Читать книгу Broad-Based BEE - Jonathan Goldberg - Страница 7

Government, in the process of correcting historical imbalances in South Africa, is redirecting capital to black people through the manifestation of government’s significant (monopolistic) procurement budget and regulations.

The fact is that BEE has rapidly become a strategic imperative for most businesses. BEE has a variety of ingredients, dimensions and facets – better known in broad-based BEE parlance as Elements; it is not only limited to ownership and management considerations.

Clearly if businesses wish to supply goods or services to the public sector, organs of state (national, provincial and local government) and public entities, acquire licences and concessions or bid for public procurement, then they will be required to demonstrate their broad-based BEE credentials particularly in relation to:

•ownership;

•management control;

•skills development (employment equity and skills development);

•supplier and enterprise development, and

•socio-economic development

In accordance with Amended Code Scorecard and related legislation. The private sector, non-profit companies (NPCs) and other stakeholders are also encouraged to apply the Codes of Good Practice when transacting with businesses, thereby aligning business imperatives with the government’s broad-based BEE objectives. In fact the Codes require that all entities that undertake any business with any organs of state or public entities need to be measured using the Codes to establish their own broad-based BEE compliance.

Black consumers comprise the largest market and growth sector in South Africa. There is a huge opportunity for businesses to grow as the disposable income of previously marginalised blacks increases. Black people will control and demand preferential procurement (not in the least voting with their wallets), and will be in senior positions controlling both public and private sector procurement in most supply chains. Consumers place greater emphasis on companies fulfilling socio-economic development and those that communicate formal messages about their operational-level and socially orientated citizenship responsibilities.