Broad-Based Black Economic Empowerment Services
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The South African government has developed a transformation strategy supported by legal structures, aimed at fostering and encouraging Broad-Based Black Economic Empowerment (BEE) in all levels of the economy. Whilst BEE compliance is technically not compulsory for privately-owned businesses, the following measures act as drivers of BEE and promote its implementation:
- The BEE status of enterprises has become part of the criteria for licence applications in a number of regulated industries
- In terms of the King III framework, good corporate governance requires specific attention to social sustainability, e.g. through contributions to black economic empowerment.
- The BEE status of suppliers is considered an application criterion in tenders for government projects
- To receive points for the element of preferential procurement, entities hoping to improve their BEE scores have to procure goods and services from suppliers with acceptable BEE scores.
- There is increased consumer awareness around ethical trade requirements – especially in SA export markets.
The services we offer relating to support in the development and implementation of your BEE strategy can be divided into four distinct phases, illustrated below.
- Appropriate and sustainable BEE implementation has to be based on a BEE strategy that is aligned with other business objectives
- BEE strategies have to be implemented by a well-informed management team that has been capacitated to effectively execute chosen action plans and record relevant activities and spending
- Staying informed
- Directors and managers have to stay informed on changes to the regulatory framework related to BEE and the progress of the business toward stated BEE objectives
- The careful selection of a BEE verification agent and thorough preparation for BEE audits can enhance an entity’s performance in BEE verification exercises.