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

Amended AgriBEE Sector Code (2017)

7. Elements of Empowerment

7.3 Management Control

 

7.3 MANAGEMENT CONTROL

 

7.3.1 The objective of this element is to increase the participation and levels of control of Black People including Black Women at board and executive management levels in the Agri-Industry. This will be achieved by increasing the absolute and relative number of Black People in these positions and by implementing mechanisms under the skills development element to ensure that secondary, tertiary and in-house training and development programmes are designed to meet the targets set under the Management Control element.

 

7.3.2 Management Control and skills development targets should be achieved within the ambit of the Employment Equity Act, 1998 (Act No 55 of 1998) and Skills Development Acts. (Act No 97 of 1998) The objective of the management control element is to increase the representation of Black People, Black Women and Black Designated Groups at Senior Management level;, at Professionally Qualified, Experienced Specialist and Mid-Management level; and at Skilled Technical and Academically Qualified, Junior Management, Supervisory, Foremen and Superintendent level, in the Agri-Industry. This will be achieved by increasing the absolute and relative number of Black People in these positions and by implementing mechanisms under the skills development element to ensure that secondary, tertiary and in-house training and development programmes are designed to meet the targets set under the employment equity element. A Large entity must use the overall demographic representation of black people as defined in the Regulations of Employment Equity Act and Commission on Employment Equity Report. A Large entity that has operations in one province must use the relevant provincial demographic representation of black people, whereas an entity that has an operation in more than one province must use the national demographic representation of black people.

 

7.3.3        Amended Management Control Scorecard for Large Enterprises

 

Management for Large Enterprises

Weighting

Measurement Category & Criteria

Weighting

Points

Compliance

Target

19

7.3.3.1  Board participation

7.3.3.1.1

Exercisable voting rights of black board members as a percentage of all board members

2

50%

7.3.3.1.2

Exercisable voting rights of black female board members as a percentage of all board members

1

25%

7.3.3.1.3

Black Executive directors as a percentage of all executive directors

2

50%

7.3.3.1.4

Black female Executive directors as a percentage of all executive directors

1

25%

7.3.3.2  Other Executive Management:

7.3.3.2.1

Black Executive Management as a percentage of all executive directors

2

60%

7.3.3.2.2

Black female Executive Management as percentage of all executive directors

1

30%

7.3.3.3  Senior Management:

7.3.3.3.1

Black employees in Senior Management as a percentage of all senior management

2

60%

7.3.3.3.2

Black female employees in Senior Management as a percentage of all senior management

1

30%

7.3.3.4  Middle Management

 

 

7.3.3.4.1

Black employees in Middle Management as a percentage of all middle management

2

75%

7.3.3.4.2

Black female employees in Middle Management as a percentage of all middle management

1

38%

7.3.3.5  Junior Management

7.3.3.5.1

Black employees in Junior Management as a percentage of all junior management

1

88%

7.3.3.5.2

Black female employees in Junior Management as a percentage of all junior management

1

44%

7.3.3.6  Employees with disabilities

7.3.3.6.1

Black employees with disabilities as a percentage of all employees

2

2%

 

7.3.4         Management Control Specialised Scorecard for Large Enterprises

 

The following table represents the criteria used to derive a score for Management control under this statement.

Management Control Specialised Scorecard for Large Enterprises

Measurement Category and Criteria

Weighting Points

Compliance

Target

7.3.4.1   Board Participation:

7.3.4.1.1

 

Exercisable voting rights of black board members as a percentage of all board members

2

50%

7.3.4.1.2

Exercisable voting rights of black female board members as a percentage of all board members

1

25%

7.3.4.1.3

Black executive directors as a percentage of all executive directors

2

50%

7.3.4.1.4

Black female executive directors as a percentage of all executive directors.

1

25%

7.3.4.2   Other Executive Management

7.3.4.2.1

Black executive management as a percentage of all executive management

2

60%

7.3.4.2.2

Black female executive management as a percentage of all executive management

1

30%

7.3.4.3   Senior Management

 

7.3.4.3.1

Black employees in senior management as percentage of all senior management

2

60%

7.3.4.3.2

Black female employees in senior management as a percentage of all senior management

1

30%

7.3.4.4   Middle Management

7.3.4.4.1

Black employees in middle management as a percentage of all management

2

75%

7.3.4.4.2

Black female employees in middle management as a percentage of all middle management

1

38%

7.3.4.5   Junior Management

7.3.4.5.1

Black employees in junior management as a percentage of all junior management

2

88%

7.3.4.5.2

Black female employees in junior management as a percentage of all junior management

1

44%

7.3.4.6   Employees with disabilities

7.3.4.6.1

Black employees with disabilities as a percentage of all employees

2

2%

 

 

7.3.5         Amended Management Control Scorecard for QSE

 

Management Control for QSE

Category and Ownership Indicator

Weighting Points

Compliance

Target

15

7.3.5.1   Executive (senior) Management

7.3.5.1.1

Black representation at Executive Management

5

50%

7.3.5.1.2

Black female representation at Executive Management

2

25%

7.3.5.2   Non-Executive (middle and junior) Management

7.3.5.2.1

Black representation at non-executive management

6

60%

7.3.3.2.2

 

Black female representation at non-executive management

2

30%

 

7.3.6         The Management Control Specialised Scorecard  for QSE

 

The following table represents the indicators and method for calculating a score for management control under this statement.

 

Management Control Specialised Scorecard for QSE

Criteria

Weighting Points

Compliance  Target

7.3.6.1   Executive Management

7.3.6.1.1

Black representation at Executive Management

8

50%

7.3.6.1.2

Black female representation at Executive Management

3

25%

7.3.6.2   Senior, Middle and Junior Management

7.3.6.2.1

Black representation at Senior, Middle and Junior management

11

60%

7.3.6.2.2

Black female representation at Senior, Middle and Junior management

3

30%

 

7.3.7        Agri-Industry undertakes to:

 

(a) promote participation by Black People in board positions;
(b) promote participation by Black People in executive management positions;
(c) promote participation by Black Women in board and executive management positions;
(d) promote participation by Black People as Independent Non-Executive Board Members;
(e) attain Management Control and Skills Development targets; and
(f) proactively employ members of Black Designated Groups at Top Management, Senior Management, Mid-Management, Junior Management, Supervisors, Foremen, and Superintendent Levels taking into consideration those who are Professionally Qualified, Experienced Specialist, Skilled, Technical and Academically Qualified, as prescribed in the Scorecards.

 

7.3.8 All other key principles of Statement 200 of the Amended Generic Codes not addressed in this statement are applicable.