corporate governance

• Corporate Governance

  The exercise of ethical and effective leadership by the governing body towards the achievement of the following governance outcomes: ethical culture, good performance, effective control, legitimacy
• In South Africa we use the King IV Report on Governance
• Corporate governance helps to strengthen the roles and relationships between the organization's management, board of directors, and stakeholders
• Stakeholders

  • Shareholders
  • Debt holders
  • Trade creditors
  • Suppliers
  • Customers
  • Communities affected by the organisation's activities
• Internal stakeholders

  • Board of directors
  • Executives
  • Management
  • Other employees
• Qualities of modern society that improve companies: healthy, honest, open, competently and responsibly controlled
• Ethical and effective leadership should complement and reinforce each other
• Corporate governance is set in a context of a changing world. The 21st century has been characterised by fundamental changes in business and society and new global realities are severely testing the leadership of companies and other organisations
• New global realities and changes that the world faces in the 21st century

  • Inequality
  • Globalised trade
  • Social tensions
  • Climate change
  • Depletion of natural assets
  • Financial instability
• Five main objectives of King IV

  • Promote corporate governance as integral to running an organisation and delivering governance outcomes such as ethical culture, good performance, effective control, legitimacy
  • Broaden the acceptance of the King IV by making it accessible and fit for implementation across a variety of sectors and organisational types
  • Reinforce corporate governance as a holistic and interrelated set of arrangements to be understood and implemented in an integrated manner
  • Encourage transparent and meaningful reporting to stakeholders
  • Present corporate governance as concerned with not only structure and process, but also with ethical consciousness and conduct
• King IV Report


  Replaces the "tick box" approach to complying with corporate governance
• King IV Report


  • Provides fiduciaries with the basis of an informed assessment of value creation, form strategy, and risk management policies to reporting practices, to performance evaluation and prospects for future sustainable returns
• Corporate governance is set in a context of a changing world
• The 21st century has been characterised by fundamental changes in business and society and new global realities are severely testing the leadership of companies and other organisations