South Africa’s King Report on Corporate Governance, 2002
The King Report on Corporate Governance for South Africa, 2002 (King II) is a landmark document that establishes a framework for corporate governance practices in South Africa. This report builds upon its predecessor, the 1994 King I report, emphasizing the integration of governance, strategy, and sustainability.
King II introduced several key principles and guidelines, focusing on enhancing corporate transparency, accountability, and ethical leadership. It highlights the importance of stakeholder inclusivity, advocating for a balance between the interests of shareholders and other stakeholders, such as employees, customers, and the community.
Key themes of the report include:
- Triple Bottom Line Reporting: Encouraging organizations to report on their financial, social, and environmental performance, promoting sustainability.
- Board Responsibilities: Defining the roles and duties of boards of directors, emphasizing leadership, integrity, and responsibility.
- Risk Management: Encouraging robust risk management systems to address corporate vulnerabilities and promote long-term stability.
- Ethics and Corporate Citizenship: Advocating for ethical behavior and the alignment of business practices with broader societal and environmental considerations.
King II was pioneering in introducing sustainability as a core aspect of governance, marking a shift from compliance-driven governance to one that integrates strategy and performance with societal values. The report has significantly influenced governance standards in South Africa and globally,
Original Article Source: “King Report on Corporate Governance for South Africa – 2002“, Institute of Directors in Southern Africa, 2002
