Don't follow political parties' mudslinging approach to B-BBEE...
Bad blood among political parties comes as no surprise. Now, the South African Communist Party (SACP) in the Western Cape has accused the DA of trying to associate itself with the legacy of former president Nelson Mandela when it's actually strongly against policies like B-BBEE. Make sure your business isn't accused of similar actions by getting your own B-BBEE policy up-to-scratch by understanding what it really stands for today!
Provincial secretary for the SACP in the Western Cape, Khaya Magaxa, said the DA's decision to declare 2013 the year of Nelson Mandela smacked of hypocrisy.
Magaxa explained his view that DA is 'a racist party' that opposes affirmative action and broad-based black economic empowerment (B-BBEE), says TheNewAge
Unfortunately, this kind of mudslinging goes against what B-BBEE stands for.
Here's what B-BBEE really stands for: Transformation
Because 'From the time of inception, broad-based black economic empowerment and employment equity legislation were put in place to drive meaningful transformation in a changing South African business environment,' says an article on SkillsPortal
And the best way to ensure meaningful transformation takes place is to make sure your company's policies are in line with this new business mindset.
That's why any representation made by a company about its broad-based black economic empowerment compliance must be supported by suitable evidence or documentation, says EconoBEE
This includes B-BBEE procurement spend.
Your B-BBEE procurement spend calculations could be wrong…
Procurement is now being affected by the proposed changes to the B-BBEE codes of good practice, says FSP Business
For example, you won't be able to include non-value-adding suppliers in your preferential procurement calculation.
That's why it's crucial to understand the latest changes to BEE as they will ultimately affect your company's B-BBEE rating.
But remember that at the end of the day, it's about achieving true transformation, not simply chasing a better B-BBEE rating!
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