King III requires that organisations adopt the stakeholder-inclusive
approach to corporate governance. This means that Boards must genuinely
consider the perspectives of their stakeholders when making decisions on good
governance, including issues of social well-being, environmental integrity and
other sustainability considerations.
It can be difficult to map an organisation’s stakeholders, and even more
difficult to engage with them meaningfully. This is particularly so in a
country as diverse as South Africa. Inclusivity does only require external
engagement. However; involving
employees, and multi-disciplinary inputs for decisions can pose significant
challenges, while adding considerable value to an organisation. Boards should
also consider the principle of inclusivity in their own diversity: a mix of
gender, age, technical skills, and cultural perspective can make for more
robust interactions and more informed decision making.
King Code of
Governance principles (King III)
- Principle 1.1: the board
should provide effective leadership based on an ethical foundation.
The actual individual problems to be mentored will be raised during the
Circle. The following are intended to serve as thought-starters only:
- How do Boards counter
‘fronting’ of any nature in their own ranks, for the sake of appearances?
- How do Boards balance the
need to engage meaningfully with a broad range of stakeholders with the need to
make decisions in a rapidly changing business, legal, social and environmental
- How do individual Directors
overcome feelings of inadequacy when faced with decisions on areas about which
they know little, while maintaining their fiduciary duties?
- What does inclusivity mean?
- How are – or should -
different views be weighted, whether as individual Board members, or as
different stakeholder groups?
- How are differing values
accommodated in the inclusive approach to governance?