BEE accreditation is what’s recently keeping most companies on their toes. How to get accredited, what factors implicate their score, what factors increase their ranking, and what benefits it has on their company on a whole.
Before all those questions are answered, we first need to consider what BEE is.
BEE is an acronym for Black Economic Empowerment. It’s a law that came into practice in companies that allows for people of mixed races to be employed. It also ensures that companies are equally mixed and there’s a fair advantage on all races being employed at prospective companies. Following that, Broad-based Black Economic Empowerment (B-BBEE) is an initiative launched by the South African Government to address the restrictions that exist in the country for Black citizens to participate fairly in the economy.
BEE Ranking works in codes and statuses. Depending on ownership, management, employment equity, skills development, enterprise and supplier development and socio-economic development, companies are scored higher or lower.
For companies to get accredited is not as tedious as it may seem. It’s as simple as an online application, and documentation supporting the oath you take as a company to agree to the terms and conditions of becoming accredited.
BEE accreditation can have many benefits for your company if you stick to your oath, and be rewarding in terms of the change you’re making in society.
On a national level, BEE accreditation can have a positive impact on society as it supports governmental initiatives for transformation. On a business level, it can have positive effects on brand awareness and marketing campaigns. It also provides key financial and relationship advantages with the government. These include being able to take part in tender processes (the higher the BEE ranking, the greater the chances of obtaining a tender) being able to conduct business with government (at all levels, including municipal) and being able to participate as a supplier in the chain of preferential procurement.
It is important to note that BEE is not transformation itself. BEE is part of a reporting exercise and encourages specific activity in businesses. However, it is a quantity measure and does not necessarily consider any quality elements. If transformation is not achieved in the business, then the business will struggle to maintain their BEE score. This becomes more evident the larger the business. So, it is important for all management levels to firstly be aware that the company is BEE accredited, what holding an accreditation means and ways to adhere to the accreditation oath. All management levels should be trained regularly to know how to put accreditation terms and conditions into practice and should thereafter be involved when the company does audits of the desired standard of accreditation.
Companies like Just Batteries are one of many companies that prides itself in holding a BBBEE status.