Exploring and identifying broad-based black economic empowerment (B-BBEE) implementation and compliance challenges in the South African liquid fuels sector
Thesis (MBA)--Stellenbosch University, 2014.
Broad-based Black Economic Empowerment (B-BBEE) not only aims to readdress the racial imbalances of the apartheid era, but also seeks to promote social responsibility and empowerment of historically disadvantaged South African (HDSA) communities (Esser & Dekker, 2008). The transformation journey within the South African Liquid Fuels Sector has been a difficult and lengthy one. The South African Liquid Fuels Sector was amongst the first to receive its own Black Economic Empowerment (BEE) sector charter (Liquid Fuels Charter) in 2000. Although numerous transformation milestones have been achieved, the sector has been criticised for its slow pace in advancing transformation, which has in part contributed to the amendment of the B-BBEE Codes in 2013. The argument of slow transformation can be attributed to obstacles faced by those in industry tasked with implementing B-BBEE. There has been a deficiency in studies that have investigated transformation and the implementation of B-BBEE within the sector. As a result, the central objective of this study was to explore the B-BBEE implementation challenges faced by companies within the liquid fuels sector. A qualitative approach was employed for the collection of primary data and involved interviews with eight top and senior management representatives of Chevron South Africa (Pty) Ltd. The results emanating from the study revealed numerous implementation challenges. The study together with literature reviewed, highlights the need to address these challenges in order for B-BBEE implementation to yield the desired results for all stakeholders within the South African Liquid Fuels Sector. The study concludes that a lack of understanding of B-BBEE policy; alignment of internal party interests; overcoming internal biases; skills shortages and lack of experience by Black individuals; involvement of senior management in implementation process; co-ordination and structure required in B-BBEE implementation execution; communication within organisations; diversity/cultural awareness; and B-BBEE policy issues and skills attraction and retention are some of the issues impacting B-BBEE implementation within the South African Liquid Fuels Sector.