This is the fourth article in a series describing the details of the BUS COMMUTER AND COACH SERVICES SUB-SECTOR CODE FOR B-BBEE.
ENTERPRISE DEVELOPMENT
Guiding Principle
The stakeholder guiding principle is to create and nurture new B-BBEE enterprises within the industry and develop existing ones. This will require all stakeholders to develop strategies to enter into joint ventures and other forms of alliances with B-BBEE enterprises. In order to avoid potential problems (especially in sub-contracting), stakeholders agree to develop a Code of Good Practice to address concerns about the practical application of sub-contracting and include it in the Model Tender and Negotiated Tender Documents.
Enterprise development measures include the following:
Enterprise Development Contributions are measured as a percentage of Net Profit After Tax (NPAT).
A measured entity will achieve maximum points when more than 3% of NPAT is dedicated to enterprise development contributions. A measured entity will earn maximum points when more than 2% of its bus fleet is used for enterprise development within the operation of different B-BBEE enterprise development partners as a percentage of the total operator bus fleet.
Overall Indicators
BEE Element
Enterprise Development is proven as :
- Expenditure on supplier development initiatives with a target of 3% of NPAT coupled to 10 points on the scorecard.
- Number of different enterprise development partners (%) with a target of 2% of NPAT coupled to 5 points on the scorecard.
For QSEs
Enterprise Development is proven as the average annual value of qualifying contributions as a % with a target of 3% of NPAT coupled to 25 points on the scorecard
QSEs within this sub-sector aspire to make contributions to enterprise development, which will amount to 3% of NPAT evaluated annually over the next 5 years.
Measurement Principles and Application of the Charter
- Measurement principles associated with the enterprise development element are contained in Statement 600 of Code 600 of the Generic Codes of Good Practice.
- Qualifying contributions for the enterprise development element are contained in Annexure 600 (A) —Benefit Factor Matrix of Statement 600 of Code 600 of the Generic Codes of Good Practice.
- The formulae required in the determination of the enterprise development score are contained in Annexure 600 (A) of Statement 600 of Code 600 of the Generic Codes of Good Practice.
- Measurement principles required in evaluating the enterprise development contributions made by QSEs within this sub-sector are contained in Statement 806 of Code 800 of the Generic Codes of Good Practice.
SOCIO-ECONOMIC DEVELOPMENT (SED)
Guiding Principe
Stakeholders must agree to support community development and social projects. These projects include study bursaries, job creation programmes and internships.
SED measures include the following:
- A measured entity will achieve maximum points if a minimum of 1% of NPAT is on social and community projects.
- QSEs within this sub-sector contributing a minimum of 1% of NPAT evaluated annually to socio-economic development initiatives over the next 5 years will achieve maximum points.
- Measurement Principles and Application of the Charter.
Measurement principles associated with the socio-economic development
Measurement principles associated with the socio-economic development element are contained in Statement 700 of Code 700 of the Generic Codes of Good Practice. Qualifying contributions for the socio-economic development element are contained in Annexure 700 (A) Benefit Factor Matrix of Statement 700 of Code 700 of the Generic Codes of Good Practice.
The formulae required in the determination of the socio-economic development score are contained in Annexure 700 (A) of Statement 700 of Code 700 of the Generic Codes of Good Practice.
Measurement principles required in evaluating socio-economic development contributions made by QSEs within this sector are contained in Statement 807 of Code 800 of the Generic Codes of Good Practice.
Overall Indicators
Socio-economic development is proven as development programmes with a target of 1% of NPAT coupled to 5 points on the scorecard.
For QSEs
Socio-economic development is proven as the average annual value of qualifying contributions with a target % 1% of NPAT coupled to 25 points on the scorecard.
