It’s common understanding that if properly incentivised,people take action. While this is common understanding and despite the opportunity to be incentivised, listed companies, state-owned entities and other businesses do not comply with B-BBEE legislation. Recently, Fin Week reported that only one in 10 state-owned firms made B-BBEE submissions. The firms that did not submit will face a penalty awarded by the B-BBEE Commission which will ultimately affect their bottom-lines.
Perhaps if companies knew exactly what benefits B-BBEE compliance brought then more; and ideally all companies would comply. Among the multiple benefits is the positive affect on your bottom-line – the fundamental factor of your business. In this article, we explain how B-BBEE compliance can positively affect your bottom-line.
How B-BBEE compliance affects your bottom-line?
Simply put, B-BBEE compliance increases your commercial credibility. Like its intended purpose, the benefits of a good B-BBEE statuslevel has ripple effects for your business and is a catalyst for economic growth.
An entity’s status is used as a measurement or means of ranking when it comes to the allocation of contracts. A great B-BBEE status will increase tendering for your business – the better your status the better your chances of landing a lucrative tender favouring your bottom-line. For listed companies, more business translates to greater share prices too.
Imagine, the key to unlocking growth, greater share prices and an improved bottom-line; with the added benefit of affecting transformation and empowerment in our country, is as easy as being B-BBEE compliant.
Therefore, your B-BBEE spend should be viewed as an investment in your company’s bottom-line; along with the intention of B-BBEE and transformation towards empowerment. Whether you choose to improve your B-BBEE status through training your staff, acquiring advice, sourcing transforming strategies or looking for help with sustainable implementation -we can help you! Our full scope of services includes:
- Legislative compliance mapping
- Target Setting
- Baseline Assessments
- Supplier Assessments
- Competitor Analysis
- Gap Analysis & Recommendation Report
- Strategic Policy & Plan Development,Implementation, Monitoring and Reporting
- Submission of B-BBEE Reports
- Public and In house Workshops
- Y.E.S Implementation
- ESD Programmes through EOS
Speak to one of our consultants – book a free consultation today!