A BEE Certificate has been most helpful as past successes do prove. Wits Business School Journal had a look at the success the original BEE strategy had in a number of companies focusing on companies that engaged in a transformative strategy to business and one such company was Old Mutual. The company has grown from strength to strength in its strategy to implement BEE and follow the protocol.
Why it is important for your business to have a BEE certificate
Old Mutual hit gold with a BEE deal in 2005 where 7.2 billion shares were divided between employees, clients, union members, black business partners and community organisations. The deal was struck with partners Wiphold and Brimstone. Through this deal Old Mutual formed The Black Distributors Trust which offered packages to prospective black business people wanting to further their careers in finance. In 2009 a black CEO was appointed and in 2010 the company saw a significant leap from a level four to a level two, becoming the very first large financial long-term savings institution to reach level two.
Old Mutual ranked as the best large employers in South Africa in 2012/2013, according to the CRF Institute’s annual Best Employers Certification Index. These are only some of the achievements and successes that Old Mutual has seen and they are not alone in their glory. To see more on this story go to http://www.wbsjournal.co.za/articles/bee-as-a-strategy-894.html.
South African businesses all need a BEE certificate by April 2015
The Old Mutual story is an example of BEE working correctly and it shows how BEE can prove to be an excellent business strategy however it’s not enough to convince the masses that BEE is great. What really has business people “buying” into BEE is the simple fact that it is necessary. It is vital to have a BEE certificate awarded to your company. We now have new BEE rules and protocols to follow in order to obtain the seemingly elusive BEE certificate. The amended codes are in full swing and we have a compliancy deadline of April 2015 where everyone doing business is South Africa is expected to have a BEE Certificate.
The function and objectives of the BEE codes are as follows:
- transform South Africa’s economy to allow meaningful participation by black people;
- substantially change the racial profile of companies’ owners, managers and skilled professionals;
- increase the ownership and management of companies by black women, communities, workers, cooperatives and others, and help them access more economic opportunities;
- promote investment that leads to broad-based and meaningful participation in the economy by black people;
- help rural and local communities access economic opportunities; and
- promote access to finance for black economic empowerment.
These objectives are sound and BEE does in essence make good business sense, not to mention that through achieving BEE certification you somewhat earn your gold stars on the chores chart thus, preparing you for the future and long term success. Statistics show that the business markets and the procurement markets are changing. The BEE Certificate has been marketed as a way to secure an interpersonal relationship with a market that otherwise might be out of your reach. Looking to employ the services of counterpart who is relatable through language and culture to a demographic your company has not been exposed to.
The BEE Certificate of a company must be in alignment with the new and amended codes
The changes to the codes are being supported by the government and most other powers that be so it is best not to cower in the corner but to stand strong and embrace the change as it might determine unrivalled successes for your business in South Africa.