Understanding What Each Pillar Means
It is important to understand the requirements of each pillar.
Ownership (counts 25 points)
When determining the level of black ownership, a business will score points based on the
following:
- The extent to which black people can influence the strategic direction of the business through their shareholding
- The current net value of their shares
- The amount of profit (percentage of each Rand) that accrues to all of these black shareholders.
- Whether these shares are paid for in full, or will be within 10 years or less.
- Bonus points are awarded if any of the black shareholders are new entrants (who have not previously benefited from a B-BBEE deal)
Management (counts 19 points)
This refers to the proportion of black people who control the direction of the business as well as those in top management who control day-to-day operations.
Skills Development (counts 20 points)
Skills development measures a business’s investment in the training and development of black employees. Only specific types of learning programmes and learnerships qualify when claiming points on the skills development scorecard.
Enterprise Development (counts 40 points)
If the business offers support programmes, then you can claim points on the scorecard. For example, if you donate a vehicle to one of your black company drivers so that he or she can start a delivery company, you qualify.
Socio-Economic Development (counts 5 points)
Companies that spend at least 1% of net profits after tax (NPAT) on Social-Economic Development (SED) are eligible for 5 points under this pillar.
Social-Economic Development (SED), however, is not Corporate Social Investment (CSI). SED’s criteria demands that those being assisted gain long-term access to the economy and receive a lasting benefit.
According to the definition in the legislature, any initiative should “facilitate income-generating activities”.