According to the BEE Codes of Good Practice:
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Socio-Economic Development (SED) is “Facilitating sustainable access to the
economy for beneficiaries” |
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SED Applications: |
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Bursaries for
training of unemployed black beneficiaries
into an industry |
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Programmes that
support schools that align themselves with
the requirements of the BEE Codes of Good
Practice |
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HIV & AIDS
awareness and sustainable living initiatives |
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Any initiative that
will assist black people from previously
disadvantaged communities to become
economically active and sustainably
independent
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Enterprise Development (ED) is “Establishing or expanding a
beneficiary’s operational and financial capacity” |
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ED Applications: |
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Infrastructure, equipment and resources
which support and enhance SED initiatives |
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Support
of SMME’s and entrepreneurs in learning,
growth and sustainability programmes |
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The difference between CSI and
SED: |
Corporate Social Investment (CSI) is traditionally budgeted for as an operational
expense and allocated to projects that are of
interest to the organisation and its staff. These
could include Animal Welfare, Red Cross, NSRI, Green
Peace, Charities and the like.
Socio-Ecnomic Development (SED) expenditure comes out of Net Profit After Tax (NPAT)
and needs to be spent on initiatives that facilitate
sustainable access to the economy for beneficiaries. |
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Why SED and ED? |
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Benefits of you investing in a good ED and SED
initiative: |
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BEE Points |
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Brand association
with Economic Growth |
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To ensure a return
on investment to your company
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How is this calculated? |
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If your turnover is
less than R5 Million – you automatically
qualify as a level 4 Contributor on the BEE
Scorecard and are not required to make any
SED and ED Contributions |
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If your turnover is
over R5 million but less than R35 million
you will need to choose 4 pillars of the BEE
Scorecard. Should you choose to spend on SED
and ED your contribution will need to be 1%
of NPAT for SED and 2% of NPAT for ED to
score full points |
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If your turnover is
over R35 million you will need to comply
with all 7 pillars. Your SED spend will need
to be 1% of NPAT and your ED spend 3% of
NPAT to score full points |
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