Page 21 - Nexia SAB&T Business in South Africa Guide 2024

Key Concepts of King IV ™
Because of the interdependence of organisations and wider society, board
decisions should not be made in isolation. Integrated thinking, where the
board of directors considers all issues affecting the organisation when making
decisions (and not just the economic bottom line), is fundamental to the long-
term sustainability of the organisation through the sustained creation of value for
stakeholders. Integrated thinking reinforces the way the company operates as an
integral part of society, underpins sustainable development, integrated reporting
and the stake-holder inclusive approach.
Sustainable Development – an approach to development which balances the
different, and often competing needs of the company against an awareness of
the environmental, social and economic limitations of society. The board should
develop a strategy which includes accounting for sustainability issues and
reporting these to stakeholders.
Corporate Citizenship – the company should be a responsible “citizen”, involved
with social, environmental and economic issues, respect for human rights,
effective management of stakeholder relationships, resource management with
an eye on future needs, and ensuring a positive impact on the community within
which it operates.
Stakeholder-Inclusive Approach – the board should consider and balance
the legitimate needs, interests and expectations of all stakeholders in making
decisions in the best interests of the company. Active stakeholders play a crucial
role in the governance process because they are entitled to hold the board and
the company accountable for their actions and disclosures.

Source:
The King IV Report on Corporate Governance for South Africa 2016, Institute of Directors S.A.
For more information, see http://www.iodsa.co.za/?page=AboutKingIV”
19