It has been interesting to read what many commentators are saying about how the ANC palace coup is going to influence the essence, policy, strategy and implementation of broad-based BEE under the watch of the new regime. Some of the failures so far include:
a) The limited number and range of beneficiaries and practically no trickle-down effect;
b) Lack of fundamental transformation of the business bar — superficial deracialisation with little effect, if any;
c) Other than limited ownership transfer (at a steep financial and political premium) the requisite number of serious black businesses is not being created; and
d) Apart from compliance driven acquiesance, business has not wholeheartedly embraced broad-based BEE.
Not that it has been all doom and gloom, in small pockets there has been unspectacular success:
a) A young, confident and entrepreneurial generation is emerging — motivated by what can be, where in the past such optimism and bravado among black business people was non-existent;
b) There is a sometimes grudging acceptance by business of the role black people can play in moving a company forward; and
c) The Codes of Good Practice on Broad-Based BEE have created minimum standards for creating better companies.
But, back to quo vadis BEE post-Polokwane. A few years ago we used to have a debate with our then chair of Metropolitan Holdings, who has moved on to loftier things, about the need for the BEE Act to facilitate empowerment.
We believed that given that he was a 15%-plus owner and chair, he could do whatever he wanted to transform the business. And that’s not to mention that he was black, which gave him moral authority — then — to effect changes. He had the wherewithal to effect change.
It should not matter that much which faction within the ANC’s broad church holds sway, because there should be sufficient gravitas among black people to continue the transformation process regardless.
BEE needs to move from the offices of state to the boardroom.
This should bring into focus our roles as shareholders and the interesting concept of shareholder activism. As I am neither an economist, lawyer or accountant, I have always struggled with the fact that we have to pay such astronomical prices (both material and otherwise) to belong to this club.
One that snubbed black people for decades, colluded with oppressors and sustained our oppression. But that die is cast. The question is how do we become a different kind of shareholder, committed to delivering a new type of business?
My earlier point about the erstwhile chairperson, is to raise the question: Do we as shareholders — having arrived at this lofty status in the manner we did — know what our role is and are we playing it?
When people talk about shareholder activism it must be asked where black shareholder activism is when transformation stutters, effective labour relations are not taken seriously and health, safety and environmental issues are put on the back-burner? Is there a disconnect engendered by our new status that prohibits us from keeping these issues topical?
Are we dancing to a different drum to that which brought us here? Do the issues mentioned above affect somebody we know, somebody who sacrificed for us to get where we are?
Broad-based BEE has created a platform of award for transformation that allows companies — that have not changed in essence, culture or objective — to masquerade as “black empowered”.
Somebody should look at awarding shareholders who constantly create new paradigms for business by:
a) evolving new visions and missions for business more in line with inclusive and sustainable business practices;
b) provide practical support to black people at all levels of business and;
c) bring in interventions that undermine racism, sexism and other unfair prejudices.
Nkosinathi Chonco is the group executive in charge of empowerment and corporate affairs for the Metropolitan Holdings financial services group