South Africans often conflate B-BBEE with transformation. While B-BBEE can be seen and used as a vehicle for transformation, thinking beyond B-BBEE may help Business SA reach true transformation - and reap the benefits thereof.
Transformation vs B-BBEE
Transformation, at its core, means “change”. Around the world, businesses have been focused on creating change in the private sector, be it switching to green, opting for more ethical operational practices, or representation at all levels in the workplace. In South Africa, these changes are relevant, but none so relevant than black (South African black, Asian, Coloured) representation both inside and outside the office.
True transformation is about intentional inclusivity – opening up the economy to those who have historically been shut out. It is a complete overhaul and rethinking of the processes, structures, leadership and outreach programmes in place, implemented incrementally with a better, more inclusive tomorrow always in mind.
Broad-based black economic empowerment (B-BBEE) legislation was implemented as a vehicle to effect socio-economic and structural change within the private and public sectors, as well as in the broader communities they operate in. It is one of the methods through which a business can begin to totally transform.
True macro transformation, however, goes beyond B-BBEE, beyond the office and beyond the micro-environment – requiring holistic, collaborative systems thinking, in order to be achieved.
How does B-BBEE fit in within transformation?
B-BBEE levels and the scorecard have become important indicators of transformation in the South African business landscape. B-BBEE plays an important role, but it was never intended to be the B-BBEE all and end all of transformation.
B-BBEE is a transformation tool driven by compliance. A firm can receive points, improving their levels, based on five elements on the B-BBEE scorecard: ownership (micro), management control (micro), skills development (micro and macro), supplier and enterprise development (micro and macro), and socio-economic development (macro). This is only one pillar of the government’s economic transformation strategy.
YES is a great vehicle to help you affect broad-based change, whether your business needs a B-BBEE boost or not.
Integrating transformation with ESGs/SDGs
There is increasing importance being placed on environmental, social and governance (ESG) strategies and the United Nations’ (UN’s) Sustainable Development Goals (SDGs) by global investors and consumers. Between the advent of ESG investment indices and the rise of the intelligent consumer, many are choosing where and what to buy based on an organisation’s transformation, socio-economic and environmental impact.
True transformation, B-BBEE, ESGs and SDGs are all linked, and South African consumers and investors are beginning to see transformation as a catalyst to solve the country’s socio-economic problems. Many corporates are realising the associated benefits these strategies can have on their business.
How YES can help with your transformation goals
Outside of the YES internal model, which places youth inside your business for levels up, YES has two offerings that can help you reach your transformation goals, beyond B-BBEE.
1. The turnkey solution
Traditionally used for organisations looking to gain levels on their B-BBEE scorecard while making an impact in communities, the YES turnkey solution (implementation partner model), is being taken up more and more, even by Level 1 companies, because of its seamless integration with ESG and SDG strategies.
Essentially, corporates can use the creation of youth jobs to also impact social, environmental and economic issues that align with their holistic transformation strategy.
The turnkey solution works with 33 YES-vetted host partner across South Africa to place youth. If a corporate cannot place youth in their own organisation, they have the option to place youth with our host partner. The YES host partners are generally NGOs working in high-impact sectors within communities, which means youth do not have to travel far for work and they can play an important part in building their own communities.
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Your business can then create critical youth jobs in sectors that reflect your ESG/SDG strategies, effectively ‘killing two birds with one stone'. The turnkey solution is a true one-stop-shop for organisations looking to make all of the impact with none of the admin.
2. Invest in a youth Hub
YES HubsConnect youth and the community to global best practice in training and technology, specially located and designed to address barriers to youth employment and economic inclusion. A range of activities takes place at a YES Hub, enabling innovation and a cross-pollination of ideas, seeding points for new business. Youth energy coupled with networks, market access and industry inputs are the right mix of ingredients for small business development to thrive.
The aim of YES Hubs is three-fold. First, Hubs provide training to youth and community members, specifically focused on future-proof skills like droning, aquaponics, coding, 3D printing, digital content creation, and eco-manufacturing. This ensures that the skills participants require are relevant and can set them up for successful careers. Through this training, organisations can design a novel and untapped talent pipeline, training youth in the skills that their business actually needs.
Second, the Hubs place impetus on supporting and training micro-entrepreneurs, creating a transformed and innovative supply chain for your business. Third, businesses can utilise the Hubs and programmes to gain access to one of the fastest growing markets in the country.
YES is also a registered PBO (public benefit organisation), and as such, you can receive Section 18(A) tax certificates when you donate to a YES Hub. The best part? These donations don’t come out of your annual budget, but rather out of the monies you give to SARS every year.
If you’re interested in scorecard elements the Hubs touch on, you can receive socio-economic development points, and in some cases even enterprise and supplier development points.
Get in touch with corporatesupport@yes4youth.co.za to find out more about our Hubs programmes.
Contact YES to reach your transformation goals, and co-create a future that works for all
As the world shifts to place more value on the way businesses contribute to society, be a part of the movement rethinking the status quo and demanding better and more from ourselves and our peers. Let’s look ahead to the South Africa we want in the future – it will surely be shaped by the actions we take today, so tread with care.
YES can help you reach your B-BBEE and transformation goals while creating a lasting impact for a better tomorrow.
YES is business-led collaboration that seeks out ground breaking ways, through innovation and technological best practice, to reignite the economy and give youth a dignified first chance. Together with our 1,660+ corporate partners, YES has already created over 65,000 work opportunities for youth in just over two and a half years. This translates to R3.7 billion injected into the economy through youth wallets.
The YES 12-month quality work experience equips unemployed youth with a toolkit to be a beacon of hope for their families, households and communities. The CV & reference letter they get at the end of their 12-months gives them a 3 x greater chance of an interview call-back.
Amendment to the Gazette