King Reports

Foundation principals of the King Report

Foundation principals of the King Report

The king code was issued by the King committee on Corporate Governance to give guideline on how the principles that were created were to be applied to all aspects of business and decision-making. Its a requirement for companies listed under JSE.

King Codes

King Code 1

• To assist companies by providing principles to expand the common law principles.

• Made to emphasis good business practice

King Code 2

• Review and expansion of the King Code 1 principles

King Code 3

• The same as previous codes

• But there is more emphasis on the principles

Primary Characteristics of Good Governance

• Transparency

• Independence

• Accountability

• Fairness

• Integrity

• Discipline

Benefits of Good Corporate Governance

• Minimizes wastages, corruption, risks and mismanagement.

• Helps with the company's brand formation and development.

• Provides proper incentives.

• Positive impact on the share price and SRI rating.

• Lowering capital acquisition costs.

• Economic growth.

Triple Bottom Line Reporting

• Incorporates three dimensions of performance social, environmental and financial which is normally referred to as the 3Ps which are People, Planet and Profits.

• People - They are fair and favorable business practices regarding the community in which the company conducts its business

• Profit - Economic value created by company, economic benefit

• Planet - The use of sustainable environmental practices and the environment impact