Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Amended Codes of Good Practice (2017)

Amended Code Series CSC200: Measurement of the Management Control Element of Broad-Based Black Economic Empowerment in the Construction Sector

Statement CSC200: The General Principles for Measuring Management Control

Annexe CSC200 (A): Measurement of Management Control Indicators
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The Management Control criteria provided for in paragraphs 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7 and 2.8 is calculated as follows:

 

Where

 

A is the score achieved by a Measured Entity in respect of the measurement of the criteria specified in paragraph 2.1 (excluding par 2.1.5 and 2.1.6), 2.2, 2.3, 2.4, 2.5, 2.6, 2.7 and 2.8 of the Management Control scorecard

 

B in the case of paragraph 2.1 (excluding par 2.1.5 and 2.1.6), is the Voting Rights in the hands of black members of the Board as a percentage of Voting Rights of all members of the Board in the Measured Entity; or

 

B in the case of paragraph 2.2, is the percentage of Black Employees in the Other Executive Management category of the Measured Entity; or

 

B in the case of paragraph 2.3, 2.4 and 2.5, is the percentage of Black Employees for each of the indicators in those paragraphs as calculated in Annexe CSC200 (B); or

 

B in the case of paragraph 2.6, is the percentage of Black Employees with a Disability as a percentage of all office based Employees

 

B in the case of paragraph 2.7, is the percentage of all Black professionally registered Employees expressed as a percentage of all professionally registered Employees.

 

B in the case of paragraph 2.8, is the percentage of Black Employees that are “youth” as defined by the National Youth Commission Act of 1996 using the Adjusted Recognition for Gender formula (see below).

 

C is the percentage compliance Target in respect of the applicable criteria being measured as specified in paragraph 2.1(excluding par 2.1.5 and 2.1.6), 2.2, 2.3, 2.4, 2.5, 2.6, 2.7 and 2.8 of the Management Control scorecard

 

D means the Weighting points allocated to the applicable criteria being measured as specified in paragraph 2.1 (excluding par 2.1.5 and 2.1.6), 2.2, 2.3, 2.4, 2.5, 2.6, 2.7 and 2.8 of the Management Control scorecard

 

CALCULATION OF THE ADJUSTED RECOGNITION FOR GENDER

 

The calculation of the Adjusted Recognition for Gender in paragraph 2.8 is as follows:

 

C is limited to a maximum of 50% of the target

Where

 

A is the Adjusted Recognition for Gender

 

B is the percentage of people in the measurement category that are black people

 

C is the percentage of people in the measurement category that are black women, which is limited to 50%

 

 

MEASUREMENT OF BONUS POINT INDICATORS IN PARAGRAPHS 2.1.5 & 2.1.6

 

These bonus points are earned if the Target is met. No partial earning of these bonus points are possible.

Once participation of Black Executive Directors therefore exceeds 50% of all directors the bonus point for paragraph 2.1.5 is earned. Likewise, once participation of Black Female Executive Directors’ exceed 20% of all directors, the bonus point in paragraph 2.1.6 is earned.