The King IV report, which contains principles and recommended best practices to ensure an organisation operates as a good corporate citizen, promotes good governance in SA. 

Good governance and the law go hand in hand. 

Company law requires an organisation’s board to act in the best interests of the corporation at all times, and that all directors act with the necessary skill, care and diligence. 

What is corporate governance?

Corporate governance is the structure of rules, relationships, systems and processes through which authority is exercised and controlled in corporations. It covers the mechanisms by which companies, and those who control them, are held accountable. Corporate governance influences how the company's goals are defined and achieved, how risk is monitored and evaluated, and how performance is optimised.

The responsibilities of directors are emphasised in the King IV report and an environment of effective and ethical leadership is promoted. Principles associated with ethical leadership include integrity, competence, responsibility, accountability, fairness and transparency.

What is the role of the professional in governance?

Professionals charged with ensuring good governance practices in an organisation play an important role in enforcing and promoting high standards of ethical behaviour, integrity and compliance. They also assist the board to achieve the entity's vision and strategy. 

The activities of these professionals encompass legal and regulatory duties and obligations, and whatever additional responsibilities are assigned by the employer. They perform their administrative roles at an executive level and are the primary source of advice on governance to their board. They are senior professionals trained in law, finance, governance, risk and strategy.

Are you an aspiring corporate governance professional?

The governance professional can hold different titles, depending on the organisation’s requirements. You may be called the company secretary, risk manager, compliance officer, legal counsel, financial manager or governance adviser. The Chartered Governance Institute of Southern Africa (CGISA) caters to all types of governance professionals with the choice of two chartered routes: 

1. Chartered secretary — for company secretaries; or
2. Chartered governance professional — for other governance professionals. 

These chartered designations allow professionals to serve in governance roles, irrespective of their title. A chartered designation is used to indicate professional competence and is awarded to individuals who are skilled or qualified in a particular field of work.

Where you can study corporate governance

CGISA offers an international qualification in corporate governance that is recognised in more than 80 countries. Wits Plus is one of the accredited skills development providers offering the programme as convenient stand-alone short courses.

This international qualifying programme for chartered secretaries and governance professionals aims to respond to the continued growth and diversification of corporate governance. The programme addresses the needs of students and employers while expanding the scope of the chartered qualification.

Applications to study corporate governance courses with Wits Plus in the second semester are open until June 15 2023.

This article was sponsored by Wits Plus.