Objective civil corporate responsability in mozambique’s parastate Companies: the case of edm-ep
Abstract
This article aims at reflecting on Corporate Governance in the context of the relationship between Electricidade de Mozambique (EDM) -E.P. and its customers under the Strict Liability arising from the damage caused to household appliances due to power fluctuation problems. As for the methodology used, basically the literature review was used, which consisted of the consultation of physical reference work that addresses this topic as well as articles retrieved from the Internet. Documentary sources and direct observation techniques have also been employed. Presently, State-Owned Companies are called upon to introduce a Corporate Governance model as a way of empowering themselves with a management tool which promotes organizational efficiency and effectiveness based on transparency. Strict Liability, at EDM-EP., regarding customers who face damage to their household appliances due to power fluctuation, is one of the dimensions of Corporate Governance that seeks to provide the Company with a management tool, not only promoting organizational efficiency and effectiveness, but also of management acts based on transparency and strict liability towards the various stakeholders. Following on from the analysis carried out, it was found that the need for compensation to consumers is a legal imperative, since strict liability itself refers to the fact that it is based on risk. However, at EDM- E.P., the rules applied do not fit reality, which leads to a lack of transparency in the indemnity criteria. However, in cases where compensation is made, it does not always meet vulnerable populations aspirations, since the seriousness of the damage suffered by the affected appliances is based on the damage and it is decided from there either by repairing them or by acquiring others if the damage is not repairable. Compensation also appears as a way to maintain the company's good image. Damage to consumers' household appliances not only results from power overloads, by factors attributable to customers (illegal connections), but also by factors related to the increased demand for electricity services to the detriment of installed capacity, which puts a great pressure on electrical installations.
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