In this section:
The King IV Report on Corporate Governance for South Africa, 2016TM (King IV) was launched by the Institute of Directors in Southern Africa on 1 November 2016 as a set of voluntary principles and leading practices with an ‘apply and explain’ policy. The Johannesburg Stock Exchange requires listed companies to apply King IV, which became effective on 1 April 2017.
Building on our application of King III, King IV is embedded by assigning specific committees the responsibility for applying the King IV principles relevant to their mandate.
To better align our governance practices to those recommended in King IV (and in doing so, comply with the related listings requirements) we focused on key governance areas against King IV’s envisioned outcomes (‘ethical culture’, ‘effective control’, ‘good performance’ and ‘legitimacy’) and categorised expected outcomes as either ‘primary’ or ‘secondary’. We anticipate that applying the recommended practices to our focus areas – organisational ethics, group governance framework, stakeholder engagement, combined assurance and fair and responsible remuneration – will benefit the ‘ethical culture’ and ‘legitimacy’ outcomes the most, followed by noteworthy benefits to ‘good performance’ and ‘effective control’. These expected outcomes reinforce the Board’s view that an ethical culture and a good reputation are essential to building a sustainable business.
We considered each principle and the underlying recommended practices against existing policy or practice within the Group with our Board and relevant committees considering the outcomes of the analysis.
In applying King IV we made changes to our governance processes, including:
- transitioning from an annual to a biennial Board effectiveness review;
- the inclusion of a policy and targets for gender and race diversity in our Board Charter;
- more extensive disclosures on remuneration practices;
- a heightened focus on combined assurance and the coverage of the three lines of defence;
- a detailed review of our stakeholder-inclusive practices and policies, with a view to create a more comprehensive and effective stakeholder management regime; and
- developing a Group-wide governance framework to improve the inclusivity of governance.
Download our full King IV review here