King III Corporate Governance Checklist
Easy Guide to KingIII 2009
34
Governance Principle Element
Recommended Practice
Applied YES NO
1. Ethical leadership and corporate citizenship
Responsible leadership 1.1 The board should provide effective leadership based on an ethical foundation Ethical leaders should: 1.1.1 direct the strategy and operations to build a sustainable business; 1.1.2 consider the short- and long-term impacts of the strategy on the economy, society and the environment; 1.1.3 do business ethically; 1.1.4 do not compromise the natural environment ;and 1.1.5 take account of the company’s impact on internal and external stakeholders The board’s responsibilities The board should: 1.1.6 be responsible for the strategic direction of the company and for the control of the company; 1.1.7 set the values to which the company will adhere formulated in its code of conduct; 1.1.8 ensure that its conduct and that of management aligns to the values and is adhered to in all aspects of its business; and promote the stakeholders-inclusive approach of governance. 1.1.9 ensure that all deliberations, decisions and actions are based on the four values underpinning good governance; and 1.1.10 ensure that each director adheres to the duties of a director.
Easy Guide to KingIII 2009
35
Governance Principle Element
Recommended Practice
Applied YES NO
1.2. The board should: The board should ensure that the company is and is 1.2.1 seen to be a responsible consider not only on financial performance but also the impact of the corporate citizen company’s operations on society and the environment; 1.2.2 protect, enhance and invest in the well being of the economy, society and the environment; 1.2.3 ensure that the company’s performance and interactions with stakeholders is guided by the Constitution and the Bill of Rights; 1.2.4 ensure that collaborative efforts with stakeholders are embarked upon to promote ethical conduct and good...