Corporate governance in South Africa has a long history, with King IV representing the latest efforts to improve direction and control.
Yet all the corporate governance codes, recommended best practices and even JSE listing requirements have failed to prevent poor performance, corruption and even failure at all levels of the South African economy. News headlines run from one scandal to the next. Organisations still lack strong ethical leadership and culture and until this changes we will continue to see such scandals.
In association with
In association with
Corporate governance in South Africa has a long history, with King IV representing the latest efforts to improve direction and control.
Yet all the corporate governance codes, recommended best practices and even JSE listing requirements have failed to prevent poor performance, corruption and even failure at all levels of the South African economy. News headlines run from one scandal to the next. Organisations still lack strong ethical leadership and culture and until this changes we will continue to see such scandals.
So what is the answer?
So what is the answer?
Applied Corporate Governance
We need to move away from the “conventional” box-ticking, compliance-based approach to corporate governance, seen by many as a separate exercise, often a distraction to the running of the business and even invasive. At its essence, corporate governance is really just sound management and should serve to enhance performance, value and sustainability. At TLC we espouse the power and simplicity of the Golden Rules as defined by our international partners ACG. Underlying these rules are some fundamental principles which every organisation can embrace and use to change their attitude to corporate governance from an unwelcome distraction to a tool for sustainability and growth. These principles, reproduced here from their website, are:
- ethical approach – culture, society; organisational paradigm
- balanced objectives – congruence of goals of all interested parties
- each party plays his part – roles of key players: owners/directors/staff
- decision-making process in place – reflecting the first three principles and giving due weight to all stakeholders
- equal concern for all stakeholders – albeit some have greater weight than others
- accountability and transparency – to all stakeholders
This represents a holistic approach by which we believe an organisation can ensure that a state of good corporate governance exists, or is brought into being if its existence is uncertain. It takes the view that there is an over-riding moral dimension to running a business and that the standard of governance will depend on the moral complexion of the operation. Hence the approach developed is based on the belief that:
the business morality or ethic must permeate the entire operation from top to bottom and embrace all stakeholders…best corporate governance practice is an integral part of good management practice also permeating the entire operation, and not an esoteric specialism addressed by lawyers, auditors and sociologists
The principles of this approach are therefore framed in relation to the conventional way of looking at how a business should be properly run.
Applied Corporate Governance
We need to move away from the “conventional” box-ticking, compliance-based approach to corporate governance, seen by many as a separate exercise, often a distraction to the running of the business and even invasive. At its essence, corporate governance is really just sound management and should serve to enhance performance, value and sustainability. At TLC we espouse the power and simplicity of the Golden Rules as defined by our international partners ACG. Underlying these rules are some fundamental principles which every organisation can embrace and use to change their attitude to corporate governance from an unwelcome distraction to a tool for sustainability and growth. These principles, reproduced here from their website, are:
- ethical approach – culture, society; organisational paradigm
- balanced objectives – congruence of goals of all interested parties
- each party plays his part – roles of key players: owners/directors/staff
- decision-making process in place – reflecting the first three principles and giving due weight to all stakeholders
- equal concern for all stakeholders – albeit some have greater weight than others
- accountability and transparency – to all stakeholders
This represents a holistic approach by which we believe an organisation can ensure that a state of good corporate governance exists, or is brought into being if its existence is uncertain. It takes the view that there is an over-riding moral dimension to running a business and that the standard of governance will depend on the moral complexion of the operation. Hence the approach developed is based on the belief that:
the business morality or ethic must permeate the entire operation from top to bottom and embrace all stakeholders…best corporate governance practice is an integral part of good management practice also permeating the entire operation, and not an esoteric specialism addressed by lawyers, auditors and sociologists
The principles of this approach are therefore framed in relation to the conventional way of looking at how a business should be properly run.
The Five Golden Rules of best corporate governance practice are:
- Ethics: a clearly ethical basis to the business
- Align Business Goals: appropriate goals, arrived at through the creation of a suitable stakeholder decision making model
- Strategic management: an effective strategy process which incorporates stakeholder value
- Organisation: an organisation suitably structured to effect good corporate governance
- Reporting: reporting systems structured to provide transparency and accountability
We cater for all organisation sizes and sectors, but our particular focus at present are the following sectors:
Public Sector
We have many years experience working for public sector organisations including PACs and local government...
State Owned Enterprise
We can help SOEs understand and implement corporate governance in a practical way which benefits all...
How to contact us
Tel: +2711 708-0462
Fax: 086 510-6063
Email: [email protected]
Physical Address:
Regus Building
Corner Cedar & Fourways Boulevard
Fourways
Johannesburg
Postal Address:
Postnet Suite #162
Private Bag X033
Rivonia
2128