The basics of the BEE scorecard

Government needed a way to asses companies BEE status. They wanted to know if a company was black or non-black. The most obvious is “are you owned by a black person”. This is a narrow based.

The B-BBEE (Broad Based BEE) Scorecard are guidelines to gauge a companies Empowerment score.

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Broad Based BEE covers a wide variety of elements, such as Human Resource Development: broken down into to categories. Skills Development and Employment Equity which is then broken down into its own sub-categories etc. In total there are 7 different elements and over 40 indicators that are used to rate a business’s BEE compliance.

This is the BEE scorecard. Each element is given a value in points. A company needs to try achieve as many points as possible. There are a total of 100 points available – which is the target to be achived in the next ten years.

For example: In order to gain another 15 points, a business can involve itself in developing the skills of its employees (Skills Development).

The entire scorecard lists all aspects of the various elements and shows the maximum points that can be earned, based on achieving specified targets.

The Act splits empowerment into four different sections and has two types of entities: