|The Competitive Edge – Practical Empowerment Solutions!|
The influence of B-BBEE in business cannot be ignored. It provides a sharp edge on the competitive superiority of any business in the business to business industry.
However, one great misconception resting in many people’s minds is that a BEE compliant or a black owned company is guaranteed of winning business all the time. Commercial logic dictates that the best supplier overall will win the tender. In effect a supplier with a better BEE score is far more likely to win a tender. In today’s business cycle if you want more business you simply cannot ignore BEE.
BEE points = business! The key to BEE success is not getting a verified scorecard (this comes last) but rather earning points effectively in a business friendly manner on the scorecard.
Our role as a consultant is to advise you on the best path, help you prepare your scorecard and ensure you earn enough points to satisfy your customers.
The role of a verification agency is to audit your scorecard. It is their job to check that all documentation is available and correct. They are not allowed to advise you in any way, similarly we can’t verify your scorecard.
- Remember B-BBEE compliance is about how many points you have managed to earn – true empowerment is about so much more…
- Every single BEE activity you do must make business sense – there is no point in wasting time or money.
- BEE should earn you long term profits when done correctly
- Take control of your own BEE activities. (Think about it, who knows your business better than yourself). Choose an expert who gives you advice, shares knowledge and gives you access to your own scorecard, not directs you where they feel comfortable.
- How much does one point cost and will your competitors earn the same point?
- BEE is a long term project, it takes time to properly implement but when done correctly is extremely rewarding in both profits and staff and customer loyalty.
- Skills Development, Job creation and Entrepreneurship is the key goal with BEE. Create more, do more rather than dilute existing.
|Have you been greenwashed today?|
Within society, attitudes are changing and consumers are ever more discerning when it comes to the products they buy. High on the list of priorities is the need for goods and services to be “environmentally friendly”. With this in mind, today I took notice of all the environmental messages that I came across. I visited the South African Airways website, which has a flash “advert” on its home page saying “click here to read more about SAA and the environment”. In Woolworths I noticed a prominently-displayed rack of clothes manufactured from “South Africa’s first organic cotton crop”. And right in front of me as I write – on my laptop computer – is a blue sticker saying “Energy Star”.
Those are just 3 examples of various products and services showing some level of commitment to being “green” and “environmentally friendly”. But how do we interrogate what these claims actually mean? How can we be sure that we are not just being “greenwashed”, that producers and service providers are not just making hollow claims to appeal to our environmental conscience? The first point on SAA’s website indicates “we operate one of the youngest, most efficient fleets in the world” – a statement that is intuitively good, as we all know that increasing resource efficiency is a way of reducing our adverse environmental impacts. Similarly we all intuitively believe that organic is good for us – but how much better is it? Organic cotton is produced without the direct application of fertilisers and insecticides – but what if this is the first year that no inputs have been applied, and the soil still contains the remnants of last year’s application? What on earth does the blue “Energy Star” sticker mean?!
What I am getting at here is…
|Independent News needs to meet state targets|
October 14, 2009
By Thabiso Mochiko
The Independent Newspapers Group has achieved a level five black empowerment contributor rating but acknowledged that more needed to be done to meet the government targets.
Independent Newspapers, which has scored well in enterprise development, preferential procurement and socio economic development, aims to focus more on skills development and training, and also adding more black people at senior management positions…
…Gavin Levenstein, director at EconoBEE, said procurement was “undoubtedly the most important aspect” to ensure empowerment was widely implemented by all companies in South Africa.
Companies with a high BEE rating level were more likely to have more customers as it also boosted their customers’ black empowerment score for preferential procurement…
|Skills Development Minimum Requirements|
The generic BEE codes are quite clear, stating that you need to submit a workplace skills plan to the relevant SETA or else you earn no points for Skills Development. You are practically penalised up to 15 points for not submitting this document. You also need to prove that you have implemented programmes targeted at developing Priority Skills generally, and specifically for black employees. Without these two documents, and proof that you have complied with the skills development act, the skills development levies act and registered with the applicable SETA you will earn no points for skills development. If you want a copy of the relevant code or acts, please send an email to us.
We recently encountered an interesting situation. A company who is now generic but did not need to submit a workplace skills plan (because they were previously a QSE) has now been penalised those 15 points when they were unable to comply, rather than did not comply.
In general be aware and prepare prior to verification. If this company had been aware of this restriction they could have earned their skills development points. Bear in mind the cost of one point in Skills Development could pay for the verification, the consultation and mean the difference between compliance and success vs non-compliance and failure.
You are most welcome to download all relevant documents from our downloads section.
|Is BEE procurement a pain? Sort it out quick and easy – click here.|
Not sure how to get a BEE Scorecard, click here to see a demonstration of how best to produce your own BEE scorecard.
20 October 2009
In this issue
- The Competitive Edge – Practical Empowerment Solutions!
- Have you been greenwashed today?
- Independent News needs to meet state targets
- Skills Development Minimum Requirements
EconoBEE is a BEE consultancy that has developed extremely effective tools to measure and implement Broad Based Black Economic Empowerment. Our services focus on the business side of BEE. Our services include EconoBEE Scorecard, BEE Scorecard Workshops, EME Pack, Document Pack, EconoLog and the 10 Step Process to BEE Compliance.
Our company supports various organisations and drives the BEE Expert Group to help maintain and develop knowledge in the BEE industry.
Already have a BEE Certificate?
Please send it to us and we will include it in our BEE Procured database.
Tel: 0861 11 3094 or 011 483 1190
Fax: 011 483 1195
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