BEE – Black Economic Empowerment:
The economic empowerment of all
black people, including women,
workers, youth, people with
disabilities and people living in
rural areas through diverse but
integrated socio-economic
strategies.
Black-Owned Enterprise:
is an enterprise where black persons
own 50.1% of the enterprise and
where there is substantial
management control by such persons.
Ownership refers to economic
interest while management refers to
membership on any board or similar
governing body of the enterprise
Black-Influenced Supplier: These are suppliers
with 10% or more shareholding by
black persons, but less than 25.1%.
Black-Empowered Enterprise:
is an enterprise where at least
25.1% of the enterprise is owned by
black persons and where there is
substantial management control.
Ownership refers to economic
interest and management to executive
directors.
Black People:
means all Africans,
Coloureds and Indians who are SA
citizens and/or permanent residents
of the Republic of South Africa and
includes black women.
Black Women-Owned Enterprise: is an enterprise
where at least 25.1% representation
of black women exists within the
black ownership and management
portion of the black-owned
enterprise.
Community or Broad-Based Enterprise:
This enterprise has an empowerment
shareholder who represents a broad
base of members such as a local
community or where the benefits
support a target group, for example;
black women, people with
disabilities, the youth and workers.
Shares are held via direct equity,
non-profit organisations and trusts.
Company:
means a company
registered in terms of companies’
laws of the Republic of South
Africa.
Control: focuses on the
authority and power to manage
assets, the determination of
policies and the direction of
business operation. Indicators of
control within a structure of a
business unit or of a company (such
as shareholder meetings and
divisional boards) are the exercise
of voting rights on the board of
directors and committees thereof,
and controlling equity.
Corporate Social Investment: Projects that are
external to the business or outward
looking; that are undertaken for the
purpose of uplifting communities in
general and those which have a
strong developmental approach. It
also includes projects with a focus
on social, developmental or
community aspects where the
investment is not primarily driven
as a marketing initiative.
Designated groups: means South African
black people, white women and people
with disabilities.
Disability:
As defined in the
Code of Good Practice for Disability
as contemplated in Employment Equity
Act.
Discrimination:
means discrimination as defined in
the Prevention of Unfair
Discrimination Act (Employment
Equity Act).
HDI’s (Historically disadvantaged
individuals): Shall refer
interchangeably to South African
black people.
EXCO
–
in this document EXCO means the
Altron Executive Committee, chaired
by CEO Robert Venter
Executive Management: see Top Management
Fronting:
in this context referring to black
acquirers of shares who in fact hold
them on behalf of the real players
who are usually white or of less
economic value than purported.
Junior Management: line management and
supervisors, who may be managing
people, processes and/or material.
Where there is a job evaluation
system in place this is generally
functions in Peromnes 10 and 11.
Large Black Enterprise:
is an enterprise with an annual
turnover that exceeds R25 million
and with black ownership, including
investment risk and management
control not less than 50.1%.
Management:
is divided into top,
senior, middle and junior levels.
Middle Management: means planning,
control and implementation through
themselves or junior management.
Reporting to senior manager and
upwards, normally responsible for
business sections, may have
subordinates and/or responsible for
processes, materials, cash,
typically in Peromnes 7-9 or
equivalent.
Non-beneficial ownership: this refers to
complex funding structures, normally
special purpose vehicles (SPV’s)
whose usual effect is that the
purchased equity does not really
accrue to the black acquirers.
Ownership:
shares directly owned by black
people or companies. In some
instances reflected in the relevant
share certificate. The terms
“ownership”, “equity” and
“shareholding” are used
interchangeably.
Potential Procurement: excluding imports,
CAPEX, strategic materials (single
source), technical specifications.
RAG:
Red, amber, green
Senior Management: means implementing
policy and directives and strategy
from executive directors. A manager
reporting to the Top Management.
Responsible for management of
various departments and/or
businesses, dealing with people
and/or processes and materials,
typically in Peromnes 3-6 or
equivalent.
Small Medium and Micro Enterprises (SMME): is an enterprise
whose annual turnover is R25 million
or less.
Top Management: CEOs, executive
directors, divisional managing
directors, typically in Peromnes
1-2B or equivalent.
Timing:
Year 1:
Financial Year 2004/5
Year 2:
Financial Year 2005/6
Year 3:
Financial Year 2006/7
Year 4:
Financial Year 2007/8
Year 5:
Financial Year 2008/9
Year 6:
Financial Year 2009/10
