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Corporate Governance (Primary characteristics (Discipline (Self…
Corporate Governance
Primary characteristics
Accountability - to take complete account of an issue, by giving clear description/details of event.
Fairness - treated with equality, avoid any bias. Corporate governance rating system assesses fairness
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Transparency - have access to facts, figures, mechanisms & processes involved. Act in a visible & understandable manner
Discipline
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Regulatory (reinforce self-discipline & promote high levels of integrity. Regulation - promotes transparency, sound business practice & fair business dealings, reduces - irrational, high risk business decisions & fraud)
King Code
1 - provided companies with set of principles to emphasize good business practice. 2 - a review & expansion on these principles. 3 - more emphasis on sustainability, risk management, IT, etc.
Need: - asses how company has affected community (+& -) & how they will maintain positives & eliminate negatives in the future
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Benefits of good CG
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Minimises wastages, corruption, risks & mismanagement
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JSE SRI
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Criteria
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Environmental, social & economic sustainability
Triple bottom line
People fair treatment of society, same points as social sustainability pillar.
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Profit - look after employees, reduce staff turnover (good organisational stucture, benefits, training programs. Look at economic sustainability pillar)