Code of conduct

Introduction

The principles set out in this document complement Eskom's current policies regarding gifts, hospitality and conflicts of interest. Eskom reserves the right to do business with whom it chooses. This communication is designed to ensure that arrangements in this respect are consistent with "Best Practice", and to inform suppliers of conduct which Eskom expects from them.

General Provisions

Eskom's suppliers accept that they will at all times:

• Maintain an unimpeachable standard of integrity in all their business and personal dealings.
• Reject all improper business practices.
• Not abuse the trust placed in them by Eskom employees.
• Not misuse opportunities arising in the course of their interaction with Eskom for their personal gain.
• Seek constantly to maintain and enhance the standards of professional competence of themselves.
• Adopt policies and practices which align with those of Eskom in terms of labour practices, affirmative action initiatives and human relations policies.

Provisions Relating to Particular Situations

• Confidential information, to which a supplier has access in the course of his or her work, may not be disclosed without the express permission from the appropriate Eskom employee authorised to grant such dispensation.
• All information given by suppliers to Eskom in the course of their work shall be accurate and calculated not to mislead. Eskom reserves the right to request an audit of such information where deemed appropriate.
• The establishment of long term and close relations between suppliers and their customers is recognised, in the right context, as having the potential to benefit both the parties. However, suppliers are to avoid relationships with Eskom personnel which are, or which have the appearance of being, contrary to the principles of fair competition. EskomÆs policy is to select suppliers on the basis of evaluations of quality and prices as well as reliability, technical expertise and integrity.

Entertainment

The entertainment of customers and contacts and the provision of corporate gifts is an accepted commercial practice. However, in providing hospitality or gifts to Eskom employees, care must be taken to avoid any course of conduct that is, or could reasonably be construed as, improper.
In particular:

• Business gifts should be marked with the supplier's name and/or logo.
• Any business gifts or entertainment offered should be appropriate to the generally accepted practice; in any event a gift should not be of such a nature as to place or be capable of being construed as placing an Eskom employee under undue obligation to the supplier or of improperly influencing the recipient.

Conclusion

It is incumbent upon any Eskom employee who becomes aware of a breach of Eskom's policy to report immediately such breach to his or her manager who will instigate investigations as necessary.

Similarly, it is the responsibility of the supplier to report any malpractice by an Eskom employee to the appropriate Eskom manager who will instigate appropriate disciplinary proceedings. The supplier's employee is assured that such action will not compromise or disadvantage his organisation in any way.

Where possible, contracts will be negotiated to include the above in the terms of such contracts. To the extent such terms are not included in contractual obligations and any of the above code is breached, then Eskom reserves its right to review doing business with these suppliers.