Tag: Broad-Based Black Economic Empowerment (B-BBEE)

The Harvard Business Review describes the secret of corporate success as "human magic". Unlocking employee potential is a culture where people thrive. This culture allows ambitions, passions and commitments to translate into productivity, results and shared growth.

The recent gazetting of the Legal Broad-Based Black Economic Empowerment (B-BBEE) Sector Codes of Good Practice (LSC) occurred on September 20, 2024. This is a significant milestone for the transformation of the legal profession in South Africa. It marks a pivotal moment, aligning with the nation’s constitutional commitment to equitable economic participation.

In South Africa, businesses are required to contribute to the social and economic development (SED) by the Broad-Based Black Economic Empowerment (B-BBEE) Act of 2003. This legislation stipulates the assessment of SED performance through a scorecard covering enterprise development, skills training, job creation, socio-economic projects, and preferential procurement.

In a significant move towards enhancing efficiency, transparency, and accountability in public procurement processes, the gazetted Public Procurement Act of 2024 (Act) aims to revolutionise the way government entities engage in procurement activities.

Skills development in the form of learnerships is an essential element of the Broad-Based Black Economic Empowerment (B-BBEE) scorecard, accounting for a significant portion of the score for large enterprises in particular. However, not all businesses have the capacity, availability, or ability to take on sufficient learners to meet their obligations.

Samsung has retained its Level-1 B-BBEE status for six (6) years in succession. This is a true testament of Samsung’s 30-year commitment and the positive impact its continuous investment has had, to the country’s transformation agenda.

On 1 February 2024, new Draft Regulations were released, containing new Draft Sectoral Targets, and unpacking what businesses need to consider when setting goals. The public now has 90 days from release to comment on the draft.

For most South African businesses, the skills development component of the Broad-Based Black Economic Empowerment (B-BBEE) scorecard is one of the most challenging and costly elements to deliver on. However, by strategically combining employed and unemployed learnerships, businesses can secure the most points for the least money spent, while achieving the best return on their training and skills development investment.

In the landscape of South Africa's corporate engagement within rural and peri-urban communities, a recurring narrative persists: a bias towards non-core Enterprise and Supplier Development (ESD) programmes and interventions overshadows the essential need for holistic, forward-thinking ESD strategies to boost small business growth.

Companies sponsoring learnerships are looking beyond profit towards a better future. Business success is not only about profit margins and market share - it is also about positively impacting society and contributing to the growth of future leaders.