The codes of good practice allow foreign multinational companies that do business in South Africa some flexibility in how they structure their empowerment deals. In particular, the B-BBEE Codes of Good Practice acknowledge that there may be multinationals whose global practices prevent them from complying with the ownership element of B-BBEE through the traditional sale of shares to black South Africans. Ipsos South Africa challenged the norm and took the road less travelled.
NPI Governance Consulting was entrusted with the task of consulting on the ownership element for Ipsos South Africa through the following interventions:
- Advising shareholders selling 26% of shares to strategic Broad-Based Scheme
- Advising IPSOS’ executive management on the latest developments in the Amended B-BBEE Codes and its impact on their B-BBEE score
Ipsos set up a Public Benefit Organisation in South Africa called The Ipsos Youth Development Trust, which has 26% shareholding in IPSOS South Africa. Its strategy is aligned to the global Ipsos Foundation focusing on youth development.