More women in business makes good sense

Women are still lagging behind their male counterparts in black economic empowerment (BEE) benefits, despite the advantages companies gain by having a woman in top management or as a shareholder.

BEE was meant, among other things, to encourage women’s active participation in the economy, says Kim Marr, the director of Social Advantage.

Her organisation helps businesses to maximise
the benefits and opportunities of effectively implementing broad-based BEE (BBBEE). BBBEE points are awarded to companies where at least 10% of the voting rights and economic interests lie in the hands of black women and at least 6% of procurement is aimed at black woman-owned businesses.

Black woman-owned start-ups and businesses qualify as beneficiaries for enterprise development. In addition, BBBEE rewards companies that develop the skills of black women and where black women occupy management positions and are adequately represented among the staff complement.

Marr says that, besides the awarding of BBBEE points, there are other compelling business reasons for including women in a business:

• Women can provide a competitive advantage by influencing and providing insight into the female role in the economy;


• Women see business from a different angle to men and, as a result, are a strategic resource; and


• In a largely male-dominated world a company run by women or one that reflects the important role that women play in business by including them in management stands a better chance of attracting young, professional women graduates.

The latest South African women in leadership survey by the Businesswomen’s Association (BWA) early this year showed that more than 70 companies listed on the JSE do not have a single woman on their boards of directors and 26 have no women executives. The BWA’s annual corporate leadership survey predicted that the country would achieve 50% representation on boards only in 2031, while 2050 was the realistic target for parity at executive management level.

Percentages of women executive managers, according to race, have remained fairly constant since the previous reporting period, according to the WBA’s 2010 leadership survey. Of the 2 827 women executive managers in South Africa, 62% (just over 1 700) are white. The remaining number is shared by black, coloured and Indian women.

The results were based on the 306 JSE-listed companies that verified their company information. The government, in stepping up its efforts to achieve gender parity, established a ministry to ensure that women’s issues, including their participation in the economy, are given an effective platform.

Noluthando Mayende-Sibiya, the minister of women, children and people with disabilities, said she would use her position on the presidential BBBEE advisory council to ensure that economic transformation included women.

“This is a great opportunity to infuse gender equity issues into the transformation agenda as championed under the B-BBEE Act. We will ensure that BEE is indeed broadbased and it benefits women.” She said one of the reasons women were lagging behind in economic participation was that, despite constituting 52% of the general population, only 45% of working South Africans were women.

“This inequity worsens at decision-making level, with women constituting 19% of executive managers and about 17% of directors in various boards.” But there are disadvantages to companies that appoint black women in top positions simply to earn high BBBEE scores.

Marr says that companie that do this to achieve shortterm goals end up with an unqualified person who cannot deliver what the job requires. “From a business perspective there is a person on the payroll who is not contributing to the success and growth of the company. It is not good for her self-esteem or morale either.”

Marr said, while BBBEE was placing enough emphasis on black women, the targets set out in the guidelines could be achieved only if they were implemented genuinely, which was still a real challenge. “Companies are pressured by their clients not only to be verified but also to have higher and higher BEE scores, resulting in companies scrambling around for additional points,” she said.

“It becomes more about the number of points than the genuine process of empowering the economy.” She said many companies did not understand BBBEE codes and because of that they failed to implement them properly. Business Unity South Africa (Busa) said that women continue to be under-represented in all directorships and top executive leadership positions in companies listed on the JSE.

Busa’s survey showed that, of the 269 chief executive positions, women accounted for 3%. Other findings of the Busa survey were that:

• Women accounted for 3% of 219 chief finance officer positions;


• Women accounted for 7% of 245 non-executive chairperson positions; and


• Women made up 6% of 1 664 non-executive director positions.

The BBBEE Codes of Good Practice were passed into law in 2007, with a strong focus on the recognition of women in the economy of the country. Companies that neglected women empowerment, be it in shareholding, skills development or procurement, would draw minimal points from the BBBEE scorecard.

Marr said that, in her line of duty, she did not notice any progress as far as women’s roles in the economy were concerned, even after the implementation of the BBBEE.