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Compliance with the B-BBEE mandatory reporting & disclosure of South African listed companies : an exploratory and investigative study
Thesis (MPA)--Stellenbosch University, 2022.
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| Format: | Thesis |
| Language: | en_ZA |
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Stellenbosch : Stellenbosch University
2022
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| _version_ | 1867614071020322816 |
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| access_status_str | Open Access |
| author | Saungweme, Lister |
| author2 | Quinot, Geo |
| author_browse | Quinot, Geo Saungweme, Lister |
| author_facet | Quinot, Geo Saungweme, Lister |
| author_sort | Saungweme, Lister |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description | Thesis (MPA)--Stellenbosch University, 2022. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/126043 |
| institution | Stellenbosch University (South Africa) |
| language | en_ZA |
| last_indexed | 2026-06-10T12:46:11.731Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/126043 Compliance with the B-BBEE mandatory reporting & disclosure of South African listed companies : an exploratory and investigative study Saungweme, Lister Quinot, Geo Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership. Black people -- Employment -- South Africa Stock exchanges -- South Africa Affirmative action programs -- Law and legislation -- South Africa UCTD Thesis (MPA)--Stellenbosch University, 2022. ENGLISH SUMMARY: Public policy implementation has taken a turn in recent years where citizens and various stakeholders require governments to monitor and report the impact of their policy interventions. This has given popularity to mandatory reporting and disclosure requirements (MRDR) on socio-economic contributions made by various regulated actors. South Africa promulgated the Broad-Based Black Economic Empowerment “B-BBEE” Act (53 of 2003), a legislative and policy framework for the promotion of Black Economic Empowerment (BEE). The Act sought to fulfil the constitutional mandate of equality, empowerment, and inclusion of historically disadvantaged black people into the mainstream economy whilst advancing economic growth. Post 2003, companies made efforts to implement the B-BBEE policy objectives using a balanced B-BBEE scorecard. However, there was (is) limited data at national and sectorial level to showcase the progress and impact of this policy. To promote the monitoring of progress made in the policy implementation, the Act was amended in 2013, making it mandatory for JSE listed companies to submit their annual compliance reports to the B-BBEE commission for national and sectorial analysis. Subsequently in 2016, B-BBEE regulations were published with specific guidelines for MRDR by JSE listed companies as prescribed in the Act. The problem statement or question that remains unanswered is why more than 50% of JSE listed companies are still not complying with the MRDR. This study follows an exploratory, qualitative, and investigative approach with the aim to determine drivers, challenges, benefits, reasons, and motives for compliance and/or non-compliance with MRDR and the target group’s understanding of the regulation. Semi-structured interviews of 13 purposefully selected participants informed the findings. Literature review indicated that factors such as organisational capabilities and characteristics, socio-economic, and normative motives, the quality and design of the regulation, interaction of the target group with regulators, level of respect given to the regulator, and the weighting given to risks of sanctions, are some of the issues that drive compliance and/or non-compliance. The empirical findings indicate that some of the reasons for non-compliance with the MRDR include limited understanding of the regulatory intentions, the regulatory requirements, the complexity of reporting to multiple regulators and the ever-changing reporting formats, poor communication, and failure of persuasion by the regulatory authority (B-BBEE commission), noncommittal or acceptance of the overall B-BBEE policy, lack of trust and respect for the regulating authority due to its “stick approach”. The main reasons for compliance were found to be normative in nature, with the target population believing that compliance with MRDR is “the right thing to do” and striving to be good corporate citizens that adhere to the law. On the other hand, some comply because of fear of future sanctions and reputational exposure. The research recommends that the B-BBEE commission improves its communication and regulatory awareness strategy, builds better relationships with JSE listed companies, simplify the regulations, collaborate with key stakeholders such as verification agencies, relevant state departments or sectorial regulators, trade associations and sector councils to optimise the reporting process. In addition, provide positive reinforcement whilst working towards appropriate enforcement and regulatory acceptance strategies. AFRIKAANSE OPSOMMING: Die implementering van openbare beleidstoepassing het in die afgelope jare ‘n wending geneem waar inwoners en verskeie belanghebbendes regerings versoek om die impak van hulle beleidsintervensies te monitor en te rapporteer. Dit het populariteit aan verpligte verslagdoening- en openbaarmakingsvereistes (VVOV) gegee wat deur verskeie gereguleerde rolspelers gemaak is oor sosio-ekonomiese bydrae. Suid-Afrika het die Wet op die Breebasis Swart Ekonomiese Bemagtiging ‘B-BBEE’ (53 van 2003) uitgevaardig, wat ‘n wetgewende en beleidsraamwerk vir die bevordering van ‘B-BBEE’ is. Die Wet poog om die konstitusionele mandaat van gelykheid, bemagtiging en insluiting van histories minderbevoorregte swart mense in die hoofstroom ekonomie te betrek, vir die bevordering van ekonomiese groei. Na 2003 het maatskappye pogings aangewend om die ‘B-BBEE’ beleidsdoelstellings te implementeer, deur gebruik te maak van ‘n gebalanseerde ‘B-BBEE’ telkaart. Nietemin, daar is beperkte data op nasionale en sektoriale vlak om die vordering en impak van die beleid te toon. Om die vordering wat gemaak is in die beleidsimplementering te monitor, is die Wet in 2013 gewysig, wat dit vir die JSE genoteerde maatskappye verpligtend maak om hulle jaarlikse nakomingsverslae aan die ‘B-BBEE’ Kommissie vir nasionale en sektorale analise voor te le. Vervolgens, in 2016 is ‘B-BBEE’ regulasies met spesifieke riglyne vir VVOV by JSE genoteerde maatskappye gepubliseer soos voorgeskryf in die Wet. Die probleem of vraag wat onbeantwoord oorbly, is waarom meer as 50% van JSE genoteerde maatskappye steeds nie voldoen aan die VVOV nie. Die benadering wat hierdie studie volg, is verklarend, kwalitatief en ondersoekend met die doel om bestuurders, uitdagings, voordele, redes en motiewe vir die nakoming en/of nie-nakoming met VVOV en die teikengroep se begrip van die regulasie vas te stel. Semi-gestruktureerde onderhoude met 13 doelbewus-geselekteerde deelnemers het die bevindinge openbaar. ‘n Literatuurbeskouing het aangedui dat faktore soos die organisatoriese vermoens en eienskappe, maatskaplike, ekonomiese en normatiewe motiewe, die kwaliteit en ontwerp van die regulasie, die interaksie van die teikengroep met reguleerders, die vlak van respek aan die reguleerder en die verswaring aan risiko’s van sanksies, as sommige van die faktore is wat die nakoming en/of nie-nakoming dryf. Die empiriese bevindinge van die studie dui aan dat sommige van die redes vir die nie-nakoming van die VVOV, beperkte begrip van vereistes en regulatoriese intensie, kompleksiteit en ewigdurende veranderende verslagformate, swak kommunikasie en onvermoë van oortuiging deur die regulatoriese outoriteit (‘B-BBEE’ Kommissie), die onverbondenheid of aanvaarding van die algehele ‘B-BBEE’ beleid, gebrek aan vertroue en respek vir reguleringsoutoriteit weens die ‘stick’ benadering insluit. Die normatiewe aard van die hoofredes vir die nakoming van die teikenbevolking glo dat nakoming met VVOV die korrekte ding is om te doen en strewe om goeie korporatiewe inwoners te wees wat die Wet nakom. Aan die anderkant voldoen sommiges daaraan, weens die vrees vir toekomstige sanksies en ‘n vrees vir agtenswaardige blootstelling. Die navorsing beveel aan dat die ‘B-BBEE’ Kommissie sy kommunikasie en bewustheidstrategie bevorder, verhoudings bou met JSE genoteerde maatskappye, die regulasie te vereenvoudig om kompleksiteit te verminder, saamwerk met sleutel aandeelhouers soos verifikasie-agentskappe, handelassosiasies en sektorrade om die rapporteringsproses te optimiseer, positiewe versterkingstrategiee te verskaf, terwyl daar gewerk word aan die handhawing wat sal lei tot die aanvaarding van die beleidsdoelstellings deur reguleerders. Masters 2022-11-23T13:53:38Z 2023-01-16T12:47:10Z 2022-11-23T13:53:38Z 2023-01-16T12:47:10Z 2022-12 Thesis http://hdl.handle.net/10019.1/126043 en_ZA Stellenbosch University xix, 248 pages : illustrations, includes annexures application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Black people -- Employment -- South Africa Stock exchanges -- South Africa Affirmative action programs -- Law and legislation -- South Africa UCTD Saungweme, Lister Compliance with the B-BBEE mandatory reporting & disclosure of South African listed companies : an exploratory and investigative study |
| title | Compliance with the B-BBEE mandatory reporting & disclosure of South African listed companies : an exploratory and investigative study |
| title_full | Compliance with the B-BBEE mandatory reporting & disclosure of South African listed companies : an exploratory and investigative study |
| title_fullStr | Compliance with the B-BBEE mandatory reporting & disclosure of South African listed companies : an exploratory and investigative study |
| title_full_unstemmed | Compliance with the B-BBEE mandatory reporting & disclosure of South African listed companies : an exploratory and investigative study |
| title_short | Compliance with the B-BBEE mandatory reporting & disclosure of South African listed companies : an exploratory and investigative study |
| title_sort | compliance with the b bbee mandatory reporting disclosure of south african listed companies an exploratory and investigative study |
| topic | Black people -- Employment -- South Africa Stock exchanges -- South Africa Affirmative action programs -- Law and legislation -- South Africa UCTD |
| url | http://hdl.handle.net/10019.1/126043 |
| work_keys_str_mv | AT saungwemelister compliancewiththebbbeemandatoryreportingdisclosureofsouthafricanlistedcompaniesanexploratoryandinvestigativestudy |