Learning Unit 4 Part 2

1. Learning Unit 4 Part 2 The Macro Environment

2. Characteristics of SA Government • Constitutional democracy – 3-tier system: • National • Provincial • Local • 3-Tier system: • Executive authority for each • Defined in Constitution as “distinctive, interdependent and interrelated • Advisory bodies from SA’s traditional leaders

3. Characteristics of SA Government • Country run on co-operative governance • Parliament has legislative authority • President elected by National assembly • Executive Head of State • Leads the Cabinet • Not serve 2x 5 year terms in office

4. Structure of the SA Parliament

5. SA economic system • Open economy: • What G&S to produce • What price to charge • How to use resources • Start business of own choice • Choose how to divide profits

7. SA economy • Transportation best in Africa. • Primary sector well developed. • Manufacturing • Services • Mining • Agriculture • SA is productive and industrialised. • Labour divided into formal and informal sector • Uneven distribution of wealth and income

8. SA economy • 3 Fundamental problems to solve: • What should be produced in the economy? Quantities to produce, spending on housing and HIV? • How should production be organised? Employment, location, buy or lease? • For whom should production take place? Equal distribution?

9. Doing business in SA • Must comply to ‘rules of the game’. • Major rules: • Corporate Governance • Labour Laws • BBBEE • Basic tax

10. Corporate Governance • Act as ‘responsible citizens’. • Corporate Governance = Good citizenship for business organisations • Business integrity • Ethical values • Professionalism

11. 7 Characteristics of Good Corporate Governance

12. Labour Law- Basic Conditions of Employment Act • Regulate employment conditions: • Leave • Working hours • Contracts • Records • Deductions • Pay slips • Overtime • Termination

13. Labour Law- Compensation for Occupational Injuries and Diseases Act • Information with regards to injury on duty.

14. Labour Law- Employment Equity Act • Applies to employers and workers. • Protects workers and job seekers from unfair discrimination. • Framework for implementing affirmative action.

15. Labour Law- Unemployment Insurance Act • UIF • Jobless or retrenchment • Temporary compensation

16. Labour Law- Labour Relations Act • Support labour peace. • Support democracy. • Support worker decision-making in the workplace.

17. Labour Law- Skills Development Act • Develop the skills of SA. • Improve life-quality of workforce. • Improve prospects of work. • Improve productivity in workplace. • Improve competitiveness. • Improve self-employment.

18. Broad-based Black Economic Empowerment (BBBEE) • Objectives: • Facilitate transformation: Enable meaningful participation of black people. • Promotes fair percentage of racial ownership and management for existing and new enterprises • Black people = Generic term for Africans, Coloureds and Indians. • Also includes women, workers, youth, disabled people and people in rural areas.

19. Broad-based Black Economic Empowerment (BBBEE) • Strategies to ensure BBBEE: • Increase # of black people that manage, own and control. • Equitable representation on all levels of the workforce. • Preferential procurement. • Investment in organisation owned/managed by black people.

20. SA Tax system • Main income source of government. • Pays for services: • Education • Healthcare • Infrastructure • Research • Development

21. Business support in SA • SMME’s play big role in SA economy and development. • Gov target SMME’s for economic empowerment of previously disadvantaged. • SMME’s receive investments and attention. • Through DTI • National Small Business Act of 1996 = Establish supportive structures

22. Government initiatives to support SMME’s • CSBP, Khula Enterprise Finance • Industrial Development Cooperation, Women’s Entrepreneur network • NAMAC trust + Ntsika = SEDA = DTI agency • BRAIN: Online initiative with info and links