How will BMF approach transformation in 2018?

Corporate South Africa has been marred with fraud and corruption in recent months but very little has been done to hold those involved accountable in South Africa. Joining CNBC Africa to talk about Corporate South Africa is Mncane Mthunzi, President of the Black Management Forum. Mthunzi, a prominent figure in the business world, shared his insights on the challenges facing the corporate sector and the urgent need for accountability and transformation. The conversation with CNBC Africa shed light on the crucial issues that need to be addressed to steer Corporate South Africa towards a more inclusive and transparent future. One key theme that emerged from the interview was the urgent need for government intervention to enforce existing policies and laws that promote accountability and transformation in the corporate sector. Mthunzi emphasized the importance of monitoring policies and ensuring that companies comply with regulations, such as submitting employment equity reports. He stressed that without stringent enforcement and penalties for non-compliance, the behavior of companies is unlikely to change. Key Points: 1. Enforcement of Policies: Mthunzi highlighted the lack of enforcement of existing laws and regulations in Corporate South Africa. He called for government intervention to ensure that companies adhere to policies such as employment equity and black economic empowerment. Without effective enforcement mechanisms, transformation efforts are hindered, and accountability remains elusive. 2. Legislative Support: Mthunzi urged lawmakers to introduce new policies and legislation that support transformation initiatives. He emphasized the need for companies to disclose their progress on issues of race and gender diversity annually, with consequences for non-compliance. By empowering existing policies and introducing new measures, Corporate South Africa can make significant strides towards inclusivity and transparency. 3. Accountability and Governance: The discussion also touched on the importance of accountability and good governance in the corporate sector. Mthunzi highlighted the need for companies to uphold ethical standards and ensure diversity in leadership positions. He called for a shift towards greater inclusion of women and black executives on boards, citing the example of Scandinavian countries that enforce gender diversity requirements with penalties for non-compliance. In response to questions about the role of black-owned companies and the push for greater representation, Mthunzi emphasized the importance of creating opportunities for black entrepreneurs to thrive and succeed. While acknowledging the existence of successful black-owned enterprises, he underscored the need for broader participation and leadership roles in established companies listed on the JSE. Quote: As Mthunzi aptly stated, 'Lawlessness is a reflection of people not having respect for the rule of law. And they think that they will get away with it. And corporate South Africa, for example, on issues and matters of transformation has been getting away with it for far too long.' In conclusion, the conversation with Mncane Mthunzi shed light on the critical issues facing Corporate South Africa and the necessary steps to drive transformation and accountability. By enforcing existing policies, introducing new legislative support, and promoting diversity and governance, the path to a more inclusive and responsible corporate sector can be forged.