THE trade and industry department finally released the remaining codes of good practice in December.

Not only did it release the final codes, but it created scorecards for various types of enterprises ranging from multinational corporations to smaller companies, called qualifying small enterprises.

By now much has been written about the new codes, what they mean and how you could go about implementing them in your organisation. Often, implementation of a concept is made easier once some of the theory behind it is explained. This article offers a new spin on empowerment theory.

My partner in Caird Consulting, Keith Levenstein, observed that when you look at aspects of the scorecard, you might be able to incorporate psychologist Abraham Maslow’s hierarchy of needs into the codes. To do this you need to view the scorecard from the bottom up (see table) — start at the residual element and work your way up to equity ownership.

Physiological needs

When Trade and Industry Minister Mandisa Mpahlwa announced the remaining codes, he said companies were encouraged to “help government conquer the challenges of marginalised areas and people”.

Also bear in mind that local elections are coming up shortly and it is likely that certain promises will be made by government. This is where corporate social investment comes in. The code covering corporate social investment awards additional points for contributions to projects that develop and sustain employment in rural areas.

Security and basic economic needs

Once these people and areas are self sufficient, they will look to start expanding their wealth. Enterprise development is a mechanism for companies to assist up-and-coming enterprises or existing black businesses to become sustainable. Part of the sustainability is finding markets.

Enter preferential procurement: companies subscribing to the generic scorecard are awarded up to five points for procuring from smaller enterprises (bonus points if you procure directly from the beneficiaries of your enterprise development projects).

Social needs

The sustainable business is now in a position to hire employees. Employment equity wants to see more black employees at all levels. Their skills will need to be continuously developed. The scorecards set targets for each company to spend 2%-3% of payroll (depending on which scorecard you subscribe to) on skills development.

Self respect and autonomy

We’re still in employment equity, which is about greater black representation at all levels in the company. As the employee’s skills’ levels improve they will be promoted. Ultimately they will strive for an executive position in the organisation.

Self actualisation

In reality self actualisation is a relative target, but for scorecard purposes it would have to be some form of ownership — code 100 of the scorecard.

The Accelerated and Shared Growth Initiative pins its success on the ultimate success of empowerment. This bottom-up approach will provide the necessary support for achieving 6% growth by 2010.

Janisch is CEO of BEE consultancy Caird Consulting.