learning unit 4 part 2
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Learning Unit 4 Part 2. The Macro Environment. 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 - PowerPoint PPT PresentationTRANSCRIPT
Learning Unit 4 Part 2The Macro Environment
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
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
Structure of the SA Parliament
South African Parliament(Situated in Cpt)
National Assembly(350-400 members for 5
year term)
National Council of Provinces
(Achieve co-op governance and
democracy)
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
SA economy
On par with developed countries
On par with basic
infrastructure
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
SA economy
• 3 Fundamental problems to solve:1. What should be produced in the economy?
Quantities to produce, spending on housing and HIV?
2. How should production be organised?Employment, location, buy or lease?
3. For whom should production take place?Equal distribution?
Doing business in SA
• Must comply to ‘rules of the game’.• Major rules:– Corporate Governance– Labour Laws– BBBEE– Basic tax
Corporate Governance
• Act as ‘responsible citizens’.• Corporate Governance = Good citizenship for
business organisations – Business integrity– Ethical values– Professionalism
7 Characteristics of Good Corporate Governance
Discipline
Transparency
Independence
Accountability
Responsibility
Fairness
Social Responsibility
Labour Law- Basic Conditions of Employment Act
• Regulate employment conditions:– Leave– Working hours– Contracts– Records– Deductions– Pay slips– Overtime– Termination
Labour Law- Compensation for Occupational Injuries and Diseases Act
• Information with regards to injury on duty.
Labour Law- Employment Equity Act
• Applies to employers and workers.• Protects workers and job seekers from unfair
discrimination.• Framework for implementing affirmative
action.
Labour Law- Unemployment Insurance Act
• UIF• Jobless or retrenchment• Temporary compensation
Labour Law- Labour Relations Act
• Support labour peace.• Support democracy.• Support worker decision-making in the
workplace.
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.
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.
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.
SA Tax system
• Main income source of government.• Pays for services:– Education – Healthcare– Infrastructure– Research– Development
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
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