PART 1 Induction Booklet [PRINT] - bmfonline.co.za .pdf · black management forum induction booklet 07. section 2

INDUCTION BOOKLET

The BMF is a non- racial, thought leadership organisation founded in 1976, which has amongst others taken interest in socio-economic

transformation of our country, in pursuit of socio-economic justice, fairness and equity. The BMF continues to be vocal on these aforementioned matters and has been keeping companies in check and encouraging

Developing Managerial Leadership

TABLE OF CONTENTS

BLACK MANAGEMENT FORUM INDUCTION BOOKLET 01

PART ONE

Section (i) BMF Provincial Ofces 3

Section 01 Who We Are? 4

Section 02 Membership Categories 7

Section 03 50 Years of Revolution 11

Section 04 BMF’s Big Years 19

Section 05 Afrmative Action Blue Print 19

PART TWO

Section 01 Interpretation 63

Section 02 Founding Principles 68

Section 03 Incorporation 69

Section 04 Objects 70

Section 05 Powers and Capacity of the Forum 72

Section 06 Amendments to the MOI 76

Section 07 Rules 77

Section 08 Membership 78

Section 09 Optional Provisions of the Act which do Apply 82

Section 10 Governance of the Forum 83

Section 11 Removal of Directors 90

Section 12 Proceedings of Directors 91

Section 13 Written Resolutions by Directors 90

Section 14 Register of Members 94

TABLE OF CONTENTS

PART TWO

Section 15 Members’ Meeting 96

Section 16 Remuneration of Directors and Members of Board Committees 103

Section 17 Financial Assistance for Directors and Prescribed Ofcers andtheir Related and Inter-related Parties 103

Section 18 Board Committees 104

Section 19 Personal Financial Interests of Directors 106

Section 20 Indemnity and Insurance for Directors 110

Section 21 Record Date 114

Section 22 Financial Year 114

Section 23 Accounting Records and Financial Statements 115

Section 24 Appointment of Auditor 116

Section 25 The Company Secretary 117

Section 26 Minutes and Minute Book 119

Section 27 Notices 120

Section 28 Provinces and Branches of The Forum 121

Section 29 Provinces 122

Section 30 The Branch of The Forum 133

PART THREE

Section 01 Code of Conduct 139

BLACK MANAGEMENT FORUM INDUCTION BOOKLET02

BMF PROVINCIAL OFFICES

GAUTENGBMF House, 12 Summer StreetRovonia, SandtonP.O. Box 781220. SANDTON 2146Tel: 011 784 4407Email: [email protected]

EASTERN CAPESecond Ofce. Unit 1, 6-8Donald Road VincentEast LondonTel: 043 704 6400Email: [email protected]

FREE STATE410 State-Way, Doorn, Welkom 9460Tel: 057 353 1418Email: [email protected]

KWAZULU-NATALBuscom Centre, Ofce No.7Alton, Richards Bay Tel: : 035 797 3718Email: [email protected]

MPUMALANGA32 Bell Street, Caltex BuildingFirst Floor, Ofce 130, Nelspruit 1200 Tel: 013 752 4584Email: [email protected]

NORTHEN CAPECorner Bean & Clarence StreetTemplar Building, 7th FloorKimberly 8300 Tel: 053 832 7137Email: [email protected]

WESTERN CAPECape Chamber House3rd Floor, 19 Louis Gradner StreetForeshore, Cape TownTel: 021 823 7704Email: [email protected]

LIMPOPO73 Biccard Street, Maneo Building, PwCPolokwane, LimpopoTel: 015 297 2922Email: [email protected]

NORTH WESTWesvaal Chamber of BusinessBuffelsdoornroad 48, Buffelspark,Unit 14, Flamwood, KlerksdorpTel: 018 462 1682Email: [email protected]


WHO WE ARE

The Black Management Forum (BMF) started as a grouping of black managers who came together with a view to provide a pillar of support and devise means of how to survive in what was a very hostile environment within Corporate South Africa for them at the time. The ultimate objective was to assist in transforming the South African economy by helping blacks to rise in the companies they worked for.

The BMF is a non- racial, thought leadership organisation founded in 1976, which has amongst others taken interest in socio-economic transformation of our country, in pursuit of socio-economic justice, fairness and equity. The BMF continues to be vocal on these aforementioned matters and has been keeping companies in check and encouraging participation of the broader South African stakeholders with a view to changing the Corporate South African landscape.

The BMF's role in revolutionising the SA economy remains a critical one as conrmed by SA's rst black President, Dr Nelson Rolihlahla Mandela during his speech at the BMF's 1995 Annual Conference when he said, “When the oppressed and disadvantaged take their destiny into their own hands; and

1.1 BACKGROUND

when those divided in bitter conict turn towards peace and reconciliation, that is indeed a collective act of extraordinary leadership”.

He further said, “I am condent that the Black Management Forum, which represents a sector of society that formed itself under the most difcult of circumstances and when opportunities were few, has a critical leadership role to play under the favourable conditions of today”.

Whereas the BMF is not apolitical, but is non-partisan. The BMF is however not neutral on matters of transformation- We are pro-transformation.

SECTION 1

1.2 VISION

To be the foremost organisation in the development of managerial leadership and advancing socio-economic transformation of organisations in Southern Africa and beyond.


1.3 MISSION

The Black Management Forum stands for the development and empowerment of managerial leadership primarily amongst black people within organisations and the creation of managerial structures and processes which reect the demographics and values of the wider society.

SECTION 1

Ÿ Burgundy - LeadershipŸ Green - Growth and development

(focus on youth)Ÿ Black - Primary focus on issues

affecting black people

Colours

1.4 VALUES

Ÿ UbuntuŸ CreativityŸ IntegrityŸ Effectiveness

1.5 LOGO

Ÿ Circle - InclusivenessŸ Triangle - ProgressivenessŸ Cogs - Good work ethics

Logo components

A BMF type manager has the following attributes;

Ÿ A patriotic South African and therefore a committed partner in Nation Building

Ÿ Involvement in community work and structure that strives to stabilize and up-lift the weak and the disadvantaged ….a seless approach

Ÿ A high performer whose modus operandi is underpinned by discipline, creativity, courage and integrity.

Ÿ An effective manager and leader of people with strength in providing developmental and growth opportunities to others.

Ÿ A strong yet modest advocate and champion of organizational transformation through Afrmative Action and Black Economic Empowerment

Ÿ An active subscriber to the value of UBUNTU and to the key principles such as:-

1.6 BMF DNA


SECTION 1

Ÿ Non-racialismŸ Afro-centrismŸ Respect for individuals and

especially the elderlyŸ Self-development and own

initiative

Ÿ A person who learns continuously from other and adopts a supportive and inclusive approach in engaging others

Ÿ A person with a soulŸ A believer in the wisdom of the

collectiveŸ A visionary with empathy who

understand the socio and economic context we operate in


When the oppressed and disadvantaged take their destiny into their own hands; and when those divided in bitter conict turn towards peace and reconciliation, that is indeed a collective act of extraordinary leadership

MEMBERSHIP CATEGORIES

The BMF is recognised in the country as one of the key eminent business associations representing the voice of black professionals and business people. Both business and government value the organisation as an important stakeholder on issues of transformation, empowerment and leadership development. Membership of the BMF will mean that you are part of an organisation that has as one of its values being, Ubuntu. We are looking forward to your being part of our organisation and to the important role that you will play in furthering our vision. Some of our individual membership benets include:

Ÿ Get Abstract – Get Abstract creates summaries of the most relevant and leading business books on key topics such as Leadership, Strategy, Marketing, HR, Finance, IT, Business Trends and Self Development.

Ÿ Harvard Manage Mentor - Harvard Manage Mentor are Business Program to members. Harvard ManageMentor® offers 44 modules. The modules address specic business issues using scenarios, video and interactive exercises. The Harvard ManageMentor® e-Learning courses are easy to access and

2.1 INDIVIDUAL MEMBERSHIP

navigate.Ÿ Partnerships with various

institutions of higher learning enabling BMF members to attend professional training programmes at discounted rates, e.g. (GIBS; DUKE).

Ÿ Participation at Branch Forums and Workshops providing opportunities for personal growth and leadership development for individuals.

Ÿ Access to placement opportunities within Corporate South Africa through the BMF Leadership Search, a recruitment and executive search company which is a 100% subsidiary of the BMF.

Ÿ Networking opportunities for members through various platforms created by branch, provincial and national events and/or activities.

Ÿ An opportunity to be part of the BMF Mentorship Programme.

Ÿ Attendance and participation at the Corporate Update Gala Dinner; Annual Conference and the Achievement Awards Gala Dinner at reduced rates.

Ÿ An opportunity to be an investor at the BMF Investment Company through share acquisition.

Ÿ Giving input to key policy processes in the country impacting on socio-economic transformation.

SECTION 2


SECTION 2

Ÿ An opportunity to engage with Corporate Members on issues of leadership, transformation and empowerment through BMF's stakeholder engagements.

Furthermore, opportunities for members are explored and maximised through the following;

Ÿ Accessing and disseminating information on business issues relating to transformation.

Ÿ Building an extensive network of business leaders and achievers in the country.

Ÿ Harnessing the intellectual capital of that network, for the advancement of Black Economic Empowerment.

Ÿ Recognising the status, and furthering the advancement, of black professionals and business people in South Africa.

Ÿ Engaging with corporate members on issues of leadership, transformation and empowerment.

2.2 BMF YOUNG PROFESSIONALS

EXECUTIVE SUMMARY

BMF Young Professionals (BMF YP) have been established to nurture the development of our young professionals in various corporates and the entrepreneurship environment.

The Young Professionals provide a vibrant pipeline and base that enables succession within the BMF.

In line with the BMF's mission, the BMF Young Professionals is also committed to the creation of fundamental economic social change for the benet of all young professionals, and endeavours to unite them in taking their rightful place in the economic affairs of Southern Africa.

VISION

To be the most inuential youth organisation for young, primarily black, professionals and entrepreneurs in South Africa.

MISSION

The BMF YP aspires to develop and produce high calibre professionals, future leaders and entrepreneurs with the necessary skills and attitude required to become accomplished business and transformational leaders in their elds and beyond, with the ultimate goal of not only delivering a pool of talent to the South African corporate market, but also creating innovative opportunities to exercise the talent.


The BMF is recognised in the country as one of the key eminent

business associations representing the voice of black

professionals and business people

SECTION 2

2.3 BMF STUDENT CHAPTERS(BMFsc)

Through its Student Chapters the BMF is laying ground to ood the market with a new type of a corporate cadre, and perhaps one who understand the value of being contrary. The fact that we draw our membership from diverse academic disciplines, sports, culture and political backgrounds makes the BMF Student Chapter a melting pot of South Africa's youth leadership. This development is underpinned by our commitment to the BMF mandate of "Developing Managerial Leadership".

The BMFsc is continuously modelling itself as an ideal platform for young aspirant business managers and leaders who genuinely engage on socio-economic matters challenging South African youth.

We command a national presence evidenced by many branches. Whilst we are a non-racial organisation, our membership is targeted primarily at black students in higher learning institutions of South Africa.

PURPOSE OF EXISTENCE

Ÿ To achieve academic excellenceŸ To acquire sustained personal

developmentŸ To contribute towards community

upliftment

BENEFITS TO BMFsc MEMBERS

Ÿ Learnership, internship and vacation job opportunities

Ÿ Opportunities to attend branch forums, and other BMF events

Ÿ Opportunities to network with and be mentored by business leaders, managers and other public gures

Ÿ Opportunity to attend our national and provincial events and workshops, where policies and youth related issues are discussed

Ÿ Development programmes, including life, business and entrepreneurial skills

Ÿ Opportunity to plough back to communities through community development and service programmes

Ÿ Enhanced employment opportunities as a result of the above benets

2.4 CORPORATE MEMBERSHIP

OVERVIEW

The BMF embraces the responsibility of being a facilitator between communities and employers and helping corporate businesses to identify talent and potential, in order to develop human capital.

BMF assists Corporations and other employers to identify the most appropriate ways of harmonising with the broader community and develops people irrespective of colour or


SECTION 2

diversity of background, as part of a strategic business plan.

CORPORATE MEMBER BENEFITS

Ÿ Organisations have immediate, direct and cost effective access to a growing pool of black managers in the event of vacancies

Ÿ Organisations get to know the aspirations and thinking of black managers, who represent the untapped management leadership

Ÿ Organisations receive reliable and authentic commentary and advice on matters pertaining to the involvement and participation of black professionals in those businesses

Ÿ Organisations are able to send their staff at preferential rates on BMF endorsed training and development programmes

Ÿ Organisations are assisted to align themselves with the aspirations and needs of the predominantly black market place

Ÿ The BMF provides a consultancy service to companies on Organisational Transformation thus creating an environment that is creative and supportive of growth and success

Ÿ Organisations associated with the BMF are perceived to be progressive

Ÿ Organisations that seriously support the Forum will gain committed and competent black managers and a productive and truly loyal workforce

Ÿ Regular events open to corporate

members include: Monthly Forums, BMF Quarterly CEO Breakfasts, BMF Annual Corporate Update Dinner and BMF Annual Conference

CORPORATE MEMBER OPPORTUNITIES

Ÿ Accessing and disseminating information on business issues relating to transformation

Ÿ Giving input to key policy processes in the country impacting on black professionals and business

Ÿ Building an extensive network of business leaders and achievers in the country

Ÿ Harnessing the intellectual capital of that network, for the advancement of Broad Based Black Economic Empowerment

Ÿ Recognising the status, and furthering the advancement, of black professionals and business people in South Africa

Ÿ Engaging with other corporate members on issues of leadership, transformation and empowerment

Ÿ Recognising the achievements of South African business leaders through the BMF Annual Achievement Awards, namely, Progressive Company of the Year, Manager of the Year and Presidential Awards


50 YEARS OF REVOLUTION

The BMF has undergone a very interesting journey and evolutionthrough the various eras since its inception in April 1976.

SECTION 3

3.1 | 1970-1980

This genesis of the BMF could be characterised as the COUNSELLING PHASE. This is when pioneers like Mr Eric Mafuna, the rst president of the BMF, began to organise black managers with the view to providing a pillar of support and devise tactics of how to survive in what was a very hostile environment. In fact, even the term 'manager', could not be used for black people – they were referred to as 'ofcers'. The Sullivan Codes* at the time were very useful as a point of reference on how to achieve a fair and equitable environment in the workplace. The BMF will remain indebted to multinational companies like BP, IBM, Caltex and Shell, to name but a few, who were champions of these codes and provided hope that one day true empowerment could be achieved.

The fundamental issue at this point was the character and conduct of the BMF managers. These managers were very ethical, determined, tenacious and developmental in their approach. During this phase it was unthinkable to have terms like pushing the ladder when you are at the top, selling your

soul for a few pieces of silver, conspicuous consumption and all the other ills that we have today. I guess they lived under the maxim of: 'Better is a dry slice of bread honestly earned than a thick slab of cheese dipped in the blood of your brethren'.

Discipline was the order of the day; young people understood and respected the wisdom of the older generation. The older generation knew that they had an obligation to mentor the young ones and they also understood that mentoring a person is different from trying to duplicate yourself or create a clone of yourself. They allowed young people to develop their own character but under the watchful eye of an eagle.


The BMF has undergone a very interesting journey and

revolution through the various eras since its inception

in April 1976

SECTION 3

*SULLIVAN CODES

The Sullivan Codes were derived from the Sullivan principles. These principles were developed by an African American preacher; Rev. Leon Sullivan with the aim of applying economic pressure on South Africa in protest of its system of apartheid. The principles eventually gained wide adoption among United States–based companies.

These principles demanded the equal treatment of employees regardless of their race; both within and outside of the workplace; which was in conict with our South African context of racial segregation and unequal rights. The Sullivan Codes were at the time useful as a point of reference on how to achieve a fair and equitable environment in the workplace, they are:

Ÿ Non-segregation of the races in all eating, comfort, and work facilitiesŸ Equal and fair employment practices for all employeesŸ Equal pay for all employees doing equal or comparable work for the

same period of timeŸ Initiation of and development of training programmes that will

prepare, in substantial numbers, blacks and other non-whites for supervisory, administrative, clerical, and technical jobs

Ÿ Increasing the number of blacks and other non-whites in management and supervisory positions

Ÿ Improving the quality of life for blacks and other non-whites outside the work environment in such areas as housing, transportation, school, recreation, and health facilities


During a time that could be characterised as ‘The Counseling Phase’ Mr Eric Mafuna, the rst president

of the BMF, organised black managers with the view to providingsupport and devise tactics of how to survive

in what was a very hostile environment

SECTION 3

3.2 | 1980-1990

This phase could best be described as the ADVOCACY PHASE. This is when the BMF started to lobby and gun for support locally and internationally. The international relations were also meant to improve and develop the skills base of black managers. Various exchange programmes with Canadian and German organisations were forged. This is also the phase when the BMF leadership at the time, with people like Don Mkwanazi and others, led the BMF delegation to meet the exiled leadership of the ANC both in Lusaka and in London.

The primary purpose of this interaction with the ANC was to explain that although there are black people in management, black managers are an integral part of the black collective and were also suffering the same indignation that was being visited on the black masses of the country by the Apartheid regime. The BMF leadership explained their connectedness and their responsibility to be part of a solution to liberate the black people in general and the down troddenin particular. Upon their return a huge skills summit was organised to canvas and promote the issues of skills development. The irony of this phase is that a lot of black people acquired a host of qualications which in turn posed a threat to the white establishment. Instead of being embraced, they were even more marginalised.

This era marks a time when people like Dr Gordon Sibiya, who was trained in Nuclear Physics, could not nd a job despite the fact that at the time the country had a nuclear capability (albeit denied at the time). The fact of the matter was that because racism ruled supreme, qualied and skilled black people were ignored and under-utilised, and instead were continually sent for further training. There used to be a joke in the BMF at the time, that if you are black you are always a problem; if you are a blue-collar worker you are a labour relations problem; and if you are a black manager, you are a training-centre problem. As a result of this, people like Lot Ndlovu used the phrase 'perpetual training without graduation'.

The message here to young qualied people is that the issue of black people with qualications is not a new phenomenon arising from model C or private schools. Black people have always had qualications but were marginalised. This is the context in which the Employment Equity Act should be understood. From inception, this Act was never a panacea for non-performance but was there to ensure that all are equitably represented in all management levels in an organisation.

Similarly with entrepreneurship, we have always had our black entrepreneurs, like Mr Richard Maponya who did not have the privileges, networks and an enabling environment that his counterpart


SECTION 3

Raymond Ackerman had. So once again when we argue for BBBEE we are not looking for favours but a fair and equitable dispensation of the resources of this country. One of the dening features of this phase was the establishment of the BMF Student Chapter formations across various tertiary institutions. Even there the fundamental principles that the BMF sought to inculcate in young people were academic excellence, self-development and community involvement. The communal approach to life and the value of Ubuntu is indeed in the DNA of the BMF. In this organisation we believe that diversity is a fundamental tenet of non-racialism.

Being proud of who you are is not an expression of being anti-others. When we say rst we are black, then we are managers; we seek to underscore the connectedness to the communities from which we come. We seek to espouse the unfashionable value of humility and selessness. We are not being anti-anybody. In fact white people must also espouse their culture freely without any fear. No one culture should seek to swallow and assimilate another. Non-racialism should mean freedom to be who you are and not be judged. The phrase 'united in our diversity' underscores this thinking.

3.3 | 1990-2000

I would like to characterise this phase as the DO-IT-YOURSELF PHASE. This is the era in where the BMF began to organise itself to be able to deliver directly to its members. The national ofce started divisions like Organisational Transformation, Management Leadership Development and Education to focus on students and various others. This phase in the BMF was arguably the most active in policy formulation and activism. The well-known Basotho Hat formula was conceived in this era, when the BMF projected that in order for the critical mass of black inuence to be obtained, organisations needed to achieve 40 percent black non-executive directors, 30 percent black executive directors, 40 percent black senior managers and 50 percent black junior managers. Even to date these targets are still elusive. The reason for pushing for these targets was rooted in the fundamental belief that as an individual you cannot effect and sustain transformation; it is imperative to bring in the critical mass so that the values and culture of organisations can reect the wider society. The strategy may be race-based, but it is aimed at achieving a colourblind end.

It has indeed been a great disappointment that when eventually some ofthe black people get to the top they soon forget where they come from and how they got there. They think that it was all only through their own efforts. Nothing could be further


The BMF gunned for support locallyand internationally in order to, among

other reasons, improve and develop skills base of black managers

SECTION 3

from the truth. The BMF is not asking for people to be stuck in the past. On the contrary, the BMF seeks progression for the people but is unapologetic about the requirement for the consciousness to acknowledge our non-illustrious historical trajectory. It would be a mistake for the youth of today to think that their successes are just from a vacuum. People were maimed and some paid the ultimate price for today's luxuries, which are sometimes taken for granted.

This period in the BMF also saw the pivotal role that the BMF played in the development of the Employment Equity Act. The BMF was called upon to deploy its cadres like Jimmy Manyi as a representative of the BMF in Nedlac. This was preceded by the deployment of people like Mpho Makwana and Loyiso Mbabane who, in their successive terms, drove this

policy formulation from the green paper phase until promulgation as an Act of Parliament. It was in 1997 in Stellenbosch in the Western Cape when the BMF took the resolution to establish the Black Economic Empowerment Commission which paved the way for what is now known as the BBBEE Act. For us in the BMF we see in particular these two pieces of legislation as our own victory and achievement. We continue to defend them and sometimes get labelled as partisan because these policies have found resonance with the ruling party (African National Congress). The BMF continues to be a thought leadership and independent, non-racial organisation that is not apolitical but non-partisan. The BMF is not naïve about the political canvas from which we all operate.

3.4 | 2000-2010

This era can be characterised as the CONSOLIDATION PHASE. At this point South Africa had a plethora of policies aimed at reconstructing South Africa from the Apartheid past to an equitable and fair dispensation. This era by denition should have been understood to be an era where all the teething problems of the various legislations would have been experienced, instead of seeking to throw the baby out with the bathwater.

Indeed, some legislation yielded positive effects, whereas some aspects had unintended consequences. Again the proposed labour legislation reforms that are currently at NEDLAC seek to remedy some of the defective elements of these constructive policies. The BMF has a duty to support the proposed changes because some of them have resonance not only with our resolutions but with our philosophy as well. This phase saw the exponential growth of the BMF where, for the rst time in the history of the organisation, it was represented in all


SECTION 3

nine provinces. A dening feature of this phase was the introduction of the young professionals (YPs) – a group of young people aged between 22 to 35 years. It is my well-considered view that this injection of fresh blood into the BMF will shape and determine its future. These young people tend to be more entrepreneurial and less of a crop of employee types. This group is by denition much less connected to the historical past and thus more susceptible to expedient whims of liberalism. The driving mantra for the young people of today is independence of thought and freedom of expression. While these may seem noble civil rights as enshrined in the Constitution, they should never be expressed or articulated in a vacuum. The Constitution of this country itself is not a document oating in the air; it is rooted in our past as reected in the preamble, which states:

Ÿ We, the people of South Africa, Recognise the injustices of our past; Honour those who suffered for justice and freedom of land; Respect those who have worked to build and develop our country; and believe that South Africa belongs to all who live in it, united in our diversity.

Ÿ We therefore, through our freely elected representatives, adopt this constitution as the supreme law of the Republic, so as to:

Ÿ Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights;

Ÿ Lay the foundations for a democratic and open society in which government is based on the will of the people and every citizen is equally protected by law;

Ÿ Improve the quality of life of all citizens and free the potential of each person; and

Ÿ Build a united and democratic South Africa able to take its rightful place as a sovereign state in the family of nations.

I trust this preamble puts to bed the empty and self-serving assertions of 'forget the past and just move on'. And I therefore raise caution that in the exuberance of being free-spirited we must not lose the plot.


The introduction of young professionals (YPs) so the BMF

welcoming a group of young peopleaged between 22 to 35 years old

under a well considered viewthat the injection of fresh blood

into the BMF will shape and determine its future.

SECTION 3


35 YEARS OF BMF

Eric Mafuna(1977-1981)

Martin Sebesho(1981-1982)

Don Ncube(1982-1984)

George Negota(1984-1986)

Don Mkhwanazi(1986-1991)

Prof. Wiseman Nkuhlu(1991-1995)

Lot Ndlovu(1995-1999)

Bheki Sibiya(1999-2003)

Nolitha Fakude(2003-2006)

Mzwanele Manyi(2006-2012)

BIRTH OF BLACK

MANAGEMENTFORUM

SELF IMPOSED AFFIRMATIVE

ACTION BLUE PRINT

NEW DEMOCRACY

RELEASEOF

MADIBA

RESOLUTION TOIMPLEMENT A

BEECOMMISSION

EMPLOYMENTEQUITY SKILLSDEVELOPMENT

BBBEEACT

BLACKMANAGEMENT

FORUM 35TH

BIRTHDAY

SECTION 3

3.5 | 2010 AND BEYOND

This phase, emanating from our 2009 strategic resolve to focus on ECONOMIC REVOLUTION, will indeed be dogged by all kinds of controversies because it is a second phase of the liberation of the people of South Africa, in an economic sense. Once again the BMF must be understood to be a microcosm of society in general.


Non-racialism should mean freedom to be who you are and

not be judged. The phrase‘united in our diversity’

underscores this thinking

SECTION 4

BMF’S BIG YEARS

The BMF has undergone a very interesting journey and evolutionthrough the various eras since its inception in April 1976.

4.1 AFFIRMATIVE ACTION

'93The BMF published its Afrmative ActionBlueprint in 1993 which was a dening moment for the organisation. The blueprint had seminal inuence in providing a solid and well-articulated base from which the organisation could move forward. Later that same year, the BMF set up an Afrmative Action (AA) Commission.

The members of the commission were:

Ÿ Lot Ndlovu (chairman)Ÿ GM Morolo (facilitator)Ÿ Loyiso MbananeŸ Reuel KhozaŸ JB MagwazaŸ Cawe MahlatiŸ Prof C ManganyiŸ L MbigiŸ Mike MohohloŸ Linda PrimosŸ K Rosmarin Ÿ S ThlopaneŸ Dr C White

The 12-member commission focused on key aspects of AA using various sources of data, which included a

‘93

study conducted by the BMF and Business and Marketing Intelligence called 'Succeeding in Afrmative Action in South Africa in the 1990s' (March, 1993). The recommendations of the commission were adopted and adjusted where necessary bythe BMF as its ultimate position on AA. The blueprint covers several crucial areas, such as:

Ÿ The rationale for AA in South African corporations

Ÿ What afrmative action is;Ÿ The scope of afrmative action;Ÿ Why the BMF should be the

champion of afrmative action in the employment sector;

Ÿ Contentious issues around the BMF position on these issues;

Ÿ Some international experiences of AA;

Ÿ Strategies for implementing AA; and

Ÿ Progressive companies.

In the publication, the commission elucidated many of the issues surrounding AA. One of these offerings was the following denition: “Afrmative action is a planned and positive process and strategy aimed at transforming socio-economic environments which have excluded


SECTION 4

individuals from disadvantaged groups, in order for such disadvantaged individuals to gain access to opportunities, based on their stability.

“Afrmative action therefore implies meritorious empowerment of individuals through opportunity and development. Assessment of merit should be based on fair, objective and non-culturally biased standards. Afrmative action in the workplace requires the total eradication of all obstacles, whether subtle or overt, formal or informal, which hinder the empowerment of disadvantaged individuals.” The blueprint identied the beneciaries of afrmative action as both the organisation and the individual: The BMF regards the organisation as the primary beneciary of and candidate for afrmative action. Organisations have been disadvantaged by apartheid policies of racism and the over-utilisation of whites. These policies have denied the benet of contributions which could have been made by black people to the development of organisations.

Secondary beneciaries are identied as black men and women, as well as other disadvantaged groups that are victims of apartheid. Within this category, women and men classied as African have been especially disadvantaged.

With the new government in place in 1994, the BMF engaged with the Department of Labour on issues of

afrmative action and equity. The BMF had to resource itself to be able to successfully contribute to the policy transformation process of the government. The Employment Equity Act was a result of these contributions. During this period, the BMF director of transformation, Mpho Makwana, moved to the Department of Labour as the director ofequity. Loyiso Mbabane (who had participated extensively in the Afrmative Action Blueprint Commission) moved to head up the employment equity division with the Department of Labour. Mbabane had to make certain that current legislation reected, to a large degree, the views of the BMF.

The process for legislation of this Act meant that it had to be passed by Nedlac. The BMF was not a member and so Cosatu, a partner in Nedlac, embraced the BMF and acknowledged its role in the legislation talks. The BMF's input into Nedlac is largely attributableto Cosatu's support and inuence, and their acknowledgement of the distinctive role that the BMF played in afrmative action and equity in South Africa. BMF past presidents Lot Ndlovu and Jimmy Manyi were active participants in the many enduring deliberations on creating the White and Green papers for employment equity. The BMF developed a core group of change agents (including Gavin Pieterse, Pat Sebobe and Loyiso Mbabane) that operated nationwide in helping transformation processes from within corporations.


SECTION 4

As a result of the commission's work and resulting publication, the BMF developed a set of indicators whereby it could identify and reward progressive companies. These formed the basis of its Progressive Company Award and included:

Ÿ Employee development programmes and projects;

Ÿ Equity or prot participation by employees;

Ÿ Sound industrial relations;Ÿ Blacks (of both gender) in

management and decision-making roles;

Ÿ Blacks on the board of directors;Ÿ An environmentally sensitive policy;Ÿ Socially responsible marketing

campaign; andŸ Black business development.

4.2 THE BEEC INITIATIVE

In the early 1990s, the private sector embarked on a number of black economic empowerment (BEE) initiatives which led to a urry of activities in the years 1996 to 1998. The BMF had been at the core of numerous deeds to transform South African business. During the apartheid years, the BMF was circumscribed in what it could do, but following liberation, the BMF was able to establish a Black Economic Empowerment Commission (BEEC).

‘96

The resolution was adopted at the BMF 1997 national conference.

In recognition of its specialist role in Employment Equity (EE) matters, the BMF was also invited to be part of NEDLAC deliberation, during the crafting of EE Act, where Jimmy Manyi represented the organization.

The BEEC was to give strategic direction to BEE and pronounce on formulation of public policy on the subject. In the process, the BMF made several conclusions on BEE at the same conference. These included:

Ÿ That there was an absence of vision within BEE programmes.

Ÿ Big business had to be challenged to play an active role in developing black managerial skills. This involved growing the small business base for future potential entrepreneurship.

Ÿ That black business, including the BMF, should speak with one voice on issues which affect them directly, as well as indirectly.

Ÿ There also emerged with conviction that black people should direct and take charge of the new visions for BEE, a process that had been thus far conceptualised, controlled and driven by the private sector.

‘97


SECTION 4

Since issues of empowerment are wide ranging, the BEEC initiative had to involve other stakeholders. The BMF's report for a BEEC initiative was handed over to the Black Business Council (BBC) and an overarching body representing 11 black business and professional organisations. In 1998, the commission was formally put in place under the auspices of the BBC. The BMF seconded then BMF national deputy president, Gavin Pieterse, to represent the organisation in the commission, and he served as

‘98

According to the BEEC report, handed to the state president's ofce, the commission's analysis was that the BEE should be viewed within the broad scope of empowerment processes including job creation, rural development, urban renewal, poverty alleviation, specic measures to empower black women, skills and management development, education, meaningful ownership, and access to nance for households and for the purpose of conducting business.

The aforementioned statement is equally accommodated in the mandate of the BEEC, which includes:

Ÿ To reach conclusion on the obstacles to meaningful participation of black people in the economy;

Ÿ To develop a coherent case for an accelerated national BEE strategy;

Ÿ To make recommendations on policies and instruments required to guide a sustainable strategy;

Ÿ To develop benchmarks and guidelines to monitor the effective implementation of the strategy.

The BEE commission also put forward an integrated Human Resource Development (HRD) strategy. The BEEC deemed that the drafting of a Black Economic Empowerment Act would address the disquiet of the state of affairs. The Act would seek to provide an unambiguous denition of BEE. The commission, formally instituted in 1999,adopted the following BEE position:

Ÿ BEE is an integrated and coherent socioeconomic process;

Ÿ It is located within the context of South Africa's national transformation programme, as well as the Reconstruction and

‘99


SECTION 4

Ÿ Development Programme (RDP);Ÿ It is aimed at redressing the

imbalances of the past by seeking to sustainably and equitably transfer and confer the ownership, management and control of South Africa's nancial and economic resources to the majority of its citizens; and that

Ÿ BEE seeks to ensure broader and meaningful participation in the economy by black people in order to achieve sustainable development and prosperity.

The denition was tested both in debate and the media and accepted by the represented constituency. The commission created the groundswell for the establishment of sustainable BEE initiatives where the onus is now on the relevant stakeholders to progress from the recommendations for the report.

Addressing the 2000 BMF national conference, the BEEC chairperson, Cyril Ramaphosa, said that the challenge facing black business and beneciaries under the dispensation was to become a dynamic force for change and to help drive the development of a new patriotism within established business.

Black business has the historic duty to play an activist role in championing

‘00

transformation efforts in the economy as a whole and within their profession and places of work. Black business also faced an innate responsibility to ensure that it is sufciently empowered with knowledge to critically engage its counterparts on equal terms.

The commission's rationale was that the legacies of apartheid oppression and deliberate dis-empowerment gave sufcient moral and political origin to justify a national BEE strategy.Furthermore, the commission believed that the economic consequences of Apartheid are such that the economic decline for the preceding 25 years could be reversed only through the BEE strategy.

South Africa cannot break out of the cycle of under-development, and attain sustained high levels of economic growth, in the absence of deliberating on measures by the state to facilitate the meaningful participation of black people in the economy. To this end, the BEE report made several recommendations, which included a case for the issues to be redressed, and for prevailing socioeconomic tribulations to be addressed.

It was the belief of the BEEC that the National BEE strategy had to be adopted as a national imperative. Key elements of the strategy included:


SECTION 4

Ÿ A national BEE Act aimed at setting up guidelines and targets against which the public sector could affect BEE.

Ÿ The establishment of institutions aimed at addressing market failures and the transformation of existing structures.

4.3 BUILDING BLACK BUSINESS

In the early 1990s, the private sector embarked on a number of black economic empowerment (BEE) initiatives which led to a urry of activities in the years 1996 to 1998. The BMF had been at the core of numerous deeds to transform South African business. During the apartheid years, the BMF was circumscribed in what it could do, but following liberation, the BMF was able to establish a Black Economic Empowerment Commission (BEEC).

Founded in 1996, the Black Business Council (BBC) was established by black businessmen and professionals to play a central role in national economic programmes. Through the merger of the BBC and Business South Africa (BSA), Business Unity South Africa (BUSA) was launched in October2003. The merger formed a united force that

‘11

represented both black and white business in South Africa – a rst for our nation.

BMF’S ROLE

The Black Management Forum (BMF) – having been deeply committed to BUSA since its inception – resonated with the philosophy of fair representation in the business sector, in order for business to thrive in the economic growth, development and transformation of South Africa. The BMF's dedication to this(BUSA's intended scope of purpose) was apparent when it deployed Bheki Sibiya (former BMF president) to be the rst to lead BUSA in the capacity of CEO, and Jerry Vilakazi (former managing director for BMF) as his successor.

“BMF was one of the key champions of business unity in South Africa and played a pivotal role in the formative years of BUSA. The rst two CEOs of BUSA were drawn from the BMF ranks as a sign of our commitment to create


The challenges facing black business and beneciaries under the dispensation was to become

a dynamic force for change and to help drive development of a new

patriotosm within established business.

SECTION 4

a united voice of business. The decision to withdraw from BUSA subsequently endorsed by other black business formations, was not taken very lightly. It raised questions as to whether we were able to create an institution that could represent the contradictory aspirations of very distinct constituencies, one controlling the economy and another aspiring for an equitable stake in that economy. The rupture in BUSA was symptomatic of the brewing discontent at the lack of economic transformation in South Africa compounded by poor leadership in the organization itself. The BMF remains positive that once the necessary conditions for meaningful business unity have been created, true business unity is inevitable and will benet South African business in its entirety.

Before the formation of BUSA, structures like the National African Federated Chamber of Commerce and Industry (NAFCOC) and the Foundation for African Business and Consumer Services (FABCOS) had a direct representation in NEDLAC, as part of the business constituency. On specialised matters like the Employment Equity Act, the BMF was accorded a special status because of its depth in understanding the matter, and also because of the constituency that it represented. Over the years, the BMF consistently aimed to achieve unity in the business sector, and in this spirit, populated various committees and gave immense input and declaration to any opposition of BUSA.

Sadly, over the years, BUSA failed to work towards the vision of transforming and growing the South African economy. Participation of black business in BUSA was an exercise not for political correctness, but rather a constructive platform to bring about inclusivity in the inuence of policy direction. The BMF did all in its power to raise these matters with the leadership of BUSA. But soon, it became evident that BUSA had no demonstrable track record towards achieving the transformation objectives, including:

Ÿ Promoting broad-based black economic empowerment (BBBEE) by designing strategies and programmes aimed at broad-based black empowerment and having regard to report studies and initiatives;

Ÿ Engaging with government, corporate South Africa and other stakeholders on the issues of BBBEE;

Ÿ Inuencing appropriate legislation to create an enabling environment;

Ÿ Promoting transformation both within organised business as well as at enterprise level; and

Ÿ Advancing and promoting initiatives aimed at job creation and the alleviation of poverty.

On June 25, 2011, the BMF held a board meeting and with the powers vested in the BMF Constitution, made a groundbreaking decision. The BMF led by their President Jimmy Manyi, withdrew from BUSA.


SECTION 4

The Confederation of Black Business Organisations (CBBO) received a report back from the Black Business Council (BBC) on the reasons for BMF's pulling out of BUSA. Their response to the report was:

“The CBBO appreciates the validity of BMF's concerns and believes these concerns, relating to the structural and representation within BUSA, relate to all black participation in the South African economy.”

The CBBO, NAFCOC and FABCOS planned and hosted a two-day summit, during September 2011, – initially imposed by the BMF – of which a task team was appointed to carry forward. The theme for the summit was 'Towards an Authentic, Purposeful and United South African Business – Driving a Totally Inclusive Economic Growth Agenda'. Those who attended the summit in Johannesburg were delegates representing more than 14 organised black business associations in South Africa. They worked from the premise that after 17 years of democracy, some progress had been made, but insisted that more meaningful black participation in the economy was non-negotiable.

The tone for the Black Business Summit was set by the keynote address by President Jacob Zuma, who emphasised the importance of genuine unity. “The unity of the business sector is paramount in ensuring the achievement of the

transformation goals. As government, we need a unied and united business voice to work with,” he told the audience. The delegates then used the principle of unity to guide their deliberations and subsequent programmes of action.

Black business stalwarts who were present at the summit and lent their support to the objective of meaningful unity included;

Ÿ Dr Anna MokgokongŸ Mashudu RamanoŸ Jabu MabuzaŸ Dr Danisa BaloyiŸ Don MkhwanaziŸ Dr Thami MazwaiŸ Ndaba NtseleŸ David MoshapeloŸ Patrice Motsepe

The summit resulted in black business resuming their original name: Black Business Council (BBC), and mission:

'To ensure unity among black business (rst and foremost)'.

It was also concluded:

Ÿ That black business suspends its participation in BUSA and immediately engages BUSA on a range of policy, structural and constitutional issues raised by black business, and that this process will be led by a team derived from the steering committee;

Ÿ That a steering committee (comprising presidents of national organisations and black business


SECTION 4

Ÿ stalwarts) was formed to lead the new body under the chairmanship of Patrice Motsepe;

Ÿ That a group of 11 is formed as a working group to feed into the steering committee.

There were four commissions that deliberated on four critical issues that affect black business, which came up with the following resolutions:

4.4 ECONOMIC TRANSFORMATION

1. Dening a black business agenda to include issues that deal with economic revolution:

Ÿ Building a new community of black entrepreneurs;

Ÿ Reforming government tools (PPPFA and government agencies);

Ÿ Access to nance including the establishment of a black venture capital fund; and

Ÿ Employment creation.

2. BBC should lead the black business agenda including investigating models to advance this by creating an advocacy body with the necessary capacity;

3. Elevate the BBBEE Advisory Council into a structure that takes the form of a commission or ministry; and

4. That the government should allocate funding towards the activities of the BBC.


On June 25, 2011, the BMF held a board meeting and with the powers vested in the BMF Constitution, made a ground breaking decision. The BMF led bytheir President Jimmy Manyi,withdrew from BUSA.

SECTION 4

4.5 SMME DEVELOPMENT

1. SMME expansion affects three areas:Ÿ the development of

entrepreneurs, Ÿ support to enterprises, andŸ creating an enabling

environment;

2. Further resolved on entrepreneur development - That the National Skills Fund should accelerate the provision of funding towards entrepreneur education;

3. Enterprise support - In terms of provision of access to nance, we are calling on a creation of a broad-based black-owned and managed nancial institution;

4. Enabling environment - The creation of a small and black business ministry.

4.6 INFRASTRUCTURE INVESTMENT COMMISSION

1. Land claims process must be fast-tracked;

2. There must be a 15-year moratorium on the resale of land acquired through the land reform process;

3. The land sales transactions to include structured community development plans and programmes; and

4. Land tax to be levied on all unutilised land.


Three Focus Areasof SMME Expansion

Entrepreneur developmentEnterprises supportCreation of enabling environment

1.2.3.

SECTION 4

This summit marked the beginning of a new era for black business by dening its own agenda and identity. The summit will be seen as the catalyst that will shape an economic revolution in South Africa, and will see the country establishing itself as a global powerhouse. The BBC hoped to give 'the people' economic power. Black people, as the majority in our nation, need to control the authoritative stature of the economy, and this is the objective of the BBC. In a media release, dated October 7, 2011, the BBC announced that its leadership would meet with government, trade union organisations, various women's and youth organisations, churches and other stakeholders to discuss:

Ÿ Job creation;Ÿ The alleviation and eradication of

poverty;Ÿ The implementation and

acceleration of government's transformation and BBBEE policies and laws;

Ÿ The formulation and implementation of strategies, which will result in the ownership and control of certain key industries by blacks;

Ÿ The unity of black and white business; and

Ÿ South Africa's ability to continue to be globally competitive and attractive to domestic and foreign investment.

The chairman of the BBC, Patrice Motsepe, said:

“There is a feeling among black entrepreneurs and professionals, and the organisations that represent them, of being ostracised and marginalised from participating and beneting from the growth and the development of our economy. These problems are separate from the enormous challenges of creating jobs and eradicating poverty which confront us all.”

Motsepe proceeded to say that black and white business should unite and work together to deal with the serious challenges that face our country and contribute to the improvement of living conditions and standards for all South Africans.

Motsepe concluded by saying:“It is in the long-term interest of business to work together with government, labour, churches, women's and youth groups and other stakeholders to ensure that all South Africans and, in particular, historically disadvantaged persons and their communities, participate and benet from the development and growth of our economy.”

BBC's view is that BUSA was formed not only to promote and protect the interests of business, but also to lead the process of ensuring that the consequences of the legacy of apartheid – which excluded black business from participating in the economy– were redressed.


SECTION 4

The future participation of black business in BUSA is dependent, among other issues, on its genuine commitment to remedy the structural deciencies and failures which originally compelled BBC members to suspend the participation.


There is a feeling among blackentrepreneurs and professionals,

and the organisations that represent them, of being

ostracised and marginalisedfrom participating and

benetting from the growth and the development of our economy.

SECTION 5

AFFIRMATIVE ACTION BLUE PRINT

BACKGROUND OF THE BLUE PRINT

In June 1993 the Black Management Forum (BMF) set up an Afrmative Action Commission. The twelve-member Commission looked at key aspects of afrmative action using various sources of data, including the study, Succeeding in Afrmative Action in South Africa in the 1990's (March, 1993), conducted by the BMF and Business Marketing Intelligence. The recommendations of the Commission were adapted, with appropriate amendments, by the BMF as its denitive position on afrmative action.

The BMF's Blueprint on Afrmative Action covers the following critical areas:

1. The rationale for afrmative action in South African corporations

2. What afrmative action is

3. The scope of afrmative action

4. Who benets from afrmative action

5. Why the BMF should be the champion of afrmative action in the employment sector

6. Contentious issues around afrmative action and the BMF position on these issues

7. Some international experiences of afrmative action

8. Strategies for implementing afrmative action:

Ÿ afrmative action targetsŸ afrmative action legislationŸ culture and diversity

management Ÿ action steps for implementing

of afrmative actionŸ principles of afrmative action

9. Progressive companies


Afrmative action must create opportunities for education, training and development in the workplace,and these opportunities must result

in demonstrable economic empowerment of

those who benet from them.

A number of factors have contributed to the present social and economic inequalities in South African society. These factors are:

Ÿ the imposition of racist socio-economic policies by successive governments in South Africa under colonialism and apartheid;

Ÿ the success of these policies in engineering the deliberate stunting, retardation and underdevelopment of Black South Africans;

Ÿ the simultaneous success of these racist policies in the engineering the overdevelopment and over-utilization of Whites in South Africa as the sole source for leadership and management in commerce, industry, the professions and other walks of life;

Ÿ the resultant racial distortion in these leadership positions in favour of Whites, who ll a quantity of such positions totally out of proportion to their demographic representation in the South African population.

The effect of these racist policies has been to create a situation in which;

Ÿ there is paucity of Black people in leadership positions in commerce, industry and other key socio-economic institutions;

Ÿ the South African economy is under-performing dramatically, and is over-reliant on a diminishing and

SECTION 5

5.1 THE RATIONALE FOR AFFIRMATIVE ACTION

limited pool of White people for skills and leadership to improve the situation;

Ÿ South Africa rates very poorly with regard to its commitment to human resource development, in comparison with other newly industrialised countries;

Ÿ the tremendous potential for creative social contributions amongst the Black majority, and their aspirations as citizens of this country, have been ignored or deliberately trampled upon by industry and commerce for decades, to the detriment of all concerned.

On the basis of this analysis the BMF argues that a deliberate effort must be made to bring Blacks into the central spheres of action of South African society: political leadership, business management, public administration, the professions and other key sectors of social and economic activity. It is considered a matter of national importance that this effort should be embarked upon urgently and with serious commitment.

The BMF believes that this effort should take the form of an afrmative action programme. Such a programme is justiable and necessary in order to reverse the effects of decades of discrimination against the majority of the South African population and to restore balance where socially engineered


SECTION 5

imbalances were maliciously put in place. The impoverished, under-educated and under-utilised Black majority (both men and women) needs to be provide to Whites before they can be expected to "pull themselves up by their bootstraps". We need to initiate an afrmative action process that is carefully planned, controlled and evaluated if we want to ensure the social and economic survival, and the future prosperity, of this country.

5.2 DEFINING AFFIRMATIVE ACTION

Afrmative action needs to be dened in a way that has meaning within South African context, and that reects the particular historical origins of inequality in this country. The denition must also give clear directions as to how a commitment to afrmative action can be translated into strategies.

The BMF identied the following as desirable characteristics of afrmative action in the South African context:

(a) Given the legacy of institutionalised racial and gender discrimination in South Africa, afrmative action must help to reverse the prevailing situation of disadvantage of the majority. It must also represent an afrmation of all the human rights which were historically violated by institutionalised discrimination.

(b) Afrmative action must create opportunities for education, training and development in the workplace, and these opportunities must result in the demonstrable

economic empowerment of those who benet from them. The beneciaries should be employees at all levels, i.e. from shop oor to executive management.

(c) a) Afrmative action must bring about complete transformation of the racist and sexist attitudes and practices that have been at the core of organisations in the past. It must help to develop a new organisational ethos, and an innovative set of policies and procedures for staff empowerment. Afrmative action is an ongoing process that affects all aspects of an organisation's operation; it is not isolated event or programme.


On the basis of this analysisthe BMF argues that a

deliberate effort must be madeto bring Blacks into the central

spheres of action of theSouth African society, namely;

political leadership,business management,

public administration etc.

SECTION 5

The BMF, therefore, offers the following denition of afrmative action which is applicable to any disadvantaged group or individuals from a historically disadvantaged group:

Afrmative action is a planned and positive process and strategy aimed at transforming socio-economic environments which have excluded individuals from disadvantaged groups, in order or such disadvantaged individuals to gain access to opportunities, including developmental opportunities, based on their suitability.

Afrmative action therefore implies meritorious empowerment of individuals through opportunity and development. Assessment of merit should be based on fair, objective and non-culturally biased standards.

Afrmative action in the workplace requires the total eradication of all obstacles, whether subtle or overt, formal or informal, which hinder the empowerment of disadvantaged individuals.

5.3 THE SCOPE OF AFFIRMATIVE ACTION

In order to make a signicant contribution to the combating of discrimination in South Africa, afrmative action should embrace the totality of the lives of Black people in all sectors and at all levels of society. However, the BMF as an organisation has a special responsibility to concern itself primarily with management and organisational development, and to make afrmative action in this sphere a priority. At the same time, the BMF continues to forge alliances with other interest groups who are addressing the need for afrmative action in other sectors of South Africa life. (These Sectors are listed in chapter 9, "progressive Companies").

The term Black people refers to all individuals who were politically excluded from a meaningful role with South African Society on the basis that they are not white. The BMF also recognizes that Black people as a population comprise three groups, being African, Indian, and coloured. Afrmative action policies and programmes should reect these groups according to their proportionate demographic representation.


The BMF considers the magnitude of systematic discriminationagainst African women and men, especially over the apartheid

period, as deserving primary consideration [as afrmative action candidates and beneciaries].

SECTION 5

5.4 THE BENEFICIARIES OFAFFIRMATIVE ACTION

The BMF recognises that afrmative action benets both the organisation and the individual.

PRIMARY BENEFICIARIES

The BMF regards the organisation as the primary beneciary of and candidate for afrmative action. Organisations have been disadvantaged by apartheid policies of racism and over-utilisation of whites. These policies have denied the benet of contributions which could have been made by Black people to the development of organisations.

The BMF recognises the existence of other forms of discrimination (for example , against the handicapped and against gay people) but considers the magnitude of systematic discrimination against African women and men, especially over the apartheid period, as deserving primary consideration.

SECONDARY BENEFICIARIES

These are Black men and women, as well as other historically disadvantaged groups that have been victims of apartheid. Within this category, women and men classied as African have been especially disadvantaged.


Merit should not be viewed solely as the ability

to do the jobhere and now.

The potential to do the jobin the future, given

appropriate training and motivation,

should be considered.

SECTION 5

5.5 WHY THE BMF SHOULD BE THE CHAMPION OF AFFIRMATIVE ACTION IN THE EMPLOYMENT SECTOR

The BMF argues that, in the South African context, afrmative action is primarily concerned with enabling Blacks to gain access to the occupational opportunities that they have been denied through racial discrimination. Economic empowerment for Black people in general, and for Black manager in particular, is not going to occur on its own.

In any society, a group that does not organise itself to protect its interest and express its needs normally gets marginalised. Black managers as a group are in danger of being marginalised in South African Society, unless the can collectively express themselves on the need for afrmative action to improve their position.

The BMF therefore, operates from the following premise:

As the most legitimate, appropriate and organised voice of Black managers and executives, the BMF is best positioned to give expression and leadership on the development and empowerment of managerial talent. The development of a strong and responsive cadre of Black managers and executives will ensure the upliftment of both the disadvantaged worker and the Black community. The

BMF clearly understands the needs of Black managers and can accurately articulate them. The BMF has a duty to assume a strong advocacy role on afrmative action so as to ensure that there will be enough Black managers to satisfy the needs of the economy in post-apartheid South Africa.

5.6 CONTENTIOUS ISSUES AROUND AFFIRMATIVE ACTION

The BMF notes with great concern that there are a lot of myths and misconceptions amongst people in South African businesses and other organisations regarding afrmative action. Many people also have fears about the ways in which they think afrmative action will be implemented. These misconceptions and fears are not necessarily based on an accurate understanding of afrmative action.

The BMF believes that it is important to acknowledge people's concerns and to eliminate any confusion that may exist about the nature and practical implications of afrmative action. The BMF offers the following responses to some of the common concerns that people express.


SECTION 5

DOES AFFIRMATIVE ACTION UNDERMINE MERIT-BASED PROMOTION?

It is often asserted that afrmative action goes against the principle of promotion on the basis of merit.

Ÿ It is wrong to assume that people in any society are always appointed solely on the basis of merit. All over the world, societies reproduce themselves by promoting certain individuals and groups within the broader society who will perpetuate a particular set of values and power relations. There is no such thing as 'the best person for the job' in an objective sense because 'best' is always dened, at least in part, in terms of cultural, religious, race and gender criteria.

Ÿ There is a need to re-examine the ways in which merit has been traditionally dened and assessed in this society. It must be possible to analyse someone's 'merit' within the context of South Africa's particular history. We must also acknowledge the need to use the new, post-apartheid period to combat specic social evils that have limited people's ability to achieve the levels of merit now being expected of them.

Ÿ Merit should not be viewed solely as the ability to do the job here and now. The potential to do the job in the future, given appropriate training and motivation, should be considered.

LOWERING OF STANDARDS

While the issue of falling standards is sometimes used as a cover for racists views, it can also be an excuse used by those presently in authority to justify their remaining there.

Ÿ Some of the standards for specic jobs are irrelevant, articially inating entry qualications and unnecessarily blocking all women and Blacks.

Ÿ A person's job does not exist in a vacuum. Peak performance is inuenced by the culture and climate of the business environment, as well as motivational factors. It cannot be dened simply in terms of qualications and abstract standards.

Ÿ In evaluating standards of entry to a position and an individual's capacity for development, it is important to consider not only formal qualications but also other factors such as individual tenacity, motivation and similar competencies. These factors will all inuence an employee's ability to learn and to cope with the job.

Ÿ Standards for the job performance have to be re-dened. The most suitable benchmark for setting new standards is one which is used internationally, whether it be for Blacks, women, Whites or whoever is involved.


SECTION 5

TARGETS AND QUOTAS

Antagonists of targets and quotas argue that they are externally imposed, cast in concrete and once set, have to be met at all costs.

Ÿ These arguments assume that targets and quotas will be set in an unrealistic way, with no reference to the actual skills resource database and other relevant factors in the work environment. Antagonists of this method also ignore the fact that the quotas should not be set until all concerned parties have been engaged in serious deliberations to nd the best way of going about the process. If this is done, there will be less emotive reaction from certain sectors to the idea of targets and quotas.

Ÿ International and local experience has proven that voluntary targets and quotas do not work and that one cannot rely on good faith alone when it comes to asking employers o implement afrmative action. International experience also shows that the setting of quotas accelerates the process of afrmative action within a society.

Ÿ Targets should be set using the information provided by the skills resource database, human resources plan, turnover rate, and should then be imposed internally within the organisation as well as nationally and made enforceable in law.

TOKENISM, STIGMA AND ELITISM

Essentially tokenism occurs when a company promotes Blacks into very visible positions, without ensuring that they have acquired the skills they need to take responsible decisions in their new posts. The BMF's view is that this practice of employing and promoting unqualied employees is not related to the process of implementing targets. It is more an effect of the tokenist attitude of certain employers towards afrmative action. Tokenism can be avoided, and targets successfully implemented, if there is proper analysis of the working environment, appropriate training and suitable follow-up when Black staff are employed.

With regard to the question of the stigma attached to the afrmative action by some of its beneciaries, the BMF argues that:

Ÿ afrmative action is supposed to be a company strategy to heal the company. The organisation, therefore, benets as a whole, and the Black person should not have a negative attitude as an afrmative action beneciary.

Ÿ If afrmative action has been managed properly, it should not lead to any stigma. Those Blacks and women who are hesitant to take up afrmative action positions, should rather act in terms of the reality of their situation: if there is an opportunity, take it!


SECTION 5

Opponents of afrmative action take the position that afrmative action leads to the emergence of a small Black elite and does not benet the masses. The BMF's view on this matter is that:

Ÿ Afrmative action should benet staff at all levels of an organisation.

Ÿ Elitism in its negative form assumes reactionary political attitudes and aloofness from the masses. This is not necessarily the case with Black managers. One can be part of an elite without being elitist.

Ÿ Society in every country has an elite of one kind or another, so the emergence of an elite in South Africa is not in itself a problem.

Ÿ Education and skills training lead to a higher socio-economic level and all citizens of this country are entitled to a better standard of living.

JOB HOPING

The BMF notes that all over the world young upwardly mobile professionals with skill and potential change jobs several times. This syndrome has given rise to the concept of the 'yuppie'.

Skilled people have the right to sell their skills to the highest bidder. It is, however, critically important that individuals obtain sound experience and expertise and not change jobs without good cause.

Companies are the main culprits in job hopping. They fail to provide meaningful, responsible and powerful positions to Black people. Black managers are often not taken seriously into account by their organisations and they suffer from under-utilisation. Job hopping is largely a function of the environment and not the mercenary inclinations of individuals.

REVERSE DISCRIMINATION

One of the rst questions often asked about afrmative action is whether it is a form of discrimination. In answering this question the BMF points out that afrmative action in fact aims to achieve equality among people of different races , gender or other groups. The aim is to overcome discrimination and achieve equality. In the light of the above , the BMF states emphatically that:

Ÿ when whites cannot get jobs because the company prefers to employ Blacks, this policy must be seen in the context of the previous situation in which Whites were always preferred over Blacks. This situation is being directly reversed by afrmative action, which is in effect the reversal of discrimination rather than reverse discrimination.

Ÿ It is not the basic human right of Whites to jobs that is being removed. Rather, it is the privileges that were exclusively theirs that must now be removed. In this


SECTION 5

Ÿ context, afrmative action must be seen as a way of extending this basic human right to Blacks.

Ÿ Discrimination has a negative meaning, in that it implies a detrimental effect on the person being discriminated against and an intention to bring that person down. This is not the case with afrmative action.

Ÿ Where companies place moratoria on the appointment of Whites, this has to be seen as temporary measure to address specic imbalances within a particular time frame, not as a permanent strategy. Only if it were a permanent strategy would it become reverse discrimination.

5.7 SOME INTERNATIONAL EXPERIENCES ON AFFIRMATIVE ACTION

The experience of the following countries will be dealt with in this section:Australia, Canada, Great Britain, India, Italy, Malaysia, Namibia, USA and Zimbabwe.

The Australian and Italian policies are directed mainly at women, the Malaysian at a disadvantaged ethnic majority, the Namibian and Zimbabwean at Africans disadvantaged by colonialism, the Indian at traditionally disadvantaged minorities ("scheduled castes and tribes") and Canadian, British and United States at all disadvantaged categories.


Afrmative action is simply reversal of discrimination

rather than reverse discrimination.

ReverseDiscrimination?

In Great Britain, a Programme of Action was developed which among other issues seeks to encourage men and womento apply for jobs in which their sex has been under-representedor to be empowered to develop their potential.

SECTION 5

The Australian legislation (1986) explains why afrmative action for women in the employment arena is necessary. It lays down 8 steps which must be followed in introducing afrmative action in any organisation of over 100 employees. It requires employers to submit an annual report to the Afrmative Action Agency, which originally fell under the ofce of the Prime Minister and now falls under the Minister of Industrial Relations.

The eight steps are:

Ÿ development and communication of a policy statement

Ÿ appointment of a senior manager, preferably the chief executive, as responsible for the afrmative action programme

Ÿ consultation with trade unionsŸ consultation with employees,

particularly womenŸ review and analysis personnel

policies and practices setting objectives and forward estimates

Ÿ monitoring and evaluation of the afrmative action programme.

The afrmative Action Agency monitors the compliance and provides copious advice to employers on how to comply.

There is also an Equal Opportunities Commission, both nationally and in each state which has passed anti-discrimination legislation. People who

AUSTRALIA feel that they have discriminated against (in employment) on grounds of race, gender, sexuality or physical handicap can lodge a complaint. The EOC has powers to demand disclosure and, having established a prima facie case, can take legal action on behalf of the complainant.

An evaluation of the policy was carried out in 1992 and published in the form of a Discussion paper. On the basis of this it is likely that sections against non-compliance will be made harsher. At present the names of organisations which fail to le their reports are tabled in Parliament. However, such organisations are a minority and the assessment suggests that afrmative action, in this enabling but structured form, has transformed not only the position of women in employment, but also human resources practices more generally.

The Canadian Employment Equity Act (1986) is designed to create equality in the work place "so that no person shall be denied employment opportunities or benets for reasons unrelated to ability...", by means of afrmative action for all "designated groups" (DGs) namely aboriginal people, people with disabilities, members of visible minorities and women. It aims to give effect to the

CANADA


SECTION 5

principle that "employment equity means more than treating persons in the same way but also requires special measures and the accommodation of differences.”

Every employer in the public and private sector (excluding the civil service) with 100 or more employees must, in negotiation with the recognised bargaining unit, implement employment equity by:

Ÿ identifying and eliminating employment barriers against DG members;

Ÿ implementing such positive policies and practices that persons in the DGs achieve a degree of representation in the various positions that is at least proportional to their representation in the workforce or in that segment of the workforce from which the employer may be reasonably expected to draw employees.

Ÿ Planning specic goals timetables for each year.

Each employer must le with the Minister of Employment, a certied report compiled in the prescribed manner. Failure to report and to keep records make an employer subject to summary conviction and a ne of up to $50,000.

In addition, the Federal Contractors Programme requires that any company of 100 or more employees and bidding for a contract of $200,000 or

more with the government, must commit itself to implementing employment equity by means of a signed certicate. All the reports are available for public scrutiny and companies which do not carry out their own proposals risk losing their contract.

The Public Service Commission has an ofce of Equal Opportunities for women , and special provisions for the employment of disabled people and Nova Scotia Blacks.

The Canadian experience suggests that employment equity programmes must be comprehensive, systems-based and results-orientated. They need to be actively supported through well-focused development tools for all employees and fully integrated into every aspect of resource management.

In Great Britain there is no afrmative action legislation. However, the Equal Opportunities Commission, established to monitor the Race and Sex Discrimination Acts, produced a Code of Practice encourages "positive action"and in 1988 set itself a series of 17 new objectives for the 1990s. These are entirely directed towards persuasion and the removal of barriers in education, training, unusual occupations for women, work and

GREAT BRITAIN


SECTION 5

family conict and so forth. Both initiatives encourage consultation with trade unions.

In the Civil Service, a programme of Action was developed in 1984 and updated in 1992, to achieve equality of opportunity for women employees. It requires state departments and agencies to comply with the European Community Directives and with Equal Opportunities Commission Code of Practice in Employment. The 1992 Innovation is the creation of an "action checklist" which should be used by departments to draw up their own strategies and goals for improving equal employment opportunities.

The programme of Action also provides for "positive action" to allow steps to be taken which encourage either men or women to apply for jobs in which their sex has been under-represented or to be given training to help them develop their potential.

The ofce of the Minister for the civil Service is responsible for reviewing and reporting on the implementation of the Programme of Action and the state departments and agencies are responsible for drawing up, implementing and monitoring their own action plans.

Very little has changed in Great Britain, since there is no requirement that employers adhere to the Code of Conduct. The only sanction is that if an individual takes the employers to court on grounds of discrimination, the employer is more likely to be found

guilty if they have taken no steps to comply.

The Indian Constitution (1949) makes provision for special measures for the advancement of members of "scheduled castes and tribes and other backward communities". The former two categories constituted 15% and 7% respectively of the total population, 22 % of the places in educational institutions and the public service were serviced for them. In 1990 a further 27% of such places were set aside for "other backward communities". Thus the total of reserved positions is now nearly 50%.

The lessons from India are that, without massive expenditure on mass education, the setting of simple quotas can be deleterious: decades after the imposition of quotas it is still not possible to ll the reserved positions due to the absence of educated candidates.

INDIA


SECTION 5

The Italian Positive Action legislation (1991) outlaws discrimination against women. In addition it sets up a National Committee for positive Action (afrmation action) with the Minister of Labour and Social Services as the chair and with strong representation from the three national trade union federations and women's associations concerned with equal employment opportunities.

The committee is charged with making suggestions for legislation, sensitising public opinion, promoting afrmative action in public institutions, receiving reports from public and private enterprises with more than 100 employees on their employment and training practices and exercising control over afrmative action projects.

Employers are not required to introduce afrmative action projects, but they may apply to have any such projects funded by the Dept of Labour in accordance with this law. The scope of fundable projects is wide: eliminating disparities in training, schooling and progression of employment in areas where they are under-represented; promoting a better division of domestic responsibilities between the sexes by means inter alia of changes in the timing and condition of work. It is too early to judge the results of the Italian legislation.

ITALY

In Malaysia the New Economic Policy of 1971 was designed to restructure the society so as the reduce and eventually eliminate the identication of race with economic function. Like Blacks in South Africa, indigenous Malays (bumiputera) constituted a disadvantaged near majority. In education, universities implemented informal racial quotas so that Malays now constitute 67% of the university students. In terms of ownership of enterprises, a target of 30% in Malay hands was set, and all new businesses had to have at least 30% Malay participation. Public trusts were set up which would own businesses on behalf of Malays. All state departments and parastatals had special programmes favouring Malays.

In Employment the government pushed targets of 40 to 50% for Malay employees in private rms. The public service was legislated to obtain a 3:1 or 4:1 ratio of Malays to non-Malays in top positions, varying by department.

It is a widely shared view that this policy has been successful in the public service and in the education sector. However, Chinese Malaysians still control the private sector and the policy has been able to succeed only because a deal was struck so that Chinese Malaysians were able to maintain their economic supremacy.

MALAYSIA


SECTION 5

In Namibia the Public Service Commission was empowered to create a more representative civil service than the predominantly White one of the colonial period. The civil service was much expanded in order to cater to a wider public and, in confronting this task and that of afrmative action, the PSC relaxed some requirements for recruitment and promotion, deviated from former procedures and gave priority to disadvantaged applicants.

The private sector having failed to initiate any afrmative action programmes, an afrmative action act was passed in 1989. However, there is no enforcement procedure and many foreign Blacks are being employed instead of local people in order to meet requirements.

NAMIBIA

In the USA there is no afrmative action legislation. On the one hand there are executive orders requiring employers who are government contractors to undertake "under-utilisation analyses" and devise plans to correct under-represantation of a group according to the proportion it occupies in the pool of suitably qualied personnel. On the other

hand, afrmative action can be imposed, as part of a court judgment, on an employer found guilty under Title VII of race or sex discrimination. An employer may engage in afrmative action only if they have admitted guilt or have been found guilty under Title VII, so that they may do so in order, for example, to supply "role models".

The 14th Amendment to the federal constitution (that guaranteeing "equal protection") is similar in its action to the Title VII, except that it applies only to state practices, and a state body, as employer, has an easy-to-meet defense in the form of meeting a "legitimate state purpose". A state body may only implement an afrmative action plan it has been found guilty of prior racial discrimination, and the court will subject any such plan to "strict scrutiny".

USA

In Zimbabwe there is no afrmative action legislation. However, one month after independence, the President issued a Directive to the Public Service Commission which makes appointments to and promotions within the civil service. This was to the effect that the president could give general directions of policy to the PSC to effect a ''suitable

ZIMBABWE


SECTION 5

representation of the various elements of the population" in the civil service.

Normal procedures of appointment and promotion were waived to facilitate the appointment of Black Zimbabweans, particularly to middle and senior management posts. As a result, from being all White in 1980, the civil service is now 95% Black.

There is no doubt that this policy has been effective in attaining its objective, and that it was helped by exodus of Whites from Zimbabwe. However, this has been done at enormous cost, both in terms of a dramatic decline in efciency and probity.

The government has forced changes in ownership through a combination of nationalism, buyouts, and acquisitions through the stock exchange.

The BMF believes that for the afrmative action process to be sustainable, and to be enforced with least resistance, negotiated targets must be set. These targets must be monitored for an agreed period, after which any unacceptable failure to achieve such targets will invoke the setting and application of quotas; the latter being goals or numbers that must be met at all costs.

5.8 STRATEGIES FOR IMPLEMENTING AFFIRMATIVE ACTION

5.8 (i) TARGETS AND QUOTAS

The BMF applied itself to the vexing question of targets for afrmative action, and to the problems and concerns that have been raised about this issue, and came to the following conclusions:

Ÿ After more than two decades of afrmative action in South Africa, the performance of South African organisations has been, to say the

WHY ARE TARGETS NECESSARY?


In Malaysia the New Economic Policy

of 1971 was designed to restructure

the society so as to reduce and

eventually eliminate the identicationof race with

economic function.

SECTION 5

Ÿ least, abysmal. The BMF notes that it is very difcult, if not impossible, to get accurate and reliable data on the skills and management situation. However, all the sources seem to come up with the same range of gures, e.g. less than 3% of middle management positions are occupied by Blacks and less that 1% top managers are Black. It is the considered view of the BMF that, unless targets are set, this situation is bound to continue. The BMF notes the important fact that organisations which have set targets have made signicant strides in the area of afrmative action.

Ÿ The BMF argued earlier that afrmative action benets both individual Black employees and the organisations that embark upon afrmative action programmes. It is important that afrmative action in an organisation should not only be seen to be a business strategy, but should really BE a business strategy. Business practice all over the world (South Africa included) is based on the setting of targets and the development of plans to ensure attainment of such targets. In the BMF's opinion, targets have only become a controversial issue for business when they have been related to the successful redressing of apartheid evils. This is totally unacceptable to the BMF.

Ÿ Monitoring against targets, as in any business activity, is an important element in boosting staff

motivation. It is inconceivable that line management (the custodians of afrmative action) can ever be motivated through the afrmative action process if they will never know, in an objective way, how close they are to meeting the targets sets.

Ÿ For the BMF an important milestone in afrmative action is reached when the number of Black people and women in the various positions has reached Critical Mass (CM). Afrmative action then reaches a stage where it supports their continued progression, maintains its own momentum and becomes self-propelling. The BMF believes that it will be difcult to reach CM without targets. This CM needs to be dened in advance and incorporated into targets. In the BMF's view, 30% representation at middle and senior management levels is sufcient CM for afrmative action to begin to propel itself. The process of attaining CM can be monitored if clear targets have been set.

Ÿ The BMF accepts that it is crucial to dene the point at which organisations exit from afrmative action programmes. Unless this is done, the process runs the real risk of turning into reverse discrimination rather than reversing discrimination. An appropriate exit point can only be known if targets exist to dene the goals of the programme.


SECTION 5

Ÿ The BMF believes that afrmative action should be an integral part of an organisation's holistic and strategic staff development and succession planning. Traditionally, business planning is based on achievable targets. The BMF asserts that an afrmative action plan should be subjected to the same rigour if it is to be taken seriously in an organisation.

Ÿ The BMF reiterates a point made earlier, that South African and international experience has proven that voluntary targets for afrmative action do not work, and that one cannot rely in goodwill of employers or have faith in them to voluntarily implement afrmative action programmes for employees ravaged by the effects of apartheid in South Africa. The BMF proposes a ‘soft’ approach to getting these programmes implemented, namely the setting of negotiated targets, to be followed by quotas where an employer fails to justify failure to achieve the agreed targets.

Ÿ Negotiated targets will have to take into account the availability of these requisite skills. The monitoring process will also have to grapple with this reality. In so doing, those monitoring the attainment of targets will also, to some extent, be challenging any tokenist practice that may occur.

Ÿ The BMF strongly believes that unless targets are set, the afrmative action process is doomed to failure.

WHO IS THE BMF TARGETING FOR AFFIRMATIVE ACTION?

The targets set by the BMF are aimed at all companies listed in the Company Registry (and not just on the Stock Exchange).

The ultimate position which the BMF would like to see in the industry in South Africa is one where the number of employees at all levels in an organisation reects the demographic prole of the South African population at that given time. Attainment of this target will be nal exit point for afrmative action programmes and monitoring. Targets will, of necessity, have to take into account the availability of suitably qualied people both within and outside the organisation, the potential in the job candidates, the organisation’s human resource and succession plan and other relevant information.


SECTION 5

30%

20%

30%

40%

50%

70%

80%

The “Basotho Hat Formula” for afrmative action targets

NON-EXECUTIVEDIRECTORS

EXECUTIVEDIRECTORS

SENIOR MANAGEMENT

MIDDLEMANAGEMENT

JUNIORMANAGEMENT

SUPERVISORS

TRAINEES

Using the Paterson job grading system as reference, the BMF set a range of targets for the implementation of afrmative action by the year 2000. The percentages, as shown in the diagram above depict the percentage of black staff in each sector.


SECTION 5

The BMF resolved that within seven years (by the year 2000) organisations in South Africa should have reached these desirable targets:

The Paterson job grading system is used for reference. No organisational hierarchy or "racial pocket" should exempt from these targets.

Ÿ Eighty percent (80%) of all trainees on any training and development programme should be Black.

Ÿ Seventy percent (70%) of all supervisors (Paterson C Band) should be Black.

Ÿ Fifty percent (50%) of junior managers (this gure includes management trainees at this level and is at Paterson Lower D band level) should be Black.

Ÿ Forty percent (40%) of middle managers (Paterson E band) should be Black.

Ÿ Twenty percent (20%) of executive (Paterson F Band) should be Black.

Ÿ Thirty percent (30%) of senior managers (Paterson E band) should be Black.

Ÿ Thirty percent (30%) of non-executive directors should be Black.

ARE THESE TARGETS REALISTIC?

The BMF considered at length whether these targets can be achieved in seven years when Blacks currently occupy less than 30 % of management positions; when there is a dearth of suitably qualied Blacks; in a declining

economy; and in organisations that are shrinking is size.

The BMF's responses to these questions can be set out as follows:

Ÿ Afrmative action is not an event; it is a process and its progress needs to be monitored. Targets will be negotiated to take account of the specic realties pertaining at any given time, and may have to be revised to remain achievable.

Ÿ The BMF agreed that there are already sufcient Black people (male and female), both within and outside organisations, who can be trained or promoted t supervisory or C Band levels. The 70% target for Black supervisors in seven years is therefore attainable.

Ÿ Lower D Band is seen by the BMF as the realistic entry point for management trainees. There are also specic jobs at this level that are or will be occupied by certain people (which must include Blacks within the spirit or ethos of afrmative action) who will not move up in management ranks. If the supply side of this level of people is increased, both within and outside the organisation, it should be possible to have 50% of trainee and real managers at this level in seven years. If they are not available in the outside market, organisations must work actively to produce them.


SECTION 5

Ÿ At upper D Band level, i.e. middle management level, there is already a sprinkling of Blacks. If people are brought in and developed as a matter of urgency at junior management and management trainee level, it is possible for organisations to attain 40% of their Upper D level being Black. This will be greatly assisted if organisations have an appropriate retirement and 'understudy' process.

Ÿ Band level can only be reached by people who are ready to 'make it'; one has to wait for individuals to achieve this. The BMF also accepts that it takes at least seven years to develop people who will operate effectively at this level if window-dressing is to be avoided and the interests of both theincumbent and the organisation are to be taken seriously. The BMF submits that it is possible to have 30% of E Band, i.e. senior managers being Black in Seven Years, depending on the following factors:

(a) the performance of the economy;

(b) the commitment organisations show to getting Black Managers into the D Band level;

(c) the speed with which organisations can achieve the D Band target.

These targets serve as key milestones which will determine progress achieved towards the normalisation of our society. It is on reaching these targets that afrmative action can be retired for that particular occupational or management level.

2000 AD

EXECUTIVE DIRECTORS20%

SENIOR MANAGEMENT30%

JUNIORMANAGEMENT50%

MANAGEMENT TRAINEES50%

NON-EXECUTIVE

DIRECTORS

30%

MIDDLE

MANAGEMENT

40%

SUPERVISORS

70%

Ÿ The BMF admits that executive director level, i.e. F Band, is the policy formulating level within an organisation and that it takes longer for people to make it to this level. The BMF submits that a company can recruit people from outside of this level while it accelerates the development of people from inside the organisation. The BMF also observes that it is at this level that the decision about culture and


SECTION 5

Ÿ pressure for afrmative action in an organisation are developed. Perspectives of Black people on these matters needs to be represented personally by Blacks. For this reason the success of afrmative action and the attainments of targets have to be viewed as an integrated strategy involving all levels of staff.

Ÿ It is the considered and informed view of the BMF that non-executive directors (NED's) are gaining more and more power in company boardrooms. The BMF believes that there are enough Blacks with awareness of business who can be appointed as NED's, over and above small pool of a dozen or so who are currently being used. Thirty percent (30%) in seven years is very feasible target for this level of Blacks.

Ÿ In conclusion the BMF asserts that it is time for organisations to rise to the challenge of transforming themselves through afrmative action. If afrmative action is adopted as a matter of strategic importance then the suggested targets, within the seven-year time frame, can be attained. The BMF is more than willing to assist companies who are seriously committed to this process of change but the responsibility for achieving alignment with the broader community belongs to the organisation.

In addressing the question of legislation to enforce afrmative action, the BMF takes note of the following:

Ÿ Constitutional guarantees, coupled with a legislative framework which outlaws racism and sexism in the workplace and with 'voluntary' afrmative action programmes will not be enough to eradicate economic and social inequalities produced by apartheid.

Ÿ In the international context, the introduction of 'coercive' laws to enforce afrmative action in terms of quotas and frames has brought about changes to employment patterns.

Ÿ Because of the unevenness of the spread of skills across the racial groups in South Africa, afrmative action legislation will of necessity have to be exible.

The BMF therefore recommends that:

5.8 (ii) AFFIRMATIVE ACTIONLEGISLATION

(a) a committee of legal and constitutional experts be appointed to draw up an Afrmative Action Bill and

(b) towards that end the BMF should lobby for the enactment of afrmative action legislation by the new government.


SECTION 5

IMPLEMENTATION STRATEGIES

In order to allow for implementation of afrmative action legislation, the BMF recommends that the following steps should be taken:

(1) Given that Population Registration Act has been abrogated, the Transitional Executive Council should be lobbied to enact legislation to ensure that the identity documents issued to all South Africans include a race and gender code, and that all statistical compilations include race and gender codes.

(2) The Transitional Executive Council and/ or the new government should be lobbied to conduct a census free of all bias. The BMF holds the view that, upto the present time, none of the censuses conducted by the Apartheid government have been free of political manipulation.

(3) A Manpower Commission should be constituted to:

(a) conduct a comprehensive manpower audit to survey and map human resources data by race and gender;

(b) compile human resources data from both the public and private sector, and identify demographic representation by race and gender for all employment levels;

(c) assess literacy and numeracy skills by race and gender;

(d) survey the disabled race, gender, type and level of disability, and level of state assistance, and survey the availability of schooling/ training centres for disabled people by race and gender;

(e) survey all the areas in which the government utilises the State Tender Board Act and similar acts to contract services;

(f) investigate and make recommendations to establish criteria for determining which businesses are socially and economically disadvantaged;

(g) recommend legislation to set aside specic quotas in government contracts for socially and economically disadvantaged businesses. Alternatively the Manpower Commission must ensure that the appropriate government department recommends such legislation.

(4) The legal committee entrusted with the task of drafting an Afrmative Action Bill should also draft an Afrmative Action Statute to establish an Afrmative Action or Equal Opportunities Commission (EOC) with administrative and quasi-legislative powers. This EOC


SECTION 5

should have the following powers and functions:

(a) Employers will have to submit plans to the EOC setting out the afrmative action targets and time frames they have set voluntarily. The EOC will review the plans and will be empowered to revise them if they are unreasonable, and to set alternative targets.

(b) The EOC will have to ensure compliance with EOC directives, and must be empowered to use all necessary means, including publicity (e.g. publishing names of non-conformers in the Government Gazette and reading them out in parliament), nancial penalties, tax incentive, and any other mechanisms it deems effective.

(c) Each year the EOC director will table a budget report and a summary of recommendations for amendments to legislation that are consistent with the EOC's objectives.

The BMF is concerned about the incorrect usage of 'Diversity Management Programmes' and the misunderstanding of the role of diversity management in relation to afrmative action.

It also expresses strong reservations about the use of diversity management as the alternative to afrmative action proper. This tends to happen because, amongst other reasons, 'managing diversity' is seen as a safer and a less 'sensitive' term than 'afrmative action', and one which will not result in a White backlash. Diversity management is also seen as a quick-x training programme to get Black and White people to be nice to each other.

The BMF adopts the following position with regard to diversity management versus afrmative action:

Ÿ Managing diversity should not be viewed as a substitute term for afrmative action. In fact it should be recognised that managing diversity arises as a result of afrmative action, and not vice versa.

Ÿ Managing diversity is a process which goes well beyond simple training programmes. It works in three levels:

5.8 (iii) CULTURE AND DIVERSITY MANAGEMENT


SECTION 5

1. INDIVIDUAL LEVEL

Ensuring that each individual becomes aware of his/ her prejudices, attitudes and values towards diversity. It means examining aspects of your beliefs, values, and life experiences which are normally hidden.

2. INTERPERSONAL LEVEL

Giving employees the opportunity to be open in expressing and dealing with their frustrations, fears, concerns, rage, and anger, so that they can begin to build workplace relationships based on trust and mutual respect for differences. At this level it involves increasing awareness and understanding of the traits of people which are regarded as positive or negative, and consideration of which those traits are dened by value judgments. This allows for an understanding of the subtle barriers which inhibit the realisation of potential by candidates from the disadvantaged groups.

3. ORGANISATIONAL LEVEL

At an organisational level, there is a need to identify the policies, systems and practices which act as barriers to company and behavioral change. Are we utilising the potential of the total workforce? What criteria are used to measure performance? Is there genuine commitment from management towards empowerment, participation and valuing of diversity amongst employees? To what extent are human resources programmes

implemented haphazardly, with little integration?

Ÿ The BMF does not support the current overemphasis on groups in diversity management programmes. Valuing diversity has to be done with individual focus. Diversity management must emphasise a more positive perspective towards people's differences and similarities. Managing diversity is about challenging existing systems, policies, structures, managerial practices and the organisational culture. It is not about maintaining the status quo.

Diversity management needs to challenge traditional Eurocentric business practices and encourage the process of valuing and adopting a more Afrocentric business philosophy. It needs to develop an environment where trust and mutual respect are developed an environment where trust and mutual respect are developed as important aspects of staff development. In practical terms, valuing and managing diversity should create a positive paradigm for afrmative action. A good diversity management programme says that Blacks and women need not 't' or be assimilated into doing things in a Eurocentric way. They should not join the 'White male club' to make sure they are selected for promotions. They should not have to make presentations in a way which does not value their personal style of doing things, etc. Valuing diversity is about recognising


SECTION 5

that each individual is different and that this uniqueness should be valued.

Ÿ Managing diversity, by its very nature, is complex. It deals with people's behaviour, psychological processes, culture, values, beliefs, needs, expectations, and so on. This complexity requires a very subtle process of respecting diversity in individuals without trying to pin them down or put them into boxes. Yet the current reality is that use of diversity programmes instead if afrmative active programmes, with a resultant loss of the necessary subtlety and complexity, is rife.

The BMF believes that the following components are very signicant and should be an integral part of an effective afrmative action programme:

5.8 (iv) ACTION STEPS FOR IMPLEMENTING THE AFFIRMATIVE ACTION PROCESS

(a) The CEO of the company or organisation must have accountability for the implementation of an afrmative action strategy, policy and programme of action.

(b) Afrmative action must be an integral part of the organisation's business plan.

(c) There must be demonstrable support, commitment and driving of afrmative action process by the CEO (e.g. in every Board meeting, each executive must report his/ her performance on afrmative action).

(d) There must be a thorough understanding of what afrmative action entails by the executives who will drive it and by line management. The company must rst come to grips with afrmative action, before writing mission statements.

(e) Afrmative action must be underpinned by clear sound values and principles, which should be enshrined in the mission statement (for instance, a company cannot have afrmative action and racism at the same time).

(f) The afrmative action programme must be based on and be part of a holistic and integrated manpower plan that seeks a specic racial and gender mix in the organisation in the form of targets.

(g) There must be a racially and gender mixed afrmative action monitoring group in the organisation. This group must include representative of all


SECTION 5

employees affected by afrmative action (especially those employees who are traditionally under-represented). This must be a monitoring and implementation group, and must be involved in the development of afrmative action strategy.

(h) An afrmative action programme must accept the inevitability of diversity and must seek to understand and value diversity.

(i) All the people who are going to be affected by afrmative action must understand afrmative action and a conscious attempt must be made by the company to ensure this.

(j) Time, money and resources must be invested in ensuring the success of the afrmative action programmes.

(k) Line management accountability for performance must be rmly established. This must be done through entrenched rewards for performance and punishments for non-performance

(l) There must also be an independent external monitoring group, to monitor the progress on the implementation of afrmative action.

(m) The company must make deliberate and effective efforts to ensure that its union buys into afrmative action programme and is involved in its development and implementation.

(n) The company must link social investment to the development of a sustained pool of skilled black people (not just training for short-term purposes).

(o) The afrmative action programme candidates must be in real jobs with real responsibilities (and not tokens or 'homeland' managers).

(p) The company's current human resources policies and practices must be reviewed to weed out any discriminatory or biased policies and practices which have the effect of hindering the employment, development and performance of Blacks.

(q) There must be a workforce audit of the skills complement and under-utilization of Blacks and women

(r) The human resources department must be involved up-front in the development of afrmative action policy and strategy.


SECTION 5

(s) In addition to the CEO having accountability for the effective implementation of afrmative action, a senior manager must be appointed to drive the afrmative action process and to be its champion. Such a senior manager must come from a group that has been under-represented and that is being advanced. This champion must be a high-ranking person.

(t) Afrmative action must be included in training programmes of the company:

Ÿ There must be specic training for managers on afrmative action and this must include the re-evaluation of attitudes towards oneself and others, in the light of South Africa's history of exclusion and discrimination.

Ÿ Mentorship, coaching and whatever other support systems are needed, must be part of the afrmative action programme.

(u) The afrmative action programme of the company must address and manage White fears and White resistance to afrmative action.

Most of the principles that should guide afrmative action process are implied in the positions set out thus far. But it should be added that:

Ÿ Afrmative action is not perpetual crutch for helpless Black victims who would never get anywhere without assistance from Whites. Blacks were systematically discriminated against n South Africa, especially during apartheid, and they were denied opportunities. Without such denial of opportunities and systematic discrimination, the development of Blacks would not have been arrested. Afrmative action is meant tp free Blacks from the effects of the decades of deprivation they have experienced, and to all Black women and men to advance to their maximum potential. Afrmative action has a specic goal and once this has been attained it must cease to exist as a programme.

Ÿ Black people themselves have to be responsible for their own advancement and progress. Blacks have to be in the forefront of removing the barriers to their upward mobility. They themselves understand the nature and extent of discrimination in White institutions and they must be the champions of afrmative action in their respective organisations.

5.8 (v) THE PRINCIPLES THAT SHOULD UNDERLINE AN AFFIRMATIVE ACTION PROCESS


SECTION 5

Ÿ Blacks must not be spectators and must not behave like helpless victims leaving the planning and implementation of afrmative action to the very same White institutions that were responsible for denying them access to opportunities in the past.

Ÿ Black people have different needs and aspirations, in the same way as they have different talents and capabilities. Afrmative action must not come up with blanket training and development programmes for Blacks irrespective of their individual career aspirations and training needs. At the end of the day, it is individuals who are being developed to various management positions, even though according to racial classication they come from the same group.

5.9 PROGRESSIVE COMPANIES

Adoption of afrmative action policies and programmes in business should lead to the creation of companies that are viewed as progressive in their orientation and conduct. Companies that are in tune with the aspirations and values of the wider South African community will enjoy the support of all stake-holders, and this will ensure their survival and success.

In order for a company to achieve this preferred status such an organisation will have to exhibit specic characteristics which must include the following:

(a) An afrmative action policy and programme.

(b) Employee development programmes and projects.


Employment equity means more than

treating persons in the same way

but also requires special measures

and the accommodation of difference

SECTION 5

(c) Employee participation in decision-making structures.

(d) Equity or prot participation by employees.

(e) Sound industrial relations

(f) Blacks (women and men) in management and decision- making roles

(g) Blacks on the board of directors

(h) Low labour turnover

(i) Participation in a programme of national reconstruction which includes the following:

Ÿ EducationŸ Skills developmentŸ HousingŸ HealthŸ TransportationŸ Telecommunications Ÿ ElectricationŸ Land acquisition

(j) An environmental sensitive policy

(k) Socially responsible marketing campaigns

(l) Black business development

These characteristics are the criteria for assessing and measuring progressiveness in

companies. An organisation's level of perfomance in terms of these criteria must be well above what is regarded as average and should be in line with what the key stake-holders perceive as desirable. Such stake-holders will include the following classes from the ranks of the disadvantaged people: managers, employees, business and the professions. The disadvantaged people must play a leading role in assisting and co-operating with established business to help them meet the stated criteria for progressiveness. Such achievement must be recognised and promoted to ensure wide support for progressive companies.

5.10 CONCLUSION

The Blueprint has been produced to provide a basis for (afrmative) action by business. It seeks to facilitate the debate and thinking on afrmative action leading to deliberate programmes of action to bring about equality and empowerment for the disadvantaged people in South Africa.

Companies, however, stand to benet immeasurably by seriously engaging in this desirable process of change. Afrmative action will produce organisations that are in harmony with the wider environment and which meet the legitimate requirements and expectations of their stakeholders. This will result in motivated employees who


SECTION 5

zealously identify with their companies. Such a development can only positively inuence performance and productivity and usher in successful companies and sustainable economic growth. The necessary and optimum state within the employment arena will require strong and effective leadership. The BMF urges leaders to stand up and be counted.

5.11 ACKNOWLEDGEMENTS

The BMF is indebted to the members of the Commission for their signicant contribution to this Blueprint on afrmative action. They did not necessarily agree on every issue and the positions contained in this document, whilst informed by the Commission's work, are reective of the views of the BMF.

The following were the members of the Commission:

CONTRIBUTORS

Ÿ Mr L.M Ndlovu (chairman), Black Management Forum

Ÿ Mr G.M Morolo (facilitator), Co-ordinated Management Consultants

Ÿ Mr L.M Mbabane (secretary), Hulett Aluminum (Pty) Ltd

Ÿ Mr R. Khoza, Co-ordinated Management Consultants

Ÿ Mr J.B Magwaza, Hulett Aluminum (Pty) Ltd

Ÿ Ms C. Mahlati, M-NetŸ Prof C. Manganyi, Joint Education

TrustŸ Mr L. Mbigi, Nampak Management

ServicesŸ Mr M. Mohlolo, Boumat LimitedŸ Ms L. Primos, Black Management

ForumŸ Mr K. Rosmarin, Diversity DynamicsŸ Mr S. Thlopane, MossgassŸ Dr C. White, Centre for Policy

Studies, University of the Witwatersrand


The Black Management Forum gratefully acknowledges nancial contribution from:

General AccidentInsurance Co. SA

Documents

PART 1 Induction Booklet [PRINT] - bmfonline.co.za .pdf · black management forum induction booklet 07. section 2