4) Ethics - King IV Flashcards
what do we use for ethics and CG for the board/director?
King IV
what do we use for ethics for the CA(SA)?
CPC
what are the governance outcomes of King IV?
- ethical culture
- good performance
- effective control
- legitimacy
what does principle 1 of King IV state?
- governing body should lead ethically and effectively
- GB members should cultivate ICRAFT and exhibit them in their conduct
what does ICRAFT stand for?
Integrity
Competence
Responsibility
Accountability
Fairness
Transparency
what is Integrity?
- good faith
- avoid conflicts of interest
- act ethically beyond mere legal compliance
- set tone for ethical culture
what is Competence?
- sufficient working knowledge
- due care, skill, diligence
- continuously develop competence
what is Responsibility?
- assume resp for setting and steering org direction
- exercise courage in taking risks
- take resp for preventing negative outcomes
- attend GB meetings and be prepared
what is Accountability?
- be willing to answer for the execution of duties, even if the duties were delegated
what is Fairness?
- adopt a stakeholder-inclusive approach
- not adversely impact env, society, future generations
what is Transparency?
- be transparent in the matter in which they exercise their governance
what is the objective of embodying ICRAFT?
to achieve effective leadership that results in achieving strategic objectives and positive outcomes
what does principle 2 of King IV state?
GB should govern ethics in a way that supports the establishment of an ethical culture
in what ways can GB achieve the objective of principle 2?
- set direction for ethics
- approve codes of conduct
- ensure CoC are published, included in employee contracts or in training/induction
- delegate to mgmt the resp for dev/impl CoC
- monitor adherence, whistle-blowing
what does principle 3 of King IV state?
ensure the org is and is seen as a responsible corporate citizen
