King Code and Corporate Governance

Question 1

King Code 1

Answer 1

Set of principles to expand on common law principles

Question 2

King Code 2

Answer 2

Review and expansion of first code

Question 3

King Code 3

Answer 3

Greater emphasis on sustainability, risk management, information technology etc.

Question 4

Governance Framework (3)

Answer 4

• Code of principles and practices, or a combination where a clear set of criteria is used as part of an assessment for the company.
• Apply or explain
• JSE made it compulsory for listed companies to comply with the King Code

Question 5

Primary Characteristics of Good Governance (6)

Answer 5

• Transparency
• Independence
• Accountability
• Fairness
• Integrity
• Discipline

Question 6

To promote ethical decisions (3)

Answer 6

• Clarifying standards of ethical behavior
• Complying with all legal requirements
• Have reasonable expectation of stakeholders

Question 7

Benefits of good corporate governance (6)

Answer 7

• Maintain investor confidence
• Minimize wastage and corruption
• Incentive to achieve objectives/goals
• Raise share price and SRI rating
• Lowering costs
• Corporate success and economic growth

Question 8

Social Sustainability (6)

Answer 8

• Fair income distribution
• Fair access to income and education
• Fair distribution of costs and benefits of environmental protection
• Fair trade
• Fair access to prices between all social, gender and cultural groups
• Similar chances of well-being between generations

Question 9

Environmental Sustainability (4)

Answer 9

• Product
• Processes
• Practices
• Premises

Question 10

Sustainability pillars (3)

Answer 10

• Social sustainability. Fair treatment of society as a whole.
• Environmental sustainability. Business activities linked to the environment.
• Economic sustainability. Both economic growth and development.

Question 11

Key objectives of JSE SRI (3)

Answer 11

• Identify listed companies
• Assess CSR
• Contribute to development and growth

Question 12

JSE SRI criteria (4)

Answer 12

• Environmental sustainability
• Social sustainability
• Economic sustainability
• Governance and related sustainability

Question 13

GRI

Answer 13

Global Reporting Initiative

Most widely used sustainability-reporting model.