The final MAC sector code, which applies to advertising, public relations and communications companies in all media including digital platforms, was published in the Government Gazette on 1 April 2016.
This follows the publication of the draft MAC sector code on 4 September 2015 for public comment. The MAC sector code comes into effect from the date of publication – in other words, there is no transitional period.
The key features of the MAC sector code are as follows:
- The MAC sector code includes compliance targets, as well as additional higher proposed targets to be achieved by 31 March 2018, which appear to be binding targets.
- The targets for voting rights and economic interest are much higher than those contained in the general Codes and other sector codes –
- The target for exercisable voting rights and economic interest in the hands of black people is 40%, increasing to 45% by 31 March 2018, compared with 25% under the general Codes; and
- The target for exercisable voting rights and economic interest in the hands of black women is 20%, increasing to 30% by 31 March 2018, compared with 10% under the general Codes.
- Significantly 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 the skills development element, the points awarded for the number of black people absorbed at the end of learnership and internship programmes is 10 points under skills development, compared with 5 points under the general Codes.
- The compliance target for the socio-economic development element is 1% of NPAT but increases to 2.5% of NPAT by 2018 (compared to a compliance target of 1% of NPAT under the general Codes).
- The MAC sector code also includes an additional element, namely responsible social marketing and communications (i.e. the annual value of contributions and participation in sector specific programs to promote responsible behavioural changes in line with Government’s strategic objectives). The target for responsible marketing and communications is 1% of NPAT, increasing to 2.5% of NPAT by 2018.
A copy of the MAC sector code can be accessed here.
Ashleigh Hale is partner & co-head of corporate and Livia Dyer is a partner at the Bowman Gilfillan Africa Group. Follow on Twitter @BowmanGilfillan.
