At its origin, Broad-Based Black Economic Empowerment (B-BBEE) was intended to fulfil several critical objectives linked to transformation in the workplace, stemming from the immensely negative impact that Apartheid had wreaked on Black Civil Society in South Africa.
To understand the transformative remedies agreed upon amongst social partners, one only needs to refer to the B-BBEE scorecard and its five principal redress areas.
The most essential element that is addressed by a comprehensive B-BBEE strategy is ownership. The National Development and Labour Council, NEDLAC which finalised the regulations upon which B-BBEE is crafted, did not shy away from the objective that there is a fundamental need for those involved in the production process to share in the spoils of that process.
When B-BBEE Legislation refers to the need to extend ownership to the dispossessed in the workplace, it refers in-particular to the benefit to be derived by Black Employees, who, from their productive efforts, contribute not only to turnover, but to Net Profit After Tax (NPAT) from which they should be entitled to derive a justifiable share in the dividend distribution which results.
The founding parents of B-BBEE highlighted from its inception, that transformed ownership, is the ability of black shareholders to…
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Read the full article by Dr Ivor Blumenthal, CEO, ArkKonsult, as well as a host of other topical management articles written by professionals, consultants and academics in the June/July 2022 edition of BusinessBrief.
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