Business Impact of the Black Economic Empowerment in South Africa: A Critical Review of Four Case Studies
The majority blacks in South Africa were systematically excluded from meaningful participation in the economic life of the country during the apartheid era from 1948 to 1994. More specifically, the blacks were deprived of ownership in industrial firms and denied responsible positions in the private as well as the public sectors. To address this injustice, the South African government introduced the policy of Black Economic Empowerment (BEE) in the aftermath of the collapse of the apartheid regime in 1994. This paper investigates the impact of the BEE policy on the businesses in South Africa by reviewing four case studies. The companies covered in three of the four case studies and 500 managers surveyed in the fourth reported different challenges in implementing BEE while at the same a number of commonalities were also found. This paper concludes with a discussion of the challenges and commonalities in implementing BEE in South Africa.
Acemoglu, D., Gelb, S., & Robinson, J. A. (2007). Black economic empowerment and economic performance in South Africa. Cambridge, MA: Center for Economic Development, Working Paper.
Boshoff, W. H. (2012). The strategic implications of black empowerment policy in South Africa: a case study of boundary choice and client preferences in a small services firm. South African Journal of Economic and Management Sciences, 15(2), 207-221.
Bundy, C. (2014). Short-changed: South Africa since apartheid.
Cargill, J. (1999). Empowerment 1999: A moving experience. BusinessMap SA.
Chabane, N., Machaka, J., Molaba, N., Roberts, S., & Taka, M. (2003). 10 year review: Industrial structure and competition policy’ School of Economic and Business Sciences University of the Witwatersrand.
Department of Trade and Industry, Republic of South Africa. (2003). “South Africa’s economic
Transformation: a strategy for Broad-Based Black Economic Empowerment.”
Du Toit, A., Kruger, S., & Ponte, S. (2008). Deracializing exploitation?‘Black economic empowerment’in the South African wine industry. Journal of Agrarian Change, 8(1), 6-32.
Glen, F., vd Merwe, T., Hinsch, M., & Kilian, D. (2014). Exxaro Coal Mpumalanga (Pty) Ltd.
Gray, K. R., & Karp, R. E. (1993). An experiment in exporting US values abroad: the Sullivan principles and South Africa. International Journal of Sociology and Social Policy, 13(7), 1-14.
Fauconnier, A., & Mathur-Helm, B. (2008). Black economic empowerment in the South African mining industry: A case study of Exxaro Limited.
Jackson, W. E., Alessandri, T., & Black, S. S. (2005). The price of corporate social responsibility: the case of black economic empowerment transactions in South Africa.
Krüger, L. P. (2011). The impact of black economic empowerment (BEE) on South African businesses: Focusing on ten dimensions of business performance. Southern African Business Review, 15(3), 207-233.
Our Africa: http://www.our-africa.org/south-africa/history-politics, accessed on November 17, 2016.
South African History Online: http://www.sahistory.org.za/article/roots-segregation-1860-1910, accessed on November 17, 2016.
TRANSFER OF COPYRIGHT
JRBEM is pleased to undertake the publication of your contribution to Journal of Research in Business Economics and Management.
The copyright to this article is transferred to JRBEM(including without limitation, the right to publish the work in whole or in part in any and all forms of media, now or hereafter known) effective if and when the article is accepted for publication thus granting JRBEM all rights for the work so that both parties may be protected from the consequences of unauthorized use.
The copyright transfer covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline, online) or any other reproductions of similar nature.
The author’s warrant that their contribution is an original work not published elsewhere, that they have the full power to make this grant and that the article contains no matter unlawful or which invades the right to privacy or infringes any proprietary right.
This Form must be signed by the lead author or, in the case of a "work made for hire," by the employer and must be received by JRBEM before processing of the manuscript for publication can be completed.
Authors should understand that consistent with JRBEM's policy of encouraging dissemination of information, each work published by JRBEM appears with the JRBEM copyright and the following notice:
"Intellectual properties and scientific inventions published with JRBEM are protected under International and Federal Copyright Laws and Treaties. Permission to make digital or hard copies of part or all of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than JRBEM must be honored. Abstracting with credit is permitted. To copy otherwise, to republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee."
However, it is at the discretion of JRBEM if the copyright notice should be included in the published manuscript.
The JRBEM copyright arrangements allow Cornell University Library non-exclusive and irrevocable license to distribute or certify that the work is available under JRBEM license that conveys these rights.