Siemens is now one of just two companies in its peer group to achieve Level 2 BBBEE. It has the highest rating for a German company operating in South Africa.
The Level 2 ranking was calculated by Empowerdex in accordance with the Department of Trade and Industry’s 2007 B-BBEE Codes of Good Practice.
Siemens has steadily increased its B-BBEE points from 51 points in 2006, and the new ranking followed a 7,6 point (9%) increase from the 2014 score of 78.31, to nearly 86 points in 2015.
“Contributing to South Africa’s sustainable economic and social development is a key part of Siemens’ business strategy,” said Siemens executive director Clifford Klaas, who joined the company in 1986 as its first black business administration trainee.
“We are extremely proud of our Level 2 B-BBEE achievement, which is reward for Siemens’ commitment to South Africa’s development goals. We saw a particularly large improvement in skills development and employment equity, which are two of the most challenging categories in a B-BBEE rating.”
B-BBEE scores are calculated on seven elements – ownership, management control, employment equity, skills development, preferential procurement, enterprise development and socio-economic development.
Siemens’ 2015 B-BBEE achievement is partly the result of better measurement of its B-BBEE performance, and the employment of a dedicated diversity-affairs manager to keep track of the company’s contribution to SA.
“We knew we were doing the right thing, but we didn’t always document it for our B-BBEE score,” Klaas said. “But once we looked hard at our impact we realised just how much we were doing, how many people we were training, that we were spending more on skills and development than the scorecard required and that we were in a position to achieve the top ranking.”
Siemens’ detailed 2015 BBBEE ranking
• Ownership: Target score of 20 – Siemens increased 6% from 20.82 to 22 points
• Management control: Target score of 10 – Siemens declined 8% from 8.93 to 8.21 points.
• Employment equity: Target score of 15 – Siemens increased 84% from 2.58 to 4.74 points.
• Skills development: Target score of 15 – Siemens score increased 84% from 5.98 to 11.02 points.
• Preferential procurement: Target score of 20 – Siemens retained its 2014 score of 20.
• Enterprise development: Target score of 15 – Siemens retained its 2014 score of 15.
• Socio-economic development: Target score of 5 – Siemens retained its 2014 score of 5.
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