Championing Diversity at Workplace: The Case of Total in South Africa
| Case Code: BECG181 Case Length: 14 Pages Period: 2003-2019 Pub Date: 2022 Teaching Note: Available |
Price: Rs.400 Organization: Total Energies South Africa Industry: Energy Countries: South Africa Themes: Diversity and Inclusion, Workplace Diversity |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Total Africa
Total entered South Africa in 1954, and registered Total Oil Products (Pty) Ltd., in Pretoria, the administrative capital of South Africa. The same year it started with a terminal each in Lourenco Marques, Mozambique, and Isando. In 1956, Total sold its first gallon of petrol from its service stations. By then it had seven service stations in Johannesburg, three in Pretoria, and one each in Roodepoort and Benoni..
Growth
In February 2019, Total made a breakthrough discovery on the Brulpadda prospects, located in the Outeniqua Basin, 175 kilometers off the southern coast of South Africa. The exploration chanced upon 57 meters of net gas condensate . Speaking about the discovery, Kevin McLachlan, Senior Vice President Exploration at Total, said, “We are very pleased to announce the Brulpadda discovery which was drilled in a challenging Deepwater environment.”..
Discrimination in South Africa
The age-old Colonialist and apartheid practices in South Africa had deprived the black community of economic privileges and educational opportunities in the country. This cascaded into numerous socioeconomic challenges for the blacks, resulting in poverty and inequality, talent shortage, and concentration of power in the hands of a few..
B-BBEE
B-BBEE was passed into law through the Broad-Based Black Economic Empowerment Act of 2003. The initiative was taken in response to criticism against Black Economic Empowerment. B-BBEE was expected to measure equity ownership and management representation..
Total’s Transformation Strategy
Total had been practicing inclusive business since the 1960s and was a pioneer in the area, It incorporated B-BBEE practices into its business in 2003 and spread out its activities strategically across all the five slivers of B-BBEE i.e. Ownership, Management control, Skill Development, Socio Economic Development, Enterprise, and Supplier Development..
Ownership
Under B-BBEE, ownership was given weightage points of 25. This was determined by Exercisable Voting Rights in the Enterprise in the hands of black people and Exercisable Voting Rights in the Enterprise in the hands of black women; and the economic interest to which black people / women were entitled..
Management Control
The Management control element of B-BBEE essentially looked..
Skill Development
Total devised a meticulous strategy to address the agenda of skill development. The company included several value adding training programs aimed at equipping each individual with new skills and career development competencies..
Total – A B-BBEE Company
After a targeted and dedicated strategy for more than 15 years, in July 2019, Total South Africa achieved Level 1 B-BBEE rating..
Exhibits
Exhibit I: Quarterly Revenues- 2018
Exhibit II: Act and Preamble
Exhibit III – A: B-BBEE Evaluation criteria and weightages
Exhibit III – B: Recognition Levels
Exhibit IV: Ownership Structure – Total South Africa
Exhibit V: Board Members Total South Africa in 2010
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