The influence of broad-based black economic empowerment policies on organisational effectiveness : a case of South African companies

Abstract

B-BBEE is an integral part of the South African business landscape so long as there are real or perceived inequalities in the economy and society in general. Legislation came into effect to redress the economic imbalances caused by the apartheid system where black people were purposefully restricted from meaningful participation in the economy (B-BBEE Strategy, 2003). Since its inception B-BBEE legislation has been subjected to several amendments. Such amendments to the legislation required companies to adjust their resources both human and capital and strategies to comply with the legislation. The research was aimed at exploring the influence of Broad-Based Black Economic Empowerment Policies on organisational effectiveness. B-BBEE is part of the South African business environment and knowing and understanding how it influences organisational effectiveness may assist in the understanding of the constraints of the transformation in the South African economy. B-BBEE is a very controversial subject that affects different companies in different ways, hence a subject of political debates, at government and organisational levels. B-BBEE affects different stakeholders of South African sectors of society such as employees, unemployed people, businesses, owners, and the State. These stakeholders have varied interests related to B-BBEEE that gave rise to the current study. The research study provided a different angle to what is currently available in terms of B-BBEE research. The study employed a mixed method approach to research. The primary data collection method was questionnaires with a 5-point Likert scale where respondents were required to complete multiple choice questions. The qualitative study used interviews with selected respondents. The study findings confirmed that B-BBEE had a positive impact on organisational effectiveness with specific reference to managerial effectiveness, organisational sustainability, organisational strategy and organisational culture.