Also in the King III Report companies need to report on how they will enhance the (1)… and eradicate the (2)…
(1) current positives
(2) current negatives
As of June 2010, companies listed on the … are expected to comply with King III.
Johannesburg Securities Exchange (JSE)
Besides reporting on their financial performance (single bottom line) in King I Report, in the King II Report corporations must also disclose their … (triple bottom line).
Social and environmental performances.
Companies with good corporate governance will attract more … to finance their growth and will therefore be more competitive in the corporate environment.
Corporate governance controls the … of managers, employees and outside business stakeholders.
Internal and external actions
Corporate governance refers to the … among the management of an organisation, its board, its shareholders and other relevant stakeholders.
COSO defines … as “a process, effected by an entity’s board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives.
Effective corporate governance helps enterprises to … by improving the confidence of domestic and international investors and by assuring them that the assets are used in the way agreed upon.
Attract lower-cost capital
Effective corporate governance may lead to …
Improved corporate performance.
Effective corporate governance promotes the efficient use of … within a firm and the economy at large.
Good corporate governance contributes to … and is a key factor in the investor decision-making process.
It also refers to the specific … of boards of directors and management to maintain established relationships.
It is important to understand the … of the business because the statements will show the financial position of the business as well as the future position.
Some … can be experienced when risk management processes need to be implemented in a business
The board’s role is to avoid policies that promote (1)… , have appropriate (2)… , establish (3)… to promote long-term value
(1) excessive risk-taking
(2) risk management functions
(3) compensation plans
The board’s role is to steer the corporation towards (1)… that support (2)… in shareholder value.
(1) corporate governance policies
(2) long-term sustainable growth
The consequences of corporate governance in the King III Report relate strongly to how effectively companies enforced the … in 1994.
King I Report
The King Code (King III Report) was necessary because of the introduction of the new …
Companies Act of 2008.
The King I Corporate Governance Report focused mainly on the reporting the … side of organisations.
The King I Report advocated an … that took all stakeholders (not only the shareholders) into consideration, for the greater good of society.
The King II Report moved away from the single bottom-line principle (i.e. profit for shareholders) to a triple bottom-line principle, which takes into account the … of a company.
Economic and social activities
… is the framework of rules and practices by which a board of directors ensures accountability, fairness and transparency in a company’s relationship with all its stakeholders.