Explain the implication of enterprise and supplier development (ESD) as a pillar of the Broad-Based Black Economic Empowerment Act (BBBEE), 2003 (Act 53 of 2003) for businesses. Di... Explain the implication of enterprise and supplier development (ESD) as a pillar of the Broad-Based Black Economic Empowerment Act (BBBEE), 2003 (Act 53 of 2003) for businesses. Discuss any TWO types of integration strategies. Read the scenario below and answer the questions that follow. TASTY PIZZAS (TP) Tasty Pizzas ensure that all racial groups are equally represented at every level of employment. They apply correct procedures to prevent employees from exceeding their maximum working hours. TP defined the appointment process so that all parties are well informed. Quote TWO ways in which TP complies with the Employment Equity Act (EEA), 1998 (Act 55 of 1998) from the scenario above. Describe other ways in which businesses can comply with the EEA.
Understand the Problem
The image presents several business-related questions. Question 2.4 asks about the implications of Enterprise and Supplier Development (ESD) within the context of the Broad-Based Black Economic Empowerment (BBBEE) Act. Question 2.5 requires a discussion of two types of integration strategies. Question 2.6 presents a scenario about a company called Tasty Pizzas (TP) and asks two questions related to compliance with the Employment Equity Act (EEA). Question 2.6.1 asks to find two ways in which TP complies with the EEA based on the scenario, and question 2.6.2 requires describing other ways a business can comply with the EEA.
Answer
ESD aims to uplift black businesses through procurement and support. Horizontal and Vertical are two integration strategies. TP complies with EEA by ensuring equal racial representation and preventing excessive working hours. Other ways to comply with EEA include promoting equal opportunity and affirmative action.
The implication of Enterprise and Supplier Development (ESD) is to strengthen local procurement, enhance local supplier development programmes and increase financial support towards black entities and promote a conducive environment for creation of sustainable partnerships. Two types of integration strategies are Horizontal and Vertical integration. Two ways in which Tasty Pizzas (TP) complies with the Employment Equity Act (EEA), 1998 (Act 55 of 1998) are: "Tasty Pizzas ensure that all racial groups are equally represented at every level of employment" and "They apply correct procedures to prevent employees from exceeding their maximum working hours." Other ways in which businesses can comply with the EEA are: promote equal opportunity and fair treatment in employment through elimination of unfair discrimination; implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups.
Answer for screen readers
The implication of Enterprise and Supplier Development (ESD) is to strengthen local procurement, enhance local supplier development programmes and increase financial support towards black entities and promote a conducive environment for creation of sustainable partnerships. Two types of integration strategies are Horizontal and Vertical integration. Two ways in which Tasty Pizzas (TP) complies with the Employment Equity Act (EEA), 1998 (Act 55 of 1998) are: "Tasty Pizzas ensure that all racial groups are equally represented at every level of employment" and "They apply correct procedures to prevent employees from exceeding their maximum working hours." Other ways in which businesses can comply with the EEA are: promote equal opportunity and fair treatment in employment through elimination of unfair discrimination; implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups.
More Information
BBBEE is a government initiative to promote economic transformation in South Africa.
Tips
When discussing compliance, always refer back to the specific requirements outlined in the act being discussed.
Sources
- Guide on Enterprise and Supplier Development. - bbbeecommission.co.za
- Guide to Enterprise and Supplier Development | SME South Africa - smesouthafrica.co.za
- What is BBBEE? Understanding the Basic Principles - honeycomb-bee.co.za
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