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Doctor Educationis / All employees aspire to work at a place of employment which is free from racial discrimination, where equal opportunity and fair treatment are not merely principles that are promoted and encouraged, but implemented actively by their employers. For a number of black professional employees in South Africa, however, currently this is merely an aspiration. Evidence suggests that black people are still subjected to racial discrimination and that their growth into the ownership and management structures of the enterprises that employ them, is insignificant in comparison to their white counterparts, despite the progressive legislative measures enacted by the legislature to ensure otherwise. The Employment Equity Act 55 of 1998, as amended, was promulgated in order to promote equal opportunities and fair treatment in employment, through the elimination of unfair discrimination and to implement affirmative action measures to redress the disadvantages in employment experienced by designated groups. The Broad-Based Black Economic Empowerment Act 53 of 2003, as amended, was enacted to promote the economic participation of black people in South Africa. The objective of this thesis is to examine the relevant provisions of the Employment Equity Act 55 of 1998, as amended, its Regulations, the Codes of Good Practice enacted in terms thereof, as well as the Broad-Based Black Economic Empowerment Act 53 of 2003, as amended, together with its Codes of Good of Practice to determine whether this equality legislation is the appropriate vehicle to address the challenges experienced by black professional employees in the private sector. The stories of black professional employees’ experiences obtained from academic literature available insofar as it relates to racial discrimination, affirmative action and black economic empowerment is discussed through the lens of Critical Race Theory. This is done with a view to determining whether the slow pace of racial transformation when it comes to black professional employees employed in the private sector is an issue that the law can address. Particular reference is made to two professions: the legal profession and the financial professions. This thesis examines the difference between the minimalist and maximalist approaches to Black Economic Empowerment (BEE). The thesis reveals the limits to the incentive structure that does not place a premium on black ownership and that allows enterprises to benefit from BEE while not really changing management structures. It argues that seen through the lens of critical race theory the current equality legislation discussed in this thesis is based on including black people in a system where privilege and power are asymmetrically distributed. It also argues that legislation in itself is unable to rectify racial injustices. It therefore demonstrates the limitations of the current equality legislation as a vehicle to address the challenges faced by black professional employees in the private sector.

The objectives of this study were to evaluate the viability and sustainability of preferential procurement in the metals and engineering sector. Preferential procurement is one of the seven elements of Broad–Based–Black Economic Empowerment (BBBEE) and seeks to encourage companies to procure goods and services from black empowered suppliers. The Broad–Based–Black Economic Empowerment Act was legislated in 2004 as an improvement on the previous Black Economic Empowerment (BEE). The objective of these legislations was to increase participation of previously disadvantaged groups in the mainstream economy. BEE was deemed to be narrow because it focused exclusively on ownership and management control. BBBEE was enacted to broaden the number of beneficiaries and included five other elements, namely: Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Socio–economic Development. The two companies that engage in preferential procurement should benefit from the relationship and value should be created in the process. Companies should not procure from black suppliers for accumulating points on the generic scorecard. Black–owned suppliers should provide service and products of the highest quality standards that meet customer requirements. The questionnaire that reflects on the objectives of this study was drafted and circulated to black–owned suppliers for completion. The suppliers were asked to comment on statements that reflect on capacity, profitability, working relationship and continuity. The results show that the SMMEs have capacity to perform according to specification of customers. The area of concern was the difficulty for SMMEs to maintain the current preferential status. This is a risk that needs urgent attention. This needs further in–depth study and analysis. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011.

The objectives of this study were to evaluate the viability and sustainability of preferential procurement in the metals and engineering sector. Preferential procurement is one of the seven elements of Broad–Based–Black Economic Empowerment (BBBEE) and seeks to encourage companies to procure goods and services from black empowered suppliers. The Broad–Based–Black Economic Empowerment Act was legislated in 2004 as an improvement on the previous Black Economic Empowerment (BEE). The objective of these legislations was to increase participation of previously disadvantaged groups in the mainstream economy. BEE was deemed to be narrow because it focused exclusively on ownership and management control. BBBEE was enacted to broaden the number of beneficiaries and included five other elements, namely: Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Socio–economic Development. The two companies that engage in preferential procurement should benefit from the relationship and value should be created in the process. Companies should not procure from black suppliers for accumulating points on the generic scorecard. Black–owned suppliers should provide service and products of the highest quality standards that meet customer requirements. The questionnaire that reflects on the objectives of this study was drafted and circulated to black–owned suppliers for completion. The suppliers were asked to comment on statements that reflect on capacity, profitability, working relationship and continuity. The results show that the SMMEs have capacity to perform according to specification of customers. The area of concern was the difficulty for SMMEs to maintain the current preferential status. This is a risk that needs urgent attention. This needs further in–depth study and analysis. / Thesis (M.B.A.)--North-West University, Potchefstroom Campus, 2011.

Government introduced the Broad-based Black Economic Empowerment Act, No. 53 of 2003 and the Broad-based Black Economic Empowerment Codes of Good Practice (‘the Codes’) in 2007 to address the economic inequalities in South Africa by incentivising companies to include black people in economic activities. These incentives relate to implementation of preferential procurement, which is meant to favour companies that are BEE-compliant. Based on the literature and government’s intention with BEE policies, an assumption developed that companies with greater BEE compliance, which is measured through a BEE scorecard as per the Codes, would perform better in terms of market share through their revenue and in terms of profits. The main objective of this study was to carry out an in-depth analysis of the relationship between BEE scores and revenue growth and profitability of JSE-listed companies. This was done to determine whether the efforts by government of incentivising companies to be more BEE compliant are effective. This study was conducted as a two-part model consisting of regression analysis and ttest to determine whether there is a relationship between BEE scores and revenue and profitability. The regression analysis focused on the top 100 most black-empowered companies. The t-test was a comparison of two data sets, which consisted of companies in the top 100 most black-empowered companies and those that do no fall among the top 100 most black-empowered companies. The results showed that, at the time of this research, there were no significant relationships between BEE scores and revenue and profitability. The analysis of the research findings collectively demonstrated that for both the tests (regression and ttest), the relationship between revenue and profitability could not be established. Hence, the results postulate that BEE compliance does not produce the desired results for the companies, which can be translated into better profitability and market share. / Financial Accounting / M. Phil. (Accounting Sciences)