BBBEE

Question 1

what does BBBEE stand for?

Answer 1

Broad based black economic employment act

Question 2

what is the purpose of the BBBEE?

Answer 2

• enables wealth to be spread more broadly across all population groups.
• outline areas that would give the government a platform for bringing equitable spread of wealth

Question 3

positives of the BBBEE

Answer 3

• encourages businesses to address the demands for redress directly
• a good BEE raring improves the image of the business
• businesses that support SSMEs may increase their own BBBEE ratings

Question 4

negatives of the BBBEE

Answer 4

• businesses that want to do business with the government must have their BEE rating checked annually
• businesses have to go through the process of having their BBBEE compliance measured by an independent BEE verification agency
• processes and procedures may be costly for a business as there are many requirements for scoring enough points to be compliant.

Question 5

discriminatory actions according to the BBBEE

Answer 5

• giving preferential procurement to businesses owned by a certain racial group
• offering shareholding opportunities to specific gender/race

Question 6

penalties for non-compliance with the BBBEE

Answer 6

• businesses may face imprisonment for non-compliance and fronting practices
• business licenses may not be renewed and authorizations may not be issued

Question 7

ways for businesses to comply with the BBBEE

Answer 7

• businesses must appoint black people in managerial positions
• businesses must sell shares to black employees/people
• send black people for skill development training

Question 8

what are the pillars of the BBBEE?

Answer 8

• manager control
• skills development
• ownership
• enterprise and supplier development [ESD]
• socio-economic / socio-economic development

Question 9

manager control

Answer 9

• appoint black people in senior executive positions to management
• ensure black females are represented in management

Question 10

skill development

Answer 10

• provide leadership and learning programmer to black employees
• businesses benefit from the increases pool of skilled/ trined workers

Question 11

ownership

Answer 11

• businesses should include black people in shareholding/ partnerships
• more opportunities are created for black people to become owners/ entrepreneurs
• businesses sometimes find it difficult to locate suitable black partners/ shareholders

Question 12

enterprise and supplier development (ESD)

Answer 12

• businesses are encouraged to invest/support black-owned SMMEs
• identify black-owned suppliers that are able to supply goods and services

Question 13

social responsibility/ socio-economic development

Answer 13

• they should distribute scarce CSI resources to selected beneficiaries in the communities
• plan and budget for CSI projects