Thought Leadership Publications

Last Updated 15 July 2014 10:11:18 AM

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This thought leadership paper has been prepared by the Broad-Based Black Economic Empowerment (B- BBEE) Working Group of the South African Institute of Chartered Accountants (SAICA ). Its primary purpose is to encourage organisations to recognise the importance of embracing B-BBEE strategies for value-creation and long-term sustainability, supported by meaningful and transparent reporting to stakeholders on the success of these strategies.

Although more organisations are grasping the significance of B-BBEE strategies for long-term success, for the most part their B-BBEE reporting to stakeholders does not capture its true value. This paper recommends an approach that emphasises the importance of embedding B-BBEE into corporate strategy and offers practical advice on how B-BBEE strategy can be formulated and implemented, as proposed by the release of the International Integrated Reporting Framework (International <IR > Framework), issued in December 2013 by the International Integrated Reporting Council (IIRC ).

A secondary objective is to encourage organisations to adopt reporting practices that are consistent and comparable so that users of information can make meaningful assessments and comparisons.  This paper assumes compliance with the Department of Trade and Industry (dti) Amended Codes of Good Practice, but does not deal with other regulatory reporting requirements. It therefore does not discuss currently applicable accounting frameworks relevant to B-BBEE accounting transactions and standards set or adopted by the Independent Regulatory Board for Auditors (IR BA) pertaining to B-BBEE verification assurance. 

This is a thought leadership paper and not a commentary on all aspects of B-BBEE. It should be read in conjunction with all legislation and codes relevant to the particular organisation when preparing B-BBEE reporting.

This paper and the initiative by SAICA is welcomed and supported in principle by the Presidential Broad-Based Black Economic Empowerment Advisory Council (The B-BBEEAC ), established in terms of The Broad-Based Black Economic Empowerment Act, No. 53 of 2003.