Moment of truth
New BEE code prioritises black ownership and widens pool of human resources in advertising
Advertising agencies are under pressure to achieve 45% black ownership by the end of March 2018.
This follows the gazetting of the B-BBEE sector code for the SA Marketing, Advertising & Communications industry by trade & industry minister Rob Davies. It follows months of tough talk in the industry. There is a widely held belief that transformation across most aspects of the business has been slow or has ground to a halt and that advertising output has not always matched the needs or the profile of the SA consumer.
Davies says the new code is designed to “prioritise black ownership, increase a pool of human resources in the sector and contribute towards addressing unemployment in the country”.
Notes one agency MD: “The rubber has really hit our road; we have no choice but to change. Watch out for a recruitment war as we try to meet the targets.”
The new code applies to all companies operating in the brand communications space and they will now have to submit themselves to annual verification against the code.
Of the 45% black ownership requirement, 30% has to be reserved for black women.
The advertising industry has found it difficult to recruit and retain black talent. The problem, says one creative director, is that other sectors tend to pay better “and once you’re inside the belly of the beast it’s not as glamorous as it appears to be”.
For this reason, agencies will be rewarded more for training and hiring young black graduates. On the overall scorecard, more points are awarded under the “skills development element” than in the generic codes for other sectors.
Black ownership, board representation and participation in management have posed challenges too. The new code provides for a 50% black board with exercisable voting rights, half of which must be female.
Senior agency insiders say they are likely to struggle to achieve a 60% target of black executive and senior management. Notes another MD: “This is the part where we have failed and we will battle to find people. We have to make our industry more compelling as a long-term career choice.”
The new code compels agencies to have a 75% black middle management quota by March 2018 and 88% in junior management, half of which must be female. Further, 80% of all spending has to go to empowerment suppliers, 20% of them small or medium enterprises.
The new code will also make ad agencies think more about the tone of their messaging and representation. The new code says: “In a society where the national agenda takes precedence, it is important that social marketing pays heed and promotes it in a responsible yet creative manner. This will ensure that all messages aimed at promoting social coherence and edification are consistent with the national agenda in the best interest of society.”
The code urges brands and their agencies to cultivate new habits and practices; encourage good behavioural methods; discourage behaviour that has a negative impact on society; and reinforce behavioural patterns that contribute to good fellowship and citizenry.
The communications industry has recommitted itself to “promote pride in the SA brand” and become “a mirror of the soul of the nation”. It has also committed itself to responsible creativity in general and specifically when it comes stereotyping groups or individuals.