Broad Based Black Economic Empowerment (BBBEE)

Broad based Black Economic Empowerment (BBBEE) was put into place to accelerate the entry of black people into the first economy shortly after the shortcomings of the original narrow-based Black Economic Empowerment (BEE) became apparent. This approach became known as Broad based Black Economic Empowerment. The Broad based Black Economic Empowerment Act No. 53 of 2003 is the legislative framework which allowed for the development of the BEE Codes of Good Practice. The codes provide a standard framework for the measurement of Broad-Based BEE across all sectors of the economy.

General Principles of the Generic Scorecard

Sec 9 of BBBEE Act 2003 authorised the Minister of Dti to promulgate Codes of Good Practice governing the measurement of BEE Compliance
The Codes are designed to redress the wrongs suffered by Blacks during apartheid – particularly in the forms of skills deficits & exclusion from entrepreneurial & managerial opportunities.
Codes revolve around scorecards, which measures BEE compliance by reference to defined “elements”.
Codes apply if no Sector Code exists
To be used as a guide in developing a Sector Code.

Code	What is it?	Explanation
000	Conceptual Framework of BBBEE	General Principles and the Generic Scorecard
100	Ownership	Measures effective ownership of enterprises by black people
200	Management Control	Measures effective controlof enterprises by black people
300	Employment Equity	Measures initiatives intended to achieve equity in the workplace
400	Skills Development	Measures the extent that employers carry out initiatives designed to developcompetencies of black employees
500	Preferential Procurement	Measures the extent that enterprises buy goods and services from BEE Compliant suppliers as well as black owned entities
600	Enterprise Development	Measures the extent to which enterprises carry out initiatives contributing to Enterprise Development
700	Socio-Economic Development	Measures the extent to which enterprises carry out initiatives contributing to Socio-Economic Development
800	Qualifying Small Enterprises	Measures the extent to which enterprises carry out contributions made by Qualifying Small Enterprises

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