The Codes of Good Practice, issued by the Minister for Trade and Industry in 2007, builds upon the legislative framework provided by the B-BBEEA. The Codes specify the interpretive principles of the B-BBEEA and outline measurable elements of broad-based black empowerment, providing a guide on how it can be measured using a scorecard.

Firstly it is noted that the Codes of Good Practice apply to the following entities:

1. all public entities listed in schedule 2 or schedule 3 (Parts A and C) of the Public Finance Management Act;
2. any public entity listed in schedule 3 (Parts B and D) which are trading enterprises, and which undertake any business with any organ of state, public entity or any other Enterprise;
3. any enterprise that undertakes any business with any organ of state or public entity; and
4. any other enterprise that undertakes any business, direct or indirect, with any entity listed above, and that is seeking to establish its own B-BBEE compliance.

The Codes provide the following seven elements of broad-based black economic empowerment to be measured: effective ownership, management control, employment equity, skills development, preferential procurement, enterprise development, socio-economic development and specific contributions.

Companies are judged on the above elements using a scorecard explained within the codes. Based on the scores attained via specific measurements, a verification is then granted.  In accordance with Section 10 of the B-BBEEA, a legal onus is placed on organ of the state to procure goods and services from companies with a good B-BBEE status. This has a trickle-down effect which applies pressure on all suppliers and service providers to meet these standards. The impact that this cascading implementation has on procurement in general is the increase in market access for black companies.

Organs of state and public entities must take an entity’s BEE status into account when:

1. determining qualification criteria for the granting of licences and concessions;
2. developing and implementing a preferential procurement policy;
3. determining qualification criteria for the sale of state-owned enterprises; and
4. developing criteria for entering into partnerships with the private sector.