MAC Sector Code highlights

The MAC Sector Code under section 9(1) of the BBBEE Act is now in law and requires that companies in the sector meet the targets stipulated in it by 2018.  The six elements contained in the Code are Ownership, Management Control, Skills Development, Enterprise and Supplier Development, Corporate Social Responsibility and Responsible Social Marketing Communications.

The final MAC Sector Code applies to advertising, public relations and communications companies in all media including digital platforms.

It has certain requirements:

  • The Code contains compliance targets along with higher proposed targets to be achieved by 31 March 2018 that are binding.
  • Voting rights and economic interest targets are much higher than those contained in the general Codes and other sector Codes. This includes the target for exercisable voting rights and economic interest in the hands of black people at 40%, rising to 45% by 31 March 2018. This compared to 25% for the general Codes. The target for exercisable voting rights and economic interest in the hands of black women is 20%, rising to 30% by 31 March 2018. This compared to 10% under the general Codes.
  • Much more points are available under the MAC sector code for management control and skills development (27 points and 30 points, respectively), compared with the points available for those elements under the general Codes (being 15 points and 20 points, respectively).
  • Under skills development, the points awarded for the number of black people absorbed at the end of learnership and internship programmes is 10 points, compared with 5 points under the general Codes.
  • The compliance target for socio-economic development is 1% of NPAT, increasing to 2.5% of NPAT by 2018 (compared to 1% of NPAT under the general Codes).
  • The target for responsible marketing and communications is 1% of NPAT, increasing to 2.5% of NPAT by 2018.
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