BEE is your business
RUIMSIG - Rocci and LabourNet partner up to break down BBBEE to local businesses.
Broad-Based Black Economic Empowerment (BBBEE) is a necessary part of business in South Africa, but following BBBEE is not always easy, especially since misconceptions have arisen from changes to the code.
This week, at the Ruimsig Country Club, the Roodepoort Chamber of Commerce and Industry (Rocci) organised a BBBEE seminar to outline the changes. Gregory Kowalik, executive of human resources consulting at LabourNet presented the changes to the code and discussed why businesses should implement practices to comply with BBBEE.
Kowalik noted that not applying BBBEE practices will only be bad for the economy as high unemployment rates equal poverty, civil unrest and crime.
According to Kowalik, the major misconceptions of BBBEE are that companies should not be complacent in business, as BBBEE will not disappear overnight. Kowalik suggests businesses be proactive by formulating and implementing strategies according to BBBEE before it is too late and your competitors also have the upper hand. If companies did defy the system, the likely outcome would be that government will become more strict about compliance and you would have a compliance issue.
Other misconceptions include companies who think you have to give away shareholdings and are basically giving their company away. This is untrue as BBBEE does not say you have to give away shares or sell them at a discounted price.
A partnership with an African, or any other race grouped under ‘black’, does not mean you have a good BBBEE score, as ownership of a company is only one element of BBBEE. Some pinpoint you will be fined if you do not comply – this is false. You may only be excluded from tendering or receiving work from government as a result of non-compliance.
Kowalik added that the average man-in-the-street is affected by BBBEE as it is part of a business’ social responsibility to their local communities, which everyone falls under.
“In order for South Africa to thrive, businesses need to empower communities,” said Kowalik. “Companies and businesses need to move away from seeing BBBEE as a necessary evil and see it as a way to eradicate unemployment, uplift the community, give people skill sets and also create an environment for sustainable business,” Kowalik explained.
Details: LabourNet, 011 532 8800.
Related stories:
The voice of business in Roodepoort
Roodepoort Northsider:
For free breaking and community news, visit Johannesburg North West’s websites:
Keep updated on breaking news in your area. Like Roodepoort Northsider’s page on Facebook and follow us on Twitter.
