On 19 May 2005, Mr. R. Jahn committed himself to the development of a Broad-Based Black Economic Empowerment Code of Good Practice.

Transcription

1 BROAD BASED BLACK ECONOMIC EMPOWERMENT PLAN AND CODE OF GOOD PRACTICE FOR EICKHOFF (PTY) LTD MEMBER MESSAGE Eickhff (Pty) Ltd acknwledges the imprtance f Brad-Based Black Ecnmic Empwerment in bth the transfrmatin f Suth Africa and lng term sharehlder benefits. Eickhff (Pty) Ltd is prud f its achievements t date which started as a pineer in 1983 with the intrductin f affrdable services, ensuring a safer wrkplace and ur Cde f Gd Practice embdies ur desire t remain in the frefrnt f change in Suth Africa. This Cde f Gd practice aims t cmmunicate ur targets and maps ut ur path ver the next 10 years. I am privileged t cmmit Eickhff (Pty) Ltd t it. APPROACH PREAMBLE This Cde f Gd practice is a dynamic dcument, which will be adjusted in line with the changing imperatives f Brad-Based Black Ecnmic Empwerment (B-BBEE) plicy strategy and legislatin. Its Eickhff (Pty) Ltd bjective t cmmunicate targets and measure the achievement f the targets set. This Cde f Gd practice is nt a legally binding dcument. It is hwever the intentin t Eickhff (Pty) Ltd t explre the pssibilities and implicatins fr the Cmpany f registering the Cde f Gd practice as an enterprise Cde f Gd practice with the Department f Trade and Industry (DTI).. The Cde f Gd practice timeframe is t 2015; hwever, internally this will be translated int shrt-term bjectives aligned t Eickhff (Pty) Ltd strategic planning hrizn, which will be reviewed and audited by CenFed BEE Verificatin Agency n an annual basis as part f the strategic planning prcess. On 19 May 2005, Mr. R. Jahn cmmitted himself t the develpment f a Brad-Based Black Ecnmic Empwerment Cde f Gd Practice. The Cde f Gd practice was develped nting that: Despite significant prgress since the establishment f a demcratic gvernment in 1994, Suth African sciety remains characterized by racially based sci-ecnmic disparities. B-BBEE is a mechanism aimed at addressing inequalities and mbilizing the energy f Suth Africans. It will cntribute twards sustained ecnmic grwth, develpment and scial transfrmatin in Suth Africa. B-BBEE is viewed by gvernment as an integrated and cherent sci-ecnmic prcess that directly cntributes t the ecnmic transfrmatin f Suth Africa and will bring abut significant increases in the numbers f black peple that manage, wn and cntrl the cuntry's ecnmy. Eickhff (Pty) Ltd management and staff acknwledges the imprtance f B-BBEE in the need fr transfrmatin f Suth Africa and has adpted a brad-based strategy that will secure and ptentially increase Eickhff (Pty) Ltd cmpetitive advantage int the future, Eickhff (Pty) Ltd has adpted a screcard apprach with a 5 factr enabling framewrk, based bradly n the DTI apprach, in rder t bth set bjectives and track prgress, an annual audit by CenFed BEE Verificatin Agency will mnitr and certify the prgress made. The factrs with their applicable weightings are: ELEMENT GENERIC SCORECARD QUALIFYING SMALL SCORECARD 1. Ownership Management and Cntrl Emplyment Equity Affirmative Prcurement Skills Develpment Enterprise Develpment Sci-Ecnmic Develpment 5 25 Select 4 ut f the 7 Elements

2 Eickhff (Pty) Ltd has develped an internal screcard against which B-BBEE cntributin can be measured. It is the intentin, hwever, t use CenFed BEE Verificatin Agency t prvide an independent assessment f Eickhff (Pty) Ltd and its majr suppliers. INTERPRETATION BEE STRATEGY Since 1994 BEE has been a majr thrust f all gvernment plicies but there was n cherent strategy twards the implementatin f B-BBEE. The BEE cmmissin released a reprt in 2000 which gave the first attempt at bradly defining B-BBEE The receipt f this reprt by gvernment played a pivtal rle in the develpment by gvernment f a strategy twards the implementatin f BEE In 2003 a strategy fr Brad-Based Black Ecnmic Empwerment (B-BBEE) was released which defines B- BBEE as an integrated and cherent sci-ecnmic prcess that directly cntributes t the ecnmic transfrmatin f Suth Africa and brings abut significant increases in the numbers f black peple that manage, wn and cntrl the cuntry s ecnmy, as well as significant decreases in incme inequalities. Thus the B-BBEE prcess will include elements f human resurce develpment, emplyment equity, enterprise develpment, preferential prcurement, as well as investment, wnership and cntrl f enterprises and ecnmic assets. BEE ACT 53 OF 2003 The strategy laid the fundatin fr the B-BBEE Act Sectin 9 f the B-BBEE Act stages that th Minister may by ntice in Gazette issue cdes f gd practice n black ecnmic empwerment that may include The further interpretatin and definitin f different categries f black empwerment entities; Qualificatin criteria fr preferential purpses fr prcurement and ther ecnmic activities Indicatrs t measure brad-based black ecnmic empwerment The weighting t be attached t brad-based black ecnmic empwerment indicatrs Guidelines fr stakehlders in the relevant sectrs f the ecnmy t draw up transfrmatin charters fr their sectr Any ther matters necessary t achieve the bjectives f this Act Sectin 10 f the B-BBEE Act further gives the status f the cdes by stating that: Every Organ f State and Public Entity must take int accunt and, as far as is reasnably pssible, apply any relevant cde f gd practice issued in terms f this Act in Determining qualificatin criteria fr the issuing f licenses, cncessins r ther authrisatins in terms f any law; Develping and implementing a preferential prcurement plicy; Determining qualificatin criteria fr the sale f state-wned enterprises; and Develping criteria fr entering int partnerships with the private sectr WHY THE NEED FOR THE CODES Fr BBBEE t wrk prperly cnsistency, visibility and clearer directin is needed BEE initiatives t date have been characterised by: lack f understanding leading t incnsistent applicatin and appreciatin f B-BBEE lack f clarity resulting in delays in the implementatin f B-BBEE initiatives disparity in Charter definitins and targets between varius sectrs f the ecnmy lack f implementatin guidelines resulting in Mst ging t few, Frnting r Sham transactins Lack f underlying ecnmic substance t many B-BBEE transactins Fcus n narrw based B-BBEE leading t a narrw base f beneficiaries KEY PRINCIPLES Substance ver Frm B-BBEE must be measured and reprted accrding t ecnmic reality rather than legal frm Penalize the use and reprting f frnting r sham B-BBEE structures and entities B-BBEE Screcard B-BBEE is measured based n seven cre elements: wnership, management, emplyment equity, skills develpment, preferential prcurement, enterprise develpment and sci-ecnmic develpment

3 Facilitate changes in business behaviur (in all key elements) Extend B-BBEE benefits t as many beneficiaries as pssible Systematic and quantifiable apprach B-BBEE Recgnitin Tiers and Multiplier Effect All cmpanies measure B-BBEE based n a scre system, and receive higher recgnitin fr higher B-BBEE cmpliance Fster cmpetitin amng cmpanies and industries Encurage all cmpanies t implement and mnitr B-BBEE cmpliance in all its ecnmic interactins GENERAL PRINCIPLES Enhanced Recgnitin applicable n all elements f the screcard Beneficiaries shuld cmprmise: Black wmen: % Black peple with disabilities, black yuth, black peple living in rural areas and black unemplyed peple: 2 3 % ( Black Designated Grups ) Transitinal Perid 12 Mnths transitinal perid t allw fr cnversin frm narrw-based t screcard apprach Prvide mechanism t facilitate the adptin f screcard in reprting and decisin-making Nn Circumventin Further cnfirms the principles f Ecnmic Substance ver Legal Frm GUIDE LINES FOR THE DEVELOPMENT AND GAZETTING OF TRANSFORMATION CHARTERS AND SECTOR CODES Objectives: Outline recmmended charter frmulatin prcess Describe the rle and cnstitutin f charter cuncils Specify principles fr gazetting charters as: fr infrmatin purpses and t give credibility t the charter (s12 f BEE Act) fr implementatin as a cde f gd practice (s9 f BEE Act) encurage alignment f key principles and definitins thrughut all sectr charters with the cdes CHALLENGES FACING COMPANY BUSINESS Eickhff (Pty) Ltd, like ther cmpanies, faces the challenges f prducing mre cst effectively and delivering superb service t its Custmers in the face f grwing glbal cmpetitin, thrugh cmmitted and cmpetent Staff. B-BBEE is a mechanism that can assist the Suth African businesses in this regard and shuld be seen in this cntext. The diversity that B-BBEE brings t Cmpanies intrduces a creativity cmpnent that will assist in the reductin f risk assciated with business decisin-making. APPLICATION OF THE CODE OF GOOD PRACTICE This Cde f Gd practice belngs t Eickhff (Pty) Ltd The targets in this Cde f Gd practice will be applied frm 19 May 2005 until Prgress against the targets will be tracked and recrded quarterly, reviewing the nging applicability f such targets and will be audited by CenFed BEE Verificatin Agency. Eickhff (Pty) Ltd acknwledges that the principles cntained in the Cde f Gd practice will be relevant beynd OWNERSHIP Ownership Ownership is measured as an entitlement t bth vting rights and ecnmic interest.

4 Net Equity Value measures ecnmic substance vs. legal frm Excluded Equity Principle Sale f Assets Any financing structure that passes the test will be able t btain wnership pints Entities encuraged t facilitate the funding f B-BBEE transactins Allws fr the exclusin f sharehlding by managed investments, gvernment wners, s21 cmpanies, etc. when determining B-BBEE wnership targets Set ut cnditins under which the sale f assets, equity instruments and ther businesses will be recgnised Equity Equivalents Equity Equivalent cntributins are measured against the wnership element f the screcard Measurable against the cmpliance target f 25.1% f the Suth African peratin Interest persns may make written submissin t the Minister f Trade and Industry requesting apprval f equity equivalents Apprval t participate in an Equity Equivalent is subject t qualificatin criteria (i.e. Glbal practice, etc.) Multinatinals are able t claim wnership pints n the screcard based n their equity equivalent prgrammes Prmtin f initiatives that will further advance B-BBEE bjectives Ownership - Brad Based Schemes Encurage full participatin f beneficiaries in all structures f the scheme Encurage accuntability by fiduciaries t the intended beneficiaries Specific gvernance requirements A maximum f 40% f the ttal pints n the wnership screcard f the measured entity is allwed if the BB scheme is unable t meet sme f the requirements Accrual f benefits tends t be cnditinal and vest after a lng perid f time Discurages a practice where n real pwers f wnership accrue t emplyees r beneficiaries Discurages a practice where shares remain unallcated perpetually resulting in cntrl still being retained by the traditinal sharehlders Discurages the use f brad based schemes as emplyee retentin strategies master/ servant relatinship Avid the sle inclusin f ESOPS t the exclusin f new entrants (i.e. entrepreneurs) Encurages the structuring f deals made up f a cmbinatin f black wmen, black designated grups black new entrepreneurs (i.e. black new entrants), and brad based schemes The recgnitin f wnership after the sale r lss f shares by black partners The extent t which wnership pints can be maintained after the exit f black partners will be based n bth the net value created in black hands as well as the level f transfrmatin in the measured entity Black sharehlders must have their equity stake fr at least 3 years prir t exit There must be demnstrative net value created in the hands f black peple There must be a level f B-BBEE transfrmatin within the measured entity BEE sharehlding arising frm the sale r lss f shares by black peple cannt cntribute mre than 40% f the pints n the wnership screcard It allws fr a limited amunt f B-BBEE wnership recgnitin after sale / lss f equity by black sharehlders (EXIT) Linking a cmpany s perfrmance n the screcard as well as wealth created in black hands t allw fr recgnitin fr cntributing twards the prmtin f wnership by black peple ver a limited perid f time T intrduce liquidity in the hands f Black investrs after a reasnable perid f time T encurage enterprises nt t lck in B-BBEE partners fr a lng time in rder t maintain B-BBEE wnership status T prvide enterprises with enugh time t enter int anther BEE wnership transactin in rder t retain their B-BBEE status T encurage the retentin f black direct investment f at least 15% n a cntinuing basis New Entrants Invlvement in the wnership f the enterprise f black new entrants Encurage entities t include new entrepreneurs in wnership transactins thereby bradening the base f beneficiaries Private Equity Funds Measured enterprise may treat any f its wnership arising frm private equity funds as black wned and cntrlled if it meets the fllwing criteria: Mre than 50% f exercisable vting rights are in the hands f black peple Mre than 50% f prfits accrue t black peple Private Equity Fund manager must be a black wned cmpany

5 Mre than 50% f the value f funds invested by private equity fund must at all times be invested in black wned enterprises T encurage the emergence f Private Equity Funds wned and cntrlled by Black Peple. T encurage Private Equity Funds t drive investment in black wned enterprises. Eickhff (Pty) Ltd will increase the number f black peple wh nt nly have wnership f equity in the Cmpany grup but can via their wnership, cntribute t the sustainable cmpetitive advantage f the Cmpany, and will give preference t brad-based rganizatins where practically pssible. Eickhff (Pty) Ltd is t be regarded as a (LEVEL OF CONTRIBUTION) t Black Empwered Cmpanies, frm a BEE Perspective, as measured by CenFed Eickhff (Pty) Ltd acknwledges the cmplexity arund wnership measurement and will take its lead frm best practice. When structuring wnership transactins Eickhff (Pty) Ltd will lk t mechanisms that balance the businesses need fr sustainable black wnership and the requirement f black wnership t unlck apprpriate value frm their investment. Eickhff (Pty) Ltd will recgnize indirect wnership by black cmpanies, black empwered cmpanies and black sharehldings in assessing verall black wnership credentials. It acknwledges that indirect wnership cmes with limited Management and Cntrl and therefre des nt classify wnership in the same terms as direct wnership. Eickhff (Pty) Ltd will take its lead frm best practice in measuring indirect wnership. Eickhff (Pty) Ltd will: Maintain an apprpriate B-BBEE structure fr Eickhff (Pty) Ltd that balances the leader-ship rle that the Cmpany needs t assume as ne f Suth Africa's majr suppliers f Eickhff (Pty) Ltd in terms f transfrmatin f ur ecnmy with the cmmercial bligatin t the sharehlders, acknwledging that B- BBEE will prvide lng-term sharehlder benefits. Identify and pursue B-BBEE pprtunities at an apprpriate level that will either unlck value fr Eickhff (Pty) Ltd r preserve current value int the future. Chse B-BBEE partners wh, where practically pssible, have bth a Brad Based wnership structure and can play an apprpriate value-adding rle in Eickhff (Pty) Ltd. The principles f B-BBEE transactins: B-BBEE wnership initiatives shuld be aimed at prmting the prductive and sustainable Participatin f black cmpanies and black peple in Eickhff (Pty) Ltd. Ownership will be particularly encuraged if it adds value t the Cmpany / divisins Invlved and includes meaningful participatin in management and cntrl. The funding structures shuld facilitate the transfer f full ecnmic interest t the B-BBEE partner and lnger-term sharehlder-type relatinships, as ppsed t shrt-term prtfli investments (especially where the transactin has been facilitated). The retentin f the sharehlding as a B-BBEE share shuld be prmted t the greatest extent pssible. Initiatives aimed at prgressing in the area f B-B BEE will be prmted. Jint ventures r partnership arrangements shuld be meaningfully structured with equitable prtins f the respnsibility and benefit t each party. B-BBEE wnership initiatives will be aimed at imprving the cmpetitive advantage f the Cmpany MANAGEMENT CONTROL & EMPLOYMENT EQUITY Management Cntrl & Emplyment Equity Setting Targets fr Bard Representatin and Executive Invlvement f black peple Targets frm Junir management up t senir management level Alignment with existing legislatin Alignment with EAP targets Minimum targets set at 40% f verall targets Encurage a prper representatin f black peple n cmpany bards in an executive and nnexecutive capacity Cunters market trend in appinting black nn-executives rather than executives Encurage advancement f black peple in areas where there is a lack f representatin Prevents cntradictin in terminlgy and effrts in the implementatin f EE initiatives in bth the EE Act and the B-BBEE Act Measured entities will nly claim full pints nce they have met the EAP targets

6 Eickhff (Pty) Ltd will fcus n increasing the number f black peple in psitins that have authrity and pwer t manage the cmpany's assets, determine plicy and the directin f business peratins. This wuld include certain key crprate psitins that participate in decisin-making at bard and executive management level. The Cmpany will strive t achieve the fllwing targets by MANAGEMENT GROUPING % BLACK CURRENT 2005 % BLACK TARGET 2015 Disparities in the Suth African wrkplace resulting frm past discriminatry practices and laws are nt nly unjust, but als have direct negative implicatin fr ecnmic efficiency, cmpetitiveness and prductivity. It is therefre in the cuntry's lng-term natinal interests that a brad-based and diverse pl f skills is develped fr the sectr t unleash the ptential f all Suth Africans. Cnsequently, Eickhff (Pty) Ltd undertakes t cntinually redress the inequalities present with regards t race, gender and disability in its emplyee base and t accelerate the nrmalisatin f this psitin thrugh structured skills develpment prgrams and the injectin f talent, thrugh its nging cmmitment t: Ensuring that its wrkfrce represents Suth African demgraphics in terms f race, gender and disability at all levels and that structured develpment plans are in place t achieve this. Actively driving internal prmtin pprtunities thrugh structured develpment prgrams and career planning. Encuraging the recruitment f black talent int Incentive and rewarding senir divisinal managers t achieve the targets set. The Emplyment Equity and Skills Develpment Cmmittees will assess and define plicies t address the emplyment f peple with disabilities. Eickhff (Pty) Ltd cmmits t ensuring that, where practically pssible, its site is adapted t accmmdate peple with disabilities. SKILLS DEVELOPMENT Skills Develpment Alignment with Skills Develpment Act Parity principle Use f Learning prgramme matrix Alignment f skills develpment initiatives fr bth the SD Act and the B-BBEE Act Ensure skilling f all targeted beneficiaries Measures bth skills spend and utput thrugh clearly defined utcmes f skills develpment prgrammes Eickhff (Pty) Ltd acknwledges the invlvement f black peple in peratinal, prfessinal and executive decisin making as a critical aspect f B-BBEE and will accelerate this prcess via a fcused skills develpment prgrams. Emplyment Equity and Skills Develpment cmmittees exist at all peratin t drive skills develpment at an peratinal level. Eickhff (Pty) Ltd classifies its skills develpment int the fllwing brad categries: LEADERSHIP DEVELOPMENT % REPRESENTATION Management Develpment Prgram 0% Black The prgram fcuses n leadership develpment f high ptentials at a senir peratinal management level. Tmrrw's Leader Prgram (TOM) The prgram fcuses n skilled staffs that have the ptential t fill an peratinal management rle. Skills Develpment Prgram (SDP) The prgram fcuses n develping skilled emplyees with Leadership ptential wh may nt have had the educatinal Opprtunities in the past

7 Graduate Develpment Prgram (GDP) The prgram runs fr 2 years and fcuses n intrducing New graduates t the Cmpany wmen BURSARIES AND GRANTS % REPRESENTATION Bursary Scheme and Tertiary Grants 0% Black Draws bursars, in apprpriate fields, with an emphasis n wmen schls and cmmunities, t prvide a feed int the Graduate Develpment Prgram. TECHNICAL AND OPERATIONAL TARGET % REPRESENTATION Learnerships The prgram cvers technical trades Invlved in the cmpany's industry. Technical and Operatinal Training Cvers the technical skills required t Run Inspectins Supprt Training Training utside f peratinal PREFERENTIAL PROCUREMENT 0% f Payrll 0% f Payrll 0% f Payrll Preferential Prcurement Prmtes BEE Cmpliance by all entities Specific Targets fr Prcurement frm Micr s and QSE s Specific Targets fr Prcurement frm Black Owned and Black Wmen Owned Enterprises Enhanced recgnitin fr prcurement frm value adding suppliers Enhanced recgnitin fr prcurement frm ED beneficiaries Encurages transfrmatin thrughut the entire ecnmy Specific incentive t prcure frm small and micr business creates new and sustainable entities Encurage the creatin f sustainable black wmen wned, black wned and cntrlled enterprises Encurages prcurement f lcally prduced gds and services Encuragers the sustainable incme streams t new entities ensuring their sustainability Eickhff (Pty) Ltd will implement a targeted prcurement strategy t increase its prcurement frm cmpanies that have made significant prgress in the area f B-BBEE and are rated as (LEVEL OF CONTRIBTION) t BEE based n a brad-based evaluatin methdlgy. Eickhff (Pty) Ltd target f purchasing frm BEE cmpliant vendrs will be between 80% and 100% f the value f Cmpanies cre prcurement by Shuld a supplier's business nt be run n sund and sustainable business practices, its B-BBEE credentials will be discunted, irrespective f its B-BBEE rating. In prcuring prducts and services frm a B-BBEE Enterprise, Eickhff (Pty) Ltd will take a brad-based assessment apprach and will nt fcus n Management and cntrl. It will hwever require the vendr t start addressing Ownership and the ther legs as it grws. Eickhff (Pty) Ltd will als fcus n Enterprise Develpment as a means t increasing its Empwerment supplier base where apprpriate. In this regard, it will: Actively supprt existing businesses and the creatin f new businesses that are wned by black peple and encurage these new suppliers and existing suppliers t imprve their B-B BEE credentials, thrugh the leverage it has n its suppliers. Assist in the creatin f new businesses by facilitating access t finance and skills Transfer, where apprpriate.

8 Prvide supprt t B-BBEE Enterprises t enable them t benefit frm targeted prcurement prgrams. Such supprt will include prgrams designed t assist B-BBEE Enterprises in tendering fr business, setting aside areas f prcurement reserved r preferred fr B-BBEE Enterprises nly. Eickhff (Pty) Ltd will: Actively pursue purchases frm B-BBEE cmpliant cmpanies in terms f a DTI accredited Rating by SANAS as a divisin f the DTI Increase the level f tracking with the rll ut f the B-BBEE verificatin Act and r system in the medium term. Encurage existing suppliers t address B-BBEE and becme B-BBEE cmpliant. Reprt n all spends in terms f the categries that fall within the definitin f B-BBEE cmpliancy. It is the intentin t use the DTI Apprved, independent rating dne by CenFed B-BBEE Verificatin Agency t rate the Cmpanies key suppliers' empwerment status. ENTERPRISE DEVELOPMENT & SOCIO-ECONOMIC DEVELOPMENT Enterprise Develpment Measurement f: Enterprise Develpment Initiatives Industry Specific Cntributins Encurage entities t implement/supprt initiatives in: Access t finance: Lans, equity, seed capital, etc. Nn-financial assistance: Training and mentring; preferential credit facilities; capacity-building prgrammes fr QSE s; Access t infrastructure at lw r n cst; Business linkages (i.e. prcurement pprtunities) Enterprises are encuraged t make either mnetary r nn-mnetary cntributins Sci-Ecnmic Develpment (SED) Measurement f: Scial Develpment Cntributins The key principle is fr these initiatives t result in the beneficiaries having sustainable access t the ecnmy Encurage entities t implement/supprt initiatives in: Public prgrammes meant t facilitate further sci-ecnmic develpment Eickhff (Pty) Ltd acknwledges Sci-Ecnmic Develpment (SED) as an imprtant cmpnent f its crprate citizenship. It will take a develpmental and transfrmatinal apprach t Initiatives that are linked t the upliftment f Suth Africa s yuth in the areas f educatin, health and welfare and envirnment. The Cmpany is t set aside 3% f its prfit after tax fr SED in Suth Africa, fcusing the spend n prjects and initiatives that can be replicated with ther cmmunities either with supprt frm funding frm the Cmpany r ther dnrs. The underlying principle is that the majrity f the SED spend ges tward the intended purpse and nt n administratin csts. The fcus areas fr SED spend will vary ver the Cde f Gd practice timeframe, hwever thse identified t date are: Cllabrating with selected schls in industrial areas that prvide educatin fr black cmmunities that have a leadership structure that is cmmitted t and has demnstrated its desire t prvide superir educatin t their learners. Cntinuing with the fundamental spnsrship f PATSAAD s (Pigens Against Teenage Sex Alchl Abuse and Satanism) Prviding the funding fr the launch f PATSAADs Prject in cnjunctin with The Wrld Wildlife Fund, aimed at educating the yuth n relevant envirnmental Issues and hw they can 'make a difference' n their envirnment. Supprting rganizatins that are aligned t the bjectives cntained within this cde f Gd practice. PATSAAD s is part f the Lets Play drive f M-net IMPLEMENTATION Besides Ownership, which is a sharehlder issue, an independent, nn-executive manager will be appinted t chair a sub-cmmittee t review prgress made.

9 The Executive directr f Eickhff (Pty) Ltd has been appinted t manage and crdinate the B-BBEE prcess fr the Cmpany. Each divisin will submit a screcard biannually, cmmencing 19 May 2005, reprting n its prgress against targets and adherence t the Cde f Gd practice. Emplyment Equity and Skills Develpment Cmmittees have been established t specifically fcus n the Emplyment Equity targets and the achievement theref. Delivery n the Cde f Gd practice bjectives will be set as a key perfrmance area fr senir staff, particularly in areas under their influence, e.g. Emplyment Equity. THE SCORECARD The screcard prvides a brad-based set f measurement indicatrs fr measuring B-BBEE prgress. It is applied by The East Rand Chamber Of Cmmerce and will act as a guide and screcard t divisins and suppliers. Specific terms used are defined in the screcard explanatin and practical examples have been included. The ttal scre achieved, indicated as a percentage, was rated accrding t the fllwing scale: BEE STATUS QUALIFICATION BEE PROCUREMENT RECOGNITION LEVEL Level One Cntributr 100 pints n the Generic Screcard 135% Level Tw Cntributr 85 but <100 pints n the Generic Screcard 125% Level Three Cntributr 75 but <85 n the Generic Screcard 110% Level Fur Cntributr 65 but <75 n the Generic Screcard 100% Level Five Cntributr 55 but <65 n the Generic Screcard 80% Level Six Cntributr 45 but <55 n the Generic Screcard 60% Level Seven Cntributr 40 but <45 n the Generic Screcard 50% Level Eight Cntributr 30 but <40 n the Generic Screcard 10% Limited Cmpliant Cntributr <30 n the Generic Screcard 0% The Cmpany will strive t be classified as a Level One Cntributr by 2015 and preference in Prcurement will be given t suppliers that fall int the higher levels, based n the same Brad-Based evaluatin methdlgy f ther cmpanies. (OWNER) (JOB FUNCTION, FULL NAME AND SURNAME) (B-BBEE REPRESENTATIVE) (JOB FUNCTION, FULL NAME AND SURNAME)