The Handbook of Board Governance, 2nd Edition

61King IV: Taking Corporate Governance to the Next Level

Parmi Natesan

CEO of the Institute of Directors in Southern Africa

Dr. Prieur Du Plessis

Chair of the Institute of Directors in Southern Africa, and of Plexus Holdings

A Focus on Outcomes Within an Ethical Context

The latest iteration of South Africa's King Report moves governance decisively away from structure and process to a focus on outcomes within an ethical context. Since the first King Report in 1994, South Africa has consistently pushed the boundaries of corporate governance thinking. The latest iteration of the Report in 2016, known as King IV,¹ sets out the philosophy, principles, practice, and outcomes that serve as the benchmark for corporate governance in South Africa.

One might ask why South Africa devotes so much energy to corporate governance. Three reasons spring to mind. First, and most obvious, is the desire to sanitize public life in the aftermath of apartheid. Second is the imperative to establish the country as a trusted partner in an increasingly global economy. Economic growth is a social and political necessity given the country's high unemployment rate.

A third driver is that an unintended consequence of attempts to fast-track a more equitable, post-apartheid economic order has been rampant corruption in both business and government.

Effective corporate governance is increasingly seen as a vital tool in returning the public and private sectors to health, and positioning the country to participate ...