| Seeking equality by keeping score |
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| Thursday, 17 April 2008 00:00 | |
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A decade after Apartheid, whites still control 90% of businesses in South Africa. To turn that around, the government has launched a program to force whites to share the wealth -- requiring a new type of racial auditing in the workplace. Terry FitzPatrick reports. Cape Town, South Africa (iStockPhoto) TEXT OF STORYTESS VIGELAND: Apartheid ended in South Africa more than a decade ago. But whites still control 90 percent of businesses. So the country recently launched an affirmative-action-style program to force whites to bring black workers into all levels of their companies. The larger goal is to create more wealth for everyone. But getting things started required a new type of racial auditing in the workplace. Terry FitzPatrick reports from Cape Town. Terry FitzPatrick: There are hundreds of black workers at John Lewis' factory. Crews build metal frames and pour cement into molds to make concrete building components.
Despite the large number of black workers on the factory floor, what worries Lewis is what's happening in the front office. He runs the company's affirmative-action program.
Lewis needs to build a better rating for his company under South Africa's BEE regulations. That stands for Black Economic Empowerment. It requires companies to do more than hire black workers. They must make annual scorecards to track black ownership, management, training and suppliers.
The scorecard system is more carrot than stick. There's no fine for a bad score, but businesses with a good rating are first in line for government contracts.
The complicated BEE rules have spawned a new industry of consultants who teach companies how to improve their ratings.
Consultant Keith Levenstein leads this class through a sample scorecard. Each category has a target. Companies should have 25 percent black ownership. Junior management should be 68 percent black. Levenstein says business owners worry if their scores are poor, their bottom line will suffer.
Some observers complain the scorecard forces whites to recruit unqualified black partners just to score ownership points. Paul Hoffman is an attorney at a think-tank called the Center for Constitutional Rights.
But Mbulelo Bikwani from South Africa's Black Management Forum says businesses, white or black, need to develop a nation where consumers have money in their pockets.
Back at the cement factory, John Lewis likes the scorecard because it suggested things he wouldn't have thought of himself. He earns points with a scholarship program to train black engineers.
Lewis says the scholarships aren't a cost, but an investment. And proponents of BEE say that's the goal. Until white companies invest in uplifting the black majority, South Africa will remain a land of economic Apartheid. In Cape Town, I'm Terry FitzPatrick for Marketplace. |
| Impact of BEE on your Business - EconoBEE Newsletter - 10 May 2012 + Full Story |