Environment [ BBE & BBBEE]

Question 1

BBE & BBBEE

Answer 1

• aim to correct the inequalities caused by apartheid, through the promotion of new opportunities for previously disadvantaged individuals

Question 2

Purpose of BBBEE

Answer 2

• distributes wealth more broadly
• excludes inequality in the workplace and the economy
• increases the provision of jobs to black people
• promotes equal opportunities

Question 3

Compliance of business with BBBEE

Answer 3

• increase the number of black employees participating in the management and ownership of the business
• promotes skills development
• provide equal opportunities to black people in all types of work and on all levels of management

Question 4

BBBEE pillars

Answer 4

1. ownership
2. management and control
3. equal employment
4. skills development
5. preferential procurement
6. business development
7. socio-economic development

Question 5

Positive impact BBBEE (business)

Answer 5

• this encourages businesses to address the demand for redress and equity directly
• a good BBBEE rating will improve the image of the business

Question 6

Negative impact BBBEE (business)

Answer 6

• processes may lead to corruption/nepotism, if not monitored properly
• investment and ownership issues can cause unhappiness between existing shareholders

Question 7

Advantages of BBBEE (employees)

Answer 7

• promotes access to finance for black economic empowerment
• increases the extent to which black women own/manage businesses and have access to businesses

Question 8

Compliance with BBBEE

Answer 8

• fines: > white businesses using black representatives to get government contracts
  > businesses not complying with fair labour ratios.
• sectors such as mining industry need a license to do business. if they do not comply with BBBEE, the renewal of licenses can be refused