The Broad Based Black Economic Empowerment Act (“the Act”) was introduced by Government in order to accelerate the transformation of the economy and to bring Black people into the mainstream activities of the economy. In addition government introduced the Broad Based Black Economic Empowerment Codes of Good Practice (“the Codes”) to guide and to measure the progress of transformation in the economy.
The BEE Codes of Good Practice’s ‘Generic Scorecard’ follows a broad-based approach in that it allows businesses the flexibility to score points across the various pillars of the scorecard.
Companies that seek to do business with the government, or are dependent on governmental licenses or concessions for the conduct of their business must demonstrate their level of BEE compliance as calculated in terms of the BEE scorecard. Of particular note is preferential procurement’s ripple effect and impact on the supply chain in a downward spiral which will eventually affect all businesses. Having a BEE status will be a pre-requisite of doing business in South Africa.
QUESTIONS TO ASK YOURSELF EY's OFFER TO YOU:
- Does your company possess a BEE Scorecard? We can assess you in terms of the DTI’s Scorecard
- Are your suppliers demanding your BEE status? We will enable you to confidently present your BEE Status to your suppliers
- Do you have a BEE strategy in place? We can help you develop this strategy to ensure that your business processes are aligned to the provisions of the Act and the Codes
- Are you aware of the impact of your suppliers’ BEE status on your score? We can assess your suppliers for you and take their rating into account when calculating your score
- Do you know the impact on your business if you do not address BEE? We will draw on best practices and our experience in the South African economy to address your concerns
BENEFITS OF COMPLYING:
- Ability of an entity to enter into any tender with a governmental organization
- Decreases the likelihood of losing contracts with customers for the provision of goods and services to more empowered companies
- It reaffirms your entity’s commitment as responsible corporate citizens and assists in contributing to the improvement and development of the quality of life of communities thereby fulfilling social responsibilities
- We do not view compliance with the BBBEE legislation as a legislative imperative, but as a pragmatic growth strategy that aims to realise the country's full economic potential. Therefore, embracing BEE has not only proved to be the right thing to do, but is also a fundamental aspect to ensure the successful development of our country.