Tag: corporate governance

We have released a research report investigating the processes for recruiting, selecting and appointing non-executive directors in South Africa. The report is structured to offer practical assistance to prospective non-executives who want to understand what organisations are looking for, and what the processes leading up an appointment are. It also offers guidance for nominations committees.

The times we are currently living in are unprecedented. Covid-19 has once again highlighted the reasons why governance - good governance - is a critical function in a democratic country.

Poor governance practices, poor oversight and a lack of accountability lie at the heart of state capture and the large-scale corporate fraud that has dominated newspaper headlines in South Africa over the last three years. It is precisely due to the weaknesses in the governance structures and systems that dishonest and unethical leaders have been able to plunder state resources and commit fraud.

Looking after your health and becoming fit, is very closely linked to looking after your reputation. You need good health to get you through life, and you need a good reputation to support you through your company’s journey. Building your reputation can be learnt from physical fitness.

In the run-up to International Women’s Day (8 March) it’s important to note that while half of the South African population and 45% of the employed workforce are female, only 20% of directors of JSE-listed companies are women. New report recommends voluntary target of 30% female board members.

One of the elephants in the room at this year’s State of the Nation Address (SONA) was the conspicuous absence of any mention of the need to appoint the right people to the boards of state-owned enterprises (SOEs).

How much is enough when it comes to the pay of executives in South Africa? Is the remuneration system broken? And if so, what can be done to fix it? These are some of the burning questions under the spotlight in a new study by our firm.

As most South Africans eagerly awaited some reprieve from a year of constant and negative bombardment, be this over matters such as a massively contracted economy, rising unemployment, state capture, rising corruption and the threat of expropriation of property without compensation, many had hoped to return from their annual vacation rested, and hopeful to hear some positive news. This did not happen.

We should get some strategy consultants to draw up a set of values that we can post on the walls. Ask them to include the usual suspects - integrity, fairness, honesty, excellence, a passion for customers - and perhaps some cool phrase like ‘at this company we make magic’, ‘losing is not an option’ or ‘we make it happen!’. That should take care of the ethics thing that everybody is getting so worked up about.

There are about 230,000 registered non-profit organisations (NPOs) in South Africa, and getting involved as a board member could make a considerable difference to their sustainability. Join up and make a difference – but avoid some common pitfalls.