TRANSFORMATION: Lessons from the MAC Sector Charter

1. TRANSFORMATION: Lessons from the MAC Sector Charter Presented By: Odette van der Haar Date: 25 August 2016

2. The landscape pre-2000 • An internationally owned sector • Only a handful of locally-owned companies operating in SA • 23% Black employees • 7% Black employees in top/executive management • A handful of Black women

3. The Ultimatum • Transform or else! • Parliamentary Hearings were held and the Portfolio Committee on Communications voiced their concerns • Ultimatum: transform or be regulated • Industry together with GCIS and the Dept. of Communications, under the guidance of the DTI committed to putting in place a solution to address transformation in the sector

4. The Commitment • MAC Charter Preamble • “We, members of the broader marketing, advertising, public relations, communication and research industry as well as related sectors, recognise the critical role our industry fulfils in South Africa. We are mindful of the impact our industry has on millions of our people across all walks of South African life, therefore we accept the responsibility consequent thereto. We further acknowledge that marketing and advertising communication as the livewire of a free market-based economy is an intrusive form of communication to which over 47 million South Africans are subjected to every day of their lives. For such a small industry, its power to influence South Africans is disproportionate to its size; hence the need to make it a truly South African industry is imperative.”

5. The Undertaking • We will therefore… • “establish the advertising industry as unique to South Africa; for all the people of South Africa; by all the people of South Africa; • promote the constitutional right of equality and the exercise of true democracy; • eliminate unfair discrimination; • ensure the implementation of employment equity to redress the effects of discrimination; • achieve a diverse workforce broadly representative of our people; • promote economic development and efficiency in the workforce; • provide training and skills through the AAA School of Advertising to students previously excluded from access initiate practical training programmes for skills development; • change the culture of our organisation and members to accept and implement the changes; seek and accept equity partners to reflect the true demography and rich cultures of South Africa; • support and encourage each other in reaching our stated goals in letter and spirit; • irrevocably bind ourselves to measures to achieve these goals within a reasonable time.”

6. The Purpose • Reshaping the sector • Inclusivity and diversity to reflect the shapes and norms of our society • Ownership, Employment Equity and Skills Development • Promoting the “Soul of the Nation” and pride in the SA brand • Understanding and appreciating our diverse cultures, traditions, histories, abilities and disabilities • Respect and Human Dignity • Promoting tolerance of all human beings • Business and People’s Needs • Recognising that the consumer is at the core of our business, creating wealth and committing to good corporate governance and ethical business practices • Responsible Creativity • Upholding and respecting self-regulation

7. 23 February 2000 Members formally committed to the process of transformation

8. 23 February 2000 to 29 August 2008 (The first 8 years) • Chapter 1 - Formalising the commitment • Drafting the Charter with the DOC, GCIS, PRISA and DTI • Applying for the Charter to be promulgated under Section 12 of the BBBEE Act No 53 of 2003, i.e. Best Practice Guideline

9. 29 August 2008 to 25 August 2016 (The second 8 years) • Chapter 2 - The road to Section 9(1) • Aligning the Charter to the amended BBBEE Codes • Applying for the Charter to be promulgated under Section 9(1) of the BBBEE Act No 53 of 2003 and written into law – gazetted 6 May 2016

10. A new era #progress

11. A new era • Project “Vuselela” • PHASE 1: Addressing transformation with the captains and shareholders of industry - July 2016 • PHASE 2: Conducting MAC Sector Codes technical compliance workshops in Jhb, Dbn and CT – August and September 2016 • PHASE 3: In-company transformation acceleration training – From November 2016 • PHASE 4: Dialogue facilitation between Black-owned agencies and clients – From January 2017

12. In a nutshell • The lessons learned • Transformation is a process, not a destination • Buy-in from all stakeholders and players in the sector is required • Constant tracking, dialogue and communication regarding the rate of transformation is required • Practical, in-company training to achieve compliance against targets is required • It can be done!