Posts Tagged BEE Sense
Given the priority of staying as competitive as possible, companies need to exploit all existing opportunity channels. This requires a knowledge and understanding of possible environmental impacts on your business.
In the South African business environment, BEE compliance plays a significant role particularly to those companies dealing at a business-to-business level. Your clients will require you to produce evidence of your BEE compliance status, without which they will opt to do business with your rival.
How do you address this problem? One of the largest sources of competitiveness is a customer-needs driven approach. Identifying and satisfying your clients’ needs provides the necessary competitive edge. Therefore, getting the proper BEE documents is not a choice for those companies with such clients who require such evidence. In such a scenario, a company’s competitiveness is based to an extent on its BEE score.
Therefore, how competitive is your business without evidence of its BEE status, in a market where such evidence is held with high regard?
The adoption and implementation of BBBEE is still varied in the country. Where does your company fall in the adoption process of BBBEE?
Brave companies with people, pulling the change. Such companies have embraced BBBEE and are continuously improving their BBBEE points.
Respectable companies, opinion leaders in their industry leading the pack and are improving their BBBEE points.
Thoughtful companies, careful but accepting change more quickly than the average companies and are beginning to implement BBBEE.
Skeptic companies which will only implement BBBEE when the majority have implemented BBBEE.
Traditional companies, caring for the “old ways”, and are still critical towards BBBEE and will only accept it when it becomes mainstream or when forced to comply.
BBBEE is here to stay and will continue to gain momentum. The only way for your company to accept this noble phenomenon is to understand it and know how it affects your business. Our workshops/seminars and conferences are there to help you.
Socio-economic Development is one of the noble and good ways to earn BEE points. The key principle of Socio-economic developments is for enterprises to carry out initiatives that result in the beneficiaries having sustainable access to the economy and hence reduce the poverty barrier. However it involves costs to the enterprise since the enterprise should spend 1% of its Net Profit After Tax to earn all the points available.
In this period of recession where budgets are tight and management of costs is imperative, it is prudent for companies to align their social development programs that include corporate social investment, corporate social responsibility and marketing programs with their BEE targets and initiatives. We always say BEE initiatives should be implemented within the context of sound business principles. So I encourage businesses to incorporate and align their BEE activities with business goals and strategies. If your business strategies are linked to your social development campaigns the enterprise can earn the BEE points required whilst the enterprise market its image, brands or services and gain respect from government and customers.
A big perception about BEE is that it is a big unknown which could cause you to give away half your business. This point was once again very high on a recent clients BEE thoughts. He did not want to give away his business yet he thought he would have no choice. He also thought his customers would stop buying from him and he would be forced to close his doors.
This unfortunately caused him great stress yet it is not true.
His customers want a Broad Based BEE scorecard. This is something he not only can comply with but as he was a small business he can get a very good score.
My point is, BEE is not scary. It makes sense for your business. My advice is, attend a short course, it will clear all the BEE myths and as we like to say leave you BEE ‘Motivated.