An empirical investigation of the extension of servqual to measure internal service quality in a motor vehicle manufacturing setting
- Authors: Booi, Arthur Mzwandile
- Date: 2004
- Subjects: Automobile industry and trade -- Quality control -- South Africa -- Eastern Cape Automobile industry and trade -- Customer services -- South Africa -- Eastern Cape Automobile industry and trade -- Quality control -- Statistical methods Customer services -- Quality control Automobile industry and trade -- Quality assurance -- South Africa -- Eastern Cape Consumer satisfaction Industrial productivity -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:801 , http://hdl.handle.net/10962/d1006139
- Description: This research explores the role, which the construct, service quality plays in an internal marketing setting. This is achieved by evaluating the perceptions and expectations of the production department with regards to the service quality provided by the maintenance department of a South African motor vehicle manufacturer. This was done using the INTSERVQUAL instrument, which was found to be a reliable instrument for measuring internal service quality within this context. A positivist approach has been adopted in conducting this research. There are two main hypotheses for this study: the first hypothesis is concerned with the relationship between the overall internal service quality and the five dimensions of service quality namely: tangibles, empathy, reliability, responsiveness and reliability. The second hypothesis focuses on the relationship between the front line staff segments of the production department and the five dimensions of internal service quality. The results of this research suggest that the perceptions and expectations of internal service customer segments plays a major role in achieving internal service quality. In addition, the importance of the INTSERVQUAL instrument in measuring internal service quality within the motor vehicle manufacturing environment is confirmed.
- Full Text:
- Date Issued: 2004
- Authors: Booi, Arthur Mzwandile
- Date: 2004
- Subjects: Automobile industry and trade -- Quality control -- South Africa -- Eastern Cape Automobile industry and trade -- Customer services -- South Africa -- Eastern Cape Automobile industry and trade -- Quality control -- Statistical methods Customer services -- Quality control Automobile industry and trade -- Quality assurance -- South Africa -- Eastern Cape Consumer satisfaction Industrial productivity -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:801 , http://hdl.handle.net/10962/d1006139
- Description: This research explores the role, which the construct, service quality plays in an internal marketing setting. This is achieved by evaluating the perceptions and expectations of the production department with regards to the service quality provided by the maintenance department of a South African motor vehicle manufacturer. This was done using the INTSERVQUAL instrument, which was found to be a reliable instrument for measuring internal service quality within this context. A positivist approach has been adopted in conducting this research. There are two main hypotheses for this study: the first hypothesis is concerned with the relationship between the overall internal service quality and the five dimensions of service quality namely: tangibles, empathy, reliability, responsiveness and reliability. The second hypothesis focuses on the relationship between the front line staff segments of the production department and the five dimensions of internal service quality. The results of this research suggest that the perceptions and expectations of internal service customer segments plays a major role in achieving internal service quality. In addition, the importance of the INTSERVQUAL instrument in measuring internal service quality within the motor vehicle manufacturing environment is confirmed.
- Full Text:
- Date Issued: 2004
An empirical study of client satisfaction with service recovery within a South African banking institution
- Authors: Davies, Gareth M
- Date: 2004
- Subjects: First National Bank of Southern Africa Banks and banking -- South Africa Bank management -- South Africa Financial services industry -- South Africa Banks and banking -- Customer services -- South Africa Banks and banking -- Customer services -- Effect of marketing on
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:725 , http://hdl.handle.net/10962/d1003845
- Description: In many industries, service is the critical determinant of success or failure. Service failure is almost inevitable, and this has the potential for the organisation to lose its customer. However, if implemented successfully, Service Recovery can rectify the breakdown in service, and turn angry, frustrated customers into loyal ones. Service Recovery is vital for profitability, especially for companies operating in the services market, like First National Bank (FNB). Unfortunately, few service firms know how satisfied customers are with their Service Recovery efforts, and FNB is no exception. This study attempted to rectify the situation, to ensure that the bank does not fail its customers a second time. The major focus of the study is to assess client satisfaction with Service Recovery (SR) from FNB. By using the RECOVSAT instrument (developed by Boshoff in 1999), the study aims to establish how effective FNB was in terms of the six dimensions of SR, namely communication, empowerment, feedback, atonement, explanation, and tangibles. The relationship between each of the dimensions and customer satisfaction, as well as between customer satisfaction and loyalty, was measured, and a hypothesis for each relationship rejected or accepted. The empirical results show that, from 702 complainants, a RECOVSAT score of 68% was computed, which could be regarded as only satisfactory. The dimensions of communication, explanation, atonement, and empowerment, had the strongest positive correlation with customer satisfaction, while feedback and tangibles, although positively correlated, were not statistically significant, and thus not as important as the first four dimensions. FNB performed best on tangibles (81%), then communication (75%), explanation (70%), atonement (68%), empowerment (62%), and lastly feedback (51%). The study reinforced the view that customer satisfaction is positively related to loyalty. Other findings were that, administration and errors were the most frequent complaints, followed by pricing, fees, and interest, while time delays/waiting were the third most numerous. Over 54% of complainants had been with the bank for over 10 years, which could be a problem if the customers had left the bank, as the profitability of a customer generally increases with time. Age and gender did not appear to be factors that influenced behaviour of complainants. In terms of the managerial implications, it is recommended that FNB implement a Customer-Complaint-Handling (CCH) system that is both national and inter-group. The bank should also focus on empowering employees, improving communication skills, explaining to customers why the problem occurred, apologising, and offering some atonement. By adopting the recommendations, FNB should improve their service recovery, and as a consequence, their customer satisfaction and loyalty, and profitability should also increase.
- Full Text:
- Date Issued: 2004
- Authors: Davies, Gareth M
- Date: 2004
- Subjects: First National Bank of Southern Africa Banks and banking -- South Africa Bank management -- South Africa Financial services industry -- South Africa Banks and banking -- Customer services -- South Africa Banks and banking -- Customer services -- Effect of marketing on
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:725 , http://hdl.handle.net/10962/d1003845
- Description: In many industries, service is the critical determinant of success or failure. Service failure is almost inevitable, and this has the potential for the organisation to lose its customer. However, if implemented successfully, Service Recovery can rectify the breakdown in service, and turn angry, frustrated customers into loyal ones. Service Recovery is vital for profitability, especially for companies operating in the services market, like First National Bank (FNB). Unfortunately, few service firms know how satisfied customers are with their Service Recovery efforts, and FNB is no exception. This study attempted to rectify the situation, to ensure that the bank does not fail its customers a second time. The major focus of the study is to assess client satisfaction with Service Recovery (SR) from FNB. By using the RECOVSAT instrument (developed by Boshoff in 1999), the study aims to establish how effective FNB was in terms of the six dimensions of SR, namely communication, empowerment, feedback, atonement, explanation, and tangibles. The relationship between each of the dimensions and customer satisfaction, as well as between customer satisfaction and loyalty, was measured, and a hypothesis for each relationship rejected or accepted. The empirical results show that, from 702 complainants, a RECOVSAT score of 68% was computed, which could be regarded as only satisfactory. The dimensions of communication, explanation, atonement, and empowerment, had the strongest positive correlation with customer satisfaction, while feedback and tangibles, although positively correlated, were not statistically significant, and thus not as important as the first four dimensions. FNB performed best on tangibles (81%), then communication (75%), explanation (70%), atonement (68%), empowerment (62%), and lastly feedback (51%). The study reinforced the view that customer satisfaction is positively related to loyalty. Other findings were that, administration and errors were the most frequent complaints, followed by pricing, fees, and interest, while time delays/waiting were the third most numerous. Over 54% of complainants had been with the bank for over 10 years, which could be a problem if the customers had left the bank, as the profitability of a customer generally increases with time. Age and gender did not appear to be factors that influenced behaviour of complainants. In terms of the managerial implications, it is recommended that FNB implement a Customer-Complaint-Handling (CCH) system that is both national and inter-group. The bank should also focus on empowering employees, improving communication skills, explaining to customers why the problem occurred, apologising, and offering some atonement. By adopting the recommendations, FNB should improve their service recovery, and as a consequence, their customer satisfaction and loyalty, and profitability should also increase.
- Full Text:
- Date Issued: 2004
An evaluation of "on-line" banking web sites in South Africa to determine essential design criteria
- Authors: Palmer, Lydia
- Date: 2004
- Subjects: Banks and banking -- South Africa Banks and banking -- Customer services -- South Africa Home banking services -- South Africa Electronic funds transfers -- South Africa Web sites -- Design
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:811 , http://hdl.handle.net/10962/d1007667
- Description: The use of the Web to carry out business on the Internet has become a viable option in all business sectors, and Internet banking in South Africa is no exception. The nature of business on the Internet in South Africa and the World is investigated. The extent of Internet banking in South Africa is ascertained and the expectations and perceived problems of online bankers are discussed. The importance of Human Computer Interface and Web Interface Design for successful business is promoted with a discussion of their guidelines and principles. Web Evaluation techniques and Tools are assessed and The "Gartner" Web evaluation tool is selected to evaluate the three bank Web sites. The results of the evaluation indicate that there are several generally well implemented design criteria used by all of the banks while some criteria are not implemented at all. Each bank is discussed individually to identify strong and weak features of their Web site design. Essential aspects of Web design have been proposed for inclusion during the design of "online" Banking Web sites.
- Full Text:
- Date Issued: 2004
- Authors: Palmer, Lydia
- Date: 2004
- Subjects: Banks and banking -- South Africa Banks and banking -- Customer services -- South Africa Home banking services -- South Africa Electronic funds transfers -- South Africa Web sites -- Design
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:811 , http://hdl.handle.net/10962/d1007667
- Description: The use of the Web to carry out business on the Internet has become a viable option in all business sectors, and Internet banking in South Africa is no exception. The nature of business on the Internet in South Africa and the World is investigated. The extent of Internet banking in South Africa is ascertained and the expectations and perceived problems of online bankers are discussed. The importance of Human Computer Interface and Web Interface Design for successful business is promoted with a discussion of their guidelines and principles. Web Evaluation techniques and Tools are assessed and The "Gartner" Web evaluation tool is selected to evaluate the three bank Web sites. The results of the evaluation indicate that there are several generally well implemented design criteria used by all of the banks while some criteria are not implemented at all. Each bank is discussed individually to identify strong and weak features of their Web site design. Essential aspects of Web design have been proposed for inclusion during the design of "online" Banking Web sites.
- Full Text:
- Date Issued: 2004
An investigation into how marketers cope with an environment of high complexity and turbulence, with special reference to the South African environment
- Authors: Mason, Roger Bruce
- Date: 2004
- Subjects: Marketing -- South Africa , Success in business -- South Africa , Industrial management -- South Africa , Organizational change -- South Africa , Chaotic behavior in systems , Complexity (Philosophy)
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:752 , http://hdl.handle.net/10962/d1003873 , Marketing -- South Africa , Success in business -- South Africa , Industrial management -- South Africa , Organizational change -- South Africa , Chaotic behavior in systems , Complexity (Philosophy)
- Description: This study investigated relationships between marketing success, the level of external environmental complexity and turbulence, and marketing mix tactics. The literature suggested that more successful companies in simple and stable environments use stabilising marketing tactics, while more successful companies in complex and turbulent environments use destabilising tactics, regardless of industry habits, management preferences or market sector. A marketing mix model for the different environments was developed using a chaos and complexity theory perspective. The study was exploratory, using a qualitative, case study technique. Data was collected via depth interviews and document analysis from four companies in the information technology (IT) and packaging industries. These industries were identified as, respectively, the most complex and turbulent, and the simplest and most stable, South African environments. Two companies from each industry were chosen to reflect more successful and less successful companies. The more successful company in the complex/turbulent environment was found to use destabilising tactics, as did the more successful company in the simple/stable environment. Therefore, contrary to expectations, it appears that destabilising tactics contribute more to success than stabilising tactics do, regardless of the environment. It was also found, contrary to expectations, that stabilising tactics were used by both the less successful companies. The research concluded that destabilising tactics are related to more success and stabilising tactics to less success. The lack of clear differentiation between the two industries may be because the whole South African environment is complex and turbulent, because the packaging industry is not sufficiently simple and stable to differentiate it from the IT industry or because packaging industry managers perceive their industry to be complex and turbulent and act accordingly. Despite these uncertainties, the research showed the marketing mix model to be reasonably accurate for the complex/turbulent environment, and therefore of potential value to South African companies. To overcome the equivocal findings, further research is recommended in different industries, in countries with different levels of complexity and turbulence and into specific marketing mix tactics. Research into managers’ perceptions of environmental complexity and turbulence and into co-evolution of marketing tactics and external environments would also be of value.
- Full Text:
- Date Issued: 2004
- Authors: Mason, Roger Bruce
- Date: 2004
- Subjects: Marketing -- South Africa , Success in business -- South Africa , Industrial management -- South Africa , Organizational change -- South Africa , Chaotic behavior in systems , Complexity (Philosophy)
- Language: English
- Type: Thesis , Doctoral , PhD
- Identifier: vital:752 , http://hdl.handle.net/10962/d1003873 , Marketing -- South Africa , Success in business -- South Africa , Industrial management -- South Africa , Organizational change -- South Africa , Chaotic behavior in systems , Complexity (Philosophy)
- Description: This study investigated relationships between marketing success, the level of external environmental complexity and turbulence, and marketing mix tactics. The literature suggested that more successful companies in simple and stable environments use stabilising marketing tactics, while more successful companies in complex and turbulent environments use destabilising tactics, regardless of industry habits, management preferences or market sector. A marketing mix model for the different environments was developed using a chaos and complexity theory perspective. The study was exploratory, using a qualitative, case study technique. Data was collected via depth interviews and document analysis from four companies in the information technology (IT) and packaging industries. These industries were identified as, respectively, the most complex and turbulent, and the simplest and most stable, South African environments. Two companies from each industry were chosen to reflect more successful and less successful companies. The more successful company in the complex/turbulent environment was found to use destabilising tactics, as did the more successful company in the simple/stable environment. Therefore, contrary to expectations, it appears that destabilising tactics contribute more to success than stabilising tactics do, regardless of the environment. It was also found, contrary to expectations, that stabilising tactics were used by both the less successful companies. The research concluded that destabilising tactics are related to more success and stabilising tactics to less success. The lack of clear differentiation between the two industries may be because the whole South African environment is complex and turbulent, because the packaging industry is not sufficiently simple and stable to differentiate it from the IT industry or because packaging industry managers perceive their industry to be complex and turbulent and act accordingly. Despite these uncertainties, the research showed the marketing mix model to be reasonably accurate for the complex/turbulent environment, and therefore of potential value to South African companies. To overcome the equivocal findings, further research is recommended in different industries, in countries with different levels of complexity and turbulence and into specific marketing mix tactics. Research into managers’ perceptions of environmental complexity and turbulence and into co-evolution of marketing tactics and external environments would also be of value.
- Full Text:
- Date Issued: 2004
The impact of smart cards on South African rural pensioners' lives
- Authors: Nyoka, Zanele
- Date: 2004
- Subjects: Old age pensioners -- South Africa -- Management Smart cards South African Post Office
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:818 , http://hdl.handle.net/10962/d1008052
- Description: E-commerce technologies have many possible applications both in commercial and non-commercial operations. The development and implementation of these applications is on the increase especially by government and its agencies, for the delivery of services. Specific to this study is the distribution of old age pension benefits to recipients that reside in the rural areas of South Africa. Of importance to this study are the factors that promote and impinge on the development, implementation and acceptance of these applications. A specific project, the Pension Biometric Project was implemented by the South African Post Office in line with the government's initiatives of improving service delivery, and in response to the encroaching digital economy. The research problem is to investigate the pensioners' perception and their experience of three areas of this project, its implementation, its acceptance and its uses and impact. The research was conducted in the constructivist paradigm, using the case study research method. Three data collection methods were used, i.e. a document study of SAPO project documentation, on-site observations and interviews with pensioners. It was found that despite problems in implementation, the pensioners were accepting of the new system, although they were ignorant of the functionalities of the smart card. Consequently, few pensioners were making use of the banking facilities of the card, or had changed their economic behaviour. The study has also found that two themes are overriding all findings of the study. These two themes are ignorance and dignity. Ignorance has had a causal effect on adoption of the smart cards and dignity has been found to be a result of the project. The overriding implication of this study is that pensioners' ignorance around issues of service delivery by government and its agencies needs to be eradicated, otherwise there is no reliable way of measuring efforts against actual delivery. Also, the fact that dignity has emerged as an overriding theme needs to be deliberately strengthened, and maybe even driven as a specified objective of the Pension Biometric Project. Recommendations in this regard are provided as well as ideas for further research.
- Full Text:
- Date Issued: 2004
- Authors: Nyoka, Zanele
- Date: 2004
- Subjects: Old age pensioners -- South Africa -- Management Smart cards South African Post Office
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:818 , http://hdl.handle.net/10962/d1008052
- Description: E-commerce technologies have many possible applications both in commercial and non-commercial operations. The development and implementation of these applications is on the increase especially by government and its agencies, for the delivery of services. Specific to this study is the distribution of old age pension benefits to recipients that reside in the rural areas of South Africa. Of importance to this study are the factors that promote and impinge on the development, implementation and acceptance of these applications. A specific project, the Pension Biometric Project was implemented by the South African Post Office in line with the government's initiatives of improving service delivery, and in response to the encroaching digital economy. The research problem is to investigate the pensioners' perception and their experience of three areas of this project, its implementation, its acceptance and its uses and impact. The research was conducted in the constructivist paradigm, using the case study research method. Three data collection methods were used, i.e. a document study of SAPO project documentation, on-site observations and interviews with pensioners. It was found that despite problems in implementation, the pensioners were accepting of the new system, although they were ignorant of the functionalities of the smart card. Consequently, few pensioners were making use of the banking facilities of the card, or had changed their economic behaviour. The study has also found that two themes are overriding all findings of the study. These two themes are ignorance and dignity. Ignorance has had a causal effect on adoption of the smart cards and dignity has been found to be a result of the project. The overriding implication of this study is that pensioners' ignorance around issues of service delivery by government and its agencies needs to be eradicated, otherwise there is no reliable way of measuring efforts against actual delivery. Also, the fact that dignity has emerged as an overriding theme needs to be deliberately strengthened, and maybe even driven as a specified objective of the Pension Biometric Project. Recommendations in this regard are provided as well as ideas for further research.
- Full Text:
- Date Issued: 2004
The relationship between job satisfaction and absenteeism : a study of the shop floor workers in a motor manufacturing plant
- Authors: Mashonganyika, Oswald
- Date: 2004
- Subjects: Job satisfaction -- South Africa -- Eastern Cape Absenteeism (Labor) -- South Africa -- Eastern Cape Automobile industry and trade -- South Africa -- Eastern Cape -- Employees Industrial relations -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:809 , http://hdl.handle.net/10962/d1007518
- Description: This research hypothesises a statistical positive significant correlation between job satisfaction and absenteeism among the shop floor workers of a motor manufacturing plant in the impoverished province of the Eastern Cape in South Africa. According to the literature review, two schools of thought exist that argue on the nature of the relationship. One believes that absence from work is in some way a natural consequence of job dissatisfaction, i.e. arguing for a job satisfaction-absenteeism relationship. The second one argues for a no relationship, arguing that absence is a result of habitual behaviour and or behaviours influenced by socioeconomic factors such as poverty that affect the employees' ability and pressure to attend work. A sample of 150 workers was randomly selected from the 2500 shop floor workers. The Job Descriptive Index (lDI) questionnaires were used to measure the satisfaction index of the workers. The absence statistics for the sample workers were gathered from the organisation's Human Resources department and statistical tests for correlation and regression were conducted on the two variables - lDI and absence data. Contrary to the expectations of the study, the results showed that overall job satisfaction and absenteeism were not correlated. It concluded that the job dissatisfaction theory of absenteeism is empirically unsupportable and alternative conceptualisations of absence contributors and potentially fruitful research strategies are discussed.
- Full Text:
- Date Issued: 2004
- Authors: Mashonganyika, Oswald
- Date: 2004
- Subjects: Job satisfaction -- South Africa -- Eastern Cape Absenteeism (Labor) -- South Africa -- Eastern Cape Automobile industry and trade -- South Africa -- Eastern Cape -- Employees Industrial relations -- South Africa -- Eastern Cape
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:809 , http://hdl.handle.net/10962/d1007518
- Description: This research hypothesises a statistical positive significant correlation between job satisfaction and absenteeism among the shop floor workers of a motor manufacturing plant in the impoverished province of the Eastern Cape in South Africa. According to the literature review, two schools of thought exist that argue on the nature of the relationship. One believes that absence from work is in some way a natural consequence of job dissatisfaction, i.e. arguing for a job satisfaction-absenteeism relationship. The second one argues for a no relationship, arguing that absence is a result of habitual behaviour and or behaviours influenced by socioeconomic factors such as poverty that affect the employees' ability and pressure to attend work. A sample of 150 workers was randomly selected from the 2500 shop floor workers. The Job Descriptive Index (lDI) questionnaires were used to measure the satisfaction index of the workers. The absence statistics for the sample workers were gathered from the organisation's Human Resources department and statistical tests for correlation and regression were conducted on the two variables - lDI and absence data. Contrary to the expectations of the study, the results showed that overall job satisfaction and absenteeism were not correlated. It concluded that the job dissatisfaction theory of absenteeism is empirically unsupportable and alternative conceptualisations of absence contributors and potentially fruitful research strategies are discussed.
- Full Text:
- Date Issued: 2004
Trends and perceptions of sustainabilty reporting and corporate governance : a case study of Eskom
- Authors: Fabricius, Karin
- Date: 2004
- Subjects: Eskom (Firm) King Committee on Corporate Governance Corporate governance -- South Africa Corporation reports -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:826 , http://hdl.handle.net/10962/d1011782
- Description: The King II Report on Corporate Governance was released in March 2002. This report, although focusing on South African businesses, is acclaimed as a world first in setting superior governance standards. Corporate governance in South Africa is undergoing transformation due to the influence of the King II Report, and a range of other global trends such as Global Reporting Initiative guidelines and the infamous collapse of Enron due to governance failures. Non-financial reporting (also referred to as sustainability reporting) forms the main focus of this research project. The financial reporting aspects of corporate governance, and the role of governing boards and auditors fall outside the scope of this study. Through document analysis methods, Eskom's annual reports from 1998 - 2002, were analysed to establish whether patterns in sustainability reporting were identifiable. Employees and consumers of Eskom were. interviewed, using structured interviews to explore their awareness and knowledge regarding sustainability issues. A drastic increase in Eskom's non-financial reporting was identified in 2000. Apart from the corporate governance category, none of the chosen categories showed a major change after the 2002 release of the King II Report. Possible reasons for the lack of clear trends since 2002 are that the pattern is either not yet visible or it could be speculated that Eskom, who had won various reporting awards, is a leader in the field of corporate reporting and specifically on sustainability issues. Eskom had been involved in the reviewing of the first King Report and the drawing up of the recommendations for King II, and could therefore have modified their reporting procedures in 2000, prior'to the release of King II. As shown in the trend analysis, companies are coming under increased pressure to be socially accountable and transparent. This is fast becoming a 'core business issue', illustrated by the status of the King II Report requirements for corporate governance. Even though the terminology 'sustainability reporting' is unfamiliar to employees and consumers, both groups want disclosure and transparency of sustainability issues. Employees were, however, more aware than consumers of Eskom policies regarding sustainability issues. This report recommends that companies take a pro-active approach to corporate governance and sustainability reporting, noting the desire of consumers and employees to be informed about non-financial issues. These stakeholders also need to be made more aware of the meaning and significance of sustainability reporting.
- Full Text:
- Date Issued: 2004
- Authors: Fabricius, Karin
- Date: 2004
- Subjects: Eskom (Firm) King Committee on Corporate Governance Corporate governance -- South Africa Corporation reports -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:826 , http://hdl.handle.net/10962/d1011782
- Description: The King II Report on Corporate Governance was released in March 2002. This report, although focusing on South African businesses, is acclaimed as a world first in setting superior governance standards. Corporate governance in South Africa is undergoing transformation due to the influence of the King II Report, and a range of other global trends such as Global Reporting Initiative guidelines and the infamous collapse of Enron due to governance failures. Non-financial reporting (also referred to as sustainability reporting) forms the main focus of this research project. The financial reporting aspects of corporate governance, and the role of governing boards and auditors fall outside the scope of this study. Through document analysis methods, Eskom's annual reports from 1998 - 2002, were analysed to establish whether patterns in sustainability reporting were identifiable. Employees and consumers of Eskom were. interviewed, using structured interviews to explore their awareness and knowledge regarding sustainability issues. A drastic increase in Eskom's non-financial reporting was identified in 2000. Apart from the corporate governance category, none of the chosen categories showed a major change after the 2002 release of the King II Report. Possible reasons for the lack of clear trends since 2002 are that the pattern is either not yet visible or it could be speculated that Eskom, who had won various reporting awards, is a leader in the field of corporate reporting and specifically on sustainability issues. Eskom had been involved in the reviewing of the first King Report and the drawing up of the recommendations for King II, and could therefore have modified their reporting procedures in 2000, prior'to the release of King II. As shown in the trend analysis, companies are coming under increased pressure to be socially accountable and transparent. This is fast becoming a 'core business issue', illustrated by the status of the King II Report requirements for corporate governance. Even though the terminology 'sustainability reporting' is unfamiliar to employees and consumers, both groups want disclosure and transparency of sustainability issues. Employees were, however, more aware than consumers of Eskom policies regarding sustainability issues. This report recommends that companies take a pro-active approach to corporate governance and sustainability reporting, noting the desire of consumers and employees to be informed about non-financial issues. These stakeholders also need to be made more aware of the meaning and significance of sustainability reporting.
- Full Text:
- Date Issued: 2004