Issue 11 of TFM Magazine updates both legislative and peripheral compliance issues, and addresses the ‘Balance of Power’ between Transforming organisations and their Beneficiaries. The consequences of ill thought through and imbalanced partnerships can be catastrophic for all parties involved.
2017 marks the 10th anniversary of the introduction of the 2007 Codes of Good Practice. These were the first measurement benchmark for B-BBEE compliance, which outlined the expectations of Transformation in corporate South Africa. These Codes were implemented with the best intentions. However, there were a number of grey areas that led to varying interpretations and applications.
This issue of TFM Magazine focusses on promoting good Corporate Governance, and comes packed with articles on the subject, including an interview with Advocate Thuli Madonsela.
Sector Codes bring with them added complexity to measuring B-BBEE compliance. However, they have been tailor-made by leaders within a specific sector in order for that specific sector to more effectively accelerate Transformation. This article unpacks how the B-BBEE Act provides for the gazetting of Sector Codes, in terms of section 9(1) of the B-BBEE Act. It furthermore highlights their current status, scope and application.
This issue unpacks The Discounting Principle, which is a consequence for non-compliance with three identified Priority Elements within the Amended Codes, namely Equity Ownership, Skills Development as well as Enterprise and Supplier Development. What are the minimum requirements to avoid discounting? How many levels may an organisation be discounted? Ensure you have a full understanding of this critical principle.
Organisations are facing numerous challenges in meeting the expectations of the Amended Codes and achieving the required targets in order to avoid discounting. Paying particular attention to the nine Bonus Points on offer, may well fill the deficit created by other challenges and optimise an organisation’s overall B-BBEE score. Find out which elements offer Bonus Points and how they are earned.
Unemployed vs Employed are terms causing much frustration and debate in the practical application of Code 300, Skills Development. This Code provides expectations, however, interpretation of identified beneficiaries often lies in the ‘eyes of the beholder’. This is largely due to inconsistencies of specific target beneficiaries within the scorecard. As Skills Development forms one of the three Priority Elements within the Amended Codes, the consequence of misinterpretation could result in non-compliance and subsequent discounting of an organisation’s overall B-BBEE status level. This article presents interpretations held within other legislative Acts, in order for those driving Skills Development initiatives to make an informed decision.
The Continued Consequence Principle, known to many as ‘Once Empowered, Always Empowered’ is, arguably, one of the most complex areas of the Amended Codes. This article introduces the amendments made to this principle within the Amended Codes in relation to the qualification and calculation thereof. It concludes with a scenario that breaks down the complexity of this Principle when calculating Continued Consequence.