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King IV - Coggle Diagram
King IV
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:star: Principle 2: The GB should govern the ethics of the organisation in a way that supports the establishment of an ethical culture.
Recommended practices:
- Assume responsibility for the governance of ethics and
- approve codes of conduct and ethics policies.
- 3.) Delegate to management to Implement
- 4.) The GB should exercise ongoing oversight of the management of ethics.
- 2.) Properly communicate their code of ethics and conduct to all stakeholders;
:star: Principle 3: The GB should ensure that the organisation is and is seen to be a responsible corporate citizen.
- The GB should oversee that the organisation’s purpose and values, strategy and conduct are in line with it being a responsible corporate citizen.
- The GB’s efforts should include compliance with the Constitution of South Africa (including the Bill of Rights), the law, leading standards, and adherence to its own codes of conduct and policies.
- The following should be disclosed in relation to corporate citizenship:
- Key areas of focus during the reporting period.
- Measures taken to monitor corporate citizenship and how the outcomes were addressed.
- An overview of the arrangements for governing and managing responsible corporate citizenship.
- Planned areas of future focus.
- The GB should assume responsibility for corporate citizenship.
Principle 4: The GB should appreciate that the organisation’s core purpose, its risks and opportunities, strategy, business model, performance and sustainable development are all inseparable elements of the value creation process.
- 4.) The GB should ensure that it approves the policies and operational plans developed by management to give effect to the approved strategy.
- 5.) The GB should delegate to management the responsibility to implement and execute the approved policies and operational plans.
- 3.) The organisation’s short, medium and long-term strategy as formulated and developed by management should be approved by the GB. When considering the proposed strategy for approval, the GB should challenge it constructively with reference to, among others, the following:
- The timelines and parameters which determine the meaning of short, medium and long term respectively.
- The risks, opportunities and other significant matters connected to the triple context in which the organisation operates.
- The extent to which the proposed strategy depends on the resources and relationships connected to the various forms of capital.
- The legitimate and reasonable needs, interests and expectations of material stakeholders.
- The increase, decrease or transformation of the various forms of capitals that may result from the execution of the proposed strategy.
- The interconnectivity and inter-dependence of all of the above
- 6.) The GB should exercise ongoing oversight of the implementation of strategy and operational plans by management against the agreed performance measures and targets.
- 2.) The GB should delegate to management the formulation and development of the organisation’s short, medium and long-term strategy.
- 7.) The GB should oversee that the organisation continually assesses, and responsibly responds to, the negative consequences of its activities and outputs on the triple context in which it operates, and the capitals which it uses and affects.
- 1.) The GB should assume responsibility for organisational performance by steering and setting the direction for the realisation of the organisation’s core purpose, and the development of its short, medium and long-term strategy.
- 8.) As part of its oversight of performance, the GB should be discuss/disclose on the general viability of the organisation with regard to its reliance and effects on the capitals, its solvency and liquidity, and its status as a going concern.
Principle 5: The GB should ensure that reports issued by the organisation enable stakeholders to make informed assessments of the organisation’s performance, and its short, medium and long-term prospects.
:check: + 4.) The GB should oversee that the organisation issues an integrated report at least annually, which is either:
a distinguishable, prominent and accessible part of another report which also includes the annual financial statements and other reports that must be issued in compliance with legal provision.
- A standalone report which connects the more detailed information in other reports and addresses, at a high level and in a complete, concise way, the matters that could significantly affect the organisation’s ability to create value; or
- 5.) The GB should approve management’s bases for determining materiality for the purpose of deciding which information should be included in reports.
- 3.) The GB should oversee that reports such as the annual financial statements, sustainability reports, social and ethics committee reports, or other online or printed information or reports are issued as is necessary, to comply with legal requirements, and/or to meet the legitimate and reasonable information needs of material stakeholders.
- 6.) The GB should ensure the integrity of external reports as provided for in Part 5.4, Assurance of external reports.
- 2.) The GB should approve management’s determination of the reporting frameworks (including reporting standards) to be used, taking into account legal requirements and the intended audience and purpose of each report.
- 7.) The GB should oversee that the following information is published on the organisation’s website, or on other platforms or through other media as is appropriate for access by stakeholders:
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Corporate governance disclosures required in terms of this Code (refer to Part 3: King IV Application and Disclosure for more detail).
- 1.) The GB should assume responsibility for the organisation’s reporting by setting the direction for how it should be approached and conducted.
:check: Principle 6: The GB should serve as the focal point and custodian of corporate governance in the organisation
The GB should approve the protocol to be followed in the event that it or any of its members or committees need to obtain independent, external professional advice at the cost of the organisation on matters within the scope of their duties.
The GB should ensure that its role, responsibilities, membership requirements and procedural conduct are documented in a charter which it regularly reviews to guide its effective functioning.
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The GB should approve the protocol to be followed by its non-executive members for requisitioning documentation from, and setting up meetings with, management.
Principle 7: The GB should comprise the appropriate balance of knowledge, skills, experience, diversity and independence
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