A study into the factors affecting broad-based black economic empowerment in South Africa.
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The systematic dispossession and disempowerment of black people has historically defined South Africa. In response, an equally systematic approach is required to eradicate memories of the past through deliberate and purposeful legislation that reaches across the breadth and width of our nation. One of the driving forces within our nation is the private sector and for this study, the mining industry and the peripheral industries to it were targeted. Against the backdrop of the past, a new future that embraces all South Africans must emerge. Hence, this study investigates the efforts made by suppliers to the mining industry in sincerely incorporating Broad Based Black Economic Empowerment (BBBEE) into the very design of their organizations The research methodology used was a survey. The population of this study is suppliers to the mining industry situated in Gauteng. A cross-sectional sample was randomly chosen and a short questionnaire e-mailed to participants. The findings prove many organizations are still at a loss on how to embrace BBBEE and are often confused on implementation. Although strategies are in place, there is very little coordinated effort to execute these strategies in a planned and controlled manner. There appears to be significant misfit between policy and practice. Some recommendations in this paper address the importance of BBBEE being made a defining core value of the organization. Another salient recommendation was for organizations to have enhanced operational execution of strategic policies to realize the desired impact. These key findings will not materialize without dedicated leadership to create meaning throughout the organization on the magnitude of BBBEE to South African, both politically and economically thereby co-creating value for shareholders. In closing, the words of famous Greek philosopher and scientist Aristotle seem most appropriate for all South African with regards to BBBEE. 'We do not act rightly because we have virtue or excellence, but we rather have those because we have acted rightly.' (Valuebasedquotes: 2005)