King Report on Corporate Governance
Encyclopedia
The King Report on Corporate Governance is a ground-breaking code of corporate governance
in South Africa
issued by the King Committee on Corporate Governance. Three reports were issued in 1994 (King I), 2002 (King II), and 2009 (King III). Compliance with the King Reports is a requirement for companies listed on the Johannesburg Stock Exchange. The King Report on Corporate Governance has been cited as "the most effective summary of the best international practices in corporate governance".
judge Mervyn E. King
to chair the first official committee on corporate governance. King viewed the committee as an opportunity to educate the recently-democratized South African public on the principles of working in a free economy. King I was the first report of its kind in South Africa.
Committee members included Phillip Armstrong, Nigel Payne, and Richard Wilkinson.
was held in Johannesburg, King pushed for a revision of the report (King II), including new sections on sustainability
, the role of the corporate board, and risk management
.
's Sustainability Reporting Guidelines.
As of June 2010, companies listed on South Africa's JSE Securities Exchange must comply with King III. The King Code of Governance (King III) recommends that organizations produce an integrated report
in place of an annual financial report and sustainability report
. Listed companies are required to produce an integrated report or explain why they are not. This requirement was implemented ahead of any formal or legal standards for an integrated report within South Africa and globally.
Corporate governance
Corporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled...
in South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
issued by the King Committee on Corporate Governance. Three reports were issued in 1994 (King I), 2002 (King II), and 2009 (King III). Compliance with the King Reports is a requirement for companies listed on the Johannesburg Stock Exchange. The King Report on Corporate Governance has been cited as "the most effective summary of the best international practices in corporate governance".
History
In July 1993 the Institute of Directors in South Africa asked retired Supreme Court of South AfricaSupreme Court of South Africa
The Supreme Court of South Africa was a superior court of law in South Africa from 1910 to 1996. It was made up of various provincial and local divisions with jurisdiction over specific geographical areas, and an Appellate Division which was the highest appellate court in the country...
judge Mervyn E. King
Mervyn King (judge)
Mervyn Eldred King is a South African corporate attorney, arbitrator, mediator, corporate director, commission chair, author and speaker. A former judge of the Supreme Court of South Africa, he is currently the director of the Global Reporting Initiative and the Association of Business...
to chair the first official committee on corporate governance. King viewed the committee as an opportunity to educate the recently-democratized South African public on the principles of working in a free economy. King I was the first report of its kind in South Africa.
Committee members included Phillip Armstrong, Nigel Payne, and Richard Wilkinson.
King II
In 2002, when the Earth SummitEarth Summit 2002
The World Summit on Sustainable Development, WSSD or Earth Summit 2002 took place in Johannesburg, South Africa, from 26 August to 4 September 2002. It was convened to discuss sustainable development by the United Nations. WSSD gathered a number of leaders from business and non-governmental...
was held in Johannesburg, King pushed for a revision of the report (King II), including new sections on sustainability
Sustainability
Sustainability is the capacity to endure. For humans, sustainability is the long-term maintenance of well being, which has environmental, economic, and social dimensions, and encompasses the concept of union, an interdependent relationship and mutual responsible position with all living and non...
, the role of the corporate board, and risk management
Risk management
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
.
King III
The report was further revised in 2009 (King III). King III recommends companies create sustainability reports according to the Global Reporting InitiativeGlobal Reporting Initiative
The Global Reporting Initiative produces one of the world's most prevalent standards for sustainability reporting - also known as ecological footprint reporting, Environmental Social Governance reporting, Triple Bottom Line reporting, Corporate Social Responsibility reporting...
's Sustainability Reporting Guidelines.
As of June 2010, companies listed on South Africa's JSE Securities Exchange must comply with King III. The King Code of Governance (King III) recommends that organizations produce an integrated report
Integrated reporting
Integrated reporting refers to the integrated representation of a company’s performance in terms of both financial and non-financial results. Integrated reporting provides greater context for performance data, clarifies how sustainability fits into operations or a business, and may help embed...
in place of an annual financial report and sustainability report
Sustainability Reporting
Corporate sustainability reporting has a long history going back to environmental reporting. The first environmental reports were published in the late 1980s by companies in the chemical industry which had serious image problems...
. Listed companies are required to produce an integrated report or explain why they are not. This requirement was implemented ahead of any formal or legal standards for an integrated report within South Africa and globally.