Strate has been awarded a level three Broad-Based Black Economic Empowerment (B-BBEE) rating by verification agency Empowerdex, with an overall score of 78.44%.
This is an improvement from our level four rating awarded in 2011, where we scored 70.34%. Companies that use Strateʼs services are able to claim additional points for their own B-BBEE scorecard, due to our rating. As weʼve also retained our accreditation as a value-adding supplier, customers can also claim an additional 25% for B-BBEE purposes.
In the 2012 Audit, based on the 2011 Audited Financial Statements, Strate was rated as a Level 3 Contributor with a 110% recognition level, an improvement on the previous rating of Level 4 (100% recognition level). The main reason for the improved rating is our improved scoring in Ownership, Enterprise Development, and Socio-Economic Development.
Since 2004, B-BBEE has been adopted as a South African government initiative to promote economic transformation to enable meaningful participation of black people in the country. To encourage B-BBEE, the Codes of Good Practice were gazetted and released in February 2007 with a clear framework to measure B-BBEE against seven generic elements. These are Ownership, Management and Control, Employment Equity, Skills Development, Preferential Procurement, Enterprise Development and Socio-Economic Development.
In our 2012 Audit, the accreditation highlighted improvements in three of the seven scorecard elements: Ownership, Enterprise Development, and Socio-Economic Development.
Enterprise Development initiatives
A large contribution to our 2012 score are our initiatives relating to Enterprise Development. Over the year, we have largely supported small BEE businesses that are more than 50% black owned with a special early payment system. This helped us achieve an increased rating from 7.88 in 2010 to 15 out of 15 in 2011.
We also focused on those enterprises that are more than 25% black owned with a BEE level of between one and six. We also added further beneficiaries and used the early-payment system to support our current and new base of small BEE businesses.
We dedicated ourselves to supporting such an important part of our economy – small businesses. These companies represent 98% of the total number of firms in South Africa and employ more than half of the countryʼs work force, yet most of them fail because of cash flow constraints. Thatʼs why Strateʼs committed to supporting small B-BBEE businesses by paying them quickly.
Socio-economic development policy
ʻOwnershipʼ was the second biggest increase from 2010 to 2011, resulting in a score of 12.93 out of 15, from 11.48 in 2010. The voting rights of black women, economic interest of black women, and the net value of Strateʼs shareholder base – namely the JSE, ABSA, FirstRand Bank, Standard Bank and Nedbank – were large contributors to the rise in this element.
In addition, we have continued to support worthy causes and charities in line with our socioeconomic development policy. Strate spends 1% of Net Profit After Tax (NPAT) to identified charity organisations and, as a result, achieved an increased rating to five out of five, from 4.29 in 2010.
We understand that transformation is a strategic and crucial requirement, but more so as a business opportunity rather than a matter of complying with legislation.
Says Monica Singer, CEO of Strate:
I am proud of the exceptional effort we have put in to empower local businesses and individuals. Our values align to our commitment in the initiatives that ensure a sustainable South Africa of tomorrow.”