Broad-based Black Economic Empowerment Research Articles

Implementing B-BBEE: Leader Experiences in the South African Banking Industry

Orientation: Large banking institutions in South Africa remain complex organisations facing a myriad of challenges as they navigate the Fifth Industrial Revolution (5IR) and strive to remain relevant. A significant challenge relates to how these organisations can utilise Broad-Based Black Economic Empowerment (B-BBEE) to create diverse and inclusive teams for organisational success and sustainability.Research purpose: To explore the experiences and sense-making processes of senior leaders tasked with the implementation of affirmative action as part of a B-BBEE strategy as they navigate this responsibility within a South African bank.Motivation for the study: To shine on the complex experiences of senior leaders tasked with implementing affirmative action within a B-BBEE strategy in a large financial institution.Research approach/design and method: A qualitative interpretivist case study was applied to explore senior leaders’ negotiation of their perceptions and experiences of leading the implementation of B-BBEE in a large bank. Ten semi-structured interviews were utilised as the main data generation tool.Main findings: Study reveals how senior leaders hold strong convictions about the value of diversity and inclusion in the workplace. This included the continued necessity for legislation such as B-BBEE given South Africa’s racial history and existing personal biases that impact workplace diversity and inclusion. The study further reveals that senior leaders believe that B-BBEE is poorly implemented and attribute this to the tension leaders experience between diversity and performance, a lack of organisational policies and practices required to hold leaders accountable for B-BBEE implementation and leaders who lack the skills and expertise required to successfully create diverse and inclusive work environments.Practical/managerial implications: Positive contributions to diversity and inclusion policies and practices, leadership development and transformation of the banking organisations in South Africa and the industry at large.Contribution/value-add: Banking institutions as large market players can play a significant role in leading workplace transformation through improved implementation of diversity and inclusion legislation and principles within B-BBEE.

The lived experiences of South African Black accountants within the framework of the chartered accountancy profession sector code

PurposeThis study investigates the progress of the Broad-Based Black Economic Empowerment (B-BBEE) Act 2003, and its associated Chartered Accountancy Profession Sector Code. In doing so, we explore why B-BBEE affirmative action has not yet achieved the Code's representational intentions, including systemic subtleties inhibiting this success.Design/methodology/approachUsing semi-structured interviews, we explore the lived experiences of Black aspirant Chartered Accountants (CAs) undertaking articles in global audit firms. The experiences are thematically analysed, embracing a comprehensive theoretical approach that encompasses professional and social closure, as well as boundary work, to adequately understand why affirmative transformational endeavours persistently face uphill tasks. The utilisation of multifaceted theorisation is deemed essential for a more nuanced portrayal of the intricacies inherent in the CA profession in South Africa.FindingsThe narratives presented by Black aspiring CAs unveil a complex web of exclusionary practices entrenched in institutionalised historical, professional, and social contexts. The multifaceted nature of closures, symbolised by racial, cultural, and linguistic factors, significantly impacts the experiences of Black trainees. The findings furthermore show that deliberate intervention beyond compliance with the Government’s framework is necessary for meaningful transformation.Practical implicationsThe paper brings to the fore the current lived experiences of underrepresented Black CAs in global auditing firms. In doing so, these firms are empowered with incremental knowledge of the prevailing challenges and can thus make tangible improvements towards authentic transformation. Additionally, the results help in tracking the advancements made through affirmative action, acting as a feedback loop for future developments in transformation policy.Originality/valueContributing to the critical accounting literature, our study extends scholarship on the barriers faced by CAs and the limitations in their capacity to challenge these obstacles within global audit firms. We offer practical policy-focused recommendations that, if implemented, can address the complex socio-political realities obstructing the success of affirmative action. By sharing first-hand accounts, our study aims to empower auditing firms and other related stakeholders with actionable insights, enabling them to improve genuine inclusivity and foster equitable representation in the accounting profession.

John Crane South Africa achieves B-BBEE Level 3 contributor status

John Crane reports that its operations in South Africa have achieved Broad-Based Black Economic Empowerment (B-BBEE) Level 3 contributor status following a successful partnership with Bunengi Group – a highly respected, well established and broadly diversified black-woman-owned enterprise, based in the Sandton Precinct in Johannesburg.

BBBEE fairness perceptions and job performance: The role of leadership styles and psychological availability

Orientation: Studies suggest that employees fairness perceptions of the workplace are positively linked to job performance. Employees associate perceptions of fairness in the workplace with transformational and transactional leaders. It is important to recognise that employees’ personal resources can be compromised when they perceive a lack of fairness in the workplace.Research purpose: This study investigated the role of leadership styles and psychological availability on the relationship between fairness perceptions of Broad-Based Black Economic Empowerment (BBBEE) and job performance of employees, within the South African work setting.Motivation for the study: Little is known about the association between the fairness perceptions of BBBEE and job performance. Also, less is known about the mediating variables that can influence this relationship.Research approach/design and method: A quantitative cross-sectional design was employed. Convenience sampling yielded 300 participants from whom data were collected.Main findings: The results showed that the perceived fairness of BBBEE had an indirect relationship with job performance by means of transactional leadership styles and psychological availability.Practical/managerial implications: Achieving optimal job performance from this group of employees hinges on transactional leaders satisfying the needs of employees in return for employees meeting agreed-upon obligations. Furthermore leaders need to monitor the extent to which employees are psychologically available at work.Contribution/value-add: The Job Demands-Resources (JD-R) model was extended to demonstrate the impact that fairness perceptions of BBBEE have on organisational behaviour. The study also revealed that the fairness perceptions of BBBEE affect job performance through transactional leadership styles and psychological availability.

BROAD-BASED BLACK ECONOMIC EMPOWERMENT POLICY AND ENTREPRENEURSHIP IN SOUTH AFRICA

This article examines the effects of the Broad-based Black Economic Empowerment (BBBEE) policy on black entrepreneurship in South Africa. The BBBEE policy is a legal framework aimed at addressing historical inequalities by promoting equal opportunities and encouraging the participation of black individuals in the economy. The policy highlights include increased access to funding for previously marginalized groups to start and grow their businesses, improved market access to encourage large businesses to partner with small businesses owned by previously marginalized groups, and increased skills and development. Using the policy as a quasi-natural experiment, the study adopts a difference-in-difference estimation technique contrasting periods before and after implementation and measuring its effectiveness on black entrepreneurial entry. Results from the analysis indicate that the policy was ineffective in improving black entrepreneurship in South Africa.

A systems framework to analyze the impact of corporate social investment projects with an information technology focus

AbstractIn South Africa, corporate social investment (CSI) is deployed as part of Broad‐Based Black Economic Empowerment (B‐BBEE) to assist and empower disadvantaged individuals and communities. Previous research revealed that CSI projects are often short‐lived and unsustainable. This study aims to analyze the impact of South African CSI projects that focus on information and communication technology (ICT) in poor urban communities. A case study was conducted comprising four CSI ICT learning centers in poor urban communities in Soweto, South Africa. An indigenous theoretical construct was developed, in the form of a systems framework, combining aspects of soft systems methodology (SSM), Ubuntu philosophy and autopoiesis. The aim of the systems framework was to study the impact of the CSI ICT learning centers in a holistic manner. The framework contributed as follows: the descriptive components of SSM assisted to describe the social systems of interest, in each case. The ubuntu lens helped to portray how the community members supported each other to benefit from the learning centers. Autopoiesis elements showed how the learning centers were able to self‐produce and collaborate in order to be sustainable. With the insight of the framework, six guiding principles were derived to inform the successful implementation of future CSI ICT interventions.

REGULATING DIRECTORS’ DUTIES AND SOUTH AFRICAN COMPANY LAW REFORM

It has for some time been apparent that South African company law needs to be comprehensively rewritten. Far-reaching changes have occurred since the previous revision that led to the Companies Act of 1973. Amongst other factors, there is a new political, social and economic dispensation, and our company law should, as far as is feasible, be harmonized with the laws of international investors and other Southern African states. The policy document issued in June 2004 by the Department of Trade and Industry on the reform of corporate law, and their structured approach to the reform process, should therefore be welcomed.The inevitable influence of the Constitution and related legislation promoting its provisions, are considered in this article with specific regard to the proposals contained in the policy document on directors and their duties. The Promotion of Access to Information Act of 2000 and the Broad-based Black Economic Empowerment Act of 2003, which serve as examples of such related legislation, are considered, as are the suggestions contained in the policy document with regard to the structure of the board and on the possible codification of directors' duties.The new Companies Act should ensure that directors will be held accountable for their actions and that the interests of interest groups other than shareholders may also be considered in corporate decision-making. Existing mechanisms provided for in our law should not be in conflict with the provisions of the new Act. But unnecessary amendments are undesirable and do not promote legal certainty. It should also be kept in mind that social change might be better advanced by other means than in corporate legislation. Furthermore, specific aspects in other jurisdictions should not be incorporated in our law without a proper understanding of the broader context of the corporate laws of those jurisdictions. The DTI's quite ambitious reform programme envisages draft legislation by 2006.

THE DETERMINATION OF BLACK OWNERSHIP IN COMPANIES FOR THE PURPOSE OF BLACK ECONOMIC EMPOWERMENT (PART 1)

In Part I of this two-part article the primary statutes regulating black economic empowerment are considered. The Preferential Procurement Policy Framework Act 5 of 2000 with its regulations determines the parameters within which organs of state may give preferential treatment to historically disadvantaged suppliers when making procurement decisions. The Broad-Based Black Economic Empowerment Act 53 of 2003 creates a legislative and bureaucratic framework for the realisation of black economic empowerment, that includes codes of good practice that seek to introduce an empowerment agenda to a variety of administrative decisions, including state procurement. This overlap in application leads to conflicts between the duties placed on the state by the two Acts, and it is submitted that the Procurement Act and its regulations require amendment that will have to coincide with the coming into effectof the codes of good practice under the BEE Act. Part II of the article will analyse the recognition of black ownership in companies arising from the sale of equity instruments.

Sustainability in Industry 4.0 Business Practice: Insights From a Multinational Technology Company

Industry 4.0 (I4.0) needs new business practices, which focus on its positive impacts and sustainability. This article presents original empirical research from a multinational engineering company operating in South Africa and the challenges that area managers experience in this organization. It explores the meaning and meaning-making in times of organizational change and transformation within the South African business context. The authors present findings which present the 4IR and sustainability issues in the company and themes which are identified, such as speed, effectivity, and Broad-Based Black Economic Empowerment (BBBEE). However, findings also indicate that emotions and the human touch are key in technologising work environments. The study further denotes that sustainable business practice requires the constant development of skills and knowledge of employees, as well as the systemic integration of the ecological environment and the care for the eco-system.

Black economic empowerment in South Africa: Is transformation of the management structures of enterprises as essential as it should be?

Black Economic Empowerment (BEE) was launched as an integrated policy initiative to empower black people and redistribute wealth across the spectrum of South Africa's population. The Broad-Based Black Economic Empowerment Act 53 of 2003, as amended in 2013, was enacted to correct the imbalances of apartheid and promote transformation of the economy. The Codes of Good Practice adopted in terms of the Act were promulgated to provide a standard by which the BEE rating of enterprises can be calculated. BEE ratings are important to enterprises since enterprises use them to attract and retain clients: the higher an enterprise's BEE rating, the more it is likely to benefit financially. It is for this reason that it is in most enterprises' interests to have a good BEE rating. The BEE rating of an enterprise is calculated by using the rules and formulae in the Codes of Good Practice. However, despite the objectives of the Act, enterprises are able to obtain good BEE ratings even where a low percentage of black people form part of their management structures. It is important to determine how this is possible. This article exposes shortcomings in the existing BEE legal framework that make it possible for enterprises to obtain good BEE ratings under such circumstances.

Black Economic Empowerment (BEE) in South Africa: introduction and a review of the labour market literature

Broad-Based Black Economic Empowerment (B-BBEE) was conceived as a structural intervention to fundamentally reorganise the South African economy and address persistent economic inequalities. South Africa has the world's highest income inequality, and this is reflected by vast inequalities in salaries and wages both between high and low earners, but importantly between different race and gender groups. Despite a plethora of legislation aimed at addressing inequality in ownership (such as B-BBEE) and in the workplace (employment equity legislation), women and Black workers in South Africa continue to be paid less than men and white employees, even when doing the same work (the pay gap), and are more likely to work in precarious, low-paid jobs (occupational segregation). These factors are driven by differences in the characteristics of workers, and by structural discrimination in the economy. Conceptually, we can decompose structural discrimination into two forms–that which discriminates against people who do the same job, based on race and gender (the pay gap)– and that which discriminates indirectly by occupational segregation–blacks and women concentrated in low paying occupations. In this paper, we ask whether B-BBEE–while not explicitly a labour market intervention–has had any positive impact in reducing labour market inequalities. We review the literature on occupational segregation and the gender and race pay gaps in post-apartheid South Africa, and examine the various policy interventions, with a particular focus on B-BBEE, that have attempted to address this enduring problem.

The Implementation of the Broad-Based Black Economic Empowerment (B-BBEE) Policy in South Africa: a Myth or a Reality in SMEs?

The post independent South African government in 1994 started operating in an environment that was characterised by racial discrimination, exclusion of the black majority from the economic activities of their country and were relegated to second class citizens by apartheid. The Black Economic Empowerment (BEE) became the main driver of the South African Government’s effort to overcome the apartheid legacy and was seen as a tool address these imbalances. This article analyses the effects of the Broad-Based Black Economic Empowerment (B-BBEE) policy on the SMEs. This research contributes to the knowledge of African governments on how the indigenous policies can close the gap between the white minority who control the economy and the disadvantaged black majority who have been marginalised by their colonial masters. Methodologically, the study critically analysed the literature of B-BBEE policy and how it has been implemented in South Africa since it was put in place. The researcher drew insights from Black Economic Empowerment (BEE), which was later amended to Broad-Based Black Economic Empowerment (B-BBEE) and the findings of other researchers.

The Legal Combatting of B-BBEE Fronting Practices in South Africa – Past and Present

Broad-Based Black Economic Empowerment is critical in establishing an inclusive South African economy based on social and economic justice. However, since its inception in 2003 with the promulgation of the Broad-Based Black Economic Empowerment Act 53 of 2003, misrepresentations intended to improve an enterprise’s compliance status – fronting – have been ever-present. From 2003 to 2013, there was no clear approach to dealing with fronting, which, at least in part, led to increases in the incidence and complexity of this practice. In an attempt to deal more decisively with the issue, the 2013 amendment to the Broad-Based Black Economic Empowerment Act introduced two specific measures to combat this problem. The first was criminalising fronting practices, and the second was establishing a monitoring body, the Broad-Based Black Economic Empowerment Commission. This article briefly sketches the policy and legislative framework for implementing the Broad-Based Black Economic initiative and past practices of combatting fronting practices. This is followed by a discussion of the two measures introduced by the amendment to the Act, with a specific focus on the Commission’s role since its inception to monitor and combat fronting practices. There will also be a discussion of the various activities that the Commission reports on concerning its dealing with fronting. The article concludes with suggestions for changes to the regulatory environment that could improve the efficacy of the fight against fronting.

A STUDY ON THE EFFECTIVENESS OF SOUTH AFRICA’S BROAD-BASED BLACK ECONOMIC EMPOWERMENT SYSTEM AS A TRANSFORMATION TOOL FOR JSE LISTED COMPANIES

Ponte Academic JournalApr 2022, Volume 78, Issue 4 A STUDY ON THE EFFECTIVENESS OF SOUTH AFRICA’S BROAD-BASED BLACK ECONOMIC EMPOWERMENT SYSTEM AS A TRANSFORMATION TOOL FOR JSE LISTED COMPANIESAuthor(s): Jeremiah Madzimure ,Karabo TlakaJ. Ponte - Apr 2022 - Volume 78 - Issue 4 doi: 10.21506/j.ponte.2022.4.2 Abstract:South Africa remains a devastatingly, economically unequal country, with the country’s wealth and means of economic production still representative of the apartheid era, monopolised by the white minority and a significant part of black people is economically disadvantaged through generational poverty. This study followed a qualitative research method with the aim to 1) explore the effectiveness of the South Africa’s Broad-Based Black Economic Empowerment (BBBEE) system as a transformation tool for Johannesburg Stock Exchange (JSE) listed companies, 2) understand the challenges hindering the effectiveness of Broad-Based Black Economic Empowerment system, 3) establish similarities and differences between Broad-Based Black Economic Empowerment system and empowerment models of other countries through semi-structured interviews and 4) make recommendations regarding the BBEE policy to improve transformation at the JSE listed companies. A sample of 9 participants involved in the BBBEE work of JSE listed companies was interviewed using a non-probability judgemental convenience sampling method. The policy of BBBEE is as a transformational tool, good in terms of its objectives. However, the implementation of the BBBEE is ineffective, especially where it matters most, being companies listed on the JSE. The participants noted that transformation in South Africa is required. The study outlined certain factors that can contribute to the improvement of the effectiveness of the BBBEE transformation policy. The following factors such as mandatory, compliance, benefits, willingness, implementation, and commitment were noted to be contributing to the effectiveness of the BBBEE policy. Key recommendations and future research directions were also explored in this study. Download full text:Check if you have access through your login credentials or your institution Username Password

Black economic empowerment policy and the transfer of equity and mine assets to Black people in the South Africa’s mining industry

Background: The Minerals and Petroleum Resources Development Act (MPRDA) and the Mining Charter, which both came into force in 2004, required white-owned and foreign-owned companies operating in the country to transfer 26% of the value of equity ownership and ensure that historically disadvantaged persons (HDSAs) attain 40% control of mine assets. The regulations are part of the broad-based black economic empowerment (B-BBEE) policy that seeks to transform the whole economy and enable black people to participate fully in all sectors of the economy after years of exclusion under apartheid laws. The inclusion of black people in the industry started with conglomerates unbundling mining houses in the early 1990s. Elsewhere such programmes succeed through selective government intervention. The South African government instead is pursuing a hands-off approach leaving HDSAs to survive under market mechanisms, which limits HDSAs’ chances of exploitation of opportunities.Aim: To explain challenges of attaining and sustaining equity target levels and highlight the extent to which black people own equity and mine assets, explore strategies used and reveal other realities in the implementation of the policy. These aims are met by exploring the ownership structures of white-owned, foreign-owned and black-owned companies and BEE deals concluded by them between the 1990s and 2015. It was also important to learn from the experiences of countries that pursued similar policies as a means of providing knowledge and information to policymakers and the general public.Setting: The study used a sample of 72 mining companies in South Africa operating in various mineral categories.Methodology: This article used a qualitative approach involving both secondary and primary data. Purposeful selective sampling was used to draw from all listed mining companies with a cut-off of July 2011. The market capitalisation of these were used to estimate equity targets owned by black people. Another 16 mining companies not listed were used to explore the strategies, challenges and other realities. This required exploring changes in shareholding structures and BEE deals concluded. Face-to-face structured interviews were conducted with a total of 35 executives, top management or their representatives from 27 companies, a few members of academia and government officials between 2012 and 2014.Results: Targets set by the MPRDA and the Mining Charter have not been met. Thus, little equity ownership has been transferred to black people. A broad category of black people have, however, benefited from BEE deals. These include individual companies, consortiums, communities and employee ownership schemes. To avoid risks, the sellers of mine assets host black people in separate companies, special purpose vehicles and holding companies. In general, lack of capital, dilution of black shareholding, indebtedness and limited expertise to run extractive ventures successfully challenge the survival of black-owned companies. Despite these problems, a few such companies are worth billions of rand.Conclusion: The success of empowerment policies that seek to offer selective preferences to enterprises elsewhere has depended on the government’s concerted efforts. These include establishing institutions to oversee policy execution and having financial and other supports. Challenges that black-owned mining companies face indicate a call for help. Unless the government intervenes and supports them there is a danger that white-owned and foreign-owned companies will completely buy back the assets once sold to black people resulting in a failure of the empowerment policy.

Reflecting on compliance with Broad-Based Black Economic Empowerment codes of good practice: Trends and suggestions

Purpose: Broad-Based Black Economic Empowerment (B-BBEE) legislation was introduced to promote the economic participation of black people in the South African economy. Some scholars have argued that, whilst it is important to empower black people, B-BBEE legislation is not necessarily the best mechanism available. Despite the criticism against B-BBEE, it remains the most prominent means of uplifting black people in the country. This study was conducted to reflect on whether selected companies listed on the Johannesburg Stock Exchange have improved their B-BBEE compliance and determine which elements included in the 2004 and 2007 Codes of Good Practice the companies have focussed on. The authors highlight progress made by listed companies in empowering black people and offer suggestions for improvement. Design/methodology/approach: A comprehensive data set, comprising 1767 observations for 379 listed companies over more than a decade (2004–2015), was analysed. Mixed-model analysis of variance and Fisher’s least significant difference tests were used to assess the significance of the observed trends. Significant increases in B-BBEE scores (in total and per element) were observed. Findings/results: The mean socio-economic development B-BBEE element score showed the largest change over the study period, whilst the employment equity element reflected the smallest change. Practical implications: The Department of Trade and Industry should reflect on the attainability of certain targets, especially employment equity and ownership. Government and listed companies are encouraged to critically evaluate the optimal manner to empower previously disadvantaged individuals. Originality/value: This study comprehensively explores the trends in B-BBEE compliance using statistical methods to provide suggestions to the Department of Trade and Industry and companies listed on the JSE.

BACK TO THE DRAWING BOARD?: AFRIBUSINESS NPC V MINISTER OF FINANCE [2020] ZASCA 140 AND THE POTENTIAL FOR RECONSIDERATION OF PREFERENTIAL PROCUREMENT LAW & POLICY IN SOUTH AFRICA

A 2020 judgment of South Africa’s second-highest court is the most significant in the field of public procurement law and policy since the landmark series of AllPay cases concerning the outsourcing of social grant payments. In the field of black economic empowerment more generally, where multiple and conflicting goals have been pursued, Afribusiness constitutes a distinct judicial intervention into disciplining the quite wide discretion that public bodies possess and have exercised across government since 1994 to adopt such policies in the pursuit of substantive equality and affirmative action. The decision is best understood as part of the ongoing process of reform of South Africa’s public procurement system that began around 2012. The Supreme Court of Appeal’s order that the procurement regulations providing for race and gender preferences are invalid has sparked interest in the upcoming hearing at the Constitutional Court both among regulatory bodies (including the broad-based black economic empowerment (BBBEE) body) and within business sectors.The court was specifically critical of the prequalification criteria mechanism but also struck down the 30% quota (mandatory sub-contracting) mechanism in the 2017 Preferential Procurement Regulations. The judgment has some ambiguity as to whether it is based on statutory, constitutional, or a combination of statutory and constitutional grounds. The case raises an important regulatory question: Does Parliament or the Minister of Finance and National Treasury have authority to issue a constitutionally compliant framework for the regulation of preferential procurement policy? Further, some components of the public procurement legislative framework are likely to be sent back to the drawing, hastening but also complicating government efforts already underway. And state owned enterprises and other public bodies aiming to achieve competitiveness, fairness, equity, transparency, and cost-effectiveness in public procurement will need to manage the legal risks posed by the judicial remedy, finding the regulations invalid but suspending that invalidity.

Broad-Based Black Economic Empowerment and corporate financial health

Background: Legislation was implemented in South Africa in 2003 and revised in 2013 to promote Broad-Based Black Economic Empowerment (B-BBEE). Aim: To investigate the relationship between B-BBEE compliance and a range of financial health measures among publicly listed companies. Setting: Altogether 379 companies listed on the Johannesburg Stock Exchange over the period 2004–2015. Methods: Data on the sampled companies’ B-BBEE scores (in total and per element) were sourced from Empowerdex, whereas financial data were downloaded from Bloomberg. Panel regressions were computed to investigate hypothesised relationships. Results: A significant increasing trend was noted in B-BBEE compliance over the research period. No significant relationships were found between the total B-BBEE score, individual B-BBEE elements and any of the considered accounting-based measures (annual percentage change in turnover, return on sales, return on assets and return on equity). A significant negative relationship was observed between the market-based price/earnings ratio and total B-BBEE score, while a significant positive relationship was noted with the cost of equity. The latter seems to indicate a negative perception among shareholders towards B-BBEE. Conclusion: Although B-BBEE legislation has been partially successful, more can be done to achieve its goal of empowering black employees and small business owners. Management teams should be more diverse and greater emphasis should be placed on socio-economic development and skills development. Companies should caution against overemphasising the importance of black ownership, as shareholders seem to view this B-BBEE element in a somewhat negative light.

GENDER POLICY AND LEGISLATION DURING THE FIRST 20 YEARS OF DEMOCRACY

1. Introduction South Africa's progressive legal framework, which provides for both the protection and promotion of the rights of and attempts to address their historically disadvantaged and subordinate position, has been hailed by both politicians and scholars as one of the country's success stories. Central to this is the South African Constitution (Act 108 of 1996), which gives unprecedented rights, particularly in its Bill of Rights (chapter 2). In addition, the Constitution makes provision for a Commission on Gender Equality (chapter 9) to promote the attainment of and respect for gender equality. (1) Numerous laws have also been promulgated to ensure that proactive measures are taken to protect women's constitutional rights. (2) Labour laws are specifically 'women-sensitive'. The Labour Relations Act of 1995 (section 203(2)) makes provision for Codes of Good Practice. Such a Code on the Handling of Sexual Harassment Cases was issued in 1998 by the National Economic Development and Labour Council. The Basic Conditions of Employment Act of 1997 (amended in 2002 to include the domestic worker sector) guarantees, among other things, maternity leave, job security during pregnancy, minimum wages, housing and health care for previously excluded groups, such as domestic workers, while the Employment Equity Act of 1998 includes as a 'designated group' to which affirmative action measures apply. In addition, the Broad-Based Black Economic Empowerment Act of 2003 (2) demonstrates its commitment to black in its aim to increase the ownership and management of existing and new enterprises and increasing their access to activities, infrastructure and skill straining. In the socio-personal realm, important legislation includes the Choice on Termination of Pregnancy Act of 1996 (which recognises women's right to abortion without the consent of another person), the Maintenance Act of 1998, the Recognition of Customary Marriages Act of 1998, and the Domestic Violence Act of 1998 (which defines violence as encompassing various forms of abuses and gives broad power to courts to shape the conditions of a protection order). The introduction of gender machinery (structures in the state mandated with monitoring legislation and policy for gender equality in line with the Beijing Platform for Action, article 201), championed by the National Women's Coalition (NWC) in the early 1990s, has also been noted as a significant milestone in the quest for women's rights in South Africa's early years of democracy. Hailed as one of the most advanced and integrated structures in the world (Gouws 2006: 143), it consisted of a set of which the Office of the Status of Women (established in 1997 and located in the President's Office) formed the apex with Gender Focal Points (GFPs) in National and Provincial Departments at the operational level. The Commission for Gender Equality and the Parliamentary Joint Monitoring Committee on the Improvement of the Quality of Life and Status of Women (JMC) formed the other components of the 'gender machinery'. However, although placing equality on the statute book does serve a normative function, it does not inevitably lead to a change in lived experience. Thus, despite the above robust legal achievements, actual implementation of these measures has not readily occurred (Fester 2004). Notwithstanding women's empowerment on paper and the removal of de jure inequalities, economic and social injustices have to a large extent remained deeply entrenched within the broader societal framework (Hames 2006: 1317). In addition, it has been argued that despite the nuanced gender rights 'culture' on paper, still comprise the majority of the poorest and most marginalised in South Africa, and that patriarchal power underlies the marginalisation of women (Bentley 2004: 248). Several scholars have also pointed to the potential tension in the Constitution in which the Bill of Rights (chapter 2) on the one hand preserves gender equality, but simultaneously guarantees the protection of chieftainship and respect for traditional authority (chapter 12). …

A Diagnosis of the Post-Apartheid Public Procurement Regime in South Africa

The purpose of this study is to analyse the progress that the post-Apartheid public procurement regime has made in South Africa in achieving its mandate of addressing socio-economic imbalances created by Apartheid. Based on the desktop literature review and research design, this study explores, through a conceptual analytical approach, the pros and cons that have characterized the South African public procurement regime to date. The study appreciate and acknowledge tremendous progress made to date in ensuring that the South African public procurement regime meets the international standards governing supply chain management processes. Nevertheless, research findings have shown some shortcomings in that the current procurement regime as it recycle enterprises without really creating sustenance. This has resulted in most SMEs benefitting from the government procurement, struggling to survive outside public procurement. The current B-BBEE framework have shown fundamental gaps, and consequently created of more black business managers than black industrialists who are sustainable entrepreneurs. Big companies with the capacity to respond to the seven elements of the scorecards hire black executives and pay them salaries while they share dividends and profits. Thus, the Public Procurement in South Africa needs to be constantly evaluated, monitored and adjusted accordingly, considering the highly dynamic contemporary business environment. This is in the ambit of: lack of proper knowledge, skills and capacity; non-compliance with SCM policy and regulations; inadequate planning and the linking of demand to the budget; Accountability, fraud and corruption; inadequate monitoring and evaluation of SCM; unethical behaviour; decentralization of the procurement system without proper regulated mechanism and Irresponsiveness of the B-BBEE policy. The study concludes by recommending a revamp of the B-BBEE framework in its current form in order to make it more responsive and effective. Keywords: Public Procurement, Preferential Procurement Policy Framework, Broad-Based Black Economic Empowerment, Supply Chain Management DOI: 10.7176/EJBM/12-29-02 Publication date: October 31 st 2020