The Perceptions of Executive Managers on the Role that Corporate Governance Practices Play on SOE’s Performance: A Case of Eskom

Abstract

Background: State-owned enterprises (SOEs) in Africa were established to spur economic development and contribute to infrastructure development, service provision, and ultimately to realise developmental outcomes. However, poor governance and mismanagement have constrained the development potential of SOEs in South Africa. This research explores the concept of corporate governance as it relates to the governance and performance of SOEs. In this respect, the paper assessed the perceptions of the executive managers of the utility as far as governance and performance are concerned. The paper makes use of both primary and secondary resources, including interviews, annual performance reports, policy statements, and academic literature. This study is a modest contribution in an area where knowledge is still evolving and at a time when some of the SOEs in South Africa face an existential crisis. The study focuses on Eskom, a national utility. Research objective: The main objective of this study was to explore whether the SOE Electricity Supply Commission (Eskom Soc Ltd) implements and fully complies with the principles of the King Code on corporate governance practices to ensure sound corporate governance practices and, if so, how this affects the organisational performance of the SOE. As already stated, the research assessed the perceptions of Eskom’s executive managers on the role of objective alignment, resource provision, and management succession in its performance. Research methodology: This is a qualitative case study focussing on Eskom as the utility. The target population is Eskom’s executive managers. In-depth, semi-structured interviews were conducted with a sample of over 12 participants from across the target population.