The governance assessment instrument is set to become a benchmark for measuring how companies perform against the King 3 report, which together with new companies legislation sets the standard and principles for corporate governance in SA. "A quick review of a comprehensive governance assessment instrument report gives a concise, punchy overview of the structures, practices and processes that are in place to promote good corporate governance within an organisation," said Ansie Romahlo, director of the Centre for Corporate Governance.” Institute of Directors of Southern Africa provided guidance on its new apoproach. It noted that currently the King Report on Corporate Governance in Southern Africa, together with relevant legislation, sets the standard and principles for corporate governance in South Africa. There is however no credible and generally accepted national standard available for measuring how various organizations are performing against an appropriate standard.
The IoD is in the process of developing a governance assessment instrument in the form of an automated web-based tool that will serve as both a measure and an enabler of good corporate governance structures and practices. The instrument, once fully developed, will contain practical guidelines on how to implement good governance.The design of the instrument will be such that it can be employed towards different intents, including:
Assisting organizations to evaluate their own corporate governance; and
Providing a mechanism for consultants to evaluate corporate governance at their corporate clients, either as a self-standing assignment or to verify the results of a self-assessment already performed by the entity.
Features of the national governance assessment instrument:
Establish data on performance of sectors and industries for benchmarking purposes.
Capable of being independently verified for credible reporting.
Different modules for different business sectors to...