Page 21 - Profmark BSA Guide 2025

thinking reinforces the way the company operates as an integral part of society,
underpins sustainable development, integrated reporting and the stake-holder
inclusive approach.
Sustainable Development – an approach to development which balances the
different, and often competing needs of the company against an awareness of the
environmental, social and economic limitations of society. The board should develop
a strategy which includes accounting for sustainability issues and reporting these to
stakeholders.
Corporate Citizenship – the company should be a responsible “citizen”, involved
with social, environmental and economic issues, respect for human rights, effective
management of stakeholder relationships, resource management with an eye on
future needs, and ensuring a positive impact on the community within which it
operates.
Stakeholder-Inclusive Approach – the board should consider and balance the
legitimate needs, interests and expectations of all stakeholders in making decisions
in the best interests of the company. Active stakeholders play a crucial role in the
governance process because they are entitled to hold the board and the company
accountable for their actions and disclosures.
King IV ™ : 17 Principles Principles of Good Governance
The board of directors should:
■ Lead ethically and effectively.
■ Govern ethics and establish an ethical culture.
■ Ensure responsible corporate citizenship.
■ Appreciate that the company’s core purpose, its risks and opportunities, strategy,
business model, performance and sustainable development are all inseparable
components of the value creation process.
■ Ensure that reports allow stakeholders to make informed assessments about the
organisation’s performance and its short, medium and long-term prospects.
■ Serve as the focal point and custodian of corporate governance.

Source:
The King IV Report on Corporate Governance for South Africa 2016, Institute of Directors S.A.
For more information, see http://www.iodsa.co.za/?page=AboutKingIV”
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