Financial services IT provider Astute has achieved a level-two AAA rating from registered rating agency Empowerdex.
MD of Astute Biddie Biddulph says the company has not been previously rated. “In view of the BBBEE [broad-based black economic empowerment] Act 2006 and subsequent code, Astute, on request from shareholders, sought a BBBEE rating from Empowerdex.”
The Empowerdex verification report provides independent opinion on the BBBEE status of companies in terms of the Department of Trade and Industry's Codes of Good Practice.
“Having worked hard on the transformation of our business over the past few years, we are pleased with the empowerment rating awarded to Astute. The business performed well in terms of ownership, employment equity, preferential procurement, socio-economic development and corporate social investment,” says Biddulph.
Seven pillars
The points awarded to Astute for its corporate social investment (CSI) initiatives are based on the company having spent more than 1% of net profit after tax on these activities, he says.
“One of Astute's CSI initiatives, which is becoming something of a tradition, is the sponsorship of teams riding in the Momentum 94.7 Cycle Challenge to raise funds for charities, including Cotlands and CANSA.
“These and many other similar organisations are important and should be supported because they provide critical services to people whose lives are affected by, among others, HIV and cancer. This year's beneficiary is Autism SA.”
Biddulph says enterprise development is one of the pillars of the BEE scorecard. As a QSE (qualifying small enterprise with a turnover of less than R35 million), Astute was rated on five out of the seven pillars. CSI is also one of the pillars.
Going forward
“From both a macro perspective and that of Astute, economic transformation is a continuing process. Our intention is to keep working on improving our BEE measures,” says Biddulph.
He explains that the company's employment equity (EE) plan sets goals for the next five years, with specific annual numerical targets. These are supported by a formal EE plan to employ, develop and promote people from designated groups into positions at each occupational level.
“Astute has a skills development strategy and is putting in place a succession planning and career development strategy,” adds Biddulph.
The company endeavours to secure procurement contracts with suppliers and vendors rated BBBEE level four and upwards, Biddulph says, and will continue to sponsor at least 1% NPAT each year annum on CSI.
Astute's certificate also means its customers can claim BEE points on their BEE scorecards when buying services from the business.
There are different levels of BEE certificates, ranging from level eight to level one (level one being the highest), depending on the contributions each business has made to empowerment, explains Astute.
The higher the BEE level achieved, the more BEE points the clients of a business can claim on their BEE scorecard for preferred procurement. This means customers selecting a supplier are likely to look at price, quality and service, and BEE ratings, it adds.
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