What fits Where?
Where do the Codes of Good BEE Practice fit in? Is failure to comply with the Codes illegal? What is uppermost in the legislative framework of BEE? How does everything fit in together?

The verification certificate is the one crucial document in conducting business, as it is the only independently verified representation of any company’s BEE credentials. Keep the following points in mind:

1. The verification certificate must be produced in line with the scorecard as stated in the applicable charter or, if the measured entity does not operate in an industry with a BEE charter, the generic scorecard or qualifying small enterprise scorecard
2. The industry charter, in turn, must be aligned with the Codes of Good BEE Practice
3. In the event of an industry charter being at odds with the Codes, the Codes shall prevail
4. The Codes give expression to the spirit and the letter of the BBBEE Act, which gives teeth to the Strategy for BBBEE
5. The Strategy sums up government’s interpretation of the shared growth imperative

Above all things, one should make the spirit of BEE the beacon in structuring any BEE initiative – be it a transaction, employment equity intervention, corporate social investment, enterprise development or skills development undertaking.

This means that fulfilling the broader transformational agenda takes precedence over merely meeting the targets set in the scorecard.

Failure to comply with BEE is not illegal, but suicidal in the South African business context – or that of any developing economy.