Topic 1:BBBEE Flashcards
1
Q
Purpose of the BBBEE?
A
- Enables wealth to be spread more broadly across all population groups
- Aims at targeting inequality in the SA economy
- Increases the number of black people that manage SA businesses
2
Q
Difference between BEE and BBBEE?
A
BEE
- Government policy that is not always enforced
- Benifited only a few previously disadvantaged individuals
BBBEE
- An act that must be enforced
- Aims to distrubute the country’s wealth across a broader spectrum of society
3
Q
Management control pillar?
A
- Ensure that transformation is implimented at all levels
- Appoint black people in senior management positions
4
Q
Ownership pillar?
A
- Include black people in shareholding/partnerships
- Create more oppertunities for black people to be owners
5
Q
Enterprise and supplier development pillar?
A
- Support black owned small businesses
- Make monthly contributions to BBBEE compliant businesses
6
Q
Skills development pillar?
A
- Provide learnerships to black employees
- Involve black employees in various skills development programmes
7
Q
Socio-economic development pillar?
A
- Contribute towards social investment projects and community development
- Focus on critical areas of CSI such as development in the country
8
Q
Positives of BBBEE?
A
- Improves the image of the business
- Encourages businesses to adress the demands for redress in the workplace
9
Q
Negatives of BBBEE?
A
- Implimentation is time consuming and expensive
- Some processes associated with BBBEE if not monitored correctly can lead to corruption
10
Q
Non-Compliance?
A
- Employers that impliment the means to achive to achive the requirements of the 5 BBBEE pillars
- Employers who fail to correctly impliment affirmative action
- Refusing to award government tenders to BBBEE compliant vendors
11
Q
Penalties for non-compliance?
A
- May recive a compliance order
- May recive large fines
- Business license may be revoked
12
Q
Ways to comply?
A
- Conduct business with BBBEE compliant vendors or suppliers
- Sell shares to black individuals
- Appoint and promote more black individuals to management positions
