CSR & Corporate Governance Flashcards
Characteristics of good governance
SDSD FAT PIIE
Transparency
Independence
Accountability
Fairness
Discipline
Integrity
Discipline ( market, self , regulatory )
Promoting ethical and responsible decisions
Social issues
Duties and responsibilities of directors
Sustainability as part of the king code
Environmental sustainability pillar ( process practices pollution physical resources )
Sustainable development strives for:
Fair income distribution
Fair access to income and education
Fair distribution of costs and benefits of environmental protection
Fair trade
Fair access to prices
Similar chances of generations well being
Duties and responsibilities of directors
Act with skill and care while formulating policies
Act in good faith and honesty ( fiduciary duty)
Not abuse power
Analyze environments and pre-empt risks & strategies
Ethical leadership
Set up audit committees
Disclose relevant information in integrated report
Benefits of good corporate governance
Investors confidence
Minimizes wastage, corruption and risk management
Help brand formation and development
Provides incentives to owners and mngrs
Share and SRI rating
Lowers capital acquisition costs
Ensures corporate and economic success
Political stability, international relations, community , economy, social
JSE SRI criteria
Environmental sustainability Social sustainability Economic sustainability Governance and related sustainability concerns Details on: - company policy and strategy - management and performance indicators - reporting on indicators
GRI
Global Reporting Initiative
Independent institution
Guideline on TBL ( sustainable reporting )
Annual, Financial, TBL
Assists with reporting to different stakeholders do understanding contributions
Widely used reporting model
Framework and flexible guidelines that can be used in different sectors and geographical locations
Addresses broad performance
Provides clear ways of improving impacts
Provides international comparability for companies
