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Journal articles on the topic 'King Report on Corporate Governance for South Africa'
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Rossouw, Gedeon Josua. "The ethics of governance and governance of ethics in the King Reports." Journal of Global Responsibility 11, no. 2 (December 12, 2019): 187–96. http://dx.doi.org/10.1108/jgr-10-2019-0088.
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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.
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Makiwane, Theophilus S., and Nirupa Padia. "Evaluation of corporate integrated reporting in South Africa post King III release South Africa: An exploratory enquiry." Journal of Economic and Financial Sciences 6, no. 2 (July 31, 2013): 421–38. http://dx.doi.org/10.4102/jef.v6i2.268.
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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.
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Foster, Richard. "The evolution and alignment of institutional shareholder engagement through the King and CRISA reports." Journal of Global Responsibility 11, no. 2 (February 27, 2020): 147–53. http://dx.doi.org/10.1108/jgr-10-2019-0097.
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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.
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Kakabadse, Andrew, and Nada Korac-Kakabadse. "Corporate governance in South Africa: Evaluation of the King II Report (Draft)." Journal of Change Management 2, no. 4 (December 2001): 305–16. http://dx.doi.org/10.1080/714042518.
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Barac, Karen, Ben Marx, and Tankiso Moloi. "Corporate governance practices at South African higher education institutions: An annual report disclosure analysis." Journal of Economic and Financial Sciences 4, no. 2 (October 31, 2011): 317–32. http://dx.doi.org/10.4102/jef.v4i2.323.
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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.
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van der Merwe, Annamarie. "The evolution of the stakeholder-inclusive approach in the King Reports." Journal of Global Responsibility 11, no. 2 (June 3, 2020): 139–46. http://dx.doi.org/10.1108/jgr-10-2019-0098.
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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.
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Mans-Kemp, N., S. Viviers, and P. Erusmas. "Advances in the corporate governance practices of Johannesburg Stock Exchange companies." Southern African Business Review 20, no. 1 (March 27, 2019): 71–93. http://dx.doi.org/10.25159/1998-8125/6044.
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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.
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Gachie, Wanjiru, and Desmond Wesley Govender. "PRACTICAL APPLICATION OF CORPORATE GOVERNANCE PRINCIPLES IN A DEVELOPING COUNTRY: A CASE STUDY." Risk Governance and Control: Financial Markets and Institutions 7, no. 2 (2017): 67–75. http://dx.doi.org/10.22495/rgcv7i2art7.
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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.
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Ackers, Barry, and Neil Stuart Eccles. "Mandatory corporate social responsibility assurance practices." Accounting, Auditing & Accountability Journal 28, no. 4 (May 18, 2015): 515–50. http://dx.doi.org/10.1108/aaaj-12-2013-1554.
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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.
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Sibindi, Athenia Bongani. "Corporate governance practices of the insurance industry in South Africa." Corporate Ownership and Control 12, no. 2 (2015): 426–34. http://dx.doi.org/10.22495/cocv12i2c4p2.
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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
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Phaswana, Ike, and Theuns Pelser. "A corporate governance and business ethics framework: The case study of bank subsidiaries in an emerging country." Journal of Governance and Regulation 10, no. 3 (2021): 30–43. http://dx.doi.org/10.22495/jgrv10i3art3.
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As Africa continues to develop as a foreign direct investment (FDI) destination, greater emphasis must be placed on domestic and international regulations seeking to facilitate governance levels (Awolusi, Adeyeye, & Pelser, 2017, p. 195). This study investigated the degree of compliance to 2016 King IV Report on Corporate Governance™ for South Africa (King IV™) principles and recommended practices by 17 sampled Standard Bank African subsidiaries. An extensive literature review of business ethics and corporate governance was performed, focusing on works from Kretzschmar et al. (2012) and Geach (2009). King IV™ recommended practices were used as constructs to measure the level of compliance. To answer the three research questions and meet the three research objectives, a manual questionnaire approach was employed to collect data from 33 respondents that represented 17 Standard Bank African subsidiaries. Reliability of the constructs in the questionnaire was performed using a Cronbach’s alpha (α) with (α) equals 0.857 indicating a high level of internal consistency for the nominal scales used in the questionnaire. Validity was established through the research design and sequential mixed methods employed. Based on the respondents’ feedback the researchers developed the corporate governance and business ethics framework for Standard Bank African subsidiaries incorporating King IV™. The modes of managing morality (MMM) business ethics model (Rossouw & van Vuuren, 2013, p. 58) was fused into the framework. The researchers are of the view that the framework would assist Standard Bank Group in realising its stated purpose. A set of recommendations that would assist the Standard Bank Group in meeting the prescripts of King IV™ are proffered
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Bendixen, Mike, and Adèle Thomas. "Perceived qualities of a 'good' chairman: A challenge for corporate governance in South Africa." South African Journal of Business Management 31, no. 2 (June 30, 2000): 65–75. http://dx.doi.org/10.4102/sajbm.v31i2.735.
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Corporate governance is increasingly being viewed as essential to sound business practice. The recommendations of the Cadbury Committee in the United Kingdom will respect to the role of a chairman are similar to those later formulated in the King Report on Corporate Governance in South Africa. In the present study, the perceived qualities of 'good' chairmen are investigated among chairmen, chief executives and main board members in the UK and South Africa. In both the UK and in South Africa the same robust methodology was used, enabling an inter-country comparison of results. The UK study comprised 60 in-depth interviews followed by a mailing of 2418 questionnaires to which 274 main-board members responded. In both cases, in the analysis, four-factor and four-cluster solutions emerged. Not surprisingly, the results for the two countries are quite different from each other and different profiles of preferred chairmen were found. In the case of the UK, the most preferred profile supports the execution of roles recommended for good governance while in South Africa, the least preferred profile appears to be the most appropriate.
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M. Sarah, Radebe. "The benefits of good corporate governance to small and medium enterprises (SMEs) in South Africa: A view on top 20 and bottom 20 JSE listed companies." Problems and Perspectives in Management 15, no. 4 (December 25, 2017): 271–79. http://dx.doi.org/10.21511/ppm.15(4-1).2017.11.
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Good corporate governance has been attributed to many large organizations’ success. From the boardroom to the triple bottom line, it has been hailed as one powerful tool that brought about sustainability of these organizations in this competitive era. While this is beneficial to large organizations, small and medium enterprises (SMEs) can glean on such experiences to add their value to their companies which, in the long run could bring about new markets and improved business practices which can be ground breaking in their daily business dealings. Thus, if with the introduction of the King Report on good governance, competitive advantage is improved, SMEs are in a good position to sustain their businesses in turbulent economic conditions. This article is aimed at exploring the benefits with which good corporate governance can yield to top and bottom JSE listed SMEs in South Africa. A desktop method was used to analyze the financial statements of these SMEs companies with the view to gain understanding on their corporate governance activities and how well they benefit them. The findings show that good corporate governance is beneficial to SMEs.
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Mugobo, Virimai Victor, Misheck Mutize, and Jonathan Aspeling. "The ownership structure effect on firm performance in South Africa." Corporate Ownership and Control 13, no. 2 (2016): 461–64. http://dx.doi.org/10.22495/cocv13i2c2p7.
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This research investigates the effect of corporate governance through ownership structures; ownership concentration, managerial ownership and government ownership on firm performance. A multiple regression analysis was employed on sample data collected over ten years from 2001-2010 from 80 South African companies to test the magnitude of their influence to company performance as measured by return on assets (ROA). This study found a positive and significant correlation between ownership concentration, government ownership and firm performance. Results also showed a negative relationship between insider ownership and firm performance. To this account, the research concludes that managerial ownership is a single factor that significantly weighs down company performance. In validating the significance of the performance determinance model, evidence shows that companies that maintain the recommended King Report shareholding structure have an average to above average performance. Hence, corporate governance is a critical catalyst for company performance.
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Khale, Solomon, and Zeleke Worku. "Benefits of good corporate governance principles: A study of the city of Tshwane, South Africa." Corporate Ownership and Control 13, no. 1 (2015): 961–78. http://dx.doi.org/10.22495/cocv13i1c9p1.
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Annual reports issued by the City of Tshwane (2015) for the financial years 2010 to 2014 show that the City of Tshwane has received qualified audit reports from the South African Auditor General (2015). The two key causes of underperformance were lack of adherence to norms and standards that are applicable to municipal service delivery and lack of adherence to the fundamental principles of good corporate governance (King, 2009). A study was conducted in the City of Tshwane, South Africa in order to assess and evaluate the degree of adherence to good corporate governance principles stipulated by Mervin King (King, 2009) in the form of the King III report. Data was collected from a stratified random sample of size 1, 012 residents of the City of Tshwane. Stratification was done by geographical zone. Data was collected from respondents by using a structured, pre-tested and validated questionnaire of study consisting of 22 indicators of service quality. The study found that 84.37% of respondents who took part in the study were satisfied with the overall quality of municipal services that were provided to them by the City of Tshwane. Only 15.63% of respondents were not satisfied with the overall quality of services provided to them. The study showed that most of the respondents had a positive perception on the quality of routine municipal services such as water and lights and waste removal by employees of the City of Tshwane. The study showed that the degree of satisfaction of residents, ratepayers and stakeholders with the quality of municipal services that were provided to them was significantly influenced by the degree of motivation of employees of the City of Tshwane at work, the ability of employees of the City of Tshwane to treat all customers with respect, the ability of employees of the City of Tshwane to provide adequate answers promptly to queries raised by customers, and the degree to which employees of the City of Tshwane were skilled on technical issues, in a decreasing order of strength.
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Moloi, Tankiso. "Governance of risks in South Africa’s public higher education institutions (HEIs)." Investment Management and Financial Innovations 13, no. 2 (July 4, 2016): 226–34. http://dx.doi.org/10.21511/imfi.13(2-1).2016.09.
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The author examines the manner in which risk is governed within higher education institutions (HEIs) in South Africa by formulating risk governance statements based on the requirements of the King III Report on Corporate Governance and other relevant literature. The formulated risk governance statements are used to develop the risk disclosure measurement index. Disclosure measurement method is accepted as a flexible method to use when extracting the pre-determined information in the annual reports. The developed risk disclosure index is used to extract the information from South Africa’s higher education institutions’ annual reports. The information disclosed in these annual reports is deemed a proxy of risk management practices within the higher education institution concerned. The results obtained indicate that South Africa’s higher education institutions have not embraced risk management as a key process in their activities. This is apparent in the assessed annual reports as compliance with the pre-determined set of statements was around 50%. For those that have not demonstrated these practices, it is stated that the concern is around the manner in which their highest decision makers make decisions, as it appears that risks may not necessarily be taken into account. As higher education institutions in South Africa continues to face challenges and they would possible be revising their strategies to take into account the recent events, every strategic decision being undertaken should be accompanied by a proper risk assessment to identify potential pitfalls (threats) and/or take advantage to achieve results promptly (opportunities)
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Ramalho, Anna. "The distinctive stance of the King Reports on corporate governance from a global perspective." Journal of Global Responsibility 11, no. 2 (December 19, 2019): 173–85. http://dx.doi.org/10.1108/jgr-10-2019-0094.
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Purpose The purpose of this paper is to provide a perspective on the distinctive stance of the King Report on Corporate Governance in South Africa, 2016 (King IV) in relation to a number of other codes of corporate governance issued globally. Design/methodology/approach The paper presents a comparative analysis between King IV and the codes of governance that apply in a select number of the jurisdictions, namely, Australia, Brazil, Malaysia, Nigeria and the UK. The selection of jurisdictions was done with the view of having a sample that is representative of the major global regions. Preference was given to codes that were issued or revised recently. Mention is also made of the G20/OECD Principles of Corporate Governance where appropriate. Findings The conclusion reached in this paper is that King IV is distinctive from the codes compared to it in this paper in six respects. These include that King IV defines corporate governance as accountable leadership instead of it being a system only and is drafted for positive outcomes instead of compliance; proposes an application regime that is qualitative instead of quantitative; integrates sustainable development into its model for corporate governance instead of treating sustainability as an ad hoc-matter; has applicability across the ecosystem of all organisations instead of limited application to listed or larger companies; and has a has built in a social value system to harness broad public support instead of reliance on bottom-down enforcement. Originality/value The implications of the distinct approach to corporate governance in King IV are explained in the paper and should serve as a premise to reconsider whether the more traditional approaches to corporate governance code development are still appropriate in light of the learning as evidenced in King IV.
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Masegare, Peter, and Mpho Ngoepe. "A framework for incorporating implementation indicators of corporate governance for municipalities in South Africa." Corporate Governance: The International Journal of Business in Society 18, no. 4 (August 6, 2018): 581–93. http://dx.doi.org/10.1108/cg-11-2016-0216.
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Purpose This paper aims to develop a framework for incorporating implementation indicators of corporate governance for municipalities in South Africa. In South Africa, there is a corporate governance framework (King III report) that is regarded as a seminal work applicable to both the public and private sectors. Despite its existence, municipalities still struggle to provide services to the citizens due to poor implementation. The poor corporate governance implementation in municipalities led to several issues such as loss of credibility for local government, little interests from investors to invest in municipalities, service delivery protests from communities, maladministration and unexpected change of leadership in municipalities without succession planning in South Africa. Design/methodology/approach The study conducted literature review to demonstrate the need for a framework to implement corporate governance in South Africa. Findings It is evident from the study that the municipal sector could improve its performance and practices of corporate governance, if the underpinning framework is adopted and implemented as a sector framework. The integration of governance elements during the development of the municipal sector integrated development plan (IDP) will facilitate a coherent base for good governance implementation practices. Research limitations/implications This research would go a long way in bringing out the anomalies that paralyse municipalities, the root causes of inefficiency and possible ways to rectify them. Practical implications This study offers a framework that can help the local government sector to improve on service delivery. Implementation of the framework can also assist municipalities in obtaining clean audits from the supreme audit institutions in their respective countries. Social implications The study has a huge social impact as it would help municipal officials take notice of the issues raised and act accordingly thus improving the life of citizenry. Originality/value This study adds value to the existing theoretical and conceptual issues that form the ongoing discourse on the implementation of corporate governance in local government, especially in South Africa, as the country is characteristic by corruption and maladministration.
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Waweru, Nelson M. "Corporate governance and the value of the firm: An empirical analysis of companies listed in the JSE securities exchange of South Africa." Corporate Ownership and Control 10, no. 1 (2012): 125–36. http://dx.doi.org/10.22495/cocv10i1art11.
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This study examines the corporate governance characteristics influencing the value of the value of the firm in South Africa (SA). Corporate governance variables including Block shareholding, Dispensed shareholding, Board size, Proportion of non-executive directors and Audit quality were identified from the corporate governance literature. Using panel data of 247-firm years obtained from the annual reports of the 50 largest companies listed on the JSE Securities Exchange of SA, this study found that block shareholding and the proportion of NEDS as the main corporate governance characteristics influencing the value of the firm in SA. The results of this study are important to the King Committee and other corporate governance regulators in SA, in their effort to improve corporate governance practices and probably minimize corporate failure and protect the wellbeing of the minority shareholders. Furthermore, the study contributes to our understanding of the corporate governance variables affecting firm value in developing economies, especially SA.
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Kana, Suresh Parbhoo. "Corporate governance practice in the context of the political situation in South Africa over the last 25 years." Journal of Global Responsibility 11, no. 2 (March 6, 2020): 127–37. http://dx.doi.org/10.1108/jgr-10-2019-0100.
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Purpose This study aims to demonstrate, with reference to developments in the four King Reports on Corporate Governance for South Africa, that institutional culture should be governed with the same rigour applied to other strategic assets to align the pluralistic interests of government, business and society. Design/methodology/approach Historical narrative and analysis. Findings Institutional culture should be governed with the same rigour and veracity as more traditional assets to align organisational purpose with political and social interests. Originality/value This is part of a special issue that looks at the contribution of the King Reports to governance globally.
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Mokoaleli-Mokoteli, Thabang, and George Emmanuel Iatridis. "Big 4 auditing companies, earnings manipulation and earnings conservatism: evidence from an emerging market." Investment Management and Financial Innovations 14, no. 1 (March 31, 2017): 35–45. http://dx.doi.org/10.21511/imfi.14(1).2017.04.
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This study focuses on South African listed companies and investigates the relation between Big 4 auditing companies, earnings management and earnings conservatism. It shows that companies audited by a Big 4 auditor leads to a more timely recognition of large losses and to lower levels of earnings manipulation and higher conditional conservatism. The findings report that the conditional form of conservatism is negatively related to unconditional conservatism. Higher conservatism is also reported for firms with high leverage and those that convey bad news. The opposite has been found for firms with high growth. The findings, in general support the notion that the new Companies’ Act in South Africa and the King III are effective corporate governance tools and the observed cases of corporate failure may be due to other factors, including management hubris.
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Albertus, Rene Winifred. "Diffusion of the Ethical Philosophy of Good Governance at the National Oil Company of South Africa." Indian Journal of Corporate Governance 12, no. 1 (June 2019): 59–70. http://dx.doi.org/10.1177/0974686219836543.
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This article seeks to examine challenges affecting the ethical philosophy of senior management at South Africa’s national oil and gas company. South Africa’s economy has been downgraded to junk status due to mismanagement of public funds in public enterprises. Government parastatals have come under major scrutiny in recent years for transgressing the code of good conduct prescribed by the King Report. The article presents a conceptual exploration of corporate governance challenges and is underpinned by diffusion of responsibility and moral hypocrisy which has roots in social psychology. Social psychology can be used as an overlap for strategy and institutional concepts, which encourages new ways of addressing corporate responsibility. The research reveals the impact on state enterprises financial stability when senior management diffuses responsibility and is not prosecuted or held accountable under the constitutional Act 108 of 1996. The article highlights one of the many corporate responsibility transgressions by state-owned enterprises who should be responsible for building the economy rather than destroying public value.
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Waweru, Nelson. "Factors influencing quality corporate governance in Sub Saharan Africa: an empirical study." Corporate Governance 14, no. 4 (July 29, 2014): 555–74. http://dx.doi.org/10.1108/cg-02-2013-0024.
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Purpose – This study aims to examine the factors influencing the quality of corporate governance in South Africa (SA). Firm-level variables including performance, firm size, leverage, investment opportunities and audit quality were identified from the corporate governance literature. Design/methodology/approach – The study used ordinary least squares regression on firm-specific and corporate governance variables obtained from panel data of 247-firm years obtained from the annual reports of the 50 largest companies listed on the Johannesburg Stock Exchange (JSE) Securities Exchange of SA. Findings – This study found leverage, firm size and investment opportunities as the main factors influencing the quality of corporate governance in SA. Research limitations/implications – The research findings should be interpreted in the light of the following limitations. First, the study sample consists of the 50 largest firms listed in the JSE of SA. Because these are large companies, the results may not be generalized to other smaller firms operating in SA. Second, this study is constrained to SA. Firms in other developing countries may differ from their SA counterparts. Originality/value – The results of this study are important to the King Committee and other corporate governance regulators in Sub-Saharan Africa, in their effort to improve corporate governance practices and probably minimize corporate failure and protect the well-being of the minority shareholders. Furthermore, the study contributes to our understanding of the variables affecting the quality of corporate governance in developing economies of Africa.
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Waweru, Nelson. "Determinants of quality corporate governance in Sub-Saharan Africa." Managerial Auditing Journal 29, no. 5 (May 5, 2014): 455–85. http://dx.doi.org/10.1108/maj-07-2013-0897.
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Purpose – This study aims to examine the factors influencing the quality of corporate governance in South Africa (SA) and Kenya. Firm-level variables including performance, firm size, leverage, investment opportunities and audit quality were identified from the corporate governance literature. Design/methodology/approach – The study used panel data of 247-firm years obtained from the annual reports of the 50 largest companies listed on the Johannesburg Securities Exchange (JSE) of SA and 234-firm years obtained from the 49 companies listed on the Nairobi Stock Exchange (NSE). The author then used content analysis to extract the study variables from the annual reports and multiple regression analysis to determine their relationship. Findings – The study found audit quality and firm performance as the main factors influencing the quality of corporate governance in Kenya and SA. There are also differences in the quality of corporate governance between the two countries. Research limitations/implications – First the study sample consists of the 50 largest firms listed in the JSE of SA and another 49 companies listed in the NSE of Kenya. Since these are large companies, the results may not be generalized to other smaller firms operating in both SA and Kenya. Second, this study is constrained to SA and Kenya. Firms in other developing countries may differ from their SA and Kenyan counterparts. Originality/value – The results of this study are important to the King Committee and other corporate governance regulators in Sub-Saharan Africa, in their effort to improve corporate governance practices, minimize corporate failure and protect the well-being of the minority shareholders. Furthermore, the study contributes to the understanding of the variables affecting the quality of corporate governance in developing economies of Africa.
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Moloi, Tankiso. "A cross sectoral comparison of risk management practices in selected South African organizations." Problems and Perspectives in Management 14, no. 3 (September 6, 2016): 239–45. http://dx.doi.org/10.21511/ppm.14(3-1).2016.10.
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This paper examines the manner in which risk is governed in certain selected sectors of the South African economy. To extract the statement deemed as a proxy of risk management practices in the certain selected South African organizations, the disclosure risk measurement instrument was developed. This instrument was used as a gauging tool for the information disclosed in the integrated/annual report. Risk practices statements were formulated using the governance of risk chapter of the King III Report on Corporate Governance, applicable to all organization regardless of manner or form of incorporation and the Public Sector Risk Management Standards, applicable to South Africa’s public service organizations. The results obtained indicated a high level of risk management practices by the JSE listed companies. This could be attributed to the fact that the King Code has been incorporated as part of the JSE listings requirements. This paper further theorized that the high level practices in JSE listed companies could be attributable to the high level of scrutiny by shareholders in companies where they have vested interest. With regards to the National Government Departments and the South Africa’s higher education institutions, a lot of work still has to be done to embed key risk practices in these respective organization’s internal processes. Keywords: Higher Education Institutions (HEIs), Enterprise Risk Management (ERM), Johannesburg Securities Exchange (JSE), National Government Departments (NGDs), Risk Disclosure Index (RDI). JEL Classification: M4
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Ntim, Collins G. "The king reports, independent non-executive directors and firm valuation on the Johannesburg stock exchange." Corporate Ownership and Control 9, no. 1 (2011): 428–40. http://dx.doi.org/10.22495/cocv9i1c4art2.
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South Africa (SA) has pursued corporate governance reforms in the form of the 1994 and 2002 King Reports. This paper examines the association between the presence of independent non-executive directors (INEDs) and market valuation of a sample of 169 firms listed on the Johannesburg Stock Exchange (JSE) in SA from 2002 to 2007. Our results suggest a statistically significant and positive relationship between the presence of INEDs and firm valuation. By contrast, we find no statistically significant association between the presence of non-executive directors (NEDs) and firm valuation. Our findings are robust across a number of econometric models that control for different types of endogeneity problems, non-linear associations and firm valuation proxies. Our findings have important policy and regulatory implications. Whereas our evidence that more independent corporate boards’ impacts positively on firm valuation provides support for the recommendations of the King Reports, it shows that to be meaningful, director independence has to be more carefully and strictly defined.
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Coetzee, P. "The responsibility of the internal auditor in managing the risk of HIV/AIDS." South African Journal of Economic and Management Sciences 9, no. 1 (July 11, 2014): 72–88. http://dx.doi.org/10.4102/sajems.v9i1.1158.
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HIV/AIDS is not only a risk to the world population, it is potentially devastating to individual organisations. According to the King Report on Corporate Governance, as well as other governance reports world-wide, risk management is primarily the responsibility of the board and senior management. The internal auditor however, has a responsibility to assist management with this task. This paper aims to determine whether internal auditors are aware of the potential threat that HIV/AIDS holds for their organisations. If ignorance is found to be widespread, recommendations are made to the Institute of Internal Auditors to make their members aware. If awareness is found to be adequate, the paper aims to determine whether internal auditing departments in various sectors of the South African business community are complying with this responsibility.
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Blessy Sekome, Nkoko, and Tesfaye Taddesse Lemma. "Determinants of voluntary formation of risk management committees." Managerial Auditing Journal 29, no. 7 (July 1, 2014): 649–71. http://dx.doi.org/10.1108/maj-02-2014-0998.
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Purpose – The aim of this paper is to examine the nexus between firm-specific attributes and a company’s decision to setup a separate risk management committee (RMC) as a sub-committee of the board within the context of an emerging economy, South Africa. Design/methodology/approach – The authors analyse data extracted from audited annual financial reports of 181 non-financial firms listed on the Johannesburg Securities Exchange (JSE) by using logistic regression technique. Findings – The results show a strong positive relationship between the existence of a separate RMC and board independence, board size, firm size and industry type. However, the authors fail to find support for the hypotheses that independent board chairman, auditor reputation, reporting risk and financial leverage have an influence on a firm’s decision to establish RMC as a separately standing committee in the board structure. The findings signify the role of costs associated with information asymmetry, agency, upkeep of a standalone RMC, damage to the reputation of directors and industry-specific idiosyncrasies on a firm’s decision to form a separate RMC. Research limitations/implications – As in most empirical studies, this study focuses on listed firms. Nonetheless, future studies that focus on non-listed firms could add additional insights to the literature. Investigating the role of firm-specific governance attributes other than those considered in the present study (e.g. gender of directors, ownership structure, etc.) could further enhance the understanding of antecedents of risk-management practices. Practical implications – The findings have practical implications for the investment community in assessing the quality of risk management practices of companies listed on the JSE. Furthermore, the results provide insights that are potentially useful to the King Committee and other corporate governance regulators in South Africa in their effort to improve corporate governance practices. Originality/value – The present study focuses on firms drawn from an emerging economy which has profound economic, institutional, political and cultural differences compared to advanced economies, which have received a disproportionately higher share of attention in prior studies. Thus, the study contributes additional insights to the literature on corporate risk management from the perspective of an emerging economy.
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Wachira, Mumbi Maria, Thomas Berndt, and Carlos Martinez Romero. "The adoption of international sustainability and integrated reporting guidelines within a mandatory reporting framework: lessons from South Africa." Social Responsibility Journal 16, no. 5 (June 26, 2019): 613–29. http://dx.doi.org/10.1108/srj-12-2018-0322.
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Purpose This study aims to explore factors influencing voluntary adoption of international sustainability and integrated reporting guidelines within a mandatory reporting framework. Given South Africa’s political history, the authors argue that accounting practice can be used to secure the legitimacy and transparency of businesses. Design/methodology/approach Two logistic regression equations are used to predict the likelihood of firms’ subscribing to either Global Reporting Initiative (GRI) or the Integrated Reporting (<IR>) framework, respectively. The authors consider annual, sustainability and integrated reports issued for the financial year ended 2014. Findings The results show a statistically and significant positive association between the adoption of the GRI’s guidelines and the level of transparency of non-financial disclosures and environmental sensitiveness. The application of the <IR> framework is also associated with the level of a firm’s transparency score and with its respective analyst following, which acts as a measure for capital markets requiring a high information environment. Originality/value This paper illustrates the development of integrated and sustainability reporting (SR) practices within an emerging market. By drawing distinctions between locally developed South African codes of corporate governance, namely, King I-III and international guidelines proxied by the GRI’s guidelines for SR, and the <IR> framework, the authors show that South African firms still adopt international guidelines despite the mandatory framework in place.
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De Haes, Steven, Tim Huygh, Anant Joshi, and Laura Caluwe. "National Corporate Governance Codes and IT Governance Transparency in Annual Reports." Journal of Global Information Management 27, no. 4 (October 2019): 91–118. http://dx.doi.org/10.4018/jgim.2019100105.
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IT governance is concerned with the oversight of IT assets, their contribution to business value and the mitigation of IT-related risks. Emerging research calls for more board level engagement in IT governance and identifies profound consequences for digitized organizations in case the board is not involved. Against this context, this article analyses how corporate governance codes are guiding boards to provide transparency on how they treat IT governance. The findings show that only the South African corporate governance code, King III, contains a significant amount of IT (governance)-related content. As a second objective, this article builds on these findings by providing an exploratory insight in the contemporary state of IT governance transparency in Belgian and South African companies. This way, the influence of the national corporate governance code on IT governance transparency is explored. The authors' findings show that South African firms tend to be more concerned with IT governance transparency in their annual reports than Belgian firms, given a comparable IT strategic role and ownership structure. Accordingly, the case is made for including more IT (governance)-related guidance in national corporate governance codes, as this might enable companies to be more transparent about their IT governance.
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Mbecke, Paulin. "Corporate municipal governance for effective and efficient public service delivery in South Africa." Journal of Governance and Regulation 3, no. 4 (2014): 98–106. http://dx.doi.org/10.22495/jgr_v3_i4_c1_p2.
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This research acknowledges the current service delivery chaos manifested through numerous protests justifying the weakness of the “Batho Pele” good governance principles to facilitate, improve and sustain service delivery by local governments. The success of corporate governance in corporate companies and state owned enterprises is recognised prompting suggestions that local governments should too adopt corporate governance principles or King III to be effective. The research reviews the King III and literature to ascertain the lack of research on corporate governance in local governments in South Africa. Considering the particular set-up of local governments, the research doubts the successful application of King III in local governments. Through critical research theory, the current service delivery crisis in local governments in South Africa is described. The success of corporate governance systems in the United Kingdom and Australian local governments justify the need for a separate corporate municipal governance system as a solution to the crisis. A specific change of legislation and corporate governance guidelines is necessary to address the uniqueness of local governments. Hence, corporate municipal governance should be compulsory and based on ten standardised good governance principles via a code of corporate governance and a corporate governance framework responding to specific prerequisites for success
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Mohamad, Shafi. "National corporate governance codes and IT governance transparency." Corporate Ownership and Control 16, no. 1 (2018): 13–18. http://dx.doi.org/10.22495/cocv16i1art2.
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The main purpose of this paper is to explore the influence of national corporate governance codes on IT governance transparency and was carried out by comparing the IT governance disclosure requirements across two jurisdictions Belgium and South Africa using the study by Huygh et al. (2017). The latter focused on these two countries since the South African corporate governance code King III (2009) contains detailed IT governance disclosures, while the Belgian corporate governance code Lippens (2009) does not. Huygh et al. (2017) found that listed South African financial services organizations were more concerned with disclosing their IT governance practices than their listed Belgian counterparts and that this observation held across the board for all four disclosure categories within the IT governance transparency framework. Further analysis at an individual item-level also found that many of the items for which the South African respondents reported frequently could be directly traced to the IT governance principles and recommended practices contained in the King III (2009) corporate governance code. Huygh et al. (2017) attributed the higher IT governance transparency of the South African respondents to the specific reporting requirements of their national corporate governance code King III (2009). Hence the recommendation that IT governance disclosures be proactively encouraged via national corporate governance codes to further enhance transparency.
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Matsiliza, Noluthando Shirley. "Corporate governance of the state-owned enterprises in an emerging country: Risk management and related issues." Risk Governance and Control: Financial Markets and Institutions 7, no. 3 (2017): 35–43. http://dx.doi.org/10.22495/rgcv7i3p4.
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This article assesses the extent to which state owned enterprises (SOE) have complied with corporate governance codes, as recommended by King III in South Africa. Corporate governance in the post-apartheid era has changed irrevocably. The development path which is the agenda to transform state owned enterprises has been a trial and error (trend) in South Africa. This paper argues that the South African State Owned Enterprises (SOEs) have applied the King III principles of corporate governance, while grappling with structural changes that impact in their practice regarding their organisational performance on risk and corporate governance. Along with regulatory measures on corporate governance, the SOEs are looking at strategies to translate the concept of corporate governance into practical solutions that involve stakeholders and government support. Using a qualitative approach, this theoretical paper employed document analysis for data collection and analysis. This paper calls for more risk intelligent management of agencies so that future opportunities and threats are recognized and addressed promptly and effectively. The value of this paper is based on its contribution to the existing knowledge area on corporate governance and leadership.
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Marx, Ben. "Corporate governance practices at higher education institutions in South Africa." Journal of Economic and Financial Sciences 1, no. 2 (October 31, 2007): 105–22. http://dx.doi.org/10.4102/jef.v1i2.363.
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South Africa boasts a vibrant higher education sector, with more than a million students enrolled in its higher education institutions. These institutions constitute highly complex organisations, with many and varied stakeholders and with budgets running into hundreds of millions of rands. Sound management and strict adherence to corporate governance principles and practices are essential to the success of these institutions. This will include the establishment of a well-balanced, independent and diligent council, as well as properly constituted and effective sub-committees of council. Of these sub-committees, the audit and finance committees are sure to play a pivotal part in ensuring financial discipline and adherence to sound corporate governance principles and practices. The principal aim of this paper will be to focus on the basic governance-regulatory requirements of higher education institutions in South Africa, and to benchmark these requirements against the corporate governance principles and practices required by King II.
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Tshipa, Jonty, Leon Brummer, Hendrik Wolmarans, and Elda Du Toit. "The impact of flexible corporate governance disclosures on value relevance. Empirical evidence from South Africa." Corporate Governance: The International Journal of Business in Society 18, no. 3 (June 4, 2018): 369–85. http://dx.doi.org/10.1108/cg-05-2017-0106.
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PurposeConsidering that the Johannesburg Stock Exchange (JSE) has enacted in its Listings Requirements, compliance of listed firms to International Financial Reporting Standards (IFRS) and King Code of Good Corporate Governance, this study aims to investigate the impact of internal corporate governance attributes on the value relevance of accounting information in South Africa.Design/methodology/approachThe fixed effect generalised least squares regression is used for the period from 2002 to 2014. Proxies for internal corporate governance are the size of the board, leadership structure, board activity, staggered board, boardroom independence, presence of key committees and board gender diversity. Value relevance is measured using the adjustedR2derived from a regression of stock price on earnings and equity book values by following Ohlson’s accounting-based valuation framework.FindingsThe findings suggest that the net asset value per share is value-relevant in South African listed firms and also when the boardroom is largely independent. The value of earnings per share (EPS) is more robust when corporate governance structures, such as separating the roles of chief executive officer and chairperson, proportion of board-independent board members and presence of board committees, are in place. This suggests that EPS favours agency and resource dependence theories.Practical implicationsThe value relevance of accounting information in the South African financial market underscores the importance of requisite rules and supervision regarding financial reporting to allow asset owners and managers in the allocation of capital decisions. This study supports the view that corporate governance plays a key role in ensuring, amongst others, credible financial reporting. The outcome of this study could inform the JSE to enforce, even stricter, compliance with IFRS and corporate governance to improve the value relevance of financial information.Social implicationsSignificant corporate governance reforms around the world suggest that regulators and policy makers consider corporate governance as a pertinent tonic in ensuring, amongst others, credible financial reporting. The implications of the study might assure users of financial information of how compliance to corporate governance practices may influence the value of the firm. This paper provides empirical evidence in the South African context that EPS, unlike net asset value per share, is driven by corporate governance structures.Originality/valueThe period of this study is unique, because it covers a relatively stable economic period before the financial crisis, a challenging and unstable period of time when the financial crisis materialised, and the aftermath of the financial crisis. In addition, the examination period of the study also covers the two corporate governance reforms in South Africa, King II in 2002 and King III in 2009, as well as the new Companies Act No. 71 of 2008. These exogenous factors may influence the results.
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Corvino, Antonio, Federica Doni, and Silvio Bianchi Martini. "Corporate Governance, Integrated Reporting and Environmental Disclosure: Evidence from the South African Context." Sustainability 12, no. 12 (June 12, 2020): 4820. http://dx.doi.org/10.3390/su12124820.
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This research aims to investigate how the adoption of King III can affect the corporate governance model of a sample of South African listed companies on the Johannesburg Stock Exchange (JSE). Particularly, we analyzed the influence of sustainability-related issues of the board of directors (BDs) on firm environmental disclosure, after the mandatory preparation of integrated reporting (IR). In addition, we also examined indepth whether some corporate social policies are able to condition the foregoing disclosure. The empirical study covers the period from 2010 (the first-time adoption of IR in South Africa) to 2015 (the earliest year of the release process regarding King Code of Governance Principles for South Africa 2009 (i.e., King III)). Data were collected by the Bloomberg database. With reference to the BDs features, great attention was paid to both business ethics policy and CEO duality. Instead, with regard to corporate social issues, we looked into the adoption of the policies pertaining to health and safety and the respect for human rights. Following the mandatory preparation of IR, our findings show a positive relationship between business ethics policy and firm environmental disclosure. Contrarily, CEO duality does not exert any effect over the earlier type of corporate reporting. Furthermore, empirical evidence substantiates the association between health safety and human rights policies that are very crucial in an emerging economy, such as South Africa, and firm environmental disclosure. The rationale of such results arguably resides in compliance with King III. Therefore, this study can provide interesting insights, given that its mandatory adoption might reveal an important turning point in the development of corporate governance codes, as well as being a “driver” for potential enhancements of firm environmental disclosure, inter alia, in line with the Sustainable Development Goal (SDG) 12.6.
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Tshipa, Jonty, and Thabang Mokoaleli-Mokoteli. "The South African code of corporate governance. The relationship between compliance and financial performance: Evidence from South African publicly listed firms." Corporate Ownership and Control 12, no. 2 (2015): 149–69. http://dx.doi.org/10.22495/cocv12i2p12.
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Using both Return On Assets (ROA) and Tobin’s Q as proxies for performance, the study seeks to explore if better governed firms exhibit greater financial performance than poorly governed firms. The paper employs a panel study methodology for a sample of 137 Johannesburg Stock Exchange (JSE) listed firms between 2002 and 2011. The results show that the compliance levels to corporate governance in South Africa (SA) has been improving since 2002 when King II came into force. However, the compliance level in large firms appears to be higher than in small firms. Further, the findings show that the market value of large firms is higher than that of small firms. These results largely support the notion that better governed firms outperforms poorly governed firms in terms of financial performance. Notably, the empirical results indicate that board size, CEO duality and the presence of independent non-executive directors positively impact the performance of a firm, whereas board gender diversity, director share-ownership and frequency of board meetings have no impact on firm performance. This suggests that greater representation of independent non-executive director, a larger board size and the separation of CEO and Chairman should be encouraged to enhance firm performance. Unexpectedly, the presence of internal key board committees, such as remuneration, audit and nomination, negatively impact firm performance. Similar to UK, South Africa has a flexible approach to corporate governance, in which listed firms are required to apply or explain non-conformance to King recommendations. This study has policy implications as it determines whether the flexible corporate governance approach employed by SA improves corporate governance compliance than the mandatory corporate governance approach as employed by countries such as Sri Lanka and US, and whether compliance translates into firm performance. The significant finding of this study is that compliant firms enjoy a higher firm performance as measured by ROA and Tobin’s Q. This implies that compliance to corporate governance code of practice matters, not just as box ticking exercise but as a real step change in the governance of South African listed firms. This paper fulfils an identified need of how compliance to corporate governance influences firm performance in South Africa. The findings have implications to JSE listing rules, policy, investor confidence and academia.
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Ackers, B. "Ethical considerations of corporate social responsibility - A South African perspective." South African Journal of Business Management 46, no. 1 (March 31, 2015): 11–21. http://dx.doi.org/10.4102/sajbm.v46i1.79.
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Today, companies are under increasing pressure to implement corporate social responsibility [CSR] programmes that account for the economic, social and environmental impacts of their operations. In addition to companies voluntarilywanting to be seen as responsible corporate citizens, the requirement for CSR reporting is being institutionalised by the King Code of Governance [King III] in South Africa. The application of King III is mandatory for all companies listedon the Johannesburg Stock Exchange [JSE], albeit on an 'apply or explain' basis. King III requires companies to not only disclose their CSR performance, but also to ensure that such disclosures have been independently assured. Irrespective ofthe underlying reason for companies disclosing their CSR performance and for providing independent assurance thereon, companies are moving away from simplistically applying the cliche attributed to Friedman that "the social responsibility of business was to use its resources to engage in activities that would increase profits". Companies that have traditionally provided financial reporting to shareholders, are now beginning to account for their non-financial performance to other stakeholders as well. This paradigm shift requires those charged with company governance and reporting (including accounting professionals usually associated with financial reporting), to re-examine their morals, values and ethical beliefs.
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Gstraunthaler, Thomas. "Corporate governance in South Africa: the introduction of King III and reporting practices at the JSE alt-x." Corporate Ownership and Control 7, no. 3 (2010): 149–57. http://dx.doi.org/10.22495/cocv7i3p11.
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South Africa has experienced a tremendous growth in its economy since its first free elections in 1994. Politicians, however, consider the transformation of the society and more equally distributed wealth as one of their key goals. Thus, companies often find themselves under scrutiny as regards their contribution. A new corporate governance code (King III) will become effective in March 2010. This reworked code now tries to enhance the reporting practices of companies as to their sustainability and corporate social engagement and tries to link international standards of corporate governance with African values. This paper introduces the novelties of King III and examines the current reporting practices of 68 companies listed on the Alt-X segment of the Johannesburg Stock Exchange. The paper discusses issues like risk, board composition and remuneration and provides valuable insights into the structure of small cap companies in South Africa and analyses which parts are used by companies to enhance their legitimacy.
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Naidoo, Loganadhan Dalyiah, Mohamed Saheed Bayat, and Bhagavathi Bhavani Naidoo. "Leadership Governance." Developments in Administration 2, no. 1 (January 2, 2017): 39–51. http://dx.doi.org/10.46996/dina.v2i1.5109.
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Proper governance in organizations across both the public and private domain has come under great scrutiny around the world. In South Africa with a Transparency International 2015 Corruption Perception Index (CPI) score of 44, rank 61/168, the question of appropriate governance structures to curb corruption is critical. There have been highly publicized recent occurrences of corruption and mismanagement in South African SOE’ssuch as Prasa, Eskom, SABC, Denel, SAA and Transnet. These instances have resulted in increased scrutiny on governance and ethical leadership in government organizations. With the high-profile cases mentioned above, and the resultant public disillusionment with government organizations, the ethical recapture of these organizations is imperative. This paper examines the latest recommendations contained in the King Report (King IV) with particular attention to ethics in leadership. It considers the question of whether King IV will be effective in promoting ethical leadership.
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Mmako, N., and M. Jansen van Rensburg. "Towards integrated reporting: The inclusion of content elements of an integrated annual report in the chairmen’s statements of JSE-listed companies." South African Journal of Business Management 48, no. 1 (March 31, 2017): 45–54. http://dx.doi.org/10.4102/sajbm.v48i1.19.
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A call for greater transparency following various corporate scandals in a volatile global economy has placed intense pressure on South African corporations to reform, not only their conduct but also their reporting. As investors and other stakeholders insisted on the assurance that company practices were transparent, accountable and fair to all stakeholders, the JSE changed listing requirements to oblige listed companies to integrate their sustainability reports with their annual reports. To understand how companies incorporate integrated reporting standards in voluntary narrative disclosures, this article reports on how chairpersons of 50 high-performing and 50 poor-performing companies listed on the JSE included content elements within their statements. Qualitative content analysis was used to analyse how content elements were presented and communicated in the 2012 chairpersons’ statements. Findings indicate that South African companies embraced new reporting requirements. Just as the King Reports have been praised as an internationally leading code of governances, annual corporate reports of JSE-listed companies can become an international benchmark for integrated reporting. Even though the chairperson’s statement does not present the platform to discuss all the content elements in detail, the content elements of integrated reporting seem to provide a useful framework for chairpersons on what to include in their chairperson’s statement.
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Judin, J. Michael. "The King Reports and the common law in South Africa." Journal of Global Responsibility 11, no. 2 (May 28, 2020): 167–72. http://dx.doi.org/10.1108/jgr-10-2019-0093.
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Purpose This paper aims to discuss the King Reports and Codes and the development of South Africa’s common law. The role of developing the common law is explicitly recognised in the Constitution, as is the obligation to give effect to the spirit, purport and objects of the Bill of Rights. With decisions of the Supreme Court of Appeal being based on the King Code, the King Code is now an integral part of South Africa’s common law. Design/methodology/approach When the task team drafting King IV commenced their work, one of the important issues raised with Mervyn King, as Chairman, was the challenge to ensure that King IV was aligned to the now firmly entrenched common law principles taken from King I, King II and King III. It is believed that this has been achieved and it is hoped that King IV (and the subsequent King Reports that will inevitably follow because the corporate milieu keeps changing) continues to enrich South Africa’s common law. Findings The King Reports and Codes have been made part of South Africa’s common law. Originality/value This paper fulfils an identified need to study the King Report and Code, as it relates to South Africa’s common law.
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Magang, Tebogo Israel, and Koketso Bafana Kube. "Compliance with Best Practice Governance Principles by State Owned Enterprises in Botswana." International Journal of Business and Management 13, no. 2 (January 14, 2018): 149. http://dx.doi.org/10.5539/ijbm.v13n2p149.
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This paper investigates the extent of compliance by 16 state owned enterprises (SOE)/parastatal corporations in Botswana with international best practice corporate governance principles. In particular the study examines the extent of compliance by SOEs with best practice corporate governance principles as recommended under the King Code of South Africa. The King Code (2002) of Corporate Governance is generally considered as a benchmark for best practice corporate governance not only in the Southern African region but also across the African continent.Using a compliance checklist of 53 provisions from the Code, the study finds that 68.7% of Botswana SOEs have a compliance score of 51% and above while the remaining 31.3% applied less than 50% of the provisions in the King Code checklist. The study also finds that compliance with the Code increased from an average of 57% in 2009 to 60% in 2012. Further the study finds that SOEs tended to comply more with provisions on risk management and less on provisions on integrated sustainability reporting.The results of this study have implications on governance practices of SOEs in Botswana in general. For instance, the results may possibly indicate that, even though governance structures of SOEs in Botswana are crafted through Acts of parliament, on the whole they adhere to international best practice corporate governance principles. The results could also be a signal to local and international investors that Botswana SOEs are not lagging behind in terms of compliance with good governance practices.
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Moloi, Tankiso. "Risk management practices in the top 20 South Africa’s listed companies: An annual/ integrated report disclosure analysis." Corporate Ownership and Control 12, no. 4 (2015): 928–35. http://dx.doi.org/10.22495/cocv12i4csp12.
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The King III Report on Corporate Governance places risk management at the nerve centre of the company’s strategic decision makers. The main objective of this article was to assess the risk management disclosures in the annual (integrated) reports of the top twenty (20) listed companies. The objectives were obtained through a literature review on risk management developments as per the requirements of the King III report on Corporate Governance, and supported by empirical evidence obtained from assessing the 2013 annual/ integrated reports of these top listed companies. The results obtained indicate that the majority of the JSE’s top 20 listed companies adhere to good risk management disclosure practices. However, there are areas in which the non-disclosure of information was prevalent. These areas of non-disclosure were found to be lacking detail on actual risk management practises applied. It was observed that the company accomplishments in these areas could be enhanced.
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Sigauke, Joseph, Patrick Collins, Emanuel Mutambara, and Rosemary Sibanda. "The company secretary’s role in CG: private and public owned south African companies." Corporate Ownership and Control 13, no. 1 (2015): 401–13. http://dx.doi.org/10.22495/cocv13i1c3p8.
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This study investigates the role of the company secretary in ensuring and promoting proper Corporate Governance (CG) in public and private owned South African companies, so as to educate companies on their significance in reducing corporate scandals. The study followed a mixed research paradigm in which qualitative and quantitative methods of data collection were used. Fifty questionnaires were sent to company secretaries of different business sectors giving a response rate of 78% with four of the participants telephonically interviewed to gather qualitative data. The study confirmed that the company secretary still plays a significant role in promoting CG by giving support and advising the board and its directors on CG matters. The results further show that some company secretaries are involved in director selection, performance evaluation and implement induction, training and/or professional development to strengthen the company’s governance practices. Through the use of the Companies Act and the Kings report the company secretary ensures directors are kept abreast of relevant legislative and regulatory developments. It was observed that the company secretary ensures good information flow between the board, directors and stakeholders and keeps record of all conflicts of interest. Though the company secretary is appointed by the board they can whistle blow any misconduct under the protection of the Protected Disclosure Act, thus ensuring effectiveness of their role. Despite the fact that some of the company secretaries are facing challenges due to the ever evolving and increasing complexity of their roles, there has been evolution with regards to legislation, greater transparency, better governance and improved investor expectation. This study enriches company secretaries with knowledge of their expected role in CG.
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Clayton, Alexandra F., Jayne M. Rogerson, and Isaac Rampedi. "Integrated reporting vs. sustainability reporting for corporate responsibility in South Africa." Bulletin of Geography. Socio-economic Series 29, no. 29 (September 1, 2015): 7–17. http://dx.doi.org/10.1515/bog-2015-0021.
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AbstractLarge corporates have come under increasing pressure to conduct their business in a more transparent and responsible manner. In order for business to fulfil its obligations under the ethic of accountability stakeholders must be given relevant, timely, and understandable information about their activities through corporate reports. The conventional company reports on annual financial performance, sustainability and governance disclosures often fail to make the connection between the organisation’s strategy, its financial results and performance on environmental, social and governance issues. Recognising the inherent shortcomings of existing reporting models, there is a growing trend to move towards integrated reporting. South Africa has been one of the most innovative countries in terms of integrated corporate reporting. Since 2010 companies primarily listed on the country’s major stock exchange have been required to produce an integrated report as opposed to the former sustainability report. The aim in this study is to review the development of integrated reporting by large corporates in South Africa and assess the impact of the required transition from sustainability reporting to integrated reporting on non-financial disclosure of eight South African corporates using content analysis of annual reports.
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Maroun, Warren, and Harvey Wainer. "To report or not to report." South African Journal of Economic and Management Sciences 16, no. 1 (February 26, 2013): 13–25. http://dx.doi.org/10.4102/sajems.v16i1.332.
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Whistle-blowing can play an important role in enhancing the effectiveness of corporate governance processes. In particular, legislation mandating that auditors blow the whistle on their clients’ transgressions can assist in overcoming agency-related costs and improve confidence in external audit. This is, however, only the case if regulatory reform enjoys cohesion. The Companies Act No. 71 of 2008, by introducing a definition of ‘reportable irregularities’ different from that in the Auditing Profession Act No. 26 of 2005 (APA); excluding ‘independent reviews’ from the scope of APA; and effectively exempting the majority of South African companies from the requirement either to be audited or reviewed, may materially undermine whistle-blowing by auditors in South Africa. In turn, this begs the question: for how long will South Africa rank first globally for the quality of its auditing practices?
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Roberts-Lombard, Mornay, Mercy Mpinganjira, Greg Wood, and Göran Svensson. "South African corporate ethics codes: establishment and communication." European Business Review 31, no. 3 (May 13, 2019): 379–96. http://dx.doi.org/10.1108/ebr-08-2017-0150.
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Purpose The purpose of this study is on the top 500 companies in South Africa (as per the TopCo, 2014 list) that have a code of ethics, to see the current state of development in this area after 20 years of focus by the government and business on making corporate South Africa a more ethical environment, in which to conduct business. Design/methodology/approach A structured questionnaire survey method was used to gather the data and it was directed to the company secretaries of these top 500 companies. Findings Many companies in South Africa have a well-established set of protocols to enact the ethos of their code of ethics, indicating that they are becoming increasingly aware of the benefits to them of having a code. South African companies are, therefore, implementing both a code of ethics and strategies that contribute to creating an ethical corporate culture. Research limitations/implications This study provides an opportunity to further research assessing and comparing other companies in non-Western and emerging economies. Practical implications After 20 years of endeavours by business people and lawmakers to improve the ethical framework of South African business, there is still plenty of work to be done, as so many top companies do not appear to have a code of ethics. Originality/value There have been limited studies in the area of business ethics in South African companies. This study is the first of its kind in the South African context and establishes the current practice 20 years after the King I report.
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Lekhanya, Lawrence Mpele. "Leadership and corporate governance of small and medium enterprises (SMEs) in South Africa: Public perceptions." Corporate Ownership and Control 12, no. 3 (2015): 215–22. http://dx.doi.org/10.22495/cocv12i3c2p1.
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The main, underlying constraint to the growth of Small and Medium Enterprises (SMEs) is a lack of corporate governance (CG) structure (Mahmood 2014). In considering the UK- Department for Business Innovation and Skills report (2012), this constraint is described as one of the fundamental problems holding back the growth of SMEs. The report states it is this lack of leadership and management capability that should be present, to drive performance and enable them to succeed. However, statistics support the indispensable role that SMEs perform in a country’s economy and when the significance of this sector is taken into account, the role that CG and its practices play within SMEs has to be clearly understood (Le Roux, 2010). Due to SMEs survival and growth being dependant on their good business leadership and corporate governance, the ability to lead, manage, and take full advantage of the resources available have, in recent years, been highlighted on global public platforms and the media. It has further been acknowledged, through prior research studies on SMEs that, for a business to be successful, the critical role of leadership and good CG has to be fully understood. The purpose of this paper is to report on South African public perceptions of leadership and corporate governance of SMEs. The study aimed to analyse and evaluate these perceptions towards SME owner/managers and their consequences, on the survival and growth of SMEs. A mixed method approach allowed for qualitative and quantitative techniques in collecting data from individual participants, with primary data collected from nine provinces of South Africa, and 180 participants as the sample. The research instrument consisted of closed-ended, questionnaires made up of 5-point Likert scale responses and 20 questionnaires were distributed to each province. Delivery of the questionnaires was done through email to individual respondents, with follow–up via telephone calls. The research findings indicate that most respondents believed that the growth and survival of SMEs is, due to the lack of business leadership and poor CG. In addition, respondents agreed that SME owners/managers are just average entrepreneurs, as they do not have leadership qualities or skills and that CG does not exist in many SMEs, particularly in South Africa. The paper’s benefit will be to the owners/managers of SMEs, as well as, policy makers and financial agencies for SMEs. It is recommended that further research, with a larger sample size, be drawn from various townships
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Atkins, Jill, and Warren Maroun. "Integrated reporting in South Africa in 2012." Meditari Accountancy Research 23, no. 2 (August 10, 2015): 197–221. http://dx.doi.org/10.1108/medar-07-2014-0047.
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Purpose – This paper aims to explore the initial reactions of the South African institutional investment community to the first sets of integrated reports being prepared by companies listed on the Johannesburg Securities Exchange. The research highlights a shift in attitude towards ESG and integrated reporting, initial views on the first sets of integrated reports and obstacles to the preparation of high-quality reports. The study also includes recommendations for preparers. Design/methodology/approach – Detailed interviews are carried out with 20 experts from the South African institutional investment industry. Interpretive thematic analysis is used to identify themes and principles and construct an initial assessment of the investors’ views on South African integrated reporting. Findings – The new reporting framework is seen as an improvement on the traditional annual report of South African listed companies. In general, there is more emphasis on non-financial measures and evidence of an effort to integrate financial and environmental, social and governance metrics to provide a better understanding of organisational sustainability. The length of reports, repetition and a check box approach to reporting does, however, detract from the usefulness of the reports and undermine the development of an integrated thinking ethos. Research limitations/implications – The study is limited to exploring the views of only a single group of stakeholders at one point in time. The reader’s attention is also drawn to the fact that the study was carried out before the International Integrated Reporting Council’s framework for integrated reporting was applied by South African preparers. Nevertheless, its interpretive style allows identification of challenges to effective integrated reporting. Originality/value – This paper is the first to examine the views of institutional investors and analysts on South African integrated reports. It makes an important contribution to the academic literature by adding to the limited body of research on integrated reporting and corporate governance in an African setting. The study is also important for practitioners seeking to improve the quality of their integrated reports and for academics wanting to understand the problems and possible strategies for addressing these.