Governance in South Africa: KING Reports and Stakeholders

Play an AI-generated podcast conversation about this lesson

What is the primary goal of corporate governance?

To increase profits

To ensure ethical and effective leadership (correct)

To reduce the frequency of corporate scandals

To promote organisational growth

What is the term for people or groups involved in, impacted by, or having an interest in an organisation?

Directors

Employees

Stakeholders (correct)

Shareholders

Who provides a basic definition of governance?

The Corporate Governance Board

The King IV Report

Sir Cadbury (correct)

The Institute of Directors in Southern Africa

What is the primary characteristic of effective governance?

Ethical culture and effective control Signup and view all the answers

What is the main difference between corporate governance and organisational governance?

One is concerned with the governance of corporations, while the other is concerned with the governance of organisations Signup and view all the answers

What is the purpose of the King IV Report of Corporate Governance for South Africa?

To provide guidelines for corporate governance in South Africa Signup and view all the answers

What is the primary role of an Executive Director in an organization?

To oversee the overall strategy and direction of the organization Signup and view all the answers

Which of the following is a characteristic of an Independent Non-Executive Director?

Free from any business relationship with the company Signup and view all the answers

Who should not simultaneously hold the positions of CEO and Chairperson of the Board of Directors?

The CEO of the organization Signup and view all the answers

What is the requirement for a retired CEO to become the Chairperson of the Board of Directors?

Three complete years must have passed from the end of the CEO's tenure Signup and view all the answers

What is the primary difference between an Executive Director and a Non-Executive Director?

The level of involvement in the day-to-day running of the organization Signup and view all the answers

Why is it important to have Independent Non-Executive Directors on the Board of Directors?

To provide objective oversight and guidance to the organization Signup and view all the answers

What is the recommended approach for all organisations in the public and private sectors in terms of governance principles and practices?

Apply and explain Signup and view all the answers

What is the ideal composition of the Board of Directors in terms of non-executive directors?

A majority of non-executive directors Signup and view all the answers

What is the minimum requirement for executive officers on the Board of Directors?

At least one executive officer, including the CEO, should be appointed Signup and view all the answers

What is the primary role of the Board of Directors in terms of governance?

To discharge its governance roles and responsibilities objectively and effectively Signup and view all the answers

What is the desired outcome of having a balanced composition of the Board of Directors?

To ensure that the Board of Directors can discharge its governance roles and responsibilities objectively and effectively Signup and view all the answers

What is the key characteristic of independent non-executive directors on the Board of Directors?

They are independent and objective in their decision-making Signup and view all the answers