A Pahad: Receipt of Transformation Charter and Broad-Based Black
Economic Empowerment Scorecard for the marketing, advertising and communication
industry

Address by Minister Essop Pahad on receipt of the proposed
Transformation Charter and Broad-Based Black Economic Empowerment Scorecard for
the marketing, advertising and communication industry, Melrose Arch Hotel,
Johannesburg

27 September 2007

Programme Director;
Mr Nkwenkwe Nkomo, Chairperson of Marketing, Advertising and Communication
South Africa (MAC SA)
Ladies and gentlemen,

Today marks an important moment in a journey that began back in November
2001, when, during Parliamentary public hearings, a recommendation was made
that we - industry and government - should collectively address the serious
transformational challenges that the marketing, advertising and communication
sectors faced. We needed to do this in order to ensure that the marketing,
advertising and communication industry becomes truly South African.

Present among us today are many who began that long journey - a journey that
attests to your collective commitment, strength and willingness to see the
industry transformed. And today you can all be proud that your hard work and
your dedication have paid off and that the Transformation Charter reflects the
values and aspirations of our Constitution.

The marketing, advertising and communication industry plays a very important
role in our society. The industry shapes messages, communicates ideas and
information and shaping images about people and things. And it does so in very
creative ways. But the criticisms of the industry are that it conveys images by
for example reproducing stereotypes and objectifying women; that it relies too
much on marketing to its traditional consumer base and that as an industry it
has not sufficiently diversified either its approach or its senior decision
making group. And having read this Transformation Charter I am very hopeful
that you have addressed these criticisms in a constructive fashion.

Since the ceremonial signing of the Transformation Charter in November 2005,
you have worked assiduously at spelling out the commitment to transformation in
practical detail in terms of the Broad-Based Black Economic Empowerment Codes
of Good Practice. It is encouraging to know that the draft Charter and Score
Card incorporates industry targets for completing the first round of
implementing the Charter by 2014, two years ahead of the Department of Trade
and Industry's (dti) target.

And so a process that faced many challenges has resulted in a remarkable
consensus on the direction and pace of change needed to ensure a truly
transformed sector. It has fashioned a practical instrument to guide the sector
along the path of transformation. And I would be remiss if I did not
acknowledge the role played by Parliament, industry stakeholders and Government
in this remarkable endeavour.

Firstly, we must recognise the role played the Parliamentary Portfolio
Committee. When they responded to issues of discrimination in the marketing,
advertising and communication industry they initiated a process to provide
stakeholders in the industry the opportunity to have an industry that lives the
values enshrined in our constitution. If the process has appeared long, it is
partly because the Portfolio Committee could be said to have been ahead of its
time in insisting on the importance of transforming this industry.

Having heard the various complaints the committee embarked on visits to
stakeholders. What they discovered in the field persuaded them to call for
public hearings on the Advertising and Marketing Industry to which all
role-players in the industry were invited.

From the hearings sprang the joint consultative process which government was
delegated to convene. As work proceeded, the scope widened and deepened,
looking in-depth at patterns of advertising expenditure; chains of
decision-making that led from marketing to media; the segmentation tools used
in research; education and training for the industry, the regulatory
frameworks, representivity in employment, ownership and procurement – which
resulted in the drafting and signing of a Values Statement by the industry.

Having provided the direction the committee has continuously provided
encouragement and support to Government Communications (GCIS) and the steering
committee for which we are extremely appreciative. Its regular oversight of the
process kept it moving and re-energised it when at one point it seemed to
falter.

Secondly, government has been extremely pleased at the manner in which the
industry has engaged with the process. The commitment shown by the marketing,
communication and public relations sectors to this charter process has
demonstrated that there exists a genuine commitment in the industry to a South
Africa that is truly free from the vestiges of apartheid. I hope that your
involvement will continue to be strong and will be beneficial to society as a
whole.

Government has also played an important role in the process thus far. There
would have been no draft charter without GCIS's facilitation and support role;
or without the legislative process and framework of the Broad Based Black
Economic Empowerment legislation driven by the dti. Government in general and
GCIS in particular will continue to do what is necessary to ensure the
continued success of the process.

Advertising as a means of communication reaches millions of people and as
such needs to be held to high standards – standards that are self consciously
non-sexist and non-racist and standards that promote equality and
representivity. The creativity of the advertising industry need to be directed
at our nation-building project even as it communicates about products.
Advertising needs to promote social cohesion, non-racism and non-sexism. Within
government, guidelines have already been issued to all departments to promote
the use of advertising that reaches diverse and representative audiences. At
the same time all the partners are working together to ensure that procedures
for the procurement of marketing, public relations and advertising do not
inhibit the entry of small enterprises into competition for tenders. The
guidelines have been shared through workshops, in a partnership between GCIS
with the Association for Communication and Advertising.

The completion of this phase of the Charter process has unequivocally
demonstrated that South Africans from diverse backgrounds can work together in
partnership to meet the challenges facing the sector in order to build an
industry that promotes inclusion and a better life for all.

I am immensely encouraged by the core set of values that you have committed
yourselves to, namely:
1. promoting inclusivity and diversity
2. promoting pride in the south african brand and contributing to the
transition by promoting understanding and appreciating our diverse cultures,
traditions, histories, abilities and disabilities, promoting tolerance of all
human beings and in so doing ensuring that the industry becomes a mirror of the
soul of the nation
3. promoting respect and human dignity
4. abiding by the principles of good corporate governance and adhering to the
highest standards of ethical business practices and
5. promoting responsible creativity wherein the industry is mindful of the
impact it has on the views and aspirations of the entire population. And this
is turn means that the industry must act sensitively in a context of
creativity. Such a commitment will lay the basis for a self-regulation regime
that can best serve all stakeholders.

Your work is not yet complete; you need to ensure that those in the sector
who have not come on board see the value of being part of this process and join
in the endeavour. It is important that those who have not joined realise that
it is their interest and that of the industry that they unite behind the
transformation goals you have set.

The progress achieved thus far point to an industry and a collective
leadership that is in tune with the aspirations of the people in our country.
Your collective contribution is also a contribution to the process of social
cohesion that we are striving to achieve.

Undoubtedly, the biggest challenge ahead is that of ensuring the practical
implementation of commitments in the proposed charter. But before
implementation, the Minister of Trade and Industry needs to be assured that the
charter being proposed meets the objectives of the Broad Based Black Economic
Empowerment codes and that the process has been representative and
inclusive.

The Broad Based Black Economic Empowerment identifies the Minister in the
Presidency as the 'line-function' Minister. As such, in that capacity, I will
be forwarding your proposed Charter and Scorecard to the Minister of Trade and
Industry.

Once the Minister of Trade and Industry has approved the transformation
charter and the dti has published it, I will expect to see a vigorous
communication campaign to promote its implementation.

I am fully committed to ensuring that South Africa has a marketing,
advertising and communications industry that is reflective of our diversity,
exemplifies the spirit of Ubuntu and in practice promotes the values embedded
in our Constitution. I am fully convinced that the marketing, advertising and
communications industry can and will play a huge role in promoting an
anti-discrimination pro-diversity democratic ethos. I am convinced that the
industry will marshal its resources in the promotion of a South Africa that is
the envy of the rest of the world. Your draft charter and our Constitution
enjoin you to doing no less.

Thank you.

Issued by: The Presidency
27 September 2007

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