10 March 2006
	CODES OUTLINED The OUTLAY of the CODES The tendency to involve mainly black men in business transactions has affected companies implementing their affirmative action policies

The structure of the codes of good practice on broad-based black economic empowerment follows the outline of the generic scorecard introduced by government in 2003 as part of a document titled: "SA's Economic Transformation: A Strategy for Broad-Based Black Economic Empowerment". Phase One Before the introduction of the first phase, many BEE transactions were male-dominated and tended to favour the same individuals. The codes introduced a new brand of empowerment with the emphasis on black women and broad-based schemes. Since 2004, there has been a marked shift from the way BEE deals are structured. The tendency to involve mainly black men in business transactions has affected the implementation by companies of their affirmative action policies. There has also been a tendency to appoint black people on company boards as nonexecutive directors. Though this is a positive development, it has unfortunately perpetuated the status quo of strategic decision-making still being confined to white males. It is vital to ensure equity at operational levels of organisations, as this is where black people gain the experience necessary to establish and run their own companies. In response to this challenge, the code on management emphasises the inclusion of black people and women in executive management roles. The codes have set targets of 50% for black people and 25% for black women representation at board level. Over and above this, a 40% target has been set for black people at executive director level and 20% for black women at the same level. Phase two Initiatives are being introduced to accelerate our economic growth and dent unemployment figures, and the growth of the black middle class is having a positive effect on growth. The elements of employment equity and skills development, if properly implemented, are expected to give further impetus to this growth. The elements on preferential procurement and enterprise development are expected to boost black entrepreneurship. The idea with these elements is to encourage initiatives that will provide much-needed opportunities to aspirant BEE-compliant enterprises, as well as to provide an environment that will ensure their sustainability in the long run. This calls for a change in the thinking of both public and private enterprises, particularly when it comes to their traditional supplier bases. Companies should implement both preferential procurement policies and enterprise development policies that will enhance the long-term sustainability of small enterprises. Polo Radebe is the acting chief director for BEE at the department of trade & industry