King IV Code: Leadership, Ethics, Citizenship

• King IV Code guides accounting warriors on ethical and effective governance.

Governing Body (GB) Leadership and Ethics (P1 & P2)

• The governing body ensures ethical leadership by regularly assessing itself for integrity, competence, responsibility, fairness, and transparency.
• The GB approves a code of conduct addressing key ethical risks, ensuring it's known and followed by employees.

Corporate Citizenship (P3)

• The GB ensures the organization acts and is seen as responsible, complying with South Africa's constitution.
• Responsible conduct integrates values, strategy, and actions, considering workplace, employees, society, and the environment.

Value Creation (P4)

• An organization appreciates the interconnectedness of core purpose, risks, opportunities, strategy, business model, performance, and sustainable development within the value creation process.
• They balance the triple context (economic, social, environmental) and stakeholder needs when setting strategies.

Reporting and Accountability (P5 & P6)

• The GB ensures transparent reporting to stakeholders for informed assessments of performance and long-term prospects.
• Responsible for the reporting framework and the issuance of an annual integrated report.
• It approves materiality for reports.
• The GB serves as the central authority for corporate governance, ensuring documented and reviewed roles, responsibilities, membership requirements, and procedural conduct.

Composition and Delegation (P7 & P8)

• A balanced GB leverages expertise, skills, diversity, and independence for objective governance.
• They ensure a majority of non-executive independent members, including the CEO and another executive.
• Periodic and staggered rotation of members is in place, and the chair is independent
• Arrangements for delegation promote independent judgment and effective power balance.

Evaluation and Improvement (P9)

• Performance evaluations of the GB, its committees, chair, and individual members drive continuous improvement.
• An independent non-executive leads the evaluation with a formal process approved by the GB.
• An overall performance meeting or retreat happens every 2nd year.

Management Contributions (P10)

• Appointments and delegations to management ensure clear roles and effective authority.
• The GB appoints and reviews CEO performance and sets a delegation of authority framework.
• The CEO is excluded from Remuneration, Audit, and Nomination Committees.

Risk Governance (P11)

• Risk Governance supports the organization in settling and achieving its strategic objectives.
• The GB assesses opportunities, risks linked to strategy, approves risk policy, sets risk appetite, and oversees risk management.

Technology and Information (P12)

• The governing Body approves tech policy and oversees tech and information management to achieve strategic goals.

Compliance and Ethics (P13)

• Ensure compliance with laws, rules, codes, and standards, promoting ethical conduct and corporate citizenship.
• The GB sets and oversees policies on compliance.

Remuneration (P14)

• The organization's remuneration is fair, responsible, and transparent, aligning with strategic objectives and positive outcomes.
• The GB approves a remuneration policy that attracts, rewards, and retains talent, promotes strategic objectives, and fosters an ethical culture.
• Also ensures a remuneration report is issued.

Assurance Services (P15)

• Governing Body uses assurance services and functions to promote an effective control environment, aiding internal decision-making and external reporting.
• It ensures effective internal controls and the integrity of information and assumes responsibility for internal audit.
• Also approves the internal audit charter and appoints the chief audit executive.

Stakeholder Inclusion (P16)

• The GB balances needs, interests, and expectations of stakeholders in the organization's best interest with a stakeholder-inclusive approach.
• It is responsible for stakeholder relationships and oversees their management.

Responsible Investment (P17)

• The governing body of an institutional investor ensures responsible investing to promote good governance and value creation.
• This includes governing and approving investment directions.