KING IV™ CODE ON CORPORATE GOVERNANCE
The Institute of Directors in Southern Africa (IoDSA) published the King IV Report on Corporate Governance on this week – the fourth iteration of the codes since the King Committee was formed in 1992. One of the main goals of the King IV committee was to increase the accessibility of the codes and the refine simplicity of its principles.
This can be seen in the consolidation of the previous 75 principles into 16 succinct outcomes (17 if counting institutional investors). In an effort to move away from compliance governance or the ‘box-tick approach’, the new codes also differentiate between principles and recommended practices and how these can be used to achieve sustainable outcomes.
In calling “time” on the traditional approach to governance, one of the major shifts the King IV aims to bring about is greater stakeholder inclusion in corporate decision making – by broadening and magnifying the definition of ‘good corporate citizenship’ as part of the business model.