|
The Department of Trade and Industry gazetted the long awaited Codes of Good Practice for Broad-Based Black Economic Empowerment and the Construction and Financial Services Sector Charters in February 2007. This milestone heralded the mandatory compliance to these Codes for all organs of state and public entities, as well as those entities undertaking business with an organ of state or public entity. BEE has become a compelling business imperative due to the cascading effect that preferential procurement has on the supply chain as well as businesses now being able to contribute to a growing and transforming economy in a structured way. The Codes finally provide a standard national framework for BEE that can be consistently applied and measured. BEE verification allows for businesses to assess the impact of their efforts in the following areas by measurement against the BEE scorecard: - Human resources development - skills development, employment equity
- Direct empowerment -ownership, management control
- Indirect empowerment - enterprise development, preferential procurement, socio-economic development.
The market drivers requiring business to independently report on their adherence to these Codes include: - New and increased business opportunities with customers utilising preferential procurement.
- Requirement in tender applications.
- Government licensing eligibility and renewal
- Sourcing of BEE funds and shares in broad-based BEE share schemes (eg Sasol, Vodacom,...)
- Application for government incentive schemes
- Competitive advantage in marketing campaigns
- Snapshot status of a business to assist in developing their BEE strategy
- Reporting on an industry-specific commitment
|
|
