Johannesburg - The results of the seventh annual KPMG Black Economic Empowerment (BEE) Survey have highlighted the increasing pressure on companies to comply with broad-based black economic empowerment (B-BBEE).
This pressure is largely coming from customers, with about 42% of companies surveyed indicating that a B-BBEE contributor status of level four is what is expected of them by their customers.
Bonolo Sinobolo, the senior manager of KPMG's BEE advisory services, said the department of trade and industry has indicated that it intends gazetting the revised codes of good practice as early as June 2013.
If the revised codes were gazetted in June, this would give companies a 12-month transitional period to comply with the changes.
A total of 91% of respondents to the survey indicated that the revised codes in their current format would result in a lower B-BBEE rating for their companies.
Sinobolo said a further 51% of respondents indicated that their customers required them to have contributor levels of at least three or higher.
“While the expectation on compliance to at least this level was mainly driven by customers, competitors and legislation were the additional drivers influencing businesses to aim for higher contributor levels.
“The intention of revising the codes was to enhance the implementation of B-BBEE in a meaningful and sustainable manner.
“Principles and guidelines contained in the revised codes were intended to facilitate and accelerate the implementation of B-BBEE.
Sinobolo said: “If one considers that 75% of respondents indicated that BEE in its current format is not achieving, or is only partially achieving its objectives, the revision of the codes seems to be well timed.”
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