Page 22 - Nexia SAB&T Business in South Africa Guide 2024

King IV ™ : 17 Principles Principles of Good Governance
The board of directors should:
■ Lead ethically and effectively.
■ Govern ethics and establish an ethical culture.
■ Ensure responsible corporate citizenship.
■ Appreciate that the company’s core purpose, its risks and opportunities,
strategy, business model, performance and sustainable development are all
inseparable components of the value creation process.
■ Ensure that reports allow stakeholders to make informed assessments
about the organisation’s performance and its short, medium and long-term
prospects.
■ Serve as the focal point and custodian of corporate governance.
■ Have the appropriate balance of knowledge, skills, experience, diversity and
independence.
■ Delegate within the board to promote independent judgement, and assist
with the balance of power and effective discharge of duties.
■ Evaluate board’s performance and support continued improvement and
effectiveness.
■ Appoint and delegate to management in a way that contributes to role clarity
and the effective exercise of authority and responsibilities.
■ Govern risk in line with strategic objectives.
■ Govern information and technology in line with strategic objectives.
■ Comply with applicable laws and adopted, non-binding rules, codes and
standards.
■ Remunerate fairly, responsibly and transparently.
■ Use assurance services and functions to enable an effective control
environment which supports the integrity of information.
■ Adopt a stakeholder-inclusive approach.
■ Practise responsible investment which promotes good governance and the
creation of value (applies to institutional investor organisations).

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”
20