25 March COVID-19: A BRAVE NEW WORLD WHERE GOOD GOVERNANCE IS KEY (2020-03-25) March 25, 2020 COVID 19, General COVID-19, coronavirus, good governance, sacoronavirus.co.za Dear CGF clients, constituents and followers A brave new world As the world, and indeed South Africa, now faces the uncertainty of a risk that threatens human life, business operations and social movement as we know it, the Corona virus (Covid-19) has forced the world’s leaders and businesses to rethink measures aimed at protecting a nation and its inhabitants to ensure their safety and survival. CGF fully supports the South African President’s call for all South Africans to work together to keep our country’s citizens safe. Good governance is key Considering the volatility Covid-19 can potentially unleash upon our country, including businesses, it is imperative that every individual in South Africa respect and value the conditions set by President Ramaphosa. In the event that any person transgresses these lock-down conditions, such actions may lead to far more serious events, with many outcomes having potentially long lasting and negative consequences. To this end, good governance calls for – amongst other – ethical leadership and ethical behaviour, proper discipline and structures that demand citizens to be law-abiding in an effort that ensures orderly conduct across the length and breadth of our country. Our commitment CGF respects the decision to place the country into lock-down and we will therefore be suspending all physical client visits with immediate effect. During the lock-down period, CGF will be available online and telephonically. We are also available for video conferencing meetings and we will endeavour to engage and deliver upon all our commitments without compromising our usual professional goverance standards and deliverables. Accordingly, for the duration of the lock-down period, all our governance consultants and employees will work remotely. Encouragement South Africa is known as a resilient, friendly and spirited nation. Our country’s constitution encourages the strong and the fittest to assist the weak and vulnerable. Let’s live up to these committed values and stand together as a united nation; one that becomes stronger during and after the challenges brought about through Covid-19. Covid-19 will have severe social and economic impacts, but as a nation which stands united, we will overcome this difficult period and emerge stronger, wiser, more experienced and better prepared for the next challenge. We urge you and your colleagues, including your loved ones, to keep safe and be healthy. We firmly believe that South Africa, and indeed the rest of the world, will overcome these challenging times. Yours in good governance. The CGF Executive Follow CGF on Twitter: @CGFResearch Related Articles TANGIBLE BENEFITS OF A CORPORATE GOVERNANCE FRAMEWORK® Article by Jene’ Palmer Forward-thinking organisations have realised that corporate governance does not merely fall into the portfolio of the Company Secretary. Indeed, the draft King IV Report on Corporate Governance for South Africa 2016 (‘King IV’), describes corporate governance as “the exercise of ethical and effective leadership by the governing body” of an organisation. Why then is corporate governance still viewed by many organisations as a process which increases bureaucracy and drives a ‘tick box’ exercise? Perhaps the explanation lies in not understanding and appreciating the value which can be unlocked by implementing a purpose-built Corporate Governance Framework® which is tailored to the organisation. Empirical research supports the fact that good corporate governance translates into tangible and sustainable benefits for the organisation. Some of these benefits are set out below. COVID-19: ADDRESSING DEBILITATING RISKS REQUIRES A ROBUST GOVERNANCE FRAMEWORK (2020-04-17) 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. SUSTAINABILITY DEPENDS ON A STRONG GOVERNANCE FRAMEWORK Article by Terrance M. Booysen Corporate governance is one of the key elements many investors consider when they reflect upon the organisation’s success, as well as when deciding upon their investment choices. But when the organisation’s governance system shows signs of stress or failure, not only do astute investors understand the unsettling impact it has upon the organsation’s supply chain, they also become wary about its sustainability which may give rise to them re-considering to ‘weather the storm’ or ‘bail out’ so to speak. Over the years so much has been written about failures of corporate governance within organisations, including the financial, social and political consequences which are typically found in its trail. Yet in spite of numerous regulation to improve the overall conduct of organisations, including the various King Codes of Corporate Governance written in South Africa, even more organisations are becoming affected by poor governance. THE COMPANY SECRETARY: FROM COMPANY ADMINISTRATOR TO GOVERNANCE LEADER (2018-06-19) The role of a company secretary is broad and onerous to say the least and, if this post is not occupied by a competent person who has the appropriate knowledge and skills; the consequences can be the cause of significant organisational friction. The requirements and reporting lines of the position -- by their very nature -- give rise to potential conflict situations, and it is for this reason in particular, that the person appointed to the position must have the necessary maturity, experience and independence to properly carry out their duties and responsibilities, while being objective, impartial and independent. DO YOU REALLY NEED A CORPORATE GOVERNANCE FRAMEWORK®? By Jene’ Palmer and reviewed by Terrance M. Booysen We know that both local and international organisations are continuously having to adapt to operate in uncertain business environments. Locally, the release of the Preferential Procurement Regulations 2017, which places stronger emphasis on ‘radical transformation’, against the backdrop of persisting low economic growth rates are only some of the elements giving rise to further uncertainty. Internationally, the business and regulatory implications of the election of President Donald Trump and the vote in favour of Brexit and how these events will impact on local markets and businesses, is still unfolding. It therefore comes as no surprise that recent governance, risk and compliance (‘GRC’) surveys all indicate an increasing need to improve risk oversight and to balance opportunity management with risk management. The challenge lies in being able to achieve these objectives! BOARDS THAT CREATE VALUE: CORPORATE GOVERNANCE FRAMEWORK® By Jene’ Palmer and reviewed by Terrance M. Booysen It has been painful to watch the likes of Lance Armstrong, Mike Tyson and Hansie Cronje sabotage their futures through poor decision-making. Similarly, many organisations and their boards have failed to demonstrate strong and responsible leadership qualities to motivate and drive their organisations to success. Awareness, decisiveness and accountability are some of the business leadership qualities required to achieve remarkable performances. The ‘buck’ stops with the board of directors and it is the board of directors who are ultimately held accountable for the success of the organisation. However, with the business landscape changing at an accelerating rate, risk management and decisive decision-making are becoming more challenging and business failures more prominent. A recent Harvard Business Review reports the failure rate for mergers and acquisitions to be between 70% and 90%. According to the United States Small Business Administration, only 44% of new businesses are still in existence after four years. Against this backdrop, how does a board create a sustainable organisation in what are clearly turbulent times? Comments are closed.