Broad Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Codes of Good Practice on Black Economic EmpowermentCode Series 600: Measurement of Enterprise Development Element of Broad-Based Black Economic EmpowermentStatement 600 : The General Principles for Measuring Enterprise Development Element2. The Enterprise Development Scorecard |
| 2.1.1) | The NPAT or average target applies unless: |
| 2.1.1.1) | the company does not make a profit last year or on average over the last five years. |
| 2.1.1.2) | the net profit margin is less than a quarter of the norm in the industry. |
| 2.1.2) | lf the Turnover is to be used, the target will be set at: |
| 2.1.2.1) | 3% x Indicative Profit Margin (NPAT/Turnover) x Turnover. |
| 2.1.2.2) | Indicative profit margin is the profit margin in the last year where the company's profit margin is at least one quarter of the industry norm. |
| 2.2) | The following table represents the criteria and method used for deriving a score for Enterprise Development under this statement: |
Criteria |
Weighting Points |
Compliance Target |
Average annual value of all Enterprise Development Contributions and Sector Specific Programmes made by the Measured Entity as a percentage of the target |
15 |
3% of NPAT |
| 2.3) | The weighting points in the ED scorecard represent the maximum number of points possible for each of the criteria. |