03 Mar Revised Codes – Is your Business Ready?
Most businesses should by now be aware of the revised codes which will officially be implemented on the 1st May 2015. Is your Business ready? The revised Broad-Based Black Economic Empowerment (BBBEE) Codes were gazetted by the Minister of Trade and Industry (DTI) on 11 October 2013. The new or revised codes will replace the current BBBEE Codes of Good practice and thresholds for EMEs and QSEs have been adjusted. Many businesses will have to adjust in order to maintain their BEE levels.
The revised codes were developed to ensure that certain standards are adhered to in order to encourage economic development of those previously disadvantaged under Apartheid. Businesses are being encouraged to deal with black owned suppliers and points on the scorecard will be earned by this valuable contribution to emerging black owned enterprises.
With these amendments businesses with an existing score should make it their priority to investigate or get valuable consulting related to these changes. Many will need to change their strategy in order to not be adversely affected. The most noticeable change is that the new codes will reduce the existing seven generic scorecard elements to five with Preferential Procurement and Enterprise Development forming one element namely Enterprise and Supplier Development as well as Management Control and Employment equity combined in to Management Control. The scoring will also be different.
The elements will thus be:
• Management Control
• Skills Development
• Enterprise and Supplier Development
• Socio-Economic Development
Businesses that do not make the necessary changes could face falling lower on their current BEE level. Many business owners will have recognized that BEE can provide their business with a competitive edge in an extremely competitive environment. This is why it’s important to keep up to date with any changes and ensure that you understand all the requirements relating to the codes, scorecard and charters. This will help to ensure that your business is indeed ready.