Dissertations / Theses on the topic 'Broad-based Black Economic Empowerment Act (South Africa)'

Doctor Educationis
All employees aspire to work at a place of employment which is free from racial discrimination, where equal opportunity and fair treatment are not merely principles that are promoted and encouraged, but implemented actively by their employers. For a number of black professional employees in South Africa, however, currently this is merely an aspiration. Evidence suggests that black people are still subjected to racial discrimination and that their growth into the ownership and management structures of the enterprises that employ them, is insignificant in comparison to their white counterparts, despite the progressive legislative measures enacted by the legislature to ensure otherwise. The Employment Equity Act 55 of 1998, as amended, was promulgated in order to promote equal opportunities and fair treatment in employment, through the elimination of unfair discrimination and to implement affirmative action measures to redress the disadvantages in employment experienced by designated groups. The Broad-Based Black Economic Empowerment Act 53 of 2003, as amended, was enacted to promote the economic participation of black people in South Africa. The objective of this thesis is to examine the relevant provisions of the Employment Equity Act 55 of 1998, as amended, its Regulations, the Codes of Good Practice enacted in terms thereof, as well as the Broad-Based Black Economic Empowerment Act 53 of 2003, as amended, together with its Codes of Good of Practice to determine whether this equality legislation is the appropriate vehicle to address the challenges experienced by black professional employees in the private sector. The stories of black professional employees’ experiences obtained from academic literature available insofar as it relates to racial discrimination, affirmative action and black economic empowerment is discussed through the lens of Critical Race Theory. This is done with a view to determining whether the slow pace of racial transformation when it comes to black professional employees employed in the private sector is an issue that the law can address. Particular reference is made to two professions: the legal profession and the financial professions. This thesis examines the difference between the minimalist and maximalist approaches to Black Economic Empowerment (BEE). The thesis reveals the limits to the incentive structure that does not place a premium on black ownership and that allows enterprises to benefit from BEE while not really changing management structures. It argues that seen through the lens of critical race theory the current equality legislation discussed in this thesis is based on including black people in a system where privilege and power are asymmetrically distributed. It also argues that legislation in itself is unable to rectify racial injustices. It therefore demonstrates the limitations of the current equality legislation as a vehicle to address the challenges faced by black professional employees in the private sector.

The Government of South Africa has placed a lot of emphasis on economic growth and the involvement of Black people in the mainstream of the economy. The implementation of Broad-Based Black Economic Empowerment (B-BBEE) created opportunities for direct empowerment of Black females in ownership and management. The Construction Industry is being challenged to increase the number of Black females in management and ownership levels. Due to the nature of the Industry, only a small population of females considers Construction as a career option. The Industry has also lost a significant number of skilled Engineers and is experiencing a shortage of skilled managers in Middle and Senior Management Levels. The research problem questioned the current state of empowerment for Black women in the Construction Industry as measured against the B-BBEE Scorecard. The literature review focused on the requirements of the B-BBEE scorecard and Construction Charter. The second phase focused on gender equality and the achievements of women in Construction. The research design was done by using questionnaires to the South African Federation of Civil Engineering Contractors (Safcec) members in the Eastern Cape. The research design and survey aimed to determine the status of empowerment in the Construction Industry. With reference to both the literature review and the empirical findings the state of female empowerment can be determined. Therefore iv recommendations and opportunities for further research in this regard can be identified.

Thesis (PhD)--Stellenbosch University, 2013.
This study investigated the implementation of broad-based black economic empowerment (BBBEE) policy in the hotel industry of South Africa. BBBEE aims to accelerate the inclusion of black people into the economy through company ownership, human resource, and enterprise and community development. Although black people represent 91 per cent of South Africa’s population, the economy is controlled by a small white population. Studies have shown slow adoption and resistance to the BBBEE policy by the private sector, including in the hotel industry. Therefore, the research problem was the nature of compliance with, and the implementation of, black empowerment policy in the hotel industry. The main objective of the study was to investigate whether a framework for the effective implementation of black empowerment policy could be developed, given the centrality of hotels in the tourism value chain. The specific objectives were to determine the nature of the disconnect on BBBEE, to identify factors which facilitated or inhibited implementation, and to explore solutions for enhancing BBBEE implementation in the hotels. A quantitative investigation of 611 hotel general managers constituted the core of the dissertation’s content and contribution. Data from 178 respondents was analysed using descriptive and correlational statistical methods. The development of the quantitative research instrument was substantiated by the preliminary qualitative study of five hotel group executives. The mixed methods approach was appropriate for investigating the dual structure (group and unit) of the hotel industry. The results indicated that hotels were recording progress on human resource development although compliance levels did not meet the required BBBEE targets. On enterprise development, the hotels’ engagement with small black enterprises was low both quantitatively and qualitatively. Furthermore, hotel group leaders indicated that the tourism-specific BBBEE charter presented bureaucratic challenges, as tourism straddles several industries which required different BBBEE certification. The study has developed an empowerment framework of solutions for achieving success in BBBEE in hotels. The primary factors determining success are the provision of performance targets and incentives for general managers, and if the hotel manager supports BBBEE policy. Furthermore, exogenous factors such as the star rating and location of a hotel also impact on BBBEE implementation. A quantitative investigation of 611 hotel general managers constituted the core of the dissertation’s content and contribution. Data from 178 respondents was analysed using descriptive and correlational statistical methods. The development of the quantitative research instrument was substantiated by the preliminary qualitative study of five hotel group executives. The mixed methods approach was appropriate for investigating the dual structure (group and unit) of the hotel industry. The results indicated that hotels were recording progress on human resource development although compliance levels did not meet the required BBBEE targets. On enterprise development, the hotels’ engagement with small black enterprises was low both quantitatively and qualitatively. Furthermore, hotel group leaders indicated that the tourism-specific BBBEE charter presented bureaucratic challenges, as tourism straddles several industries which required different BBBEE certification. The study has developed an empowerment framework of solutions for achieving success in BBBEE in hotels. The primary factors determining success are the provision of performance targets and incentives for general managers, and if the hotel manager supports BBBEE policy. Furthermore, exogenous factors such as the star rating and location of a hotel also impact on BBBEE implementation. This study builds on, and adds value to previous studies by moving beyond the investigative mode to identifying practical policy options for successful transformation of the hotel industry. The proposed framework acknowledges the diverse nature of the tourism product, and provides potential solutions to enhance the hotel managers’ ability to anticipate and incorporate factors impacting on BBBEE implementation. The framework adds theoretical value to affirmative action discourse by suggesting a conceptual shift from a race-based approach to an alternative one which would incorporate sustainable tourism and ethical governance concerns. Such an approach would maximise BBBEE potential in the hotel industry of South Africa for beneficiaries and communities. Additional research is recommended to substantiate the hypothesis with a broader sample as the study was limited to hotel managers.

Thesis (MTech (Human Resource Management))--Cape Peninsula University of Technology, 2018.
Broad-Based Black Economic Empowerment (B-BBEE) has been the epitome of policy reform pervading South Africa (SA) since 1994, the end of apartheid. Often making media headlines, it inherently arrogates itself to all stakeholders engaged in commerce with/within SA. The impetus for the study ensued owing to recent (2013) changes to the B-BBEE legislative landscape. More specifically, the focus of the study was on one segment: Qualifying Small Enterprises (QSEs), operating within the same realm as Small Medium and Micro Enterprises (SMMEs). The rationale for such a focus stemmed from this market segment’s seemingly rigid response to such change, deemed to support this study’s results. The literature review embarked upon in Chapters 2 to 4, that is, collecting secondary data, provided for a solid foundation relative to a subject matter embedded with technical jargon and often driven by highly emotive/subjective inputs from stakeholders. The literature primarily drew from untested assumptions: these were mainly due to the high degree of contentiousness surrounding B-BBEE as subject matter, the lack of research (statistical results) relative to B-BBEE legislative change and more specifically, the lack of the latter relative to this study’s scope. The above introduction initiates the notion of there being inherent demarcations to this study, dictating the most relevant research design and methodology suited thereto. A pragmatic research philosophy was adopted, owing to its qualitative, exploratory enquiry. Furthermore, the unit of analysis, consisting of 16 samples, was conveniently selected. Although convenience sampling was regarded the most suitable approach to collecting data, it gave rise to the study’s biggest limitation: its inability to generalise findings. On that note, its findings were in line with the researcher’s precedential assumption upon its initiation: legislative change to Broad-Based Black Economic Empowerment (B-BBEE) for Qualifying Small Enterprises (QSEs) lead(s) to non-compliance and impeded transformation goals. The results give rise to a plethora of valuable insights into the dynamics of the industry, not only for strategic direction to be set for/by stakeholders on both a micro and macro level, but also providing a solid foundation relative to further research to be embarked upon – a notion highly advocated in supporting the integration of sustainable transformation in modern South Africa (SA).

Thesis (MBA (Business Management))--University of Stellenbosch, 2009.
ENGLISH ABSTRACT: The Broad-Based Economic Empowerment Act, No. 53 of 2003, and its Codes of Good Practice on Black Economic Empowerment are the cornerstones of a strategy implemented by the South African government to transform the economy to an inclusive one where all citizens have equal opportunities to contribute to the economic growth of the country. The process of Broad-Based Black Economic Empowerment has a direct impact on the operational activities of all businesses in all business sectors, including the agricultural sector. The main aim of this study is to compile a comprehensive Broad-Based Black Economic Empowerment strategy for Overberg Agri Limited. The strategy is based on the implementation of initiatives aimed at compliance with the seven pillars of black economic empowerment as incorporated in the Codes of Good Practice on Black Economic Empowerment. A critical analysis of the legislative framework and executive governmental decrees governing Broad-Based Black Economic Empowerment shows that the government of South Africa followed a structured legislative approach to the drafting and implementation of legislation aimed at creating an equitable society by addressing the inter-related issues of human rights, employment equity, skills development, allocation of natural resources and black economic empowerment. Overberg Agri Limited partially addressed its significant non-compliance with the Generic BEE Scorecard by entering into an agreement with Thembeka Capital. However, this transaction only addressed the ownership requirement of Broad-Based Black Economic Empowerment and had a limited effect on enhancing the black economic empowerment status of Overberg Agri Limited. Overberg Agri can achieve its goal of Level 4 Broad-Based Black Economic Empowerment status by: • Reorganising its business structure in terms of core agricultural and non-core business activities; • Selling significant stakes in non-core business entities to black shareholders; • Entering into other joint ventures with black businesses; • Addressing all seven elements of the B-BBEE scorecard and making the required resources available for this. This research report provides value due to the fact that it adequately addresses the research problem. It also followed the proposed research procedure in addressing the research problem and it provides the foundation for a general application of its findings.
AFRIKAANSE OPSOMMING: Die Breëbasis Swart Ekonomiese Bemagtigingswet, Nr. 53 van 2003, en die generiese kodes vir goeie praktyk ten opsigte van swart ekonomiese bemagtiging vorm die hoekstene van die strategie wat deur die Suid-Afrikaanse regering geïmplementeer is om die ekonomie te omskep in 'n inklusiewe een waar alle landsburgers gelyke geleenthede gegun word om 'n bydrae te lewer tot die ekonomiese groei van die land. Die proses van Breëbasis Swart Ekonomiese Bemagtiging het 'n direkte invloed op die operasionele bedrywighede van alle besighede in al die besigheidsektore, insluitend die landbousektor. Die hoofdoel van hierdie studie is om 'n omvattende Breëbasis Swart Ekonomiese Bemagtigingstrategie vir Overberg Agri Beperk op te stel. Die strategie is gebaseer op die implementering van inisiatiewe wat gemik is op voldoening aan die vereistes van die sewe pilare van swart ekonomiese bemagtiging soos uiteengesit in die generiese kodes vir goeie praktyk vir swart ekonomiese bemagtiging. 'n Kritiese analise van die wetgewende raamwerk en uitvoerende regeringsbesluite wat 'n invloed het op Breëbasis Swart Ekonomiese Bemagtiging dui aan dat die Suid-Afrikaanse regering 'n gestruktureerde wetgewende benadering gevolg het in die opstel en implementering van wetgewing wat daarop gemik is om 'n regverdige samelewing te skep deur aandag te skenk aan die interafhanklike kwessies van menseregte, gelyke indiensneming, vaardigheidsontwikkeling, toekenning van natuurlike hulpbronne en swart ekonomiese bemagtiging. Overberg Agri Beperk het sy aansienlike gebrek aan voldoening aan die voorskrifte van die generiese swart bemagtigingstelkaart gedeeltelik aangespreek deur 'n ooreenkoms met Thembeka Capital aan te gaan. Die transaksie skenk egter slegs aandag aan die eienaarskapvereiste van Breëbasis Swart Ekonomiese Bemagtiging en het 'n beperkte uitwerking op die verhoging van die swart ekonomiese bemagtigingstatus van Overberg Agri Beperk gehad. Overberg Agri Beperk kan sy teiken van Vlak 4 Breëbasis Swart Ekonomiese Bemagtigingstatus bereik deur: • Sybesigheid struktuur te herstruktureer ten opsigte van kern- en nie-kernbesigheidsaktiwiteite; • Aansienlike aandeelhouding van nie-kernbesigheidsentiteite aan swart aandeelhuers te verkoop; • Gesamentlike ondernemings met swart besighede te begin; • Aandag te skenk aan al sewe elemente van die Breëbasis Swart Ekonomiese Bemagtigingtelkaart en die hulpbronne beskikbaar te stel wat daarvoor benodig word. Die ondersoekverslag is van waarde aangesien dit die ondersoekvraag volledig aanspreek, die voorgestelde ondersoekprosedure gevolg het en 'n basis skep vir die algemene toepassing van die bevindinge.

Thesis (MBA)--Stellenbosch University, 2014.
Broad-based Black Economic Empowerment (B-BBEE) not only aims to readdress the racial imbalances of the apartheid era, but also seeks to promote social responsibility and empowerment of historically disadvantaged South African (HDSA) communities (Esser & Dekker, 2008). The transformation journey within the South African Liquid Fuels Sector has been a difficult and lengthy one. The South African Liquid Fuels Sector was amongst the first to receive its own Black Economic Empowerment (BEE) sector charter (Liquid Fuels Charter) in 2000. Although numerous transformation milestones have been achieved, the sector has been criticised for its slow pace in advancing transformation, which has in part contributed to the amendment of the B-BBEE Codes in 2013. The argument of slow transformation can be attributed to obstacles faced by those in industry tasked with implementing B-BBEE. There has been a deficiency in studies that have investigated transformation and the implementation of B-BBEE within the sector. As a result, the central objective of this study was to explore the B-BBEE implementation challenges faced by companies within the liquid fuels sector. A qualitative approach was employed for the collection of primary data and involved interviews with eight top and senior management representatives of Chevron South Africa (Pty) Ltd. The results emanating from the study revealed numerous implementation challenges. The study together with literature reviewed, highlights the need to address these challenges in order for B-BBEE implementation to yield the desired results for all stakeholders within the South African Liquid Fuels Sector. The study concludes that a lack of understanding of B-BBEE policy; alignment of internal party interests; overcoming internal biases; skills shortages and lack of experience by Black individuals; involvement of senior management in implementation process; co-ordination and structure required in B-BBEE implementation execution; communication within organisations; diversity/cultural awareness; and B-BBEE policy issues and skills attraction and retention are some of the issues impacting B-BBEE implementation within the South African Liquid Fuels Sector.

South Africa is listed among the world's top ten countries with the highest unemployment levels (World Bank, 2018). The National Development Plan (2013) envisioned that by 2030, 90% of new jobs in the country will be created by small and growing enterprises. Worryingly however, South Africa lags in meeting its target for job creation as set out in the National Development Plan despite some effort made by the government to promote and grow small businesses. Globally small and medium enterprises have been acknowledged for their key role in driving economic growth, job creation and poverty alleviation. Despite this important role, South Africa still has one of the highest small and medium enterprise (SME) failure rates in the world (Global Entrepreneurship Monitor, 2014). To circumvent this challenge, the South African government established development strategies including the notable Broad-Based Black Economic Empowerment (BBBEE) to drive the growth and expansion of small and medium enterprises (SMEs). BBBEE is intended to drive enterprise and supplier development (ESD) and improve the development and long-term growth of SMEs. Notably, large private corporations in South Africa have made significant investments in ESD; however many SMEs fail to survive past three years. This study therefore investigates the extent to which integration into a large corporate value chain promotes the sustainability of a SME. The study also examines the impediments that inhibit the growth of SMEs that are integrated in large corporate value chains. The research was conducted using an explanatory qualitative methodology. Five SME owners and six large corporate managers were interviewed to assess their perspectives and opinions on the SME-Corporate relationship. The research results concluded that corporate initiatives on ESD are of a significant benefit to SME growth, however challenges such as negative corporate perception and access to external funding remain a hindrance to SME growth. The study proposed recommendations to improve the successful integration of SMEs into corporate value chains.

This dissertation aims to provide insight into the relationship between Broad-Based Black Economic Empowerment (BBBEE) compliance and the financial performance of top empowered companies listed on the Johannesburg Stock Exchange (JSE) in South Africa. This study is similar to two previous studies; the first is on the impact of corporate governance on JSE listed companies for the period 2003 until 2006 and on a sample of 97 JSE listed companies (Abdo & Fisher, 2007). The second is on the contribution of BBBEE on the financial performance on a sample of 49 JSE listed companies from 2005 until 2008 and 2008 until 2010 (van Heerden, 2011). This empirical study was initially on a sample of 100 JSE listed companies from 2009 until 2012 that was derived from JSE listed companies which featured in the annual Financial Mails Top Empowerment Survey Publication from 2009 until 2012. The sample was reduced to 64 units due to delisting, corporate name changes and data unavailability for the period. Corresponding company financial data (share price, price to earnings ratio, price to book value) were obtained for the period 2008 until 2012 from McGgregor BFA database and correlated to BBBEE compliance ratings as published by Financial Mail. JSE indices were obtained from I-Net Bridge. Based on the types of companies, they were grouped into 10 JSE economic sectors such that the performance of each sector could be correlated to the total average BBBEE compliance ratings, financial metrics and JSE indices. For each sample unit, the average BBBEE rating was calculated for the period 2009 until 2012. This was then correlated to the annualised share price return for the same period and to price to earnings ratio and price to book value for 2012. The findings suggest there was a negative and weak relationship between share price and BBBEE compliance rating. There is a positive and weak relationship between price to earnings and price to book value. The cluster of companies with high BBBEE compliance ratings achieved higher and lower annualised share price returns than the respective JSE sector indices. The cluster of companies with low BBBEE compliance ratings also achieved higher and lower annualised share price returns than the respective JSE sector indices. It was also observed that high BBBEE rated companies achieved higher and lower share price returns than low BBBEE rated companies. Companies with high BBBEE compliance ratings achieved both higher and lower price to earnings than the respective JSE indices. Companies with low BBBEE compliance ratings also achieved higher and lower price to earnings than the respective JSE indices. Companies with low and high BBBEE compliance ratings achieved profit to book values below the respective JSE sectors. Of the seven BBBEE compliance indicators five positively correlated to the annualised share price return i.e. employment equity, skills development, preferential procurement, enterprise development and socio- economic development. Ownership, skills development, preferential procurement, enterprise development, socio- economic development positively correlated to the price to earnings ratio. Skills development, preferential procurement, enterprise development, socio- economic development positively correlated to the price to book value ratio.

In this thesis we have studied equality and equity from an HR perspective in South Africa. The study is partly made from an inductive approach and an analytical interpretation in line with hermeneutic has been used. The data is mainly contracted from interviews with HR professionals within various South African organizations. A mix of snowball and convenience sample has been used and among our respondents there are a variety and mix of the following variables: gender, position (manager/practitioner), race (blacks/white) and organization sector(public/parastatal/private). Our main findings are that equality and equity are highly debated topics and that the laws regulating them have a major effect on the HR professionals’ dailywork. The study gives us various perspectives of employment equity but a majority of our respondents do believe that the regulation of employment equity is needed. We find that there are obstacles for achieving equality in South African workplaces and our respondents have given us examples of different ways of how to tackle them. Many of our respondents are also of the opinion that there is a lack of implementation of the regulations and that it is time to rewrite several Acts.

This study set out to establish an informed framework for the use of social network services in South African museums. Social network services are utilised by a wide demographic spectrum so they offer a cost-effective way to engage with communities and with existing and new stakeholders. The Standard of Generally Recognised Accounting Practice on Heritage Assets, or GRAP 103, and the draft National Policy on Digitisation of Heritage Resources imply that museum collections get documented and managed in digital form. It will coincidentally also enable museums to embrace the use of social network services and share the collections in their custody with many South Africans who are yet to experience the value of museums in the country. Museums are institutions in the service of society which acquires, conserves and communicates the tangible and intangible heritage of people and their environment. During the twentieth century museums have had to reinvent themselves from being unapproachable custodians of heritage to being part of society, willing to engage in discourses and be transformed to remain relevant to the communities they serve. The 2011 Census has found that about 18.2 million of 51.7 million South Africans have had access to the Internet before. Active Internet users however, are about half that figure because it is expensive, the broadband and telecommunications network is not efficient or because people have not yet experienced the value it offers. Government regulations compel Information and Communication Technology (ICT) enterprises to spend 1.5% net profit after tax on socio economic development initiatives. This presents an opportunity for museums as educational institutions to engage with such enterprises to expand Internet access and engage with local communities. The social network service field offers various ways to communicate collections and engage with communities through text, photographs, video and location-based technologies. Various notable local and international initiatives were discussed in this study. For example the Kulturpool which allows visitors to create cyber collections from digitised museum objects and contribute to the knowledge of such objects by allowing them to submit and share information for others to read. SAHRIS, the digital database offered by the South African Heritage Resources Agency, holds the key to similar ventures that museums could pursue. The regulative framework involves privacy, copyright and ethical issues which museums should abide by. Because of the pervasiveness of ICTs museums should take note of these regulations even if they decide not to pursue social network initiatives. ICT skills in museums are insufficient and should be improved upon. Social network services offer training and guidelines on how to use them, which could be a great help provided the reader has a good command of the English language. Cognisance must be taken of an overview social network services and their uses, and of the ethical and regulative framework for museums to benefit from using social network services to engage with communities. This way, communities may benefit from having access to the museum online.
Dissertation (MHCS)--University of Pretoria, 2014.
gm2014
Historical and Heritage Studies
unrestricted

A thesis submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in fulfilment of the requirements for the degree of Doctor of Philosophy, November 2018
South Africa gained strong recognition all over the world after the fall of apartheid. Alas their quest to depolarizing the economy of the country has not ended. Several transformational initiatives have been set up by the government to accomplish this feat, the latest and most successful, in terms of economic empowerment, is the Broad-Based Back Economic Empowerment (BBBEE) Act. This initiative has however, been criticized by academics and its direct beneficiaries as not fulfilling its underlying purpose which is to smooth the coexistence of its diversified society. The question has been “is this just another initiative that gives the picture-perfect demographic representation in the work environment or is it giving us much more?” A major discourse has been controversies about the Act’s operationality in achieving its aim and its possible contribution in reinforcing discrimination resulting from societal power shift; hence, the backlash effect on beneficiaries and reverse discrimination on the non-PDI’s (previously disadvantaged individuals). It is on the premise of these questions and criticisms that this research strives to evaluate the Broad Based Black Economic Empowerment initiative as a diversity initiative that has gone beyond managing diversity to fostering diversity. It introduced a framework for fostering diversity which was used as a guideline in developing the Fostering Diversity Index questionnaire. Purposive sampling was used, focusing on nine top BEE companies as rated by EmpowerDex. A well-structured questionnaire was developed and distributed within the companies. These companies had their organisational culture assessed, psychological empowerment evaluated and social perceptions of diversity through the implementation of BBBEE evaluated. Findings from this research indicate that the BBBEE Act has a good potential for fostering diversity; however, fostering diversity requires an organisation to have a culture which embraces diversity as well as an adequate level of psychological empowerment. Without both, there will always be the disconnect between a government diversity initiative, such as the BBBEE and the internal state of affairs of the organisation. This study shows the dynamic relationships between organisational culture, social perception of diversity and psychological empowerment within these top-rated BEE companies. Gender was the only factor that predicts workplace diversity. Among the implication to policy, it is recommended that the implementation process of BBBEE be reviewed to attend to the salient issues of diversity.
XL2019

M.Comm.
Broad Based Black Economic Empowerment (BBBEE) is almost ten years old. The objective of the BBBEE is to increase the participation of Black people and Black women in the South African economy and also to bridge the income inequality which was brought about systematically before South Africa became a democratic country. The BBBEE Act, through the Codes of Good Practice has identified seven key elements which if addressed will help to achieve the objectives of the Act. These elements are ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio economic development. Minimum targets have been set which need to be achieved within ten years. The primary objective of the study was to investigate if Sappi one of the two dominant pulp and paper companies in South Africa, could utilize outsourcing as a Black Economic Empowerment Tool. The secondary objectives were twofold: • To identify key barriers to complying with the seven elements of the Codes of Good Practice; and • To establish measures or incentives that will lead to Sappi Forests’ outsourced activities complying with the Codes of Good Practice hence utilizing outsourced activities as a Black Economic Empowerment tool. The research findings indicate that Sappi could utilize outsourcing as a Black Economic Empowerment tool. According to survey results, significant progress has been achieved in implementing BBBEE Act despite the lack of a systematic approach. Progress towards the implementation of the Act as measured against the seven elements contained in the Codes of Good Practice, is commendable. Should the recommendations such as incentives and rewards that are mentioned in the findings be adopted, the implementation of the BBBEE Act which leads to empowerment could be enhanced in forests’ outsourced activities.

D.Phil
The Broad Based Black Economic Empowerment (BBBEE) Act of 2003 and the Employment Equity Act of 1998 have disrupted the labour market in South Africa by accelerating the need to appoint senior black managers in organisations. There is at the same time an undersupply of candidates meeting the requirements because of the education system and job reservation policies under the apartheid government. One of the outcomes of the operating environment is a perception that there is an abnormally high job mobility rate among senior black managers. The South African Employment Equity Act of 1998 defines blacks as Coloureds, Indians and Africans. The biggest challenge facing corporate South Africa is to retain senior black skill. The research problem the study attempts to solve is to understand factors that lead to senior black managers‟ mobility. Little research has been done in this regard. The objective of the study is to present a model that can assist in better retention of senior black managers. The model will present solutions for any sub groups that may emerge. This study also investigates the perceptions of senior black managers with regard to factors that influence their decision to change jobs.

Broad-based black economic empowerment (BBEE) is a policy objective in South Africa. Farmworker equity-share schemes (FWES) satisfy several of the empowerment goals specified by the proposed AgriBEE Scorecard. Information about the costs and benefits of subscribing to an empowerment label will help managers to make more informed decisions about empowerment and could therefore promote BBEE. The Thandi label is an initiative to market fruit and wines originating from FWES and farms operated by previously disadvantaged farmers. A case study of the Thandi label was undertaken to determine whether or not the accredited empowerment attribute adds value to Thandi products. An exploratory-explanatory case study was adopted basing questions largely on the theoretical propositions of asymmetric information, the benefits of product labelling and the preconditions for a successful label. Primary data were collected via in-depth interviews with managers of Capespan, The Company of Wine People and empowerment farms participating in the Thandi label. The study made use of in-depth interviews with key informants to investigate issues considered (on theoretical grounds) to be critical in establishing a successful label. Responses were subsequently tabulated and compared, where relevant, across respondents in order to check for consensus views. Results indicate that the Thandi label had not succeeded in differentiating fruit, whereas the Thandi wine label had increased sales revenue and was covering accreditation costs incurred by farms as well as the recurring costs of maintaining and marketing the label. Thandi fruit had not grown its share of the domestic or export markets and did not command a price premium, Capespan subsequently discontinued the Thandi fruit label. Thandi wine, on the other hand, had grown its export market and consumers were prepared to pay a premium for Thandi wine products. The data indicate that empowerment attributes were useful in finding shelf space for products, but that quality is essential to grow market share and to earn price premiums. In short, accredited empowerment attributes can add value to quality products sold to discerning consumers who lack information about empowerment and quality attributes at the point of sale. Empowerment labels must include quality attributes. Government should at least absorb some of the transaction costs confronting producers and marketing agencies in negotiating standards for farms and firms participating in generic empowerment labels. It could also offer auditing services to local accreditation agencies to improve their credibility. Further research estimating consumers' willingness-to-pay for products branded with empowerment labels is necessary to estimate the size of premiums that different products may command.
Thesis (M.Ag.Man.)-University of KwaZulu-Natal, Pietermaritzburg, 2007.

The systematic dispossession and disempowerment of black people has historically defined South Africa. In response, an equally systematic approach is required to eradicate memories of the past through deliberate and purposeful legislation that reaches across the breadth and width of our nation. One of the driving forces within our nation is the private sector and for this study, the mining industry and the peripheral industries to it were targeted. Against the backdrop of the past, a new future that embraces all South Africans must emerge. Hence, this study investigates the efforts made by suppliers to the mining industry in sincerely incorporating Broad Based Black Economic Empowerment (BBBEE) into the very design of their organizations The research methodology used was a survey. The population of this study is suppliers to the mining industry situated in Gauteng. A cross-sectional sample was randomly chosen and a short questionnaire e-mailed to participants. The findings prove many organizations are still at a loss on how to embrace BBBEE and are often confused on implementation. Although strategies are in place, there is very little coordinated effort to execute these strategies in a planned and controlled manner. There appears to be significant misfit between policy and practice. Some recommendations in this paper address the importance of BBBEE being made a defining core value of the organization. Another salient recommendation was for organizations to have enhanced operational execution of strategic policies to realize the desired impact. These key findings will not materialize without dedicated leadership to create meaning throughout the organization on the magnitude of BBBEE to South African, both politically and economically thereby co-creating value for shareholders. In closing, the words of famous Greek philosopher and scientist Aristotle seem most appropriate for all South African with regards to BBBEE. 'We do not act rightly because we have virtue or excellence, but we rather have those because we have acted rightly.' (Valuebasedquotes: 2005)
Thesis (MBA)-University of KwaZulu-Natal, 2006.

Foreign Direct Investment (FDI) has become the main source of development capital for emerging markets in the current globalised world. Previous researches have found that fiscal incentives’ capability to attract FDI is very limited, while removal of policy restriction is a determinant in attracting FDI. At the same time, South Africa has embarked on a major transformation programme – Broad-Based Black Economic Empowerment – which has as its main target the need to increase black people’s participation in the economy and to reduce socio-economic inequality. In this context, this research attempts to evaluate the impact of the Broad-Based BEE programme on South Africa’s capability to attract FDI. This quantitative research was done using quasi-experimental methodology, comparing FDI inflows into South Africa with that of other emerging countries of a similar level of development, such as Brazil, Mexico, Chile, Nigeria and Botswana, and against the African continent as a whole. The tests performed give an indication that Broad-Based BEE is indeed impacting on South Africa’s capability to attract FDI, and also that South Africa is losing competitiveness in attracting FDI on the continent. Since the results cannot be generalised nor prove a causal relationship, the main purpose of this research is to enrich the discussion of how to attract more FDI inflows into South Africa, possibly through adjusting the Broad-Based BEE policies, which will contribute to building national competitiveness.
Dissertation (MBA)--University of Pretoria, 2010.
Gordon Institute of Business Science (GIBS)
unrestricted

Investments in productive assets by broad-based black economic empowerment (BEE) enterprises in South Africa (SA) during the 1990s have been constrained, in part, by a lack of access to capital. Even if capital can be sourced, BEE businesses often face a liquidity problem, as conventional, equally amortized loan repayment plans do not take into account the size and timing of investment returns, or there are lags in the adjustment of management to such new investments. The aim of this dissertation, therefore, is to compare five alternative loan products to the conventional fixed repayment (equally amortized) loan (FRL) that lenders could offer to finance BEE investments in productive assets that are faced with liquidity stress, namely: the single payment non-amortized loan (SPL); the decreasing payment loan (DP); the partial payment loan (PPL); the graduated payment loan (GPL); and the deferred payment loan (DEFPLO-2). This is done firstly by comparing loan repayment schedules for the six loans using a loan principal of R200 000, repaid over 20 years at a nominal contractual annual interest rate of 10%. Secondly, data from five actual BEE loan applications to ABSA Bank and Ithala in KwaZulu-Natal (KZN) during 2003 are used to compare how the FRL, SPL, DP, GPL, and DEFPLO-l, affect investment profitability, and both the borrower's and the lender's cash-flows, assuming that the lender sources funds from a development finance wholesaler. Results for the first part of the study show that the SPL has smaller initial annual repayments than the FRL (R20 000 versus R23 492) that ease liquidity stress in the early years after asset purchase, but requires a nominal balloon repayment of both interest and principal in year 20 of R220 000. The SPL is also the most costly loan, with total nominal and real repayments that are R130 162 and R43 821, respectively, more than the FRL. The PPL has the lowest total nominal and real repayments assuming that the borrower can make the nominal balloon repayment in year 5 of R202 173. If not, the ending balance of the loan in year 4 would have to be refinanced at current market interest rates. In this situation, the PPL uses very similar financing terms to that of the variable rate long-term loans already used in SA, and thus may not be a useful option to consider for BEE investments facing a liquidity problem. Interest rates may have risen over the last four years of the loan, encouraging lenders to add a premium into the interest rate for the refinanced loan, which could worsen the liquidity position of the BEE enterprise. The DP requires higher initial nominal annual loan repayments (R6 508 more than the FRL) that do not ease the liquidity problem in the early years of operation. The DP loan, however, has total nominal and real repayments that are R59 838 and R23 118, respectively, less than the FRL. A GPL with diminishing, finite interest-rate subsidy seems to have the most potential to ease the BEE investment's liquidity stress. The 17YRGPL used to buy land had total nominal and real repayments that were R84 634 and R67 726 (after subsidy), respectively, less than the FRL. If the GPL was used to purchase machinery-type assets, then the 6YRGPL would have required total nominal and real repayments of R13 957 and R12 596, respectively, less than the FRL. Finally, the DEFPLO-2 loan required a total nominal repayment of R531 128 (R61 290 more than the FRL) and a total real repayment of R345 358 (R26 095 more than the FRL). Clearly, the GPL and DEFPLO-2 loan repayment schedules can partly resolve the liquidity problem in the early years (assuming no major income shocks), although the DEFPLO-2 plan requires higher total repayments than the FRL. The question remains whether lenders would be prepared to implement these two financing plans for BEE investments in productive assets, where the funds to finance the diminishing, finite interest-rate subsidy or the deferment would be sourced, and how the interest-rate subsidy would affect asset values. In the second part of the study, the profitability of the five proposed BEE investments in KZN during 2003 was compared for the five loan products using the Net Present Value (NPV) and the Internal Rateof- return (lRR) capital budgeting procedures. The loan terms, interest rates, principal and characteristics of each BEE firm are different with current rates of return on equity varying by business type. Companies A (five-year loan) and C (10-year loan) are agribusinesses with a higher expected current rate of return of 8% on machinery investments, while companies B (eight-year loan), D (15-year loan), and E (20-year loan) invest in farmland with a lower expected current annual rate of return of 5%. The five business plans may not be representative in a statistical sense of all BEE firms in KZN, but were used because they were readily available. Initially it was assumed that donor/grant funds from a development finance wholesaler were lent to an intermediary (like a commercial bank), which in turn, could finance the five investments using any of the five alternative loans, with the lender's repayment to the wholesaler being via a FRL. It was then assumed that the lender could repay its borrowed funds using the same loans, or combinations of them, that it had granted to these companies. Results show that GPLs and DEFPLs can resolve the liquidity problem associated with investments like land in the early years after purchase provided that projected business performance is adequate, while the SPL and GPL are preferred for BEE projects with stronger initial cash-flows like machinery investments. The study also shows that the loan product that best improves the borrower's liquidity is not always best suited to the lender. In most cases, the GPL suited the borrower, but in four of the five cases, the lender would prefer the SPL and to repay the wholesaler using the SPL. The SPL, however, is unlikely to be used, given the large negative real net cash-flows that it generates when the final payments are due. Recent SA experience with the GPLs (interest rate subsidies funded by private sector sugar millers via Ithala) and the DEFPLs (via the Land Reform Empowerment Facility (LREF) which is a wholesaler of funds in SA) suggests that there is scope to alleviate the liquidity problem if a wholesaler of funds can offer such terms to private banks and venture capital investors who then on-lend to finance BEE asset investments that are otherwise considered relatively high credit risks. This would shift the liquidity problem away from the client to the wholesaler of the funds, but requires access to capital at favourable interest rates. Such capital could be sourced from dedicated empowerment funds earmarked by the private sector, donors and the SA government. The lesson for policymakers is that broad-based BEE could be promoted in other farm and non-farm sectors in SA using similar innovative loan products to complement cash grant funds via financial intermediaries, bearing in mind the limitations of the GPL and DEFPL - such as how to finance the subsidy or deferment, and the impact of income shocks. Donor and National Empowerment Fund capital could be used to allocate grants to provide previously disadvantaged individuals with own equity and also to fund finite, diminishing interest-rate subsidies via GPLs, or to fund DEFPLs (many LREF loans have been leveraged by a cash grant component). This could create an incentive for public/private partnerships, as public/donor funds could be then used to attract private sector funds to finance broadbased BEE investments in SA that satisfy empowerment criteria. The five case studies did not show how the GPLs and DEFPLs could make all profitable (positive net present value) but financially infeasible (returns do not match the size and timing of the lender's financing plan) BEE investments in productive assets under the FRL feasible, except for Company E that showed a positive NPV and IRR when the 19YRGPL was used. They did, however, show how the alternative loans could improve liquidity for investments with either strong or poor cash-flows. The financiers consulted to source case studies in KZN in 2003 at the time of the study could not provide the researcher with any profitable, but financially infeasible, BEE business plans. This raises some concern about how effective these empowerment loan products could be in the future as there is uncertainty over how many potential BEE investments in productive assets in SA are likely to be profitable but financially infeasible. Further research is thus needed to assess the impact of these alternative loans on a wider range of broad-based BEE investments, particularly non-farm projects, than considered in this dissertation.
Thesis (M.Agric.Mgt.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.

Dissertation submitted in compliance with the requirements for the Masters Degree in Technology: Business Administration, Durban University of Technology, 2012.
The aim of this research project was to study the basic understanding the decision makers of construction companies in KwaZulu-Natal had of the Broad-based Black Economic Empowerment (BBBEE) initiative. This initiative has evolved from its origins as a form of affirmative action in the early 1990s into the broad-based initiative embodied in the Broad-based Black Economic Empowerment Act promulgated in 2003 and gazetted in 2007. Research was conducted using a questionnaire to assess the targeted population’s understanding of BBBEE. A census of the 259 construction companies affiliated with the KwaZulu-Natal Master Builders Association (NMBA) at the time of the research was used. The questionnaire was distributed primarily by email and the returns were assessed using statistical methods. The results were also tested as a cross-tabulation based on the demographics and the BBBEE rating of the respondents. The findings showed that although most of the respondents knew about the BBBEE initiative and indicated a level of understanding of this policy, certain of their perceived understandings were misguided. The way in which the Act was intended to be implemented and was intended to benefit those who were previously disadvantaged had been misread by all parties. The way in which the government has rolled out its BBBEE initiative has not been effective. This needs to be addressed by both training and partnering with those SMMEs that can most effect change to implement the Act. This study only scratched the surface of the effects the BBBEE legislation will have on small to medium-sized businesses. It has highlighted the need for further research into both the trickle-down effect of this initiative and into the availability of skilled personnel to grow the economy in the way the BBBEE Act intended.

This thesis examines the management of Broad-Based Black Economic Empowerment (B-BBEE) policy by the provincial government of KwaZulu-Natal, South Africa. Several authors have analyzed the policy on B-BBEE in South Africa, mainly focusing on the impact of the policy on the ‘actors’, and the ethical implications of the policy, but no research has been done on its policy implementation and management, particularly in the public service in South Africa. The central aim of this thesis is to investigate the organizational complexities surrounding how the policy on B-BBEE is managed by the provincial government of KwaZulu-Natal. The study focuses on the three KwaZulu-Natal technical clusters: the economic sectors and infrastructure development, governance and administration, and the social protection, community & human development cluster. The thesis identifies various government departments in each cluster to examine how the policy on B-BBEE is managed. The investigation revealed that government has been successful in implementing some aspects of B-BBEE policy as the majority of blacks were holding key strategic positions within the provincial government. However, the provincial government was grappling with serious management challenges. This thesis explores instruments for policy management, that is, policy coordination, organizational transformation, organizational hierarchy, and policy communication. The results showed that much as the provincial government has been able to open up opportunities for black people there is still a long way to go in terms of transforming policy management structures, functions, processes, norms, values, procedures, organizational culture, and organizational decision-making in improving policy management. The study revealed that various government structures, functions, processes, procedures, norms, values and organizational culture are incompatible with B-BBEE policy objectives. Government decision-making is hierarchical which obstructs the management of B-BBEE policy implementation. Furthermore, B-BBEE policy is still yet to be institutionalized by most government organizations in the province.
Thesis (Ph.D.)-University of KwaZulu-Natal, Pietermaritzburg, 2013.

This study endeavoured to establish, specifically, the effectiveness of enterprise development initiatives within the McCarthy Ltd franchised dealer network and also to understand their low occurrence within the group. Effective implementation of enterprise development initiatives within McCarthy Ltd franchised dealer network would also mean compliance to the BBBEE codes of good practice. The study found that there was a lot of optimism among dealer principals to introduce and manage the concept of enterprise development within the group. A convenience sample of dealer principals from within the group countrywide was taken as well as that of beneficiary enterprises initiatives operating countrywide as well for this study. The actual occurrence of enterprise development within the McCarthy Ltd franchised dealer network however was not encouraging, at least based on the actual reported initiatives in existence. The study found that there was a significant gap between the requirements of start-up or early stage enterprises and requirements of maturing to mature businesses. It also indicated that dealer principals were not necessaril y always adequately equipped to deal with the requirements of beneficiary enterprise requirements and hence the low occurrence or lack of introduction of enterprise development initiatives on a much wider scale.
Dissertation (MBA)--University of Pretoria, 2010.
Gordon Institute of Business Science (GIBS)
unrestricted

Thesis (MPA.) -- University of Limpopo, 2017
Apartheid systematically and purposefully restricted the majority of South Africans from meaningful participation in the economy of the country. The society was characterised by entrenched gender inequality, and defined by wealth disparities and general economic exclusion of certain groups of society such as blacks, women and youth, as well as people living with disabilities. The period since 1994 has seen the South African economy undergoing restructuring. One of the major milestones in this regard was the introduction of the Broad-Based Black Economic Empowerment policy. The principal aim was to undo the legacy of dispossession and disempowerment that characterised economic development until 1994. This study was undertaken to investigate the implementation of the Broad-Based Black Economic Empowerment Policy (B-BBEE) in the Limpopo Department of Co-operative Governance, Human Settlements and Traditional Affairs. (CoGHSTA). It is also the aim of the study to investigate the processes and systems that ensure that the B-BBEE policy is fairly and equitably implemented. The study further aims at investigating the challenges in the implementation of the B-BBEE policy and suggests appropriate recommendations. The research methodology followed in this study is qualitative in nature. Semi-structured questionnaires were distributed to respondents for the collection of primary data. The main finding of the study is that, although the main aim behind the introduction of the policy is to undo the legacy of dispossession and disempowerment of the majority of South Africans, only a few politically “well connected elites” are actual beneficiaries of the empowerment deals in real terms. One of the striking findings is that officials are often not well trained on the imperatives of the policy. As such it is recommended by the study that rolling out training programmes for staff members, especially those closely working with bids in Supply Chain Management, be considered.

A research report submitted to the Faculty of Commerce, Law and Management, in partial fulfilment of the requirements of the Degree of Master of Management in Finance and Investments
The aim of this study is to determine if companies listed on the Johannesburg Stock Exchange that comply with Broad Based Black Economic Empowerment (“BBBEE”) policy exhibit abnormal operating financial performance. Whereas previous studies focused on the impact of BBBEE on shareholder wealth by measuring abnormal returns on share prices, this study focuses on the impact of BBBEE on operating financial performance of BBBEE companies. Further, previous studies have focused on just the ownership element of the scorecard; this study BEE considers all the elements of the scorecard by using BEE scores to measure compliance. BBBEE scores, which are used to determine compliance, are obtained from Empowerdex website as well as publications of the Financial Mail Top Empowered Companies (“TEC”) for the years 2004 to 2013. This study uses operating cash flows return as a proxy for operating financial performance. Industry adjusted cash flow returns are used to detect abnormal operating performance. The study uses a sample of 203 companies. The findings show that BBBEE compliant companies achieve a positive abnormal cash flow return of 2.31% over a 10 year period. Further, the findings show that the industry in which a company operates also influences whether or not a company benefits from BBBEE compliance. The study also reveals that BBBEE compliance mostly benefits companies during favourable economic periods as BBBEE companies achieve positive excess returns of 4.15% in the period prior to the economic crisis. Finally, the study reveals that the highest compliant firms are not necessarily the highest performers

Masters in Public Administration - MPA
The Namibian Government has recently embarked on the formulation of an empowerment strategy similar to South Africa’s Broad Based Black Economic Empowerment (BBBEE) policy - the Transformation of Economic and Social Empowerment Framework (TESEF) for Namibia. Monitoring and evaluation (M&E) more specifically, results-based M&E has also recently emerged worldwide as an important tool in public sector management reform and is focused on the attainment of outcomes and development results at project, programme and policy levels. The problem being investigated in this study concerns the shortage of evidence in BBBEE policy and legislative documentation of a coherent M&E framework inclusive of a set of indicators that can measure BBBEE progress against its set objectives and anticipated outcomes.Through an investigation on the state of an M&E framework for BBBEE and South Africa’s good experiences regarding the development of a Government-wide (including all sectors) coherent M&E system a number of lessons of experience have been drawn for the anticipated implementation and M&E framework of TESEF and the establishment of a Government-wide M&E system in Namibia.The study reveals that there is currently (May 2009) no comprehensive M&E framework inclusive of set of indicators in effect to measure BBBEE progress towards its objectives and anticipated outcomes. The suitability of available indicators to measure BBBEE derived from the South African Development Indicator framework (SADI) and the Compendium of Indicators for the Provincial Growth and Development Strategy (CIPGDS) of the Western Cape are assessed and the potential for indicator development has been explored. Through an appropriate methodology a comprehensive set of indicators that address the objectives and anticipated outcomes of BBBEE are developed and suggested in this study.The study found that while Namibia sees herself in the final phase of TESEF formulation with the release of the latest TESEF Draft Strategy Document (April 2008) the country also sets out plans in its National Development Plan (NDP3) for period 2007/08 –2011/12 for the establishment and institutionalisation of a government-wide M&E system dedicated to the results-based M&E approach. The study finds valuable lessons for Namibia in South Africa’s Government-wide M&E (GWM&E) system drawn from South Africa’s development of: a Policy Framework for GWM&E system; a comprehensive set of national development indicators across prioritised clusters (the South African Development Indicator framework); and the established public sector capacity building and M&E support organs such as the Public Administration Leadership and Management Academy (PALAMA) formerly known the South African Management Development Institute (SAMDI) and the South African Monitoring and Evaluation Association (SAMEA).Apart from the potential indicators to measure BBBEE developed as part of the study’s recommendations, the study also recommends that an M&E framework for TESEF is developed upon finalization of the policy’s objectives and anticipated outcomes and that this framework is included in the final TESEF design to guide its effective implementation.

A Research Report submitted in partial fulfilment of the requirements for the degree Master of Commerce in Accounting in the Faculty of Commerce, Law and Management at The University of the Witwatersrand September 2016
Black Economic Empowerment (BEE) or Broad-Based Black Economic Empowerment (BBBEE) is an important means by which the South African government aims to address the social injustices of the past as well as eliminating inequalities between white capital and the black majority (Fauconnier and Mathur-Helm, 2008). The Department of Trade and Industry (DTI) has been tasked with overall responsibility for instituting and monitoring the laws that govern BEE. Since the introduction of the Broad-Based Black Economic Empowerment Act no. 53 of 2003 (Ferreira and Villiers, 2011) and the codes of good practice of 2007, a number of amendments were made in response to deficiencies identified, the most material being the Amended Codes of Good Practice of 2013, which were effective from 1 May 2015. This research paper sought to investigate the impact and cost implications of the 2013 amendments to the BBBEE Codes of Good Practice (new codes) on companies within the industrial goods and services sector of the Johannesburg Stock Exchange (JSE). This was done relative to the 2007 BEE Codes of Good Practice (old codes). The main purpose of the study was to explore the impact and related costs of implementing the changes in the BBBEE codes on a sample of JSE listed companies obtained from the Empowerdex Top 100 2015 survey. The sample selected was those companies in the industrial goods and services sector. The methodology used was an exploratory study using semi-structured, in-depth interviews with the executives responsible for BBBEE or transformation, as it sometimes called, in each company. While an interview questionnaire was used, the questions asked were fairly open-ended which allowed the subject to be explored fully in each setting. This enabled the researcher to also understand the practicalities of implementing the BBBEE codes within each company and each industry. The results of the study indicated that most companies found it difficult to maintain their BBBEE ratings, with indicative ratings showing a likely overall average drop of three levels. In addition, further discounting in the rating may result from not meeting the sub-minimum levels of the three priority elements. These elements are; ownership, skills development as well as enterprise and supplier development (ESD). Overall, in terms of the impact and challenges in implementing the new codes, companies found that the new codes were onerous, complex in some instances, vague in others, with a potential for misinterpretation and possible manipulation. ESD was found to be the most challenging of the new elements to implement and likely to have the most impact on companies, whereas skills development, which has been doubled from 3% to 6% of the payroll leviable amount, had the biggest impact in terms of cost as assessed on the new codes. Notwithstanding the perceived challenges, companies acknowledged that BBBEE was not only a moral imperative (Fauconnier and Mathur-Helm, 2008), but also a business imperative (Arya and Bassi, 2009) and a licence to trade in South Africa. The study had four main limitations. Firstly, that companies investigated were selected from the Empowerdex Top 100 most empowered companies 2015 survey, completed in May 2015. Within those, only the ones in the industrial and services sector were included in the study. Secondly, that all companies interviewed, regardless of sector, responded to the questions with respect to the generic scorecard, as no sector charters were enacted at the date of writing the research report. Thirdly, the ability to secure the appropriate number of interviews was key, which may affect the quality of the responses and conclusions reached. Finally, because the new codes were implemented on 1 May 2015, which is less than a year from the date of this research report, there is a limitation that limited information is available on the new codes. The effective implementation date of the new codes, means that very little research is likely to have been conducted on the new codes; or the likely impact they could have on companies; or the critical changes between the old codes (2007) and new codes (2013). The researcher hopes this study will enable greater understanding of the codes and assist listed and other companies in strategic decision-making (Horwitz and Jain, 2011) and implementation of transformation initiatives. Furthermore, issues raised as contentious, confusing or due for improvement can be further researched and possibly used by policy-makers as input to future changes in the codes. Further research can also be conducted three to five years from now when the amended codes have been in place for a period that allows implementation by companies. This can either be conducted using a case study that tracks the BBBEE strategies, initiatives and ratings over that period within one company. Alternatively, the researcher can select any one of the five elements and investigate how it has been implemented in different companies over a specific period.
MT2017

Abstract Dissertation Title: Truth is Somewhere In Between: An Ethnographic Account of Broad Based Black Economic Empowerment (BBBEE) in South Africa Broad Based Economic Empowerment (BBBEE) policy, codes and scorecard were finalised in 2007 in South Africa. In an attempt to eradicate economic polarity, the policy’s aim is to pursue concurrent economic growth and social distribution. The goal is honourable, but is it achievable? Progress among all affected parties needs to be investigated and evaluated. In addition to much confusion arising between the policy’s discourses and practices, the uneasy logic of BBBEE in the neo‐capitalistic state of South Africa faces resistance and various challenges. Adopting an anthropological research approach, this paper makes particular use of participant observation in an effort to deconstruct the multilayered BBBEE concept and its practice. An examination of a firm that achieved broad based empowerment score provides the necessary ethnographic data. The dynamics of organisational culture, management and their BBBEE implementation, together with the perspectives of various stakeholders such as those within the community, government and among consultants, are all explored. BBBEE score, for all intents and purposes, was perceived as being irrelevant to the actual employees and their daily operations. To the degree that it may have been pertinent, the constant battles of culture and perceptions between various people and positions aggravated any hope of a possible point of reconciliation. Capitalist determination among all parties exists at the core of economic game they consent to play. Despite the policy’s effort to transform the management paradigm, the traditional organisational structure and practice is largely upheld and consequently, empowerment remains merely in the realm of discourses among both practitioners and beneficiaries. Narrow based empowerment persists as the dominant view of many and, as a result, BBBEE remains a sheer bureaucratic baby, impotent at bringing about any meaningful cultural transformation in the current economic trend of South Africa.

Government introduced the Broad-based Black Economic Empowerment Act, No. 53 of 2003 and the Broad-based Black Economic Empowerment Codes of Good Practice (‘the Codes’) in 2007 to address the economic inequalities in South Africa by incentivising companies to include black people in economic activities. These incentives relate to implementation of preferential procurement, which is meant to favour companies that are BEE-compliant. Based on the literature and government’s intention with BEE policies, an assumption developed that companies with greater BEE compliance, which is measured through a BEE scorecard as per the Codes, would perform better in terms of market share through their revenue and in terms of profits. The main objective of this study was to carry out an in-depth analysis of the relationship between BEE scores and revenue growth and profitability of JSE-listed companies. This was done to determine whether the efforts by government of incentivising companies to be more BEE compliant are effective. This study was conducted as a two-part model consisting of regression analysis and ttest to determine whether there is a relationship between BEE scores and revenue and profitability. The regression analysis focused on the top 100 most black-empowered companies. The t-test was a comparison of two data sets, which consisted of companies in the top 100 most black-empowered companies and those that do no fall among the top 100 most black-empowered companies. The results showed that, at the time of this research, there were no significant relationships between BEE scores and revenue and profitability. The analysis of the research findings collectively demonstrated that for both the tests (regression and ttest), the relationship between revenue and profitability could not be established. Hence, the results postulate that BEE compliance does not produce the desired results for the companies, which can be translated into better profitability and market share.
Financial Accounting
M. Phil. (Accounting Sciences)

Between 1980-2006, thousands of South African pension funds converted members from defined benefit to defined contribution structures. This research set out to answer the questions of why this phenomenon occurred and whether peculiar environmental circumstances influenced the outcome. The research framework identified various stakeholders in the retirement fund industry - government; regulator; pension fund adjudicator; ombudsman for long term insurance; trade unions; members; trustees; business; employers and service providers - and isolated the elements to be considered in the research. Industry experts were interviewed to obtain a macro view of the phenomenon and specific manifestations of the phenomenon were also considered in case studies. The purpose of the research was to develop a model for managers to assist them in dealing with environmental change. Qualitative research methodology was utilised and feedback from semi-structured interviews was categorised into several emergent themes. Within-case and cross-case analyses were conducted. Research results indicate that the conversion phenomenon occurred in two waves - one initiated in the 1980s and driven by the trade unions and a second in the 1990s, driven by employers, often at the advice of their consultants. Evidence of the start of a third wave also emerged. Results indicate that an environmental shock exerted a substantial influence on the course of events. Under these:  Various factors combined to drive organisational evolution (i.e. adaptation to the environment).  Adaptation speed was inappropriate and exceeded that which was required for sufficient thought.  Uncertainty and vacuum circumstances arose leading to consequences that require redress.  The power of the relative stakeholders changed and influenced the strategic outcome.  An imbalance in stakeholder interests arose and ethical factors became consequential.  Business acted to restore certainty for itself. Existing literature explained organisational behaviour in environments of competitive shock and high turbulence, but not in circumstances of environmental shock. A model emerged to assist managers to deal with environmental change, which was applied to an analysis of pension fund reform. It was also applied to the pension fund perspective on Broad-Based Black Economic Empowerment. This model may also be applied in analysis of land redistribution, sanctions and constitutional development.
Business Management
DBL