Let’s look at the WHY. A series of blogs tackling the big ‘why’ when it comes to B-BBEE and its core principles.
WHY does South Africa need BEE?
Unemployment, poverty and deep rooted inequality. These are the ruins left by a past of oppression. So how does a country correct this? Or better yet, how do we as humanity correct this? In order for us to better identify the reasons your business needs B-BBEE, we first need to relay why South Africa as a whole needs Broad-based Black Economic Empowerment.
Being a government policy, BEE was created to aid in and advance economic transformation by enhancing the economic participation of Black people in the South African economy. This stems from the constitution which states that all people in South Africa should be given the opportunity for equal treatment and opportunity and since many were not born into equal circumstances, BEE is here to bridge the gap.
The need for this policy in our country is vast. Without a way to bridge the gap between South Africans, government was afraid that the immense inequality would worsen. BEE also promotes good practice with sector specific codes applying to the respective industries. If an entity wants to do business with the government it would have to comply with these codes. This is also a great way to ensure that practices are streamlined and controlled.
This is one reason South Africa needs BEE and in this series we will be exploring the many other reasons that stand. What would you like to know and how do you feel about BEE? Let us know in the comments below.