Compliance with Broad-Based Black

In today’s competitive global market organisations strive to maximise marketshare. Therefore their strategy is seen as one of the main driving forces guidingthem in this quest (Reddy 2003).Various pieces of legislation has been introduced which affects anorganisation’s strategy. This legislation is governing the one thing entrepreneursand business owners pride themselves in, namely ownership and control overtheir organisations. Legislation has further marginalised those with skills as theydo not fit into the preferences and designated groups as stipulated withinseveral of these legislations and Act’s.This is the reality facing both local and multinational organisations wanting to dobusiness in South Africa. The question to be answered is; how are they dealingwith this and how has it affected their respective strategies?South Africa has emerged from an Apartheid history riddled with oppression ofpeople based on skin colour. The new democratically-elected dispensation istherefore saddled with the task of correcting the wrongs of the past in order toaddress issues such as the need for job creation and poverty eradication.This is where the Broad-Based Black Economic Empowerment (B-BBEE) Act53 of 2003 comes in. Balshaw and Goldberg (2005) noted that the B-BBEE Actis arguably the one item affecting the strategy of organisations wanting to dobusiness in South Africa. Balshaw and Goldberg (2005) further noted that the BBBEEAct touched on the sensitive issue of ownership and control withbusiness owners.The motivating idea of B-BBEE is to provide organisations with a framework towork in to allow them to assist government with transformation within thecountry.This research set out to identify how multinationals are dealing with the sevenelements of the B-BBEE Act in order to ensure compliance.iiiA qualitative approach using in-depth interviews was followed to collect data toanalyse and build a picture of the various practices and strategies employed inpursuit of compliance.The key findings are that multinationals have modified their strategies andprioritised ensuring compliance with the B-BBEE Act. There appears to besincerity behind the efforts, although some of their actions are questionable.There are three urgent actions for government and the Black EconomicEmpowerment (BEE) Advisory Council; it needs to investigate the allegations ofunscrupulous acts taking place within industry and to review what the B-BBEEAct is measuring and whether or not this is contributing to the unscrupulousbehaviour as indicated in the findings. In addition, there is a need for morevisible policing to ensure purported compliance is in fact compliance in the truespirit of the Act.The key message to be taken away from the research is that the B-BBEE Act iseffective and is making a difference, but that there is room for improvement.As stated by United States president, Barack Obama, during his electioncampaign: “Together We Can”. This statement has profound meaning in theSouth African context as it motivates that together the population of this countrycan create history through transformation and future economic growth.Charles Darwin said, “It is not the strongest species that will survive, nor themost intelligent, but the one most responsive to change.” Thereforeorganisations that commit to and implement change in alignment with the BBBEEAct will surely prosper in the future.