Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Industry ChartersInformation and Communication Technology (ICT) CharterICT Sector Code for Black Economic EmpowermentCode Series 800: ICT Codes of Good Practice for Qualifying Small Enterprises (QSE's)8. Statement 807: Socio-economic Development Contributions for QSE's |
| 8. | Statement 807: Socio-Economic Development Contributions for QSE's |
| 8.1 | The QSE Socio-Economic Development (SED) Scorecard |
| 8.1.1 | In calculating the compliance of a Measured Entity the following Net Profit After Tax (NPAT) target applies unless: |
| 8.1.1.1 | the company does not make a profit last year or on average over the last five years. |
| 8.1.1.2 | the net profit margin is less than a quarter of the norm in the industry. |
| 8.1.2 | If the Turnover is to be used, the target will be set at: |
| 8.1.2.1 | 1.5 % x Indicative Profit Margin (NPAT/Turnover) x Turnover. |
| 8.1.3 | The following table represents the criteria and method used for deriving a score for socio-economic development under this statement: |
Criteria |
Weighting Points |
Compliance Target |
Average annual value of all Socio-Economic Development Contributions and Approved Socio-Economic Development Contributions made by the Measured Entity as a percentage of the target. |
25 |
1.5% of NPAT |
| 8.2 | Key Measurement Principles |
| 8.2.1 | Measured Entities receive recognition for any Qualifying Contributions that are quantifiable as a monetary value using a Standard Valuation Method. |
| 8.2.2 | Qualifying Contributions of any Measured Entity are recognisable; |
| 8.2.2.1 | from the commencement date of this statement, or an earlier date chosen by the Measured Entity (the Inception Date); |
| 8.2.2.2 | until the date of measurement, |
| 8.2.2.3 | No portion of the value of any Qualifying Contribution that is payable to the beneficiary after the date of measurement can form part of any calculation under this statement. |
| 8.2.3 | Payments made by the Measured Entity to third parties to perform social development on the Measured Entity's behalf may constitute a SED Contribution. |
| 8.2.4 | The recognition of SED Contributions must be determined in accordance with code 700. |
| 8.2.5 | Sector Specific Contributions: |
| 8.2.6 | Sector Specific Contributions are recognised on the basis set forth in the Sector Code governing them. |