BEE

Nadia Hattia, Senior Consultant at The BEE Chamber writes about the complexities of aligning with the right Codes of Good Practice in an entity. In the piece she unpacks some of the challenges and what to look at during the journey.

One of the biggest collective challenges South Africa is facing is the unemployment crisis. StatsSA’s latest figures show that a third (32.7%) of working-age people in South Africa are unemployed.

Broad-based Black Economic Empowerment (B-BBEE) is an explicit commitment by the South African government to promote economic transformation and enhance the economic participation of black people (African, coloured and Indian people who are South African citizens) in the South African economy.

South Africa's new Employment Equity Amendment Bill of 2020 has been approved for submission to Parliament. SA's Cabinet says that “The Bill promotes equal opportunity and fair treatment in employment through the elimination of unfair discrimination”. 

This bill re-emphasizes how important it is for companies to actively transform their workplace but this begs the question - which companies are at risk of non-compliance?

Being a Broad-Based Black Economic Empowerment (B-BBEE) compliant business is a certification that all businesses in South Africa should have. We’re going to take a look at how and why you need to become a B-BBEE compliant business.

The KwaZulu Natal Econimic Development MEC Sihle Zikalala is spearheading the bid to reshape BEE policies to benefit “black Africans”. The proposal was sent to National Treasury Director-General Dondo Mogajane in August.

As the year draws to a close, and our minds are already on the beach sipping cocktails, I would like to leave you with a few pointers on how best you can maximise your BEE compliance.

As the Workplace Skills Plan directly affects the skills development pillar of the B-BBEE scorecard, it is a requirement for companies to submit this plan.

Companies do not achieve levels 2 or 3 by mistake or by ticking boxes. BEE
needs to be implemented with carefully planned methodologies, which is then
properly implemented and monitored in a way that makes complete business
sense.

A major reason for producing a good BEE scorecard is to satisfy clients. The
higher the score the better the chances of your company being awarded
business.

How have the revised BEE codes affected business? Tarryn Mason
discusses the best way to maximise points on the Skills Development element
of the triple-BEE scorecard.

Skills development, specifically learnerships will soon become a buzzword in the
workplace if the proposed B-BBEE codes are implemented. Companies who have
ignored the practice of learnerships will have to face this issue squarely if they hope
to maintain their BEE rating in future.

A disability-focused learnership can boost a company?s B-BBEE scorecard and offer
the opportunity to improve the lives of people less fortunate. This is adds value to the
organisation and society as a whole.

The draft Employment Equity Amendment Bill will have far reaching consequences for businesses who do not adequately plan their BEE processes. This is according to Sam Deuchar, CEO of Rebmormax; executive talent consulting agency.

The BEE code could have vast negative effects on business procurement as it creates
problems in maintaining a sustainable business. In the following article this is
discussed at length and how this could be effectively managed.

The issue of BEE for businesses can be a complex situation to manage effectively. Especially if those companies are looking to work closely with the government in wanting to secure business them. In the quest for a good BEE certificate business owners often fall victim to the many pitfalls of BEE.

In October the Department of Trade and Industry released the amended BBBEE Codes for public comment. One of the changes proposed will require companies to employ people from each race group in order to claim full scores in the Management Control element on the BEE Scorecard.

Many businesses have not taken full advantage of the B-BBEE scorecard system. Companies may find themselves at a lower level once the proposed changes are approved. The changes include more technical code targets.

To ensure economic growth the principles of BEE must be implemented. The country's economy is currently in the hands of a few elite and these principles ensure the spread of wealth. However, companies are feeling forced to comply rather than proactively working towards becoming compliant.

Do you understand the implications the newly gazetted BBBEE ICT sector code will have on your business? Transcend Corporate Advisors offers HR professionals, senior executives and BEE champions the opportunity to get to grips with these changes.