on
entrepreneurship. The objective of this initiative is to develop competent and sustainable suppliers of quality products and services.
In addition to the above, Eskom has created a small business development franchise and support programme aimed at supporting electricity intensive franchisers in the emerging markets
To accommodate the potential cash flow problems that many SMME’s face, Eskom has altered
its debtor payment policy to ensure prompt payment to SMME's.
In 2001, the small business development programme focused on promoting incentives that would lead to the establishment of manufacturing, tourism and agricultural processing business with export potential.
; Internally focussed people development
At least R389 million has been invested in people development at all levels with the emphasis on
historically disadvantaged employees. Since the inception of the Adult Basic Development
programme, Eskom people have attended this programme. The development of workers, both
internal and external to Eskom receives high priority.
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 Corporate Brand 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 business objectives.
; 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. The winners of the regional expos are invited to compete in the national final, which takes place at the University of Pretoria in October each year.
; 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.
; Day in the Life of Africa
The “Day in the Life of Africa” book is a project celebrating African life while also saving African lives as all profits will be used to fund AIDS education programmes in Africa.
The book was published in the United States, Canada, South Africa, the United Kingdom and Australia in November 2002.
Eskom’s co-sponsors are South African Airways, Air France, The World Bank and Lexar Media.
Note: Actual financial results based on contributions and expenditure on issues referred
to in this document may be obtained through Eskom’s Annual Report.
Produced by: Generation Communication
GFS 0001 Revision 0 (July 2007)
For more information on Eskom related topics see the Eskom website (www.eskom.co.za).
Select the Publications tab and List of Fact Sheets.