B-BBEE compliance in the age of COVID

We don’t expect any softening of the compliance targets or any leniency around verification, rather to the contrary, the government seems to be pushing for B-BBEE to become a key component for achieving the country’s growth and development objectives as we attempt to counter the effects of COVID.

Companies with declining profits, workforces and wage bills will inherently comply against lower targets.

We are likely to remain in a low-touch business environment way into 2021, so companies must continue to adapt their business processes accordingly. Digitization is a key enabler for remote work or working within a low-touch environment.

From a B-BBEE compliance management perspective, managing B-BBEE compliance and sharing confidential data and evidence using spreadsheets and emails puts the business at risk. As the verification agencies start embracing digital solutions, so should measured entities, or those companies that are preparing for, and getting their scorecards verified.

Consistency of interpretation and the collation and sharing of data and evidence are some of the key challenges companies experience during their B-BBEE compliance management process. These challenges can be overcome when the B-BBEE sector collaborates towards a more consistent interpretation of the B-BBEE Codes, as well as supporting each other around the digital transmission, sampling and verification of data, evidence and scorecards.

Business services companies, like B-BBEE consultants and any other advisory service companies, need to embrace technology to deliver a much richer customer experience. Digitization should also be seen as a catalyst to simplify business processes, thereby reducing the cost of compliance.