TICKING BOXES
We often hear that B-BBEE is a tick-box exercise and belongs outside the company. Once a year there may be a scramble to collect data and evidence to satisfy the verification agent. Missed goals and targets lead to fear and frustration.
There are however multiple organizations that are able to make B-BBEE work for them. They have learned that understanding the fundamental purpose of Broad-based Black Economic Empowerment and studying the relevant legislation and regulations, can allow a company to leverage the B-BBEE benefits. Are companies embedding their B-BBEE strategy into a sustainable business model or is it only preparation for audits. OWNERSHIP MANAGEMENT EMPLOYMENT EQUITY SKILLS DEVELOPMENT PREFERENTIAL PROCUREMENT ENTERPRISE DEVELOPMENT.
These terms are very familiar to a large number of Executives, but do we understand all of them. Let’s start with SED. Socio = People Economic = the flow of money Development = enhancement Education and Healthcare are elements under SED. Specifically the education of people who are not employed. It is the entry point for South Africans to get into the economy. The next benefit would be SKILLS DEVELOPMENT. This is usually in the form of job learning, Leadership learning, learnerships and formal learning. Skills Development is therefore the second entry point to the economy. Enters EMPLOYMENT EQUITY, instilling the greatest fear and resistance across all sectors. Employment Equity is not just a report sent off the Department of Labour once a year. Plotting the skills gap for succession planning, aligning management needs of the business and planning growth and development in alignment with the needs of the company, embeds success and sustainability.
Thus, forming the foundation for MANAGEMENT CONTROL. At this level already, we are able to see how your B-BBEE has the ability to grow your employees and your business. This now enables employees to access OWNERSHIP, through the acquisition of assets in the business. At this stage we often see the next level of SED through Enterprise Development where job creation and market growth take place, resulting in overall economic growth. With this in mind, the angle which B-BBEE is viewed from, now changes as the business case angle changes. As we become aware of the positive impact of SED at a skills level, we realize that SMEs require support, nurturing and growth. This is where we allow PREFERENTAL PROCUREMENT, allowing small businesses the opportunity to supply products or services preferentially over organizations which are not B-BBEE centric.
Through this demonstration we are able to get a broader picture and understanding of potential challenges, but moreover the benefits of the integration of B-BBEE into organizational goals and business strategies.
Find out how you can grow your scorecard and connect with a consultant by submitting an enquiry.