On 1st May 2015 the amended Broad-Based Black Economic Empowerment (B-BBEE) Codes of Good Practice come into effect, and companies will need to meet the new requirements in order to prevent their status from dropping. Understanding compliance can be a confusing process, which is why many businesses have turned to experts, like LEAP, to help them prepare for D-day.
Some of the greatest changes have to do with the elements, as the original seven have been reduced to five, and of these, there are three priority elements (ownership, skills development, and enterprise and supplier development) where minimum compliance is required. Business owners need to take note of these major modifications, and be prepared for a drop in their scorecard level.
The first step to realign a business is to see how it fares under the revised codes. Through LEAP, an assessment is performed using the amended targets and a new scorecard is established, which is compared to the existing scorecard. By highlighting these differences it’s evident how many points a company currently has, where the gaps are, and how many points are needed in particular areas to reach the desired B-BBEE level.
Being compliant won’t happen by accident, it’s a time-consuming process which takes proper planning and a thorough understanding of the revised codes. LEAP has qualified and trained B-BBEE consultants who analyse results, identify where points are needed, and then suggest a strategy for each company in order to obtain the necessary level. Along with implementation, regular observation is an essential part of ensuring that a company retains its status, and this is monitored on a monthly basis.
The new codes are a critical point for companies that operate in South Africa, and they show the government’s intention of speeding up transformation across local industries. On 1st May 2015 the revised codes come into effect, and it’s vital for businesses to maintain or regain their previous levels in order to stay competitive. B-BBEE shouldn’t be considered a once-off project, but rather a long-term strategy that will help to redress inequality and boost the country’s economic growth.
LEAP assists businesses with their A-Z verification readiness for the revised B-BBEE codes. For advice and support phone 011 449 7074 or visit www.leapco.co.za.