Academic literature on the topic 'King Report on Corporate Governance for South Africa'

Purpose The purpose of this paper is to explore the prominence and positioning of ethics in the four editions of the King Report on corporate governance for South Africa that were published since 1994. It tells a tale of how certain ethics aspects remained fairly constant over the four editions of the King Report on corporate governance for South Africa (King I in 1994; King II in 2002; King III in 2009; King IV in 2016), whilst other ethics aspects evolved quite substantially over the four editions. Design/methodology/approach In this paper, a conceptual distinction between “Ethics of Governance” and “Governance of Ethics” will be introduced, which will then be used to analyse the ethics dimensions of the four King reports. Findings It will be demonstrated that there is continuity across the four editions of the King Report as far as the Ethics of Governance is concerned. Originality/value With regards to the Governance of Ethics, there has been a quite drastic evolution in both the prominence and positioning of ethics since the publication of the first King Report in 1994.

Following the release of the King III report on Corporate Governance for South Africa, which became effective in March 2010, South African companies are expected to embrace the concept of integrated reporting in terms of which they are required to provide details of their strategies, corporate governance, risk management processes, financial performance and sustainability. More importantly, companies need to show how these components of integrated reporting are linked to one another so that stakeholders can make informed decisions about such companies’ current performance as well as their ability to create and sustain value in the future. The purpose of this study was to determine whether the level of reporting by South African listed companies has improved since the release of the King III report. It was subsequently found that there have been some progress in this regard, but there is still much room for improvement if the objectives of integrated reporting are to be fully met.

Purpose The purpose of this study is to provide a high-level review of the evolution of shareholder activism and institutional investor engagement in the corporate governance ecosystem in South Africa. Furthermore, it specifically seeks to explain the incorporation of such aspects into the various key codes and reports on corporate governance in South Africa since 1994. Design/methodology/approach Historical narrative and analysis. Findings This study highlights how shareholder activism and institutional investor engagement in the corporate governance ecosystem have been considered and addressed in South Africa since the publication of the First King Report in 1994. The progress that has been made specifically with regard to the introduction of a code for institutional investors is highlighted. The study ultimately acknowledges that this evolution is a continuing journey on the road to stakeholder inclusivity and engagement, and then concludes that the specific role and impact of institutional investors, particularly given some of the recent corporate governance failures, will require further consideration going forward. This should ensure the continued alignment of all stakeholders and assist in making the necessary improvements to the overarching governance framework and attendant culture. Originality/value This study is a part of a special issue that looks at the contribution of the King reports to governance globally.

Higher education institutions are presently facing many challenges, ranging from economic and financial constraints to social and educational issues. Accordingly, sound management and governance are essential, and this brings the governance model of HEIs more in line with business corporations. This article provides an overview of the state of governance practices at higher education institutions in South Africa, and an assessment of the corporate governance disclosures in their annual reports. This was done through a literature review of higher education developments, including a South African perspective, supported by empirical evidence obtained from assessing the annual reports of these institutions. The study found that, although most of these institutions are providing disclosure on their corporate governance structures and practices in line with the recommendations of the Higher Education Act and King II, such disclosure is often lacking in detail and could be improved.

Purpose The purpose of this paper is to provide the reader with a high-level overview of the key messages of each of the four King Reports on Corporate Governance for South Africa, published during the period from 1994 to 2017, with a particular focus on the stakeholder-inclusive approach. While confirming the constant themes and messages, it also highlights the unique features and attributes of each of these reports. Design/methodology/approach This paper is based on a review and comparison of the four King Reports of Corporate Governance for South Africa with a particular focus on the stakeholder-inclusive approach. Findings The key findings of this paper are: the concept of “stakeholder inclusivity” is a common theme across all four the King Reports forming part of the review while, at the same time, having a unique flavour in each of the reports and visibly developing over the years. The reliance on human intervention and ethical leaders to appropriately and effectively steer the stakeholder-inclusive approach is obvious. In the absence of this, no corporate governance code will provide adequate safeguards to stakeholders against corporate failures and disasters, whether in South Africa or anywhere else. Originality/value This paper is a part of a special issue which looks at the contribution of the King Reports to governance globally.

Since the 20th century, corporate governance mechanisms have been developed globally to curb the negative effects of the agency problem. South Africa was a pioneer with the publication of the first King Report on corporate governance in 1994. Given the paucity of research on corporate governance in the country, the researchers set out to investigate the corporate governance practices of 230 companies listed on the Johannesburg Stock Exchange over the period 2002 to 2010. Annual corporate governance scores were compiled by means of content analysis of the sample companies’ annual reports. The empirical findings revealed an increasing compliance trend towards 2010. Although the sample companies tended to improve the disclosure of their corporate governance practices over time, their practices were not per se acceptable (where acceptability implies meeting the King II recommendations). Inexperienced directors and managers might benefit from more training to enhance their understanding of the application of corporate governance principles.

The importance of examining corporate governance in organisations cannot be overemphasised. Corporate governance failure which has resulted from weak corporate governance systems has highlighted the need for research aimed at contributing to the improvement and reform of corporate governance at business, national and international level. A review of corporate governance mechanisms and their practical application in two retail companies in South Africa was undertaken. The research question that informed the study was: What is the nature of corporate governance mechanisms in the South African retail sector? The research design entailed analysis of secondary data, namely Annual Reports and other pertinent documents, and document analysis was used to show what is accessible to the ordinary share/stake-holder and what is not. Data analysis was conducted both qualitatively and quantitatively. With regard to corporate governance mechanisms, the results and discussion show that the two companies have not yet complied with the King II and III codes. Recommended strategies to strengthen corporate governance mechanisms in the South African retail sector should include a commitment to risk disclosure and revamping of the corporate governance structure of the ‘whole’ system.

Purpose – Despite its voluntary nature, the Johannesburg stock exchange (JSE) requires all listed companies to apply the King III principles, including providing independent CSR assurance. King III has accordingly made independent CSR assurance a de facto mandatory requirement, albeit on an “apply or explain” basis. The purpose of this paper is to examine the impact mandatory corporate social responsibility (CSR) assurance practices in South Africa, within a King III context. Design/methodology/approach – To understand the impact of King III on South African CSR assurance practices, a longitudinal study covering reporting periods both before and after King III implementation. The first stage reviewed the annual reports of the 200 largest JSE-listed companies to establish the frequency of CSR assurance provision. The second stage involved performing a content analysis on the CSR assurance reports. Findings – King III is driving the institutionalisation of CSR assurance practices in South Africa, as evidenced by the growth in CSR assurance since the implementation of King III. The study also found that the audit profession’s dominance was being eroded by specialist CSR assurors providing higher levels of assurance, despite concerns about the rigour of their assurance methodologies. Voluntary CSR assurance practices have resulted in the inconsistent application of CSR assurance practices, impairing the ability of stakeholders to understand the nature and scope of CSR assurance engagements. It is argued that this deficiency may be overcome through the imposition of a mandatory CSR assurance regime. Originality/value – The pervasive impact of the King Code of Governance on South African organisations makes it appropriate to examine its impact on South African CSR assurance practices. As such, this paper represents one of the first studies to specifically consider the impact of a mandatory regulatory requirement for independent CSR assurance and suggests a future direction for global CSR assurance practices.

The insurance sector plays a critical role in any economy by its very mechanism of risk transfer and savings mobilisation. It thus performs a critical role in intermediation by fostering the liquidity of the financial markets. This in turn ensures that capital is transferred from surplus units to deficient units of the economy who are in need of funds for the undertaking of capital projects and thereby spurring productivity. In the aftermath of the 2007 to 2009 financial crisis the insurance industry image was tainted. As such, the observance of good corporate governance tenets has now more than ever before become quintessential and also a prescription by regulators. The purpose of this paper is to explore the corporate governance practices (both internal control as well as regulatory measures) that are prevalent in the South African Insurance industry. This paper utilised qualitative research methods and lend itself to document analysis of company reports that the insurance companies submit, as well as the Acts and industry codes that governs the insurance industry in South Africa. The Atlas.ti software was used to analyse the documents. We find evidence that insurers are at various stages of embedding good corporate governance practices. In the aftermath of the financial crisis, the insurance companies by and large have strengthened their internal control systems. They have also complied with regulatory directives and are grappling with the implementation of Treating Customers Fairly (TCF) as well as Solvency Assessment Measurement (SAM) which are market conduct and prudential regulations respectively. Further they also subscribe to the King I, King II and King III frameworks of corporate governance. However we wish to caution against “over regulating” this sector as this could stifle innovation

Thesis (MBA)--Stellenbosch University, 2014.
ENGLISH ABSTRACT: Newspaper headlines have continued to shock investors and society by exposing corporate scandals and by highlighting the overall decline in moral fibre of the modern employer and/or employee, locally and internationally. The King III Report on Governance aims to improve organisations’ sustainability by providing principles to enable sound decision-making for any organisation, irrespective of its size and/or structure. The objective of this research report was to investigate the challenges experienced with the application of these principles, with a specific focus on the guidance provided to enable the independence of directors. Firstly, this investigation aimed to establish whether there was a belief that the application of these principles would necessarily lead to sustainability; and secondly, whether the application of these principles were practically possible for all organisations, irrespective of their size and/or structure. The investigation was conducted by combining the results from a literature review on corporate governance with a specific focus on director independence and a survey conducted with twelve individuals involved in different capacities at board level. Based on the information obtained from the literature review and the results obtained from the questionnaire, overwhelming support exists that indicates that the application of the King III principles would contribute to improve the sustainability of an organisation. However, it was discovered that it would not necessarily be feasible for all companies, of any size and/or structure, to effectively apply these principles. Various recommendations were made to address the challenges identified for the effective application of the King III principles relating to the independence of directors.

Magister Legum - LLM
Corporate governance is a principle that has had multiple evolving definitions. The Cadbury Report (also known as Financial Aspects of Corporate Governance) of 1992 is a report that sets out recommendations for best practice of a company board. Although the Cadbury Report was ideally formulated to apply to companies in the United Kingdom, its recommendations have formed the basis of many international codes over the years. It refers to corporate governance as the "system by which companies are directed and controlled". Solomons also explores the definitions of corporate governance in her book titled 'Corporate Governance and Accountability'. She acknowledges the existence of ‘narrow’ definitions and ‘broader’ definitions. Narrow definitions are more concerned with corporate accountability to a company’s shareholders. On the other hand, broader definitions seek to identify corporate accountability to shareholders and stakeholders. This definition encompasses a larger group of people, which include the society at large, future generations and the environment. For the purposes of this research, the broader definition will be utilised. Simply put, corporate governance refers to the practice in which companies are managed and controlled. This is achieved through balancing the interests of the many stakeholders of a company such as; employees, shareholders, suppliers, management, the government and many others. Corporate governance aims to create an environment whereby the company is managed in a way which promotes the interests of the stakeholders. These include, but are not limited to; the balance of powers in a company, compliance with laws and regulations, identification and management of potential risks, and ensuring accountability for its actions. In a nutshell, corporate governance can be viewed as the responsible leadership, governing and sustainability of a company. On the other hand, Corporate Social Responsibility (CSR) can be viewed as a branch of corporate governance and this shall be discussed further below. In many parts of the world, CSR functions as a voluntary code of conduct. This means that corporate entities are usually guided by a set of principles of good intent. Corporate entities are expected to self-regulate their affairs with their social effects in mind. Some scholars strongly believe that the voluntary nature of CSR is its very essence. It is a value that has to be realized through free will and philanthropy. However on the other hand, other scholars believe that this flexibility can be misused.

Thesis (MBA (Business Management))--University of Stellenbosch, 2010.
ENGLISH ABSTRACT: The third King Report on Corporate Governance, commonly referred to as King III, was released during September 2009. This was the first of the three released King Reports that apply to all entities regardless of the manner and form of incorporation or establishment. The purpose of the King Reports is to promote the highest standards of corporate governance in South Africa. The King Code is not an enforceable set of rules, but rather guidelines to assist companies in implementing principles of good governance and ultimately best business practices. Statistics indicate that Small and Medium Enterprises (SMEs) perform an indispensable role in a country’s economy. Given the significance of these enterprises it becomes fundamental to understand the role that corporate governance and corporate governance practices play within SMEs. The goal of this research report is to conduct an investigation into the applicability of King III, considered to be the leading authority on corporate governance within South Africa, to SMEs. The various principles of King III were extracted to determine to what extent they are applicable to the SME environment. It follows that the King III Report (including the Draft King III Report) is the primary source of literature used throughout the research report. The research report includes a brief review of the development of the King Reports from King I to King III and SMEs and corporate governance from a national and international perspective. The supposition is that most of the principles as outlined by King III would be applicable to all businesses and therefore all SMEs. The research report aims to marry the two concepts of corporate governance and SMEs as far as possible. The review of the various principles confirmed the supposition that the majority of principles of King III apply to SMEs. The study also confirmed that a number of principles only apply to so-called large SMEs and that smaller SMEs would simply not be able to justify the fulfilment thereof. A number of codes and principles only apply to businesses operating in ‘companies’ as legal entities and hence are not applicable to all SMEs. Various recommendations are made with reference to the adoption and customisation of specific principles by SMEs. The writer furthermore recommends that there may well be scope to compile a corporate governance code specifically addressed to SMEs in South Africa. Such a code may incorporate the unique dynamics of the SME environment and address the specific criteria and needs within SMEs.
AFRIKAANSE OPSOMMING: Die derde King Verslag oor Korporatiewe Beheer wat algemeen bekend staan as King III, is tydens September 2009 vrygestel. Hierdie verslag was die eerste van die drie King Verslae wat van toepassing is op alle entiteite ongeag vorm van inkorporasie. Die doel van die King Verslae was en is steeds om die hoogste standaarde van korporatiewe beheer in Suid-Afrika te vestig. Die King Kode is nie ‘n afdwingbare stel reëls nie maar eerder riglyne wat hulp verleen aan besighede vir die implementering van beginsels van goeie korporatiewe beheer en besigheidsgedrag. Statistiek toon dat Klein en Medium Ondernemings (KMOs) ‘n onontbeerlike rol vervul in die ekonomieë van lande. Gegewe die belangrikheid van KMOs in die ekonomie is dit van fundamentele belang om te verstaan watter rol korporatiewe beheer en goeie korporatiewe beheer beginsels in KMOs speel. Die doel van hierdie navorsingsverslag is om te bepaal wat die toepaslikheid van King III, wat algemeen as die leier van korporatiewe beheer in Suid-Afrika aanvaar word, op KMOs is. Die onderskeie beginsels en riglyne van die King III Verslag word ontleed om te bepaal in watter mate hierdie riglyne en beginsels van toepassing is vir die KMO omgewing. Dit volg dat die King III Verslag (asook die Konsep King III Verslag) deurgaans as primêre bron gebruik word. Die navorsingsverslag sluit ‘n kort oorsig van die ontwikkeling van die King Verslae, vanaf King I tot en met King III, in. Verder word ‘n oorsig van KMOs en korporatiewe beheer op ‘n nasionale en internasionale grondslag bespreek. Die veronderstelling is dat die meeste van die riglyne en onderliggende beginsels, soos uiteengesit en beskryf in King III, van toepassing is op alle besighede, derhalwe ook KMOs. Die navorsingsprojek het ten doel om die konsepte van korporatiewe beheer en KMOs te vereenselwig so ver prakties moontlik. Die oorsig van die onderskeie riglyne en beginsels bevestig die vermoede dat die meerderheid van die riglyne en beginsels van King III van toepassing is op alle KMOs. Die studie bevestig ook dat ‘n aantal riglyne en beginsels slegs van toepassing is op sogenaamde groot KMOs en dat klein KMOs waarskynlik nie die toepassing daarvan sal kan regverdig nie. Sekere riglyne en beginsels is slegs van toepassing op KMOs wat as ‘n maatskappy as regsentiteit funksioneer en derhalwe nie van toepassing op alle KMOs nie. Verskeie aanbevelings word gemaak met betrekking tot die toepassing van spesifieke riglyne en beginsels deur KMOs. Die skrywer beveel verder aan dat daar ruimte is vir die ontwikkeling van ‘n korporatiewe beheer kode wat spesifiek gemik is op KMOs in Suid Afrika. Hierdie kode kan die unieke dinamika van die KMO omgewing inkorporeer en spesifieke kriteria en behoeftes van KMOs aanspreek.

Thesis (MBA)--University of Stellenbosch, 2010.
In June 2009, there were 56 244 not-for-profit organisations registered with the Department of Social Development in South Africa. In addition, there are about 100 000 informal (non-registered) not-for-profit organisations in South Africa. The budget allocation of these organisations varies from R100 thousand to R20 million. The South African not-for-profit sector comprises of three types of organisations, namely the Section 21 companies, trusts and voluntary associations. The Non Profit Organisations Act, No. 71 of 1997, came into effect on 1 September 1998 to assist and guide the not-for-profit sector in improving its governance practices. Globally and in South Africa, we see a shift in the focus of governance in the not-for-profit sector. In 2005, a broad forum of South African organisations, donors and government representatives developed a code of good governance for not-for-profit organisations. The forum focused on the need of profit-motivated organisations to invest in community and social developments that exhibit good governance practices. Corporate governance in South Africa has its foundation in the first King Report of 1994. This report, King I, was the result of the work of a committee, formed to address a code of good practices for corporate governance. Its purpose was to promote the highest standard of governance in South Africa, and it is not enforceable by law. In 2009, the third version of the King Report, King III, was released to enhance the current set of governance practices. In the South African context, the King Report is the key piece of best practices that drives governance in the for-profit sector. The not-for-profit sector in South Africa is transforming and adapting to the changing external environment. There is a requirement to have good governance practices in the sector. The size and nature of the organisation would determine the areas of governance that the organisation would apply. The “apply or explain” principles of King III provide each not-for-profit organisation with the flexibility to apply good governance practices.

Thesis (MTh)--Stellenbosch University, 2004
ENGLISH ABSTRACT: This assignment is an ethical evaluation of the Second King Report on Corporate Governance. I focus on the relationships between the shareowners, the management and all stakeholders other than shareowners. The instrument used to assess the report is the concept of Integrative Economic Ethics shaped by Peter Ulrich. The Second King Report argues that a company should meet besides its economic needs as well as social and environmental objectives. Therefore, the company has to take responsibility for creating 'sustainable' value in all these three areas. Stakeholders have to be approached inclusively and pro-actively. These are new primary business imperatives due to the increasing social power of companies. However, the report is based upon a one dimensional approach in which the economic bottom line is decisive, and social and environmental interests are only considered if they serve the sustainability of business success. Likewise the inclusive stakeholder approach is a shortcoming, because stakeholder interests are not regarded as legitimate claims within a moral discourse in which all those citizens partake that are affected or involved by the company's activities. Not legitimacy but the stakeholders' relevance for the 'shareowner value' is the determining argument. Conflicting moral claims are not solved by good reasons, but are decided on a priori in favour of the company's overriding goal, which is to make profit. Profit orientation of a company, however, is not an empirical 'fact' but a normative choice, which is for or against specific interest groups and as such has to be legitimised in a moral discourse. Since the report does not subordinate profit orientation under the primacy of ethics, its whole corporate ethical concept is shaped by 'functionalism' even to the extent, that 'ethics' itself is viewed as an economic 'factor'. Yet, this contradicts the controversial and un-objective nature of ethics. In conclusion the report's entire argument is based upon pure strategic economic grounds and, thus, cannot be considered as ethical at all. Shifting the social and environmental corporate responsibility to the market system is based upon unfounded belief in the 'metaphysics of the market'. This, however, does not lie in the enlightened self-interest of a corporate citizen, as the market is merely ruled by power and counter-power - which is only beneficial for those specific societal groups with the sufficient monetary power to stay competitive. On the contrary, the equality of all citizens in a deliberative democracy must be safeguarded. The liberal idea of a just and well-ordered society implies the understanding of the company as a corporate citizen. As such its corporate ethics has to entail not only securing a company's integrity through business principles, but also a socio-political co-responsibility which obliges the company to shape the framework of market competition to enable life-conducive value creation. The general public of free and mature citizens is the locus where all claims, including corporate ones, have to be morally justified.
AFRIKAANSE OPSOMMING: Hierdie werkstuk evalueer die tweede King Report on Corporate Governance for South Africa, wat op die verhouding tussen die aandeelhouers (shareowners), die bestuur (management), en aIle deelhebbers (stakeholders) buiten die aandeelhouers fokus. Die Integrative Economic Ethics-konsep, ontwikkel deur Peter Ulrich, is die instrument wat gebruik is om die verslag te beoordeel. Die tweede King-verslag vereis dat 'n maatskappy nie aIleen aan sy ekonomiese behoeftes voldoen nie, maar ook dat hy sy sosiale en omgewingsmikpunte haal. Daarom moet die maatskappy verantwoordelikheid neem om volhoubare waarde in elk van hierdie drie areas te skep. Deelhebbers moet inklusief en proaktief genader word. Hierdie is nuwe prirnere sake-imperatiewe, as gevolg van die toenemende sosiale mag van maatskappye. Die verslag is egter op 'n eendimensionele benadering gegrond, naamlik dat ekonomiese kwessies beslissend is (economic bottom line) en sosiale en omgewingsbelange slegs in ag geneem word wanneer hulle volhoubare sakesukses bevorder. Die 'inklusiewe deelhebber benadering' (inclusives stakeholder approach) skiet eweneens te kort, aangesien deelhebbers se belange nie erken word as regmatige eise binne 'n morele diskoers waaraan alle burgers deelneem wat geraak word deur, of betrokke is by, die maatskappy se aktiwiteite nie. Die deurslaggewende argument is nie regmatigheid nie, maar eerder die relevansie van die deelhebber se waarde vir die aandeelhouer. Strydige morele eise word nie deur goeie redenasie opgelos nie - daar word eerder a priori ten gunste van die maatskappy se oorheersende doel besluit, wat is om wins te maak. Winsorientasie van 'n maatskappy is egter nie 'n empiriese feit nie, maar 'n normatiewe keuse, wat vir of teen gegewe belangegroepe is, en as sodanig in 'n morele diskoers geregverdig moet word. Aangesien die verslag nie bereid is om winsorientasie ondergeskik aan etiese voorrang te stel nie, word die hele korporatiewe etiese konsep gevorm deur "funksionalisrne", selfs tot die mate dat etiek self as 'n ekonomiese faktor gesien word. Tog is dit strydig met die kontroversiele en nieobjektiewe aard van etiek. Ten slotte is die verslag se hele argument gebaseer op 'n suiwer strategies-ekonomiese grondslag, en kan dit dus glad nie as eties beskou word rue. Die keuse om sosiaal- en orngewingsgerigte korporatiewe verantwoordelikheid na die markstelsel te oor te skuif, is gebaseer op 'n ongegronde geloof in die "rnetafisika van die mark" (metaphysics of the market). Dit is egter nie in die ingeligte selfbelang van 'n korporatiewe burger nie, siende dat die mark deur mag en teen mag regeer word - wat slegs voordelig is vir die spesifieke groepe in die gemeenskap wat genoegsame rnonitere mag het om te kompeteer. In teenstelling daarmee, moet die gelykheid van alle burgers in 'n oorleggende demokrasie beskerm word. Die liberale konsep van 'n juiste en goedgeordende gemeenskap impliseer 'n begrip van 'n maatskappy as 'n korporatiewe burger. Korporatiewe etiek as sulks moet nie alleen 'n maatskappy se integriteit deur maatskappybeginsels verseker nie, maar ook 'n sosio-politiese medeverantwoordelikheid meebring, wat die maatskappy verplig om die raamwerk van markmededinging te vorm om sodoende lewensbevorderlike waardeskepping moontlik te maak. Die algemene publiek van vrye en volwasse burgers is die lokus waar alle eise, insluitend korporatiewe eise, moreel geregverdig moet word.

The King II Report on Corporate Governance was released in March 2002. This report, although focusing on South African businesses, is acclaimed as a world first in setting superior governance standards. Corporate governance in South Africa is undergoing transformation due to the influence of the King II Report, and a range of other global trends such as Global Reporting Initiative guidelines and the infamous collapse of Enron due to governance failures. Non-financial reporting (also referred to as sustainability reporting) forms the main focus of this research project. The financial reporting aspects of corporate governance, and the role of governing boards and auditors fall outside the scope of this study. Through document analysis methods, Eskom's annual reports from 1998 - 2002, were analysed to establish whether patterns in sustainability reporting were identifiable. Employees and consumers of Eskom were. interviewed, using structured interviews to explore their awareness and knowledge regarding sustainability issues. A drastic increase in Eskom's non-financial reporting was identified in 2000. Apart from the corporate governance category, none of the chosen categories showed a major change after the 2002 release of the King II Report. Possible reasons for the lack of clear trends since 2002 are that the pattern is either not yet visible or it could be speculated that Eskom, who had won various reporting awards, is a leader in the field of corporate reporting and specifically on sustainability issues. Eskom had been involved in the reviewing of the first King Report and the drawing up of the recommendations for King II, and could therefore have modified their reporting procedures in 2000, prior'to the release of King II. As shown in the trend analysis, companies are coming under increased pressure to be socially accountable and transparent. This is fast becoming a 'core business issue', illustrated by the status of the King II Report requirements for corporate governance. Even though the terminology 'sustainability reporting' is unfamiliar to employees and consumers, both groups want disclosure and transparency of sustainability issues. Employees were, however, more aware than consumers of Eskom policies regarding sustainability issues. This report recommends that companies take a pro-active approach to corporate governance and sustainability reporting, noting the desire of consumers and employees to be informed about non-financial issues. These stakeholders also need to be made more aware of the meaning and significance of sustainability reporting.

Thesis (MBA (Business Management))--University of Stellenbosch, 2009.
ENGLISH ABSTRACT: The King II Report on Corporate Governance reported that the 19th Century saw the foundations laid for modern corporations, this was the century of the entrepreneur. The 20th Century became the century of management and that the 21st Century promises to be a century of governance, as the focus swings to the legitimacy and the effectiveness of the wielding of power over corporate entities worldwide. South Africa has come a long way since the companies reform project was formally launched in 2004 when the Department of Trade and Industry published the guidelines for corporate law reform in South Africa. Most critics believe that the new Companies Act is long overdue and will contribute to South Africa’s economic growth and align us with international standards and practices. The aim of this research report is to educate directors and potential directors on the most significant changes brought by the new Act and the responsibilities and liabilities of directors as set out in The King II Report.
AFRIKAANSE OPSOMMING: Volgens die King II Report is die fondasie vir moderne korporasies gedurende die 19de eeu gelê – die eeu van die entrepreneur. Die 20ste eeu het die eeu van bestuur geword, terwyl die 21ste eeu beloof om ‘n eeu van beheer te wees soos wat die fokus verskuif na die geldigheid en die effektiewe beheer van mag oor korporatiewe entiteite wêreldwyd. Suid-Afrika het ‘n lang pad gestap sedert die Maatskappye-hervormingsprojek formeel geloods is in 2004 met publikasie van die Departement van Handel en Nywerheid se riglyne oor korporatiewe regshervorming in Suid-Afrika. Die nuwe Maatskappye wet is lankverwag en meeste kritici glo dat dit sal bydra tot ekonomiese groei in Suid-Afrika en Suid-Afrika in lyn sal plaas met internasionale standaarde en praktyke. Die doel van hierdie navorsingsverslag is om direkteure en potensiele direkteure in te lig omtrent die mees noemenswaardige veranderinge wat deur die nuwe Maatskappye wet daargestel sal word asook die verantwoordelikhede en aanspreeklikheid van direkteure soos uiteengesit in die King II Report.

Thesis (MBA)--University of Stellenbosch, 2011.
This study investigates the independence of non-executive directors serving on the boards of the Top 40 companies listed on the JSE based on information collected from the companies‘ annual reports. It examines the definition of an independent non-executive director and analyses whether the directors of the Top 40 companies comply with the definition of the independent non-executive directors as set out in the King III Report. The third King Report on Governance for South Africa also known as King III Report was developed in response to the Companies Act of 2008 and the global financial crisis where the boards of directors were accused of not providing the required oversight in companies. Governments and regulatory bodies around the world were calling for the reform of laws and corporate governance codes to prevent occurrences such as the financial crisis and other corporate governance scandals. The new Companies Act mainly focuses on the duties and responsibilities of directors and their performance obligation. The King III report incorporated the amendments to the new Companies Act to ensure that companies are in line with best practice in corporate governance and that they comply with the law in terms of the Companies Act. The King code focuses on the role of non-executive directors with emphasis on the independence of directors because the role of directors is seen to be pivotal to good corporate governance. The findings of the study show that the majority of the companies analysed comply with the definition of an independent director as outlined in the King III Report. However, there is evidence that some companies are not yet compliant in terms of the disclosure of information concerning the tenure of directors as well as the number of directorships. The non-disclosure of information pertaining to the tenure and number of directorships held by some directors makes it difficult to assess whether the directors are fully compliant or not. There is also evidence that suggests that the majority of the boards do not assess directors‘ independence for those directors who have served on the board for more than nine years. Therefore, the majority of companies do not include a review of the independence of directors. Best practice stipulates that there be an assessment of the directors‘ independence when extending the directors‘ tenure beyond the given nine-year period. The study recommends that the King Report should be decisive on issues such as the number of directorships and that it should provide guidelines for the number of directorships that directors can hold. The study shows that some of the directors in the Top 40 companies listed on the JSE currently hold too many directorships and that there is a need for more clarity in this regard. 62 Pages. .

Thesis (MBA (Business Management))--University of Stellenbosch, 2008.
ENGLISH SUMMARY: During the period of change in South Africa in the year of the first democratic elections, 1994, the first King Report on Corporate Governance appeared. For the first time in South Africa, companies had a good reference for corporate practice and conduct. A second King report, commonly referred to as King II, appeared in March 2002 and expanded on the earlier Code to produce, what was considered at the time to be, a world-class code of corporate governance. In addition to the acceptance and incorporation of King II into corporate governance practice, the JSE included compliance with the King Code as part of its listing requirements. The code itself is not an enforceable set of rules, but rather guidelines to assist companies in implementing principles of good governance. In similar vein, the JSE has given companies the flexibility to justify non-compliance. This underscores the socalled comply or explain philosophy to which corporate governance in South Africa subscribes. Studies have found the level of corporate governance in South Africa to be high, especially for an emerging market. Compliance with corporate governance principles and transparency go hand in hand. In a comply or explain regime, where the regulation is considered to be done by the market, disclosure of compliance is especially important. The goal of this research project was to conduct a survey of the top listed South African companies to ascertain what the level of disclosure of corporate governance was, with specific reference to the recommendations contained in the King Code. For the purposes of this study, the top companies were defined as the FTSE/JSE Top 40 Index companies. The supposition was that most companies, having been confronted with the King Code for almost six years, would be compliant to a large degree and will disclose their compliance. This was expected to be more evident amongst top companies who have the resources and influence to effect changes sooner and take the lead on high profile issues. The study confirmed the supposition that companies, at least in the sample, were highly compliant. There were however some areas where improvements can be made to be more in line with global best practices.
AFRIKAANSE OPSOMMING: Gedurende die periode van vernuwing in Suid-Afrika en die jaar van die eerste demokratiese verkiesing, 1994, het die eerste King verslag op korporatiewe bestuur verskyn. Vir die eerste keer het maatskappye in Suid-Afrika ‘n goeie verwysing gehad in die bepaling van hul korporatiewe bestuurspraktyke en gedrag. ‘n Tweede King verslag, alombekend as King II, het in Maart 2002 verskyn en op die eerste verslag uitgebou om ‘n kode te voorskyn te bring wat ten tyde van publisering as wêreldklas bestempel is. Bo en behalwe die aanvaarding en toepassing van King II in die korporatiewe bestuurspraktyk, het die JSE ook nakoming van die Kode as deel van die noterings vereistes ingesluit. Die King Kode opsigself is nie ‘n afdwingbare stel reëls nie, maar eerder riglyne wat maatskappy bystaan in die implementering van beginsels van goeie bestuur. In ‘n soortgelyke manier gee die JSE ook aan maatskappye die buigsaamheid om gevalle van nie-nakoming te regverdig en verdedig. Dit onderskryf die sogenaamde voldoen of verduidelik filosofie wat korporatiewe bestuur in Suid Afrika aan gehoor gee. Studies het gevind dat die vlak van korporatiewe bestuursgedrag in Suid-Afrika hoog is, veral vir ‘n ontluikende mark. Nakoming met korporatiewe bestuurgedragskodes en deursigtigheid gaan hand aan hand. In ‘n voldoen of verduidelik regime, waar die mark geag word om te reguleer, is openbaarmaking van korporatiewe bestuursgedrag van kardinale belang. Die doel van hierdie navorsingsprojek was om ‘n peiling te maak van die voorste Suid-Afrikaanse maatskappye om te bepaal wat die vlak van openbaarmaking in terme van korporatiewe bestuursgedrag was, met spesifieke verwysing na die King Kode. Vir die doeleindes van die studie is die voorste maatskappye gedefiniëer as die FTSE/JSE Top 40 Indeks. Die veronderstelling was dat meeste maatskappye, gegewe die feit dat die Kode al ses jaar in omgang is, tot ‘n groot mate aan die Kode sal voldoen en inligting rakende die voldoening openbaar maak. Dit is ook verwag dat dit veral die geval onder die voorste maatskappye sou wees aangesien hulle oor die hulpbronne en invloed beskik om veranderinge vroeër teweeg te bring en leierskap te neem met hoë profiel kwesssies. Die studie het die veronderstelling korrek bewys dat maatskappye, ten minste in die geval van die ingeslote groep, ‘n hoë vlak van voldoening en openbaarmaking ten toon stel. Daar is egter nogtans areas waar verbeterings gedoen kan word om meer in lyn met internasionale beste praktyke te kom.

Thesis (MBA)--Stellenbosch University, 2003.
ENGLISH ABSTRACT: The main problem area this dissertation studied is whether there is a place for the social audit in corporate governance, or if it is only used as a marketing tool by organisations to positively influence public opinion in this era where public opinion heavily influences an organisation's bottom line profits. The King II report proposes that all JSE listed companies include nonfinancial issues in their statutory reports. Many companies do not use the process of social responsibility reporting merely to give back what they had previously taken from society, or to ensure their continued existence in the years to come (sustainability) as part of good corporate governance, they use this as a tool to manage their reputation - a marketing ploy. The real issue where the big question lies is: does CSR contribute to good corporate governance and therefore add value, or is it used as a risk management (reputation) tool by most companies? The social report of British American Tobacco South Africa (BATSA) was chosen as a case study to investigate this hypothesis. The King II report brings corporate governance into the sphere of the social audit report - in that companies must render an account! report if they are accountable to their stakeholders. In terms of good corporate governance, stakeholders need to be taken into account and a social audit needs to be done to report to them on it. A new governance theory has therefore developed with the central concept being that of sustainability (the triple bottom line): financial, envirorunental and social survival of a company and the reporting thereon. The umbrella term is corporate governance and everything that goes with it: CSR, stakeholder inclusivity and the social audit. In all of these, stakeholding (or stakeholder theory) is the central concept - to create value. The social audit is a tool or process of good corporate governance that uses a stakeholder approach to gain information that is later used and embedded in company principles and processes. An internal audit will provide assurance to the organisation as to the quality of its social and ethical accounting/auditing and reporting process, as well as to the organisation's social and ethical performance. It also provides the necessary support to the process of external audit. The external audit process and report provide assurance to the organisation and its stakeholders of the quality of the social and ethical accounting/auditing and reporting process and build credibility in the reporting of the organisation's social and ethical performance. This credibility is needed as a basis of effective engagement with the organisation's stakeholders, and of a common understanding of the organisation's performance. It must establish methods for producing knowledge with application to corporate governance and strategizing. This dissertation comes to the conclusion that the social audit is not a new fonn of marketing; there is a direct link between good corporate governance and the reporting thereon. Although there is always the possibility that there might be a little bit of PR involved in the publishing of a social audit, the process is not only very expensive, but the buy-in from the company as a whole is needed. It does impact on the reputation of a company and on the corporate affairs and governance thereof. So, if a company continues with this exercise, with the sole intention to use it as reputation marketing, should this becomes known the effect might be disastrous. The other side of the argument is that for a company to manage its reputation is definitely part of risk management. Risk management can be seen as the flipside of the coin to perfonnance management - the effect should be the same. How performance is managed is often similar to the way in which risk is managed. It is therefore not true that the social audit is "wellpublicised window-dressing" (Henderson, 2001: 5). On the contrary the social audit is essential to good corporate governance; it is up to the leadership of a company to use it as such.
AFRIKAANSE OPSOMMING: Die kern probleemgebied wat in die verhandeling bestudeer is, is of daar plek is vir die maatskaplike audit in korporatiewe bestuur, en of organisasies dit net gebruik as 'n bemarkingstrategie om die openbare mening positief te beinvloed in die era waar die openbare mening 'n groot invloed het op 'n organisasie se wins. Die King II-verslag stel voor dat alIe JSE-gelyste maatskappye nie-finansiele kwessies by huI statutere verslae insluit. Talle maatskappye gebruik nie die proses van maatskaplike verantwoordelikheid net om terug te gee wat hulle voorheen uit die samelewing geneem het nie, of om as deel van goeie korporatiewe bestuur hul voortgesette bestaan in die komende jare (volhoubaarheid) te verseker nie. Hulle gebruik dit as 'n manier om hul reputasie te bestuur - 'n bemarkingstrategie. Die kwessie waar die groot vraag Iê, is: dra korporatiewe maatskaplike verantwoordelikheid by tot goeie korporatiewe bestuur en voeg dit derhalwe waarde by, of gebruik die meeste rnaatskappye dit as 'n middel tot risikobestuur ter wille van hul reputasie? Die maatskaplike verslag van British American Tobacco South Africa (BATSA) is gekies as 'n gevallestudie om die hipotese te ondersoek. Die King II-verslag bring korporatiewe bestuur binne die sfeer van die maatskaplike ouditverslag met die dat maatskappye 'n verslag moet lewer as hulle verantwoordbaar teenoor hul belanghebbendes is. lngevolge goeie korporatiewe bestuur moet belanghebbendes in ag geneem word en moet 'n maatskaplike oudit gedoen word om aan hulle daaroor verslag te doen. 'n Nuwe bestuursteorie het derhalwe ontwikkel waarvan die kernkonsep volhoubaarheid (die driedubbele winsbasis) is: die finansiele, maatskaplike en omgewingsoorlewing van 'n maatskappy en verslagdoening daaroor. Die sambreelterm is korporatiewe bestuur en alles wat daarmee saamgaan: korporatiewe maatskaplike verantwoordelikheid, die insluiting van belanghebbendes en die maatskaplike oudit. Met al die aspekte is die belanghebberteorie die kernkonsep - om waarde te skep. Die maatskaplike audit is 'n werktuig of proses van goeie korporatiewe bestuur wat 'n belanghebberbenadering gebruik om inligting in te win wat later gebruik en in die maatskappy se beleid en prosesse vasgele word. 'n Interne oudit gee die maatskappy sekerheid oor die gehalte van sy maatskaplike en etiese oudit- en verslagdoeningproses, asook die organisasie se maatskaplike en etiese funksionering. Dit verskaf ook die nodige steun aan die proses van eksterne ouditering. Die eksterne ouditproses en -verslag verskaf sekerheid aan die organisasie en sy belanghebbendes oor die gehalte van die maatskaplike en etiese oudit- en verslagdoeningproses en bou geloofwaardigheid in die verslagdoening van die organisasie se maatskaplike en etiese funksionering. Die geloofwaardigheid word benodig vir die organisasie se belanghebbendes, en 'n gemeenskaplike begrip van die organisasie se prestasie. Dit moet metodes om kennis te produseer vestig wat van toepassing sal wees op korporatiewe bestuur en strategie-bepaling. Die verhandeling kom tot die gevolgtrekking dat die maatskaplike oudit nie 'n nuwe vorm van bemarking is nie - daar is 'n regstreekse verband tussen goeie korporatiewe bestuur en verslagdoening daaroor. Hoewel daar altyd die moontlikheid is dat 'n bietjie skakelwerk betrokke kan wees by die publisering van 'n maatskaplike oudit, is die proses nie net baie duur nie, maar word die betrokkenheid en steun van die maatskappy as geheel benodig. Dit het 'n invloed op die reputasie van 'n maatskappy, asook die korporatiewe sake en die bestuur daarvan. Dus, as 'n maatskappy met die oefening voortgaan met die enigste doelwit om dit as reputasiebemarking te gebruik en dit word bekend, kan die resultaat rampspoedig wees. Die ander kant van die argument is dat die bestuur van sy reputasie vir 'n maatskappy beslis deel van risikobestuur is. Risikobestuur kan beskou word as die een kant van die muntstuk met prestasiebestuur aan die ander kant - die uitwerking behoort dieselfde te wees. Hoe prestasie bestuur word, is dikwels dieselfde as die manier waarop risiko bestuur word. Dit is dus nie waar dat die maatskaplike oudit "goed gepubliseerde vensterversiering" (Henderson, 200 I: 5) is nie. Inteendeel, die maatskaplike oudit is noodsaaklik vir goeie korporatiewe bestuur, en dit hang van die leierskap van 'n maatskappy af om dit as sulks te gebruik.