Marketing, Advertising and Communications Charter Gazetted

The Marketing, Advertising and Communication sector charter has been gazetted.

This means that companies in these industries now have to start complying with B-BBEE codes in order to comply with BEE, thus enabling them to be competative in the market and enhanse trade opportunities.

Here are the things you need to know

Who does this charter apply to?

  • Advertising companies whose core business is the conceptualisation, creation and production of advertising to foster a relationship between a product and the consumer.
  • Public relations companies whose core business is the conceptualisation, creation and implementation of communication to facilitate a relationship between a product and the public.
  • Communication companies whose core business is the conceptualisation, creation, production and implementation of communication as a marketing tool in two or more of the following disciplines:
    • Advertising
    • Public Relations
    • Experiential
    • Design

What threshold do you fall under?

You are GENERIC if you have the following annual turnover:-

  • Public Relations >R10m
  • Advertising >R50m
  • Marketing and Communications >R50m

You are a QSE(Qualifying Small Enterprise) if you have an annual turn over of >R10m-<R50m with the exception of Public Relations that is >R5m.

Key points of the GENERIC codes:

  • There are two sets of compliance targets, current and 2018.
  • Black Ownership target is 40% going to 45%
  • Demographic Targets apply to Management Control and Skills Development
  • Skills Development spend target is 4% of payroll going to 6%
  • Learnership Targets are 1.5% of staff for both employed and previously unemployed black people going to 2.5% in 2018
  • 100% absorption of previously unemployed learners commands 10 points
  • SED Target is 1% of NPAT but goes to 2.5% in 2018
  • There is an additional element covering targeting sector specific programmes promoting responsible behavioural changes in line with national strategic objectives.  5 points are awarded for contributions achieving 1% of NPAT going to 2.5% in 2018

Key points of the QSE codes:

  • Skills Development spend target is 4% of payroll in 2018
  • Skills Development spend target for black women is 2% going to 3% in 2018
  • The additional element for sector specific programmes is included but with different measurements
  • Supplier and Enterprise development targets are 1% of NPAT going to 2% in 2018
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