Johannesburg, 19 Sep 2008
Cisco SA believes it will receive level three, if not level two, broad-based black economic empowerment (BBBEE) status after Ernst & Young has audited its empowerment scorecard.
"We`re pretty well represented in the company," says Cisco SA MD Steve Midgley.
In 2007, the networking solutions company announced it had sold 25.1% of its share equity as part of its empowerment initiative. The equity was bought by a broad-based investment consortium, which included an external investment partner, a trust representing Cisco SA`s black employees and an education trust.
Empowerment specifications
Ernst & Young states it can lend credibility to an organisation`s efforts around transformation through independent reviews and audits. It says audits and reviews are performed using a global audit methodology adapted to include the requirements of the BEE Act and the relevant industry charters.
Midgley says Cisco has progressed in terms of all seven pillars of BBBEE, in line with the Department of Trade and Industry`s Codes of Good Practice. The codes describe direct empowerment being equity ownership and management representation, and indirect empowerment, such as employment equity, skills development and preferential procurement.
"More than 70% of Cisco SA`s senior managers and directors are from previously-disadvantaged backgrounds, 30% of its workforce is female and 60% of its workforce is made up of previously-disadvantaged individuals. Affirmative procurement is currently at 65%, up from 30% a year ago," says Midgley.
Innovation station
Cisco has been running a number of empowerment initiatives, which have coincided with a R215 million investment in the Cisco Innovation Hub Technology Centre (CITHC), which will be based at the Innovation Hub, in Pretoria.
The networking company is expected to run various initiatives from the CITHC, including the Global Talent Acquisition Programme, which focuses on accelerating training for graduate students; and Cisco Netversity, where more than 150 network design engineers will be trained for the local market.
"We already have 300m2 of space at the Innovation Hub and, as soon as we get more land, we will be able to consolidate all our training initiatives," says Midgley.
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