Governance

Governance is an integral part of any company, regardless of size and industry. Application of good corporate governance is vital and can be complex. South Africa has legislation pertaining to governance, such as the Companies Act and JSE listing regulations in the private sector, as well as the Public Finance Management Act and National Treasury Regulations in the public sector. In addition, a range of best practice standards (King IV and sector supplements) are available to organisations to assist them in implementing and embedding proper governance practice.

South African governance principles have evolved since the advent of the first King report in 1994 and there have been regular updates based on changing circumstances in governance around the world. King IV was released in 2016 to take into account changes like the fourth industrial revolution, inequality, climate change, globalised trade, radical transparency, rapid technological and scientific advances, geopolitical and social tensions and other emerging risks and trends.

King IV has also been revolutionary as it is the first governance code that focuses on governance outcomes. King IV promotes corporate governance as integral to running an organisation and delivering the governance outcomes of an ethical culture, along with good performance, effective control and legitimacy. Furthermore, it tries to move away from organisations simply using a tick-box approach to outcomes.

The King report also introduced sector supplements for small and medium enterprises (SMEs), municipalities, non-profit organisations, pension/retirement funds and public sector organisations and entities. The main aim is to make it easier for these entities to apply the principles based on the nature, size and context of the organisation.

The emphasis on good corporate governance in the South African economy focuses mainly on transparency, ethics, responsibility and accountability, as well as stakeholder engagement and risk management. As the importance of these aspects may differ between organisations, applying good governance is not a one-size-fits-all solution. At BDO we have solutions that can assist all types of organisations in ensuring good corporate governance. Our services include:

Board assessments
Independent assessment of your current governance practices
Design of board and committee charters, as well as instruments of delegation and other governance policies
Board, committee and individual director assessments
Governance training and induction sessions
Sustainability consulting and advice
Strategic governance advice to organisations.

At BDO we cater for both public and private sector clients. We have specialists in both sectors and are willing to assist and provide the best governance solution for your organisation.