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H&T labels Hanger label manufacturere in Cape Town | Approved Woolworths supplier

Broad Based Black Economic (BBBEE) Policy

In pursuit of broad based black economic empowerment, H&T Labels contracted the services of SDF Corp. for readiness of verification and BEEVER, a reputable rating agency that is represented on the Department of Trade and Industry’s database of rating agencies, to conduct an initial assessment of the company’s BEE status.

The purpose of this draft policy document is to clarify the position of H&T Labels on the issues of the Broad Based Black Economic Empowerment (BBBEE) and the relevant industry Charters.

Vision Statement

H&T Labels strive to ensure that equitable opportunities are created and offered to predominantly historically disadvantage South Africans in its pursuit of achieving the goals and targets set by the Broad Based Black Economic Empowerment Act. 
The following objectives have been designed to improve this company’s BBBEE score and to better score and achieve a higher level each year.


  • To ensure that a minimum of the total staff compliment are designated groups by 2010.  - achieved
  • To develop a detailed and accurate Preferential Procurement Policy to guide and manage the implementation of successful procuring from predominantly historically disadvantaged South African owned companies by 2010.  - achieved
  • To ensure that a detailed and accurate Enterprise Development Programme is conceptualised and developed by 2011
  • To ensure that a detailed and accurate Corporate Social Responsibility Policy is developed by 2010             - achieved
  • To develop the skills of black employees according to the National Skills Development Strategy by 2011


Strategies have been implemented within our company and being a 100% BEE Contributor, we at H & T Labels have set our new target towards Preferential Procurement. With the emphasis being placed on the empowerment of historically disadvantaged individuals in the economy, H & T Labels has developed this policy to streamline company expenditure and clearly outline processes and restrictions on procurement with regards Black Economic Empowerment and Preferential Procurement. This document specifically distinguishes between Black Economic Empowerment (BEE) and Preferential Procurement, as in addition to BEE requirements; preference will also be given to enterprises owned by women, youth and persons with disabilities.


This document provides a framework and guideline for the procuring of services within the company. It should be used within the context of the broader BEE strategy developed for the company. The following definitions will assist with the common understanding of concepts and terminology.

  • Black

Black is defined within the Broad Based Black Economic Empowerment Act 2004 (BBBEE) as encompassing Asians, Coloureds and Indigenous Africans in South Africa.

  • Black Entities
  • A “black enterprise” is one that is 50.1% owned by black persons and where there is substantial management control. Ownership refers to economic interest while management refers to the membership of any board or similar governing body of the enterprise.
  • A “black empowered enterprise” is one that is at least 25.1% owned by black persons and where there is substantial management control. Ownership refers to economic interests. Management refers to executive directors. This is whether the black enterprise has control or not.
  • A “black woman-owned enterprise” is one with at least 25.1% representation of black women within the black equity and management portion.
  • Preferred Supplier

In addition to existing technical compliance and preference requirements, the company will also be evaluating suppliers based on their BEE status. The following categories of suppliers will exist:

  • Excellent Contributor - Level 1 to Level 3
  • Good Contributor - Level 4
  • Satisfactory Contributor - Level 5 to 7

H & T Labels will utilize the above to categorize the suppliers. Preference will be given according to the status herein as well.

It must be noted that the evaluation of tenders and submissions will not only include BEE but all existing criteria as well. Thus, each evaluation process will have a schedule of weighting which will be used to evaluate suppliers.

Policy Framework

  • H & T Labels will give highest preference to an Excellent Contributor supplier, who also meets the technical requirements and other existing requirements of the company.
  • No price compromises will be accommodated in the preferential procurement process. All quotations will be evaluated with cost reduction and business efficiency in mind.
  • No purchasing opportunity, whether BEE or not, will be considered without the perusal and comment of the Managing Director. All possible ideas, opportunities and proposals must be submitted to the Manager Director for perusal, comment and approval.
  • Disciplinary action can and will be taken against any personnel approaching outside stakeholders formally on behalf of the company without prior approval or verification by the Managing Director.

In addition to the above, a signed agreement will be negotiated with Value Added Suppliers that have an EME or QSE Accredited Scorecard, for early payments, i.e., within 14 days.

More in this category: « Employment Equity Policy
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