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The B-BBEE is an acronym that stands for Broad-Based Black Economic Empowerment. It is an initiative of the South African government whose goal is to distribute wealth more fairly in South Africa.
B-BBEE uses seven benchmarks to give a company a grade or "Scorecard": equity ownership 20%, management 10%, employment equity 15%, skills development 15%, preferential procurement 20%, enterprise development 15%, and socio-economic development 5%.
Verification agencies audit the numbers on the scorecards. These verification agencies are accredited through the South African National Accreditation System. If companies wish, they can choose a Sector Scorecard in place of the Generic Scorecard described above. Sector Scorecards are specific to certain sectors such as tourism, construction, forestry, mining, etc. The B-BBEE initiative is a driver to help create a more equitable society and the Scorecards are one method being used to hold companies accountable and give business to the ones in compliance.
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