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 programme 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...
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