Abstract
M.Comm.
Broad Based Black Economic Empowerment (BBBEE) is almost ten years old. The
objective of the BBBEE is to increase the participation of Black people and Black women
in the South African economy and also to bridge the income inequality which was
brought about systematically before South Africa became a democratic country. The
BBBEE Act, through the Codes of Good Practice has identified seven key elements
which if addressed will help to achieve the objectives of the Act. These elements are
ownership, management control, employment equity, skills development, preferential
procurement, enterprise development and socio economic development. Minimum
targets have been set which need to be achieved within ten years.
The primary objective of the study was to investigate if Sappi one of the two dominant
pulp and paper companies in South Africa, could utilize outsourcing as a Black
Economic Empowerment Tool.
The secondary objectives were twofold:
• To identify key barriers to complying with the seven elements of the Codes of
Good Practice; and
• To establish measures or incentives that will lead to Sappi Forests’ outsourced
activities complying with the Codes of Good Practice hence utilizing outsourced
activities as a Black Economic Empowerment tool.
The research findings indicate that Sappi could utilize outsourcing as a Black Economic
Empowerment tool. According to survey results, significant progress has been achieved
in implementing BBBEE Act despite the lack of a systematic approach. Progress
towards the implementation of the Act as measured against the seven elements
contained in the Codes of Good Practice, is commendable. Should the
recommendations such as incentives and rewards that are mentioned in the findings be
adopted, the implementation of the BBBEE Act which leads to empowerment could be
enhanced in forests’ outsourced activities.