The revised generic Codes of Good Practice (Revised Codes) which were promulgated on 11 October 2013, provided for a transitional period of 12 months during which entities are to familiarise themselves with and understand the provisions of the Revised Codes. Entities are also to begin to implement the substantial changes from the Old Codes that the Revised Codes require with regards to the manner and in respect of whom the private sector contributes to transformation.
Investigate opportunities
On 18 March 2014, Minister Rob Davies extended the transitional period from 11 October 2014 to 30 April 2015. Entities have thus been granted a further six months within which to absorb the step-changes required in order to comply with the Revised Codes. The application of the Revised Codes will thus only be obligatory where an entity begins the verification process on or after 1 May 2015 (entities may still choose to be verified in terms of the Revised Codes prior to 1 May 2015).
Whilst the extension is welcomed, caution needs to be raised against delaying the gaining of insight and understanding of the implications of the Revised Codes and investigating opportunities to equip one's business to move away from tick-box compliance (which is easy to succumb to under pressure) towards meaningful transformation. We believe the extension can be best used to pressure-test changes in systems and processes as well as changes in dialogue brought on by the Revised Codes so as to certify that they bring about the desired results.
As identified in the National Development Plan, South Africa continues to be plagued by, among other things, high unemployment, a poor educational system and spatial patterns that drive inequality. The changes set out in the Revised Codes more aggressively attempt to focus businesses efforts on ensuring that actual and sustainable economic empowerment occurs in the lives of a broader base of black South Africans. The sooner this is effectively addressed, the better for our country.
