Broad-Based Blac Economic Empowerment - 996 Words

Broad-Based Black economic empowerment (BBBEE) is a program exercised in the South African business structure whereby formerly disadvantaged racial groups are given economic opportunities that were not previously available to them, in an attempt to rectify the inequalities of the past. The goal of Broad-Based Empowerment is to distribute wealth across as broad a spectrum of previously disadvantaged South African society as possible. The aim of this article is to discuss the ethical consequences of BBBEE and other affirmative action tools implemented by the South African Government, and the role of these measures in the present and future workplace. Stakeholder Theory Stakeholder theory states that managers within a company have a moral duty beyond merely maximizing profits and not involving potential role players (Beauchamp 2009). It says that a manager has ethical obligations to help all stakeholders within a company as well as external stakeholders. These stakeholders include company employees, customers, investors and the society in which the company is situated. Managers have to make decisions in such a way that they don’t do anything illegal or morally frowned upon by society. The manager has to act on behalf of, and in the interest of both the companys shareholders and stakeholders. These actions need to be followed through regardless of whether or not the long term results benefit the companys shareholders – they should benefit all their stakeholders. Other