Why do I need a BEE Scorecard?

Are you getting pressure from your customers for your BEE Score? Are they asking for a BEE profile? If so, then, in order to satisfy customer requests you will need to start building up a BEE profile and scorecard. If not, then you don’t need a scorecard now, but it is still important to keep up to date with the latest laws and guidelines. What is important to note is the BEE Act is not mandatory on business – you will not be breaking a law by not filling in a scorecard. If your customers want your scorecard, give it to them because they are customers, not because the law demands it.

If your turnover is less than R35million then you will probably be classed as a QSE, and subject to the QSE scorecard.

If you do decide you need a scorecard, you actually should start by looking at the various aspects of empowerment and how it affects your business.

They are:

Direct Empowerment:

– Ownership: 20%

– Management: 10%

Human Resources Development:

– Employment Equity: 15%

– Skills Development: 15%

Indirect Empowerment:

– Preferential Procurement: 20%

– Enterprise Development: 15%

Residual:

– Corporate Social Investment: 5%

Grand Total: 100%

A point to realise is if you get no points on a particular aspect, it is not a problem – you can easily make up extra points on other aspects – for example via corporate social investment (your contribution to various charities benefiting black people). The above in any event is a target to be achieved over the next 10 years.

When your customers ask for your scorecard, they are not really interested in your score as it stands today, but your BEE policy and how you are going to evolve your business. Your BEE policy, and your strategy for achieving it is important to those big corporates we all do business with!

You may also like...