An Innovators Approach to BBBEE – EconoBEE Newsletter 3 June 2009

EconoBEE – Newsletter June 2009

Empower your Business

Know your Score

Know your Targets

Prepare for Verification

Attend EconoBEE’s BEE Verification Conference and equip your business with invaluable knowledge to prepare for a BEE Verification.

Early bird special: Book early and get EconoBEE V3 (worth R2500)

EconoBEE Training

Weekly half day BEE Workshop. 4th Jun 09 – BEE Seminar

9th,16th,23rd July 2009 – BEE Verification Conference

1st, 8th, 15th October 2009 – BEE Procurement and Enterprise Development Conference

Contact us to arrange a specialised BEE course in your offices.

10 Simple Steps to Become BEE Compliant!

BEE is simple to implement when you have a complete understanding of how it affects your business.

We have prepared an easy to follow guide “B-BBEE in 5 Minutes” which explains BEE in a simple step by step approach.

Adoption of BBBEE

The adoption and implementation of BBBEE is still varied in the country. Where does your company fall in the adoption process of BBBEE?

Innovators

Brave companies with people embracing the change. Such companies have embraced BBBEE and are continuously improving their BBBEE points.

Early Adopters

Respectable companies, opinion leaders in their industry leading the pack and are improving their BBBEE points.

Early Majority

Thoughtful companies, careful but accepting change more quickly than the average companies and are beginning to implement BBBEE.

Late Majority

Skeptical companies who will only implement BBBEE when the majority have implemented BBBEE.

Laggards

Traditional companies, caring for the “old ways”, and are still critical towards BBBEE and will only accept it when it becomes mainstream or when forced to comply.

BBBEE is here to stay and will continue to gain momentum. The only way for your company to accept this noble phenomenon is to understand it and know how it affects your business. Our workshops/seminars and conferences are there to help you.

Socio-economic Development and Publicity

A simple and effective way of earning BBBEE points is to increase the level of spending on Socio-Economic Development (SED). SED is one of the seven elements of a BEE scorecard focusing on the extent to which an organization carries out initiatives intended to uplift the South African society. It is worth 25 points for a Qualifying Small Enterprise and 5 points for a Generic company.

Publicity is the deliberate attempt to manage the public’s perception of a company and its products. From a marketing perspective, publicity is one of the variables that comprise the promotional mix where as promotion is one of the variables that comprise the marketing mix.

Therefore, without a shadow of doubt, companies stand to gain immensely by channeling significant investment levels towards SED initiatives not only by earning valuable BEE points, but also from a marketing perspective. Investing in SED builds a superb image and an explosive reputation for an organization.

Needless to say, it is of paramount importance for companies to note that modern consumers are incredibly well informed and educated. They identify themselves with reputable organizations. They recognize and appreciate the active involvement of a company in uplifting the society.

It makes sense therefore for companies to engage on those SED projects, which relate to their field of expertise. Amongst other issues, such projects may be targeted towards education, HIV/AIDS, projects for the disabled and other community building initiatives.

However, engaging in SED for the purpose of earning BEE points and building a good image is a misfired and twisted approach. The bottom line is, it does not support the ideal transformation of the society and certainly it is not good enough to create meaningful and sustainable improvement. Such entities will enjoy in the short-term and definitely not in the long-term. A company’s SED policy should be based on the commitment to contribute to the constructive transformation of the South African society. In this way, an organization gains an enormous amount of publicity at the same time earning priceless BEE points.

To put this into perspective, let us take a company that identifies an orphanage whose walls are an eye’s nightmare. It then invests in painting those walls giving them a fresh and stunning look. Such an initiative does not give back anything physical like money to that particular organization. If those involved in such a project are doing it based on the commitment to make a positive difference, that instant improvement of the orphanage’s walls may be emotionally rewarding but moreover, the community recognizes and appreciates that effort. Through such an investment a company builds a respectable and sustainable image and an explosive reputation whilst at the same time improving on its BEE points.

Tourism BEE Charter – Gazetted

The tourism industry is the first to have its sector code gazetted by the dti minister. The tourism charter must now be followed and used by enterprises in the tourism sector.

Salient points:
EME limit is R2.5 million
QSEs are from R2.5 million to R35 million and must choose 4 of the 7 elements.

The weightings and targets are slightly different to the codes of good practice, and have 5 year and 10 year targets and weightings.

Note:
EconoBEE V3 Scorecard software – we are in the process of updating our BEE scorecard software to include the BEE Tourism Sector Code. Once complete all companies in the tourism sector can prepare a self assessment using EconoBEE V3.

BEE Verification

There is still much confusion about BEE Verification, what is acceptable, what are your targets and how best to prepare.

BEE Verification is the final step in producing a BEE Scorecard certificate.

Did you know?
Your Verification Agency is not allowed to care about the number of points you get. Their job is to “audit” your BEE scorecard.

If you need a BEE Verification or need to know more about BEE Verification then you are in luck. We are hosting a very special BEE Verification Conference that will give you all the info you need to ensure your BEE verification is completed quickly and easily while still earning all the points you deserve.

 

 

Do your customers want your BEE Certificate or Verification? What are you going to do – click here to find out?

Not sure how to get a BEE Scorecard, click here to see a demonstration of how best to produce your own BEE scorecard.

 

Remember

BEE Points = Business

That’s it for the time being.
Regards

Keith and the EconoBEE Team

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