Case Study Pages:
Black economic empowerment in South Africa
Key focus - Supply in action
In past years, if you were black and lived in South Africa, you were often excluded from participating in the workforce in a meaningful way. To many, life offered little hope. Black Economic Empowerment (BEE) laws have been introduced to address inequalities. BHP Billiton is responding through the implementation of its BEE Procurement Policy and the establishment of a central BEE Supply Unit. The Policy attempts to address the socio-economic imbalance by increasing the participation of previously disadvantaged groups.
Many organisations supply a range of goods and services to BHP Billiton. A BEE Supply Unit was established to:
- Give black suppliers the opportunity to supply to BHP Billiton
- Ensure that all buying organisations within BHP Billiton have the support to successfully achieve legislated procurement targets.
BHP Billiton promotes BEE spending in three main ways.
- Transforming suppliers - initiating forums with existing suppliers in order to make them aware of the components of the BEE Procurement Policy
- Targeting existing & new BEE suppliers - identifying specific opportunities for the entry of BEE suppliers and assisting and developing these suppliers
- Building capacity - promoting and supporting local supply opportunities to small to medium-sized enterprises (SME's).
BHP Billiton provides 50 percent of the funding required for the training of BEE suppliers. The company puts its policy into action assisting small and medium-sized businesses, including those in local communities close to its operations. It develops partnerships that foster the sustainable development of host communities and help reduce poverty.