The Media, Advertising and Communications (MAC) Sector Code applies to advertising, public relations and communication as marketing vehicles in all media, including digital platforms. Here are 6 ways in which the MAC Sector Code differs from the Broad-Based Black Economic Empowerment (B-BBEE) Amended Codes of Good Practice.
6 Differences between the MAC Sector Code and the B-BBEE Amended Codes of Good Practice:
- The MAC Sector Code includes compliance targets as well as additional higher proposed targets, to be achieved by 31 March 2018, which appear to be binding targets.
- The targets for voting rights and economic interest are much higher than those contained in the Amended Codes of Good Practice and other Sector Codes.
- Significantly more points are available under the MAC Sector Code for the Management Control element and the Skills Development element (27 points and 30 points respectively), compared to the points available for those elements under the Amended Codes of Good Practice (being 15 points and 20 points respectively).
- Under the Skills Development element, the points awarded for the number of black people absorbed at the end of learnership- and internship programs are 10 points under Skills Development, compared to 5 points under the Amended Codes of Good Practice.
- The compliance target for the Socio-Economic Development element is 1% of Net Profit After Tax (NPAT), but increases to 2.5% of NPAT by 2018 (compared to a compliance target of 1% of NPAT under the Amended Codes of Good Practice).
- The MAC Sector Code includes an additional element, Responsible Social Marketing and Communications (i.e. the annual value of contributions and participation in Sector-specific programs to promote responsible behavioural changes in line with government’s strategic objectives). The target for Responsible Marketing and Communications is 1% of NPAT, increasing to 2.5% of NPAT by 2018.
Additional Element: Responsible Social Marketing and Communications
The recently published B-BBEE MAC Sector Code includes a new, 6th element which gives businesses an opportunity to obtain an additional 5 scorecard points. Responsible Social Marketing and Communications has, according to the MAC Sector Code, been introduced to “encourage society to embrace habits and practices that contribute to its collective wellbeing and welfare”, and the Advertising Standards Authority (ASA) has been designated as the body entrusted with its management.
Obesity and drunk driving are both identified as specific examples of challenges to national wellbeing and welfare, and Responsible Social Marketing and Communications initiatives which serve to combat them would accordingly qualify. There are any number of issues which are arguably of national importance and which would benefit greatly from the industry’s collective responsible marketing efforts, but the qualification requirements are unclear at present.
ABOUT THE AUTHOR
Esti Joubert has been with SEESA BEE as legal ddvisor since 2015. She obtained her BCom degree in 2009, LLB degree in 2011 and her LLM degree in 2014.