April 27 Pocket Guide to BBBEE

Introduction Code 100 Ownership Scorecard Code 200 Management Control Code 300 Employment Equity Code 400 Skills Development Code 500 Preferential Procurement Code 600 Enterprise Development Code 700 Socio-Economic Development Code 800 QSE Scorecard Glossary of Terms

CODE 700: SOCIO-ECONOMIC DEVELOPMENT

Area

Target

Weighting Points

% of Points

Formula

Notes:

Statement 700: General Principles

Average annual value of all Socio-Economic Development Contributions by the ME as a % of the target

1% of NPAT or if ME is not profitable or its net profit margin is less than 25 % of the industry norm, then turnover as follows: 3% x INPM x Turnover

100%

Value of all SED Contributions / target x 5

Valuation of SED Contributions: If ≥ 75% of the value of the contribution directly benefits black people – R1 x 1. If ≤ 75% of the value of the contribution directly benefits black people – value of contribution x % that benefits black people

Measured cumulatively from 9/2/2007, or an earlier date being no earlier than 9/2/2002, until the date of measurement. Future commitments are excluded. Monetary or monetary contributions with the specific objective of facilitating sustainable access to the economy for those beneficiaries. Annexe 700(A) contains a Benefit Factor Matrix used in determining Socio-Economic Development Contributions.