Eskom

Abstract

This case study analyzes the way in which the South African energy giant Eskom has integrated principles of human rights into its core business strategy in a rapidly evolving and demanding post-Apartheid environment. In particular, this study addresses the origins and evolution of the company’s preferential procurement policy from its nascent beginnings to the present day. Eskom’s emphasis on developing Black1 owned and managed businesses, or Black Empowerment Enterprises (BEE), has arguably served as a key model to a South African government and private sector focused on continued economic growth. While Eskom’s status as a State-Owned Enterprise has affected its responsiveness to social issues in South Africa, internal leadership around black empowerment has characterized the company’s actions and policies. The company’s focus on developing a diversified base of suppliers not only represents a business opportunity for Eskom, but also a chance to demonstrate an explicit commitment to Global Compact Principle 6, which holds that companies should endeavor to eliminate discrimination in employment and occupation. Eskom’s policy to develop Black Empowerment Enterprises that permit all South Africans to actively participate in a growing economic environment also touch on Principle 1, which requires businesses to support the protection of human rights norms.