Business Strategy

As part of strategy development, organisations need to assess their positioning and what opportunities there are to create value using B-BBEE strategies

  • Similarly they need to assess the risks of failing to act meaningfully
  • These assessments need to be performed regularly, taking into account all material matters.

B-BBEE should be integral to the business model, strategy, risk management and value system

  • Governance and management structure buy in and commitment
  • Organisation’s B-BBEE objectives
  • B-BBEE in the organisation’s risk management process
  • B-BBEE in human capital development plans
  • B-BBEE ownership plans.
  • B-BBEE objectives and strategy should be a constant focus of governance and management structures at all levels.
  • Governance structures should set clear B-BBEE objectives to be embedded in strategy and aimed at creating value and long-term sustainability
  • B-BBEE goals and targets should be set
  • Executive management performance contracts should include specific measurable B-BBEE targets with incentives and penalties in place for achieving/failing to achieve clearly measurable targets
  • Investment in human capital should focus on long-term organisational sustainability and may require special investment to develop the necessary skills and management capability. The governance structure needs to consider how the organisation can improve black ownership.

Recognition of the responsibility as an active corporate citizen to contribute to economic transformation

  • Stakeholders
  • Value for external stakeholders and overall value-creation for the organisation
  • Economic transformation of the country through Socio-Economic Development
  • Procurement policies should give preference to black-owned and managed businesses
  • Supply chains should be reviewed to identify areas where black-owned enterprises can be developed
  • Projects that benefit the community should be identified. These programmes create greater value when linked to the business and where the organisation is involved in programme delivery
  • Credible value-creating programmes managed by other organisations should be supported.

Governance structures should set aspirational goals and review progress towards them

  • Targets
  • Licence to operate
  • Goals and sustainability.
  • Governance structures at all levels should set measurable aspirational goals and regularly measure progress against them
  • Where goals are not achieved, organisations should take action to ensure success.

Organisations should include information about their B-BBEE strategy and performance in their reports to stakeholders

  • Appropriate reporting channels
  • Value-creation and long-term sustainability
  • Quantitative and qualitative reporting.
  • Organisations should ensure that their reporting on B-BBEE and other matters is meaningful and complete to enable stakeholders to assess whether the organisation is contributing positively to economic transformation.

Board Committees & Responsibility for Reporting

  • B-BBEE is ultimately the responsibility of the board.
  • The conduit through which the board will oversee development and implementation of B-BBEE policy and strategy should be a Governance
  • Committee (i.e. a sub-committee of the board, , or other committee or task team consisting of executive management).
  • The introduction of a Governance Committee to manage and report on B-BBEE within the broader context of business sustainability and ethics.

Responsibility & Leadership of the Members of the Governance Committee

  • The members of the Governance
  • Committee should have due regard to the following in the carrying out of their mandate:
  • Corporate citizenship
  • Ethical leadership
  • Conscience
  • Competence
  • Inclusivity of stakeholders
  • Commitment
  • B-BBEE information, knowledge and understanding.

Each member of the Governance Committee has the following