Faculty of Economic and Management Sciences
School of Management Sciences
Department of Marketing and Communication Management
Selected Highlights from Research Findings
The King Report has become synonymous with best practices in corporate governance in South Africa. The principle of governance in the corporate environment was institutionalised in this country by the publication of the King Report on Corporate Governance (King Report 1994) in November 1994. The purpose of this and the subsequent edition was, and still remains, to promote the highest standards of corporate governance in South Africa. The King II, as it is known, appeared in 2002, but rapid developments in this field necessitated another update in 2007/2008. The King III Report is due to appear in 2008. Seven subcommittees, addressing topics such as: board and directors, risk management, internal audit, accounting and auditing, sustainability, compliance and business rescue, started their work during June 2007. The King III Report will focus strongly on corporate governance principles, practices and guidelines that will culminate in a Code, explaining how the recommendations made in the Report can be implemented. The first King Report went beyond the financial and regulatory aspects of corporate governance that were typically addressed in its counterparts in other countries. It advocated the inclusive approach that recognises that stakeholders' need to be considered when developing the strategy of a company to achieve its financial, social and environmental goals. It also requires of a company to define its purpose and values, and to communicate these to its various stakeholders. According to King II The modern approach is for a board to identify the company’s stakeholders, including its shareowners, and to agree [on] policies as to how the relationship with those stakeholders should be advanced and managed in the interest of the company. The King III Report will go beyond what was recommended in King II and will include best practices and contemporary developments in all the abovementioned fields. It will also, among others, explain how the concept of sustainability can be incorporated in strategic and governance practices in organisations. In a global knowledge economy prosperity is only possible if sustainability, strategy and corporate governance are inextricably intertwined. In this environment, performance is also measured and reported on against the triple bottom line - people, planet and profit. However, although pressing social and environmental issues on a global scale have necessitated the mainstreaming of sustainability, how this must be done is not clear. The integration and alignment of sustainability, strategy and corporate governance, with specific reference to the role that corporate reputation and corporate communication play in this process, is currently being investigated in the Department of Marketing and Communication Management in the Faculty of Economic and Management Sciences, the results of which will be incorporated into the King III Report.
Outcomes of research as on 6 February 2008:
The focus of the current research project, embarked on for a PhD in Communication Management, is the perceived link between sustainability, governance and strategy. The results of the study will be used as input for the final King III Report, due to appear in the second semester of 2008.
As part of the formal qualitative research process of this project, the researcher will interview respondents about the identified theoretical and pragmatic information gaps in the draft King Report.
The researcher provided input to the reports of two subcommittees, namely the Compliance committee and the Sustainability committee. Her involvement pertained specifically to stakeholder relationship management, which includes the topics of shareholder activism, the role of the financial media, employees, the community, government and other stakeholders.
The final reports of the abovementioned seven subcommittees will be submitted to the King committee towards the end of February 2008, after which the researcher will be involved in the finalisation of the draft King III Report.
A Centre for Corporate Governance will be established as a result of the work done with the King committee. The Centre will encourage a multi-disciplinary approach towards corporate governance and will invite input from disciplines such as Law, Internal Auditing, Accounting, Economics, Human Resources, Ethics, Communication, Marketing, Political Science, Public Administration, Sociology and Psychology. The Institute of Directors has also shown interest in working with a Centre of this kind, in order to establish corporate governance best practices in a South African context.
Contact person: Prof RS Rensburg.
The King Report has become synonymous with best practices in corporate governance in South Africa. The principle of governance in the corporate environment was institutionalised in this country by the publication of the King Report on Corporate Governance (King Report 1994) in November 1994. The purpose of this and the subsequent edition was, and still remains, to promote the highest standards of corporate governance in South Africa. The King II, as it is known, appeared in 2002, but rapid developments in this field necessitated another update in 2007/2008. The King III Report is due to appear in 2008. Seven subcommittees, addressing topics such as: board and directors, risk management, internal audit, accounting and auditing, sustainability, compliance and business rescue, started their work during June 2007. The King III Report will focus strongly on corporate governance principles, practices and guidelines that will culminate in a Code, explaining how the recommendations made in the Report can be implemented. The first King Report went beyond the financial and regulatory aspects of corporate governance that were typically addressed in its counterparts in other countries. It advocated the inclusive approach that recognises that stakeholders' need to be considered when developing the strategy of a company to achieve its financial, social and environmental goals. It also requires of a company to define its purpose and values, and to communicate these to its various stakeholders. According to King II The modern approach is for a board to identify the company’s stakeholders, including its shareowners, and to agree [on] policies as to how the relationship with those stakeholders should be advanced and managed in the interest of the company. The King III Report will go beyond what was recommended in King II and will include best practices and contemporary developments in all the abovementioned fields. It will also, among others, explain how the concept of sustainability can be incorporated in strategic and governance practices in organisations. In a global knowledge economy prosperity is only possible if sustainability, strategy and corporate governance are inextricably intertwined. In this environment, performance is also measured and reported on against the triple bottom line - people, planet and profit. However, although pressing social and environmental issues on a global scale have necessitated the mainstreaming of sustainability, how this must be done is not clear. The integration and alignment of sustainability, strategy and corporate governance, with specific reference to the role that corporate reputation and corporate communication play in this process, is currently being investigated in the Department of Marketing and Communication Management in the Faculty of Economic and Management Sciences, the results of which will be incorporated into the King III Report.
Outcomes of research as on 6 February 2008:
The focus of the current research project, embarked on for a PhD in Communication Management, is the perceived link between sustainability, governance and strategy. The results of the study will be used as input for the final King III Report, due to appear in the second semester of 2008.
As part of the formal qualitative research process of this project, the researcher will interview respondents about the identified theoretical and pragmatic information gaps in the draft King Report.
The researcher provided input to the reports of two subcommittees, namely the Compliance committee and the Sustainability committee. Her involvement pertained specifically to stakeholder relationship management, which includes the topics of shareholder activism, the role of the financial media, employees, the community, government and other stakeholders.
The final reports of the abovementioned seven subcommittees will be submitted to the King committee towards the end of February 2008, after which the researcher will be involved in the finalisation of the draft King III Report.
A Centre for Corporate Governance will be established as a result of the work done with the King committee. The Centre will encourage a multi-disciplinary approach towards corporate governance and will invite input from disciplines such as Law, Internal Auditing, Accounting, Economics, Human Resources, Ethics, Communication, Marketing, Political Science, Public Administration, Sociology and Psychology. The Institute of Directors has also shown interest in working with a Centre of this kind, in order to establish corporate governance best practices in a South African context.
Contact person: Me E de Beer.
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