PLAN DE ATENCIÓN A LA DIVERSIDAD

Any postion Management/professional positions

Figure 4.4: Black female employment (Adapted from Da Silva, 2006 & MAPPP-SETA, 2005)

The findings from this BEE study confirm the results of the ACA surveys and in some instances reflect improved results and indicate that the collective advertising industry is determined to persist and ultimately succeed with its transformation journey, although there will always be individual companies that resist change. However, numerous critics and national research on BEE revealed that certain sectors have not fully embraced transformation, perhaps they also require a parliamentary hearing or two to get the BEE process moving.

4.4 Recent criticism and praise levelled at BEE

There has been a considerable amount of recent criticism directed at South African companies for their slow and/or devious implementation of BEE measures since the gazetting of the BBBEE Codes of Good Practice. Accusations levelled by critics such as Black directors and CEOs, the SA government, journalists and stakeholders across industries, specify that the transformation process still has a long way to go before it is truly broad-based. It is interesting that some of the critics have directed criticism at themselves for the alleged failings of BBBEE.

• Sandile Hlophe, director of KPMG, asserted that several companies had simply adopted the scorecard approach to meet the minimum stipulations of legislation. He felt that this would add no real value to BEE, but was merely a fiddling with figures (Peacock, 2007b:16). He also suggested that BEE had begun to regress and several companies begrudgingly implemented BEE initiatives and, subsequently, did not take the time to fully understand the BBBEE Codes of Good Practice or implement suitable, quantifiable and long-term

BEE measures. He added that the selection of Black partners had been questionable from the start of BEE and that failure to deliver on transformation has led to the increased restlessness of the Black majority for faster implementation (Milazi, 2008a:8).

• Kgomotso Mateseke, head of Actis African Empowerment Fund, believed that the myth of BEE not succeeding owing to a lack of skilled Black individuals, was invalid. He reported that there were several skilled Black professionals, but companies did not want to employ them for fear of being used as a stepping stone. However, Mateseke felt that the right incentive such as giving them equity, would help to solve the problem (Peacock, 2007c:17).

• Emmanuel Lidiga, chairperson of Lagae Securities, asserted that a majority of SA citizens did not have any knowledge of BEE, other than those confined to major cities such as Johannesburg, Cape Town, Durban and PE. He felt that in order for BEE to benefit everyone, it should become comparable to a political vote and concluded by stating: “I don’t believe that BEE has reached a stage at which it is a popular movement of economic emancipation” (Mabanga, 2007:6). Khotso Mokhele, the eighth most influential Johannesburg Stock Exchange (JSE) Black director (according to an Empowerdex study), concurred by saying: “I don’t believe we will have any democracy to speak of until Black people in SA start to feel they are the architects of this democracy – not just social aspects, but educational and economic aspects as well” (Empowerdex, 2008b:5).

• An empowerment analyst highlighted that over R300 million BEE deals had taken place since 1994, with a large portion involving only a small number of the Black elite and/or politically connected individuals. The analyst divulged that a third of the African National Congress’ (ANC) current national executive committee had interests in nearly seventy companies that are worth billions. It makes good business sense for these companies to obtain a piece of the government’s revenue, which is 40% of the SA economy’s total expenditure. He also revealed how many politicians have and would benefit since Jacob Zuma became president of the ANC (Anon, 2008:1).

• In light of this fact, it is ironical that the ANC decided to hold a forum to review and redefine BEE policies because they felt that it did not promote Black entrepreneurship and only benefited a minority. Some of those that attended the meeting recognised that they had personally benefited, to the detriment of the Black majority and that BEE had widened the divide between the wealthy and the poor. Gumnede, executive chairperson of GijimaAST, explained that BEE policies did not create jobs or Black entrepreneurs, but was traditionally about fronting, obtaining tenders and individuals accumulating wealth (Naidu, 2008:6).

• Mamphela Ramphele, the third most influential JSE Black director (according to an Empowerdex research study), when talking about her most recent book (Laying Ghosts to Rest), proclaimed: “one of the subjects it tackles is that we underestimated and failed in the task of transforming the South African society into participatory democracy with a strong

human rights focus. We failed because we dare not acknowledge that we were ill-prepared to govern” (Mtshali, 2008a:3).

• Lindie Engelbrecht, chief executive of the Institute of Directors explained that certain European countries had prescribed boards of listed companies to have 40% to 50% female representation. She asserted that “we are nowhere near there. If we are even up to 20% I would be surprised” (Stewart, 2008b:2). Moemise Motsepe, National Empowerment Fund marketing and communications manager, agrees with the aforesaid sentiments and believes that only a small number of non-executive Black directors have been utilised by the private sector, whereas BEE measures such as AA, have produced a number of suitable candidates that could be appointed onto boards (Milazi, 2008b:4).

However, there are those who advocate that BEE has been successful, given the short time period that companies have had clear guidelines (BBBEE Codes of Good Practice), especially in terms of innovative broad-based ownership BEE schemes and an increased number of Black directorships.

• According to Milazi, a Sunday Times BEE specialist reporter, BEE was narrow-based in the past and only managed to disproportionately benefit a few already wealthy businesspersons, as well as those who are connected to the ruling party. However, after several years of criticism, the government has adopted an innovative broad-based ownership BEE scheme, whereby the Black majority can purchase BEE shares at discounted prices in big corporations. For example, Sasol, Telkom, Multichoice, MTN, Nedbank and Barloworld have all offered BEE shares over the past two to three years (Milazi, 2008c:8). The two major problems with these innovative BBBEE ownership initiatives is that the average person cannot afford the high price of big corporate shares and, secondly, the global financial crisis has resulted in devaluation of these BEE shares, which has created a short-term loss since they were issued (Milazi, 2008d:15).

• An Empowerdex analysis (2008c:7) revealed that the number of JSE Black directorships had risen to 714 in 2008, which is a 48% increment since 2006, whereas the total number of Black female directorships had increased by 80% in the same timeframe. Zondo (2008:2), a Sunday Times reporter, agreed and noted: “SA has made great strides in getting Blacks into boardrooms, giving rise to a number of trailblazers who command influence and power in the corporate sector.”

• Engelbrecht also stated: “I think women, in general, are starting to make inroads into the corporate environment in SA. I believe that this is as a result of the realisation that women play an important role in the boardroom and have special skills. I believe women’s ability to read people allow them to calm situations down” (Stewart, 2008b:2).

• A survey conducted by the British, Italian and Swedish business chambers (Hazelburst, 2006) stated that only 44% of European companies were positive about BEE, whereas 35%

viewed BBBEE ownership as a problem. Several international advertising conglomerates agreed with the sentiments, as revealed in the findings of this BEE study.

It is evident that there are problems with implementation of BEE and the findings of this study will also concur with several of the conclusions, which are drawn by critics. However, at the same time, there has been a fair degree of success, which has benefited the Black majority and is also in congruence with this BEE study’s results. Vuyo Jack, CEO of Empowerdex, suggested that the true success of BEE will only be determined when a Black company is able to start a company abroad and handle the pressures of business in any operating situation without the support of BEE legislation. Hlope believes that it will take at least five years before it is possible to measure and ascertain whether the BBBEE scorecard targets were satisfactory. He feels that sufficient time would have passed for the legislation confusion to settle and to receive sufficient feedback on the success of BEE strategy (Peacock, 2007c:17). National quantitative surveys have already (prematurely based on the aforesaid statements) been commissioned by the government and large BEE companies to obtain a true measurement of the state of BEE in SA.