A code of principles can only ever be as good as its capacity to be put into practice. Recognising this, PricewaterhouseCoopers (PwC) has released an executive guide to King III, entitled “Kings Counsel – Understanding and unlocking the benefits of sound corporate governance”. The executive guide offers practical insights into the recommendations of the King III following the release of the King Report on Corporate Governance for South Africa 2009 (King III) on 1 September 2009.
The guide embodies thought leadership on key elements of the King III report at the time of publication and provides practical advice to clients and all business stakeholders in South Africa. Anton van Wyk, Risk Advisory Service Leader for PricewaterhouseCoopers says, “Free enterprise prospers in an environment of good and balanced corporate governance. While we understand that achieving levels of good governance is a complex task, we also believe that sound governance practices offer numerous practical benefits and that organisations should integrate such practices into their operational process.”
Changing trends in international governance and anticipated changes in the new Companies Act necessitated the delivery of King III as the King Committee endeavours to be at the forefront of international governance. PwC’s executive guide to King III falls in line with the principles of King II and highlights the importance of reporting annually on how a company has affected the economic situation of the community it operates in. Whether the company’s impact on the community’s economic state is positive or negative, the company needs to adjust its business practice so that it enhances the economy of the community in question.
Van Wyk emphasises, “In contrast to King I and King II, King III applies to all entities regardless of the manner and form of incorporation or establishment. Principles are drafted on the basis that, if they are adhered to, any entity would have practiced good governance.” King III recommends that all entities disclose which principles they have decided not to apply or explain why they are not applied. This level of exposure allows shareholders to comment on and challenge the board to improve the level of governance within each organisation.
PwC’s involvement in the King Committee played a pivotal role in the production of PwC’s executive guide to King III. Suresh Kana, PwC’s Chief Executive Officer and Anton Van Wyk both served as members of the King Committee and also chaired the Accounting and Auditing as well as Internal Audit subcommittees respectively. As a result of this involvement, PwC is well positioned to offer in-depth insight into the recommendations made by the King Committee and is well placed to offer practical guidance and encourage debate around the implementation to enable the real benefits of good governance to be realised.
Competitive advantage is a characteristic that is usually found in businesses that are able to create and maintain a culture of integrity-driven performance. However, managing the shift to a higher level of principled business practices raises a number of new challenges. PwC has made a considerable investment in compliance solutions on a global and local scale to help its clients meet these challenges.
Van Wyk concludes, “Our experience and know-how ensures that our investment can be practically applied for the benefits of our clients. This guide is perfectly suited to assist all businesses in South Africa implement the new principles as outlined by King III.”
The framework recommended by King III is principle-based and there is no ‘one size fits all’ solution. Entities are encouraged to tailor these principles to suit the size and complexity of their organisation. This is good news for companies in South Africa as it avoids some of the pitfalls seen in the United States where a ‘one size fits all’ approach was initially adopted. PwC’s executive guide to King III is perfectly suited to assist organisations to realise all the benefits related to corporate governance.
The guide embodies thought leadership on key elements of the King III report at the time of publication and provides practical advice to clients and all business stakeholders in South Africa. Anton van Wyk, Risk Advisory Service Leader for PricewaterhouseCoopers says, “Free enterprise prospers in an environment of good and balanced corporate governance. While we understand that achieving levels of good governance is a complex task, we also believe that sound governance practices offer numerous practical benefits and that organisations should integrate such practices into their operational process.”
Changing trends in international governance and anticipated changes in the new Companies Act necessitated the delivery of King III as the King Committee endeavours to be at the forefront of international governance. PwC’s executive guide to King III falls in line with the principles of King II and highlights the importance of reporting annually on how a company has affected the economic situation of the community it operates in. Whether the company’s impact on the community’s economic state is positive or negative, the company needs to adjust its business practice so that it enhances the economy of the community in question.
Van Wyk emphasises, “In contrast to King I and King II, King III applies to all entities regardless of the manner and form of incorporation or establishment. Principles are drafted on the basis that, if they are adhered to, any entity would have practiced good governance.” King III recommends that all entities disclose which principles they have decided not to apply or explain why they are not applied. This level of exposure allows shareholders to comment on and challenge the board to improve the level of governance within each organisation.
PwC’s involvement in the King Committee played a pivotal role in the production of PwC’s executive guide to King III. Suresh Kana, PwC’s Chief Executive Officer and Anton Van Wyk both served as members of the King Committee and also chaired the Accounting and Auditing as well as Internal Audit subcommittees respectively. As a result of this involvement, PwC is well positioned to offer in-depth insight into the recommendations made by the King Committee and is well placed to offer practical guidance and encourage debate around the implementation to enable the real benefits of good governance to be realised.
Competitive advantage is a characteristic that is usually found in businesses that are able to create and maintain a culture of integrity-driven performance. However, managing the shift to a higher level of principled business practices raises a number of new challenges. PwC has made a considerable investment in compliance solutions on a global and local scale to help its clients meet these challenges.
Van Wyk concludes, “Our experience and know-how ensures that our investment can be practically applied for the benefits of our clients. This guide is perfectly suited to assist all businesses in South Africa implement the new principles as outlined by King III.”
The framework recommended by King III is principle-based and there is no ‘one size fits all’ solution. Entities are encouraged to tailor these principles to suit the size and complexity of their organisation. This is good news for companies in South Africa as it avoids some of the pitfalls seen in the United States where a ‘one size fits all’ approach was initially adopted. PwC’s executive guide to King III is perfectly suited to assist organisations to realise all the benefits related to corporate governance.
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