King IV Flashcards
Describe King IV
- Corporate governance revolves around the principles of ethical leadership, the organization in society, corporate citizenship, sustainable development, stakeholders inclusivity, integrated thinking and integrated reporting.
- Drafted to make it easier to apply to all organizations: public and private, large and small, including not for profit organizations.
- Apply AND Explain
- 17 Principles
- The application of Kin IV is mandatory for JSE Listed companies.
What did King IV reinforced?
- Integrated Reporting
- Balanced composition of governing bodies and independence.
- Delegation to management
- Delegation to committees
Definition Combined assurance (King IV)
Integrated and aligning assurance processes in a company to maximize risk and governance oversight and control efficiencies and optimize overall assurance to the audit and risk committee, considering the company’s risk appetite.
Definition of Corporate citizenship (King IV)
Corporate citizenship is the recognition that the organization is an integral part of the broader society in which it operates, affording that organization standing as a juristic person in that society with rights but also responsibilities and obligations.
Responsible corporate citizenship
Characteristics: Responsibility, accountability, fairness and transparency.
Implies an ethical relationship of responsibility between the company and the society in which they do business.
Companies should protect, enhance and invest in the wellbeing of the economy, society and the natural environment.
Definition of sustainability (King IV)
Sustainability is the ultimate, long-term goals of sustainable development of a company, which means conducting operations in a manner that meets existing needs without compromising the ability of future generations to meet their needs.
Sustainability Development: development that meets the needs of the present without compromising the ability of future generations to meet their needs.
Definition of Integrated report (King IV)
A process founded on integrated thinking that results in a periodic integrated report by an organization about value creation over time. It includes related communication regarding aspects of value creation.
