More often than not when organisations enter into a relationship with an Enterprise Development or Supplier Development Beneficiary, it wants a guarantee that their investment will be successful. Hence, many choose to incorporate accountability clauses to secure their investment. However, Clause 4.12 in Statement 400 of the Amended General B-BBEE Codes of Good Practice states:
"4.12 Measured Entities are encouraged to develop and implement an Enterprise Development plan and Supplier Development plan for Qualifying Beneficiaries. The plan should include:
4.12.1 Clear Objectives;
4.12.2 Priority Interventions;
4.12.3 Key Performance indicators; and
4.12.4 A concise implementation plan with clearly articulated milestones".
Placing accountability conditions on Beneficiaries may be punitive without taking into account all factors in clause 4.12.
Enterprise & Supplier Development Services are on hand to guide organisations before entering into a contractual agreement with a Beneficiary, as Sector Codes may have differing requirements.
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