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…
Abstract
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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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…
Abstract
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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This paper aims to delve into the progress in governance application regimes over the years.
Abstract
Purpose
This paper aims to delve into the progress in governance application regimes over the years.
Design/methodology/approach
This paper was conceptual/analytical in nature and based on research of King Reports and other desktop research.
Findings
Distinctive developments in the narrative and practice of governance in the King Reports were found.
Originality/value
A unique reporting of the development in governance praxis through the King Reports is provided.
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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…
Abstract
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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These texts form part of a quartet, the purpose of this paper is to draw attention to the destruction of our planet by presenting the elements as deities of nature: in Agitation…
Abstract
Purpose
These texts form part of a quartet, the purpose of this paper is to draw attention to the destruction of our planet by presenting the elements as deities of nature: in Agitation the god is earth, in Burning the boy-god is fire, and in Mater Lachrymosa the mother-goddess is air (the first poem’s persona is the goddess of water/rain. Titled Heat, it is published in Volume 29 Issue 5 of AAAJ). The inspiration for these poems was Mervyn King’s statement that “Effective integrated reporting requires careful collection and co-ordination of different types of data for analysis by multi-disciplinary teams”. (King III, 2009) and his thought-provoking advocacy of the idea that “the board should provide effective leadership based on an ethical foundation” (King III, 2009).
Design/methodology/approach
These poems are written in free verse (which mimics the nuances and cadences of spoken English).
Findings
Frequent media coverage of global warming, corporate social responsibility policies, integrated reporting and dwindling resources have become fashionable clichés. We need to empower the message. CSR and the integrated report have no value if they become tick-the-box exercises.
Originality/value
Poetry is not generally associated with accountancy, finance, environmental law or geography so these texts are unusual in their genre and approach. The underlying concept is the interconnectedness of the themes and looking at issues with new eyes.
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Lucia Biondi, John Dumay and David Monciardini
Motivated by claims that the International Integrated Reporting Framework (IRF) can be used to comply with Directive 2014/95/EU (the EU Directive) on non-financial and diversity…
Abstract
Purpose
Motivated by claims that the International Integrated Reporting Framework (IRF) can be used to comply with Directive 2014/95/EU (the EU Directive) on non-financial and diversity disclosure, the purpose of this study is to examine whether companies can comply with corporate reporting laws using de facto standards or frameworks.
Design/methodology/approach
The authors adopted an interpretivist approach to research along with current regulatory studies that aim to investigate business compliance with the law using private sector standards. To support the authors’ arguments, publicly available secondary data sources were used, including newsletters, press releases and websites, reports from key players within the accounting profession, public documents issued by the European Commission and data from corporatergister.com.
Findings
To become a de facto standard or framework, a private standard-setter requires the support of corporate regulators to mandate it in a specific national jurisdiction. The de facto standard-setter requires a powerful coalition of actors who can influence the policymakers to allow its adoption and diffusion at a national level to become mandated. Without regulatory support, it is difficult for a private and voluntary reporting standard or framework to be adopted and diffused. Moreover, the authors report that the <IRF> preferences stock market capitalism over sustainability because it privileges organisational sustainability over social and environmental sustainability, emphasises value creation over holding organisations accountable for their impact on society and the environment and privileges the entitlements of providers of financial capital over other stakeholders.
Research limitations/implications
The authors question the suitability of the goals of both the <IRF> and the EU Directive during and after the COVID-19 crisis. The planned changes to both need rethinking as we head into uncharted waters. Moreover, the authors believe that the people cannot afford any more reporting façades.
Originality/value
The authors offer a critical analysis of the link between the <IRF> and the EU Directive and how the <IRF> can be used to comply with the EU Directive. By questioning the relevance of the compliance question, the authors advance a critique about the relevance of these and other legal and de facto frameworks, particularly considering the more pressing needs that must be met to address the economic, social and environmental implications of the COVID-19 crisis.
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The purpose of this paper is to develop guidelines of what award winning companies, leading practice in integrated reporting (IR) disclose in their integrated reports about…
Abstract
Purpose
The purpose of this paper is to develop guidelines of what award winning companies, leading practice in integrated reporting (IR) disclose in their integrated reports about material issues and their materiality determination processes. Also, to provide insight into what they disclose about their perception of materiality.
Design/methodology/approach
A content analysis was conducted to investigate what the top 10 South African companies of the 2015 Ernst and Young Excellence in Integrated Reporting Awards disclosed in their 2014 and 2015 integrated reports about their materiality determination processes, material issues and what materiality means to them. Thematic analyses were conducted in developing guidelines.
Findings
All except one company applied the International Integrated Reporting Framework. The materiality determination processes, material issues and companies’ descriptions of materiality are diverse. Material issues most companies identified relate to employees, social and environmental issues, customers and sustainable performance.
Practical implications
The proposed guidelines will provide useful strategies for organisations embarking on the IR journey about what issues could be considered as material and therefore included in integrated reports. It also proposes activities companies can undertake to identify, evaluate and prioritise material issues and execute their materiality determination process.
Originality/value
This paper is the first to develop guidelines of material matters and materiality determination processes. It also adds to existing literature on IR practice and the application of materiality.