Enable wealth to be spread more broadly across all population groups.
Allows for development of Codes of Good Practice.
Aims at targeting inequality in South African economy.
Impact
Positives
Good BEE rating improves image of business.
Provides variety of business codes to improve employment equity.
Encourages businesses to address demands for equity directly.
Impact
Negatives
Processes may lead to corruption if not monitored.
Investment issues can cause unhappiness between existing shareholders.
Businesses that want to do business with government must have their BEE status assessed annually.
Discriminatory actions
Failing to implement affirmative action to meet BBBEE responsibilities.
Refusing to award tenders to black suppliers who are BEE compliant.
Penalties for non-compliance
Businesses may face imprisonment for non-compliance and fronting.
Businesses licenses may not be renewed and authorisations may not be issued.
Business can be banned from government contracts for 10 years.
Ways to comply
Develop small business/ SMME's through ESD.
Outsource their services to BEE compliant suppliers.
Send black people for skills development training.
Implications of the Act
Revised BBBEE pillars
Management control
Skills development
Ownership
Enterprise and supplier development (ESD)
Socio-economic development/ social responsibility
Implications of the Act
Implication of management control on businesses:
Businesses are directly penalised for not implementing this pillar.
Involve black people in the decision-making processes.
Appoint black people in senior executive positions/ to management.
Implications of the Act
Implication of skills development on businesses:
Provide learnerships and learning programs to black employees.
Business benefits from increased pool of skilled/ trained workers.
Business must engage black employees in skills development initiatives.
Implications of the Act
Implication of ownership on businesses:
Business should include black people in shareholding/ partnerships.
Encourage small black investors to invest in big companies and share ownership.
More opportunities are created for black people to become owners/ entrepreneurs.
Implications of the Act
Implication of Enterprise and supplier development (ESD) on businesses:
BBBEE suppliers may be without good workmanship.
Smaller businesses that aren't BBBEE compliant lose business.
Outsource services to suppliers that are BBBEE compliant.
Implications of the Act
Implications of social responsibility/ socio-economic development on businesses:
Business should focus on critical areas affecting national growth and development such as environmental awareness/ education, housing, poverty and unemployment.
Allocate limited CSI resources to selected beneficiaries in the community.