Companies need to implement 360-degree BEE to bring about real socio-economic progress in South Africa. That`s the word from Jacques Du Toit, director at Orion Telecom. He says it`s time to extend black economic empowerment beyond the boardroom if South African business wants to empower more than the elite few.
Bringing in black equity partners alone is not the best way of complying with the Department of Trade and Industry`s black economic empowerment (BEE) programme for South Africa. BEE aims to bring about economic transformation of this country, increase the number of previously disadvantaged individuals (PDIs) that manage, own, and control South Africa`s economy, and decrease income inequalities. To achieve that requires BEE at board, employee and community level. BEE deals resulting in the enrichment of a few contribute little to the overall development of the country.
One of the stated intentions of the government`s BEE strategy is to increase the number of PDIs who have ownership and control of businesses. A company may have sold a 26% stake in the business to a BEE entity, but that should be only one step in its efforts to aid in accelerating economic growth and social development.
True broad-based BEE is about more than mere compliance with the minimum regulations; it moves away from ownership alone to encompass the principles of BEE across the spectrum.
Designed to overcome discrimination in employment experienced by members of equity groups, employment equity is another. Employers must set out the steps they intend taking to achieve employment equity. They need to analyse their workforce profile as well as their employment practices and policies.
Every employer has to pay a skills development levy each month towards the National Skills fund. But skills development must be brought into the workplace too. At Orion Telecom in excess of two thirds of the company`s skills development budget goes to PDIs. This assists these employees with learnership grants, and fast tracks their development by providing them with the training and skills they require to reach management level. It paves the way for a substantial increase in the number of black people in executive and senior management positions.
The increase of skills and infrastructure, particularly in underdeveloped areas, should be a key focus of any company`s BEE strategy. Orion has tackled that at grassroots level by setting up "points of presence" in outlying areas around the country. We are working with people from these communities to develop their skills so that they can become fully trained consultants. We outsourced the establishment of these offices to a black-owned business which sourced both the people and the premises required. These people are well on their way to becoming fully-fledged telecommunications consultants who have a broad understanding of telecoms. Their training is ongoing and is critical to our skills transfer drive, which focuses not just on creating jobs, but also on building careers. In addition to aiding economic development in under-resourced areas, such programmes can have significant social impact. Skills development plays a crucial role in restoring dignity and self-esteem, alleviating poverty, and improving living standards.
Finally, at a business-to-business level companies need to check the BEE credentials of potential service providers before they sign any contracts. Customers must buy from suppliers who are committed to broad-based black empowerment.
Doing business this way will accelerate economic growth and social development precisely because it goes beyond investment, ownership and control of businesses and economic assets to embrace human resource development, employment equity, organisational development and preferential procurement.
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