Description

This research aimed to understand the effectiveness of the Broad-Based Black Economic Empowerment Compliance-Framework (B-BBEE-CF) on ownership transformation. The system of Apartheid had discriminated against many people from disadvantaged communities in education, employment opportunities, access to healthcare services and resources, and business. To address the myriad of challenges confronted after 1994, the B-BBEE was introduced as a legislative framework, whose purpose was to promote economic participation by the previously marginalised black South Africans. However, many companies are not adhering to the stringent conditions of the B-BBEE codes, making it difficult to detect any compliance infringements perpetrated that have severely influenced ownership transformation. This study adopted a mixed method research approach by combining quantitative and qualitative research approaches in order to gain rich data on the research topic. A combined total of 229 respondents participated in the study.

The findings revealed that overall, the pace of ownership transformation has been slow. When asked about transformation initiatives put in place, most participants pointed to skills development, management control as well as education and awareness programmes. While these are all valid within the B-BBEE-CF, they do not directly speak to the ownership transformation. The study also revealed the challenges in implementing the B-BBEE codes in ownership transformation. Such challenges included the introduction an implementation of the BEE codes which were received with scepticism as well as the overall understanding of BEE’s role and application towards economic transformation.

The study proposes a conceptual framework that could guide companies in achieving meaningful BEE status levels that the government had envisaged, ultimately leading to ownership transformation, broader economic participation and a more equal society.