BEE Charters Launched – Does it affect you? – EconoBEE Newsletter 19 May 2009

First Empowerment Step

Understand B-BBEE

The first step in becoming BEE compliant is “Learn about BEE”

The BEE Codes of Good Practice like many other government acts is simple to implement when you have a complete understanding of how it affects your business.

Do you know what goes into the BEE scorecard, how to calculate your points or respond to client requests?

EconoBEE Training

4th June 2009 – Full Day BEE Seminar

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

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

Weekly half day – BEE Workshop

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

How big is your business?

Turnover below R5 million
EconoBEE’s EME Pack is the ideal long term solution for your business.

Turnover between R5 and R35 million
EconoBEE V3 is the perfect BEE Self rating tool for you. In addition a short workshop is what you need to get going!

Turnover above R35 million

You need a combination of EconoBEE V3, workshops and EconoLog, implemented properly using our 10 Steps to BEE Approach.

Together we can make the Empowerment Journey work

Of late many commentators, government officials and business owners have been talking about the effectiveness of Broad Based BEE. The overriding sentiment is that BEE should be benefiting more of the right people and currently that too much is in favour of the already empowered.

What about the BEE Codes of Good Practice? The BEE, or more precisely the Broad Based Black Economic Empowerment Codes of Good Practice have been engineered in a fantastically clever way. It encourages businesses to comply not by force but by business sense. The entire BEE process is “spread” by business’s need to earn points.

In addition the BEE codes encourage businesses to contribute to social or economic causes that are close to their hearts and again benefits their business.

Why then is so much emphasis placed on Ownership? Well in actual fact, Ownership is not the overriding element in BBBEE. It is worth just a few points on the scorecard when compared to the entire BEE Scorecard.

The press as well as business owners get very excited about any new big Ownership deals which gives the impression that Ownership is the be all and end all of BEE. In addition most large corporations along with their executives feel far more comfortable negotiating a big deal than donating money to a social cause or helping a small business grow their business.

To many people Skills Development, Enterprise Development and Social Development (Socio-economic Development in BEE terms) is far more important to true empowerment.

True empowerment is a long term journey that has even longer term goals. Below is a table itemising the long term targets that BEE directly or indirectly targets excluding Ownership and Management.

BEE Need

Element

Target Beneficiaries

Leads to

Social Development

Socio-Economic Development

The poverty barrier, unemployed, rural, unskilled etc

More employable people, skills, increased economic activity, reduced crime etc

Training

Skills Development

Employees in companies who have the ability to better their skills

More employable people, growing economy, better quality products and services, better service delivery, potential business opportunities etc

Job Creation, Job advancement

Employment Equity

Unemployed, existing employees

Increased workforce, growing economy, better employment opportunities etc

Entrepreneurship

Enterprise Development

Skilled workforce, entrepreneurs

Increased number of sustainable businesses, greater number of businesses to create employment, business opportunities etc. As an indirect benefit will also help reach the Ownership targets.

Encourage more businesses to become compliant

Preferential Procurement

Businesses who deal with Government and other businesses

Encourage businesses to purchase from BEE compliant suppliers, more compliant suppliers, improved BEE scorecards, encourage more businesses to invest in other areas on the BEE scorecard to earn additional points etc

BEE is not going away, but we as business owners have a choice. Do we want to throw money at BEE or do we want to make a genuine effort at increasing skills, creating more businesses, bettering SA citizens lives and as a whole make South Africa a great place to work and live in.

Let us know what you think – vote here or add your comment on our blog.

BEE Charters – Launched

The (now ex) minister of the Department of Trade and Industry has signed three additional BEE Charters.

Tourism,
Construction and
Forestry

In effect all businesses that fall into these sectors should create a BBBEE scorecard based on the charter applicable and not the Codes of Good Practice.

Note:
The differences between each charter is not major. The BEE Codes of Good Practice in all instances served as the template for creating each charter.

If you have an existing BEE Scorecard it will remain valid. You only need to update it when it expires.

EconoBEE V3 Scorecard software. We will be updating our BEE scorecard software to include all gazetted BEE Sector Codes.

BEE Verification

There is still much confusion about BEE Verification, what is acceptable, who can produce what and how best to prepare.

BEE Verification is the final step in producing a BEE Scorecard certificate and is required only when your customers require a verified BEE status.

Did you know?
Your Verification Agency is not allowed to consult to you, or even tell you how to improve your score. They will simply give you a form to fill in, and based on your response will verify that the data you have is accurate.

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.

BEE my Comrade(s Marathon) – a gentle jog to Durban

Over the years this short Comrades Marathon message has become a tradition. As many readers know, I (Keith Levenstein – race number 15577) will be running the Comrades Marathon this coming Sunday (24 May 2009). This if finished, will be Comrades number 13.

Good luck to all Comrades runners and thank you to all supporters.

 

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

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

 

Remember

BEE Points = Business

That’s it for the time being.
Regards

Keith and the EconoBEE Team

You may also like...