The scorecard is the most important element of B-BBEE compliance for enterprises of all sizes. Each scorecard consists of different elements that are scored to achieve a final B-BBEE compliance score, which determines the level of compliance achieved. Let’s look at each of these elements that you will find on scorecards.
An enterprise’s B-BBEE status is determined by the score it receives on each of the B-BBEE elements on its scorecard.
The number of elements were reduced from 7 to 5, and currently the 5 elements on scorecards consist of the following:
- Ownership
- Management Control
- Skills Development
- NEW: Enterprise & Supplier Development
- Socio-Economic Development
So, an enterprise will be scored on its compliance with each of these elements on its scorecard. However, not all elements are equal. Each element is provided with a different weighting point. For instance, 25 points may be allocated towards Ownership, but only 5 points are allocated towards Socio-Economic Development. It is also important to know that weighting points may differ between industry-specific scorecards.
These weighting scores will, however, always, add up to 100 points.
Whatever scorecard is being used, the scoring elements will always be present to govern the more practical implementation and measurement of B-BBEE compliance.
Your score will determine your B-BBEE compliance level – discussed in our next article in this series.
