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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 (C)

 

EXAMPLE FOR DETERMINING LIMITATION OF AM, CM, IM, AF, CF and IF

 

The example below illustrates how the limitation of the Target for each of the race sub-categories is determined with respect to the ‘Black People’ indicator of Senior Management (par. 2.3.1):

 

Step 1: Determine the profile of the overall national EAP distribution* per race and gender as per the CEE Report

 

 

 

African

Male

Coloured

Male

Indian

Male

White

Male

African

Female

Coloured

Female

Indian

Female

White

Female

 

Total

National EAP distribution by race and gender as per CEE Report

40.70%

5.80%

1.90%

6.40%

34.20%

5.00%

1.10%

4.90%

100%

 

* In this example the overall national EAP statistics are used. It could just as well have been the overall provincial EAP statistics if the Measured entity selected so in terms of paragraph 3.2 of Annexe CSC200 (B).

 

Step 2: Calculate the total Black People* component of the EAP as per the CEE Report in step 1

 

 

 

African

Male

Coloured

Male

Indian

Male

African

Female

Coloured

Female

Indian

Female

Black People

Component

Black People component of national EAP

40.70%

5.80%

1.90%

34.20%

5.00%

1.10%

88.70%

 

*If one were calculating the limitation applicable to the female sub-race groups if one were measuring the ‘Black Female’ indicator of Senior Management, then Step 2 would reference the Black female sub-race groups only.

 

Step 3: Calculate the proportion each Black race and gender sub-group constitutes of the total Black People component determined as per Step 2

 

 

 

African

Male

Coloured

Male

Indian

Male

African

Female

Coloured

Female

Indian

Female

 

Total

Proportion of each race and gender sub-group of Black People component of EAP

45.89%

6.54%

2.14%

38.56%

5.64%

1.24%

100%

 

Step 4: Apply the proportion calculated in step 3 to the Target for Senior Managers (par. 2.3.1) i.e. 60%

 

 

 

African

Male

Coloured

Male

Indian

Male

African

Female

Coloured

Female

Indian

Female

Senior

Management

Target

Proportion of each race and gender sub-group of Black People component of EAP

27.53%

3.92%

1.29%

23.13%

3.38%

0.74%

60%

 

For calculating the score for par. 2.3.1 of the Management Control Scorecard AM, CM, IM, AF, CF and IF are therefore limited to the percentages as calculated per Step 4 above.