The King IV report, which contains principles and recommended best practices to ensure an organisation operates as a good corporate citizen, promotes good governance in SA.
Good governance and the law go hand in hand.
Company law requires an organisation’s board to act in the best interests of the corporation at all times, and that all directors act with the necessary skill, care and diligence.
What is corporate governance?
Corporate governance is the structure of rules, relationships, systems and processes through which authority is exercised and controlled in corporations. It covers the mechanisms by which companies, and those who control them, are held accountable. Corporate governance influences how the company’s goals are defined and achieved, how risk is monitored and evaluated, and how performance is optimised.
The responsibilities of directors are emphasised in the King IV report and an environment of effective and ethical leadership is promoted. Principles associated with ethical leadership include integrity, competence, responsibility, accountability, fairness and transparency.
What is the role of the professional in governance?
Professionals charged with ensuring good governance practices in an organisation play an important role in enforcing and promoting high standards of ethical behaviour, integrity and compliance. They also assist the board to achieve the entity’s vision and strategy.
Original Story by www.sowetanlive.co.za
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