King V is revolutionising governance and restoring trust

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Jene’ Palmer | Director | CGF Research Institute | mail me |

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The publication of the King V Code on Corporate Governance for South Africa 2025 (‘the Code’) marks more than just an update – it signals a profound philosophical shift. This new Code is engineered to restore and solidify stakeholder trust by providing verifiable assurance that companies are led with integrity and are effectively managed. It is a powerful move designed to drive transparent, long-term governance impacts and fundamentally end the era of “tick-box” compliance.

While a compliance approach provides essential governance to meet legal and regulatory requirements, it often creates a false sense of control (for the board and management). Over time, this rules-based focus can erode self-regulation and ownership, creating a culture where rationalisation replaces critical thinking and accountability.

Effectively, King V demands that organisations move from compliance to conscience. Decision-making must be underpinned by integrity and remain aligned with the organisation’s purpose, vision, and values, forcing directors to demonstrate they take their fiduciary duties seriously.

The death of tick-boxing

The core architecture of King V is built to dismantle mindless compliance.

Its focus is simple:

• Outcome accountability, integrity foundational

King V is fundamentally an outcomes-based framework. It reduces the number of principles and shifts the focus squarely onto consequences. A company cannot claim good governance simply by having a policy.

Four key governance outcomes must be realised:

• • Ethical culture

Are ethical behaviours and integrity observable throughout the organisation, informing every decision?

• • Performance and value creation

Is the company creating and sustaining value in a responsible manner that considers the interests of all stakeholders?

• • Conformance and prudent control…

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