|EconoBEE Newsletter - May 2007|
|Monday, 07 May 2007 10:59|
How wrong can you be?
A sales manager visited us recently. We asked her to supply us with her company’s scorecard (important for our own Preferential Procurement). Her instant answer was: “We are not compliant, we will not be BEE complaint, my boss refuses to give his business away” - all in one breath.
On querying further she explained that her company is the most ethical and moral she has ever worked for and her bosses are socially very active - they donate money to an aids orphanage and have become involved in low cost housing, “but”, she repeated, “they will never give their business away”. “We employ lots of black people” she volunteered, "and spend a lot of money on training them".
I tried to explain that in this instance her company seemed to
be very far down the line to achieving a good BEE score. Her company
was most certainly more BEE compliant than they realised.
She still insisted that her bosses would still never give away
their business. The more I tried to explain that BEE was not about
giving away your business but rather "true empowerment", the more
disagreeable she become, stating “that’s your opinion, I know better”.
She explained that she reads the newspapers, and that is what BEE is
all about. I explained that I read the BBBEE Act (act 53 of 2003) and
the Codes of Good Practice (government gazette 29617), which gives the
true achievable targets for Broad-Based Black Economic Empowerment.
In just a few minutes of talking to her, it appears her
company could be fairly compliant, even if the owners choose not to
sell shares in the business.
I do emphasise that the codes do not demand that owners give
away their business - in fact ESKOM regards Fronting as receiving
shares without payment - shares should only ever be sold at a market
This company has obviously prepared their sales manager with a
stock answer to the BEE issue, without even realising that they could
easily have given me a response and a score - even a level 8 would have
If only they would have made an effort to understand the codes and how to become compliant,
they would have realised that they were already well on their way.
Instead, a sales manager chose to argue with her customer - never a
good approach to sealing a deal. She also exhibited such ignorance on
an important business issue that I started doubting her knowledge on
her own product. She lost business and she will continue to lose
business when there is absolutely no reason to. What a waste!
EconoBEE Presents in Cape Town Again
We have enjoyed a good response from everyone who has attended our
workshops in Cape Town. We also hosted a full day seminar dealing with
B-BBEE in more detail which was thoroughly enjoyed by everyone. We also very
recently presented a workshop for the members/retailers of a
large software development company in Cape Town.
|Last Updated ( Thursday, 10 May 2007 10:44 )|