South African policy reform has prioritised governance concerns, attempting to achieve transformation in the business environment, post-1994. Companies are therefore typically well established to meet the demands of policy and regulation in this regard.
The main issues featuring in the South African context of governance include the BEE performance of companies is an important element of governance. The need for diversification in company employment and leadership structures is important to South Africa’s transformation imperative.
BEE aims to rectify the consequences of apartheid by motivating companies to empower historically disadvantaged persons, directly through employment and indirectly by supporting enterprises that are owned by black entrepreneurs.
Accounting for a company’s BEE performance should therefore be integrated into responsible investment practice.