The Southern African Centre for Corporate Governance aims to promote dialogue in the critical area of corporate governance among industry bodies, companies and their boards of directors, investors, professional services firms, academia, and government. The site is tailored for the governance concerns of Southern Africa and Africa in general. It includes a diverse collection of governance tools, resources and thought leadership from Deloitte and third party sources.

Governance News

Code for Responsible Investing in South Africa (“CRISA”)

The commitment to assimilate Environmental, Social and Governance (“ESG”) considerations into investment decisions is illustrative of the fact that ESG issues are critical investment considerations going forward. This is in the wake of serious sustainability challenges globally which can no longer be sustained.

So what is CRISA? It is voluntary code/principles that recognise the value of seamlessly incorporating sustainability issues, into long-term investment strategies. As such it encourages institutional investors to fulfil their executive investment analysis/activities (of rights) in line with promoting sound governance and ensuring responsible investing. It has been proposed that foreign pension funds, insurance companies, investment trusts and other collective investment vehicles apply this code to the extent that they invest in South African companies. Once applied and disclosed the CRISA principles will guide the ultimate beneficiaries of investments to pose the correct questions to institutional investors. CRISA will also empower beneficiaries to select responsible custodians for their investments.

 

In South Africa the ‘apply or explain’ basis for Corporate Governance has been adopted as per the King Report on Governance for South Africa 2009 (King III).

The South Africa approach to corporate governance is characterised by 'comply-or-explain' disclosures that rely heavily on the empowerment of shareholders facilitated by full and frank disclosures of the governance arrangements adopted by the company. It relies also on effective monitoring and challenge from independent non-executive directors both at board meetings and in the various committees on which they serve. The current frameworks for corporate governance used in South Africa and other Commonwealth countries are under intense scrutiny at present and time will tell whether the model emerges unscathed.

 

Hot Topics

Recent Article

SA’s multiple directorships raise governance risks, says Inoxico

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Recent Headline News:

New Companies Act signed into law

 The Department of Trade and Industry (DTI) on Wednesday announced that President Jacob Zuma has signed the Companies Amendment Act of 2010 into law, with effect from May 1 2011. click here to read more

Obama governance quote

“Development depends on good governance, and that is the ingredient which has been missing in far too many countries. That’s the change which can unlock African potential, but that is a responsibility which must be met by Africans. Africa’s future is up to Africans.” US President Barack Obama

Quotas for women on Boards

France's parliament gave final approval on Thursday to a law forcing large companies to reserve at least 40 percent of their boardroom positions for women within six years.
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Black swans defeat standardised approaches to risk management

Modern risk management strategies, whether financial or operational, have been defeated by Black Swan Events....read more

Intergrated reporting and the IRC guidance

Click here to download the white paper on the framework for intergrated reporting

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Insights into corporate energy management trends

Click here to read how the second annual study illuminates the attitudes and practices that companies have toward energy management to help make business and investment decisions

Establishing a risk intelligent major capital project

Click here to read more about the nine principles to establish a risk intelligent major capital priject

Audit Committee Brief - Understanding the CFO's perspective, September 2012

In many organizations, the role of the CFO is expanding, and associated pressures and expectations are increasing. Understanding what is top of mind for CFOs and communicating regularly can help enhance the effectiveness of the audit committee's oversight role. By cultivating a robust relationship with the CFO, the audit committee can facilitate a mutual exchange of perspectives on reporting, economic, regulatory, governance, and risk issues.

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Deloitte on Integrated Reporting – Edition 3 August 2012 – Navigating your way to a truly integrated report

“Integrated Reporting reflects what can be called “integrated thinking” - application of the collective mind of those charged with governance (the board of directors or equivalent), and the ability of management, to monitor, manage and communicate the full complexity of the value-creation process, and how this contributes to success over time. It will increasingly be through this process of “integrated thinking” that organisations are able to create and sustain value. The effective communication of this process can help investors, and other stakeholders, to understand not only an organisation’s past and current performance, but also its future resilience.” – IIRC

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A Global Perspective on Board Leadership

Given the increasingly influential role played by the Board, there can be few topics with more immediate resonance to the effectiveness of corporate governance than Board leadership, and in particular, whether the roles of the Chairman and CEO should be seperated or combined. The Deloitte Global Centre for Corporate Governance has recently issued a publication to provide perspective on this debate.

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