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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 ensure that the whole business spectrum is reached. Enabler of governance as it will contain guidelines for implementation. Assesses & rates governance structures and practices A unique feature of the instrument is that it will consist of different modules customised to cater for the needs of, not only listed companies, but also SMEs, non-profit organisations, medical aid schemes, retirement funds, government organisations and public entities.
Developing the assessment instrument will therefore, in essence entail tailoring the King III Code for application by each of these sectors. Due to the independent verification capability thereof and the fact that it will, over time, establish standards and a statistical benchmark for different sectors and industries, the IoD foresees that the assessment instrument will evolve to become an enabler of transparent, credible and measurable reporting to stakeholders.
In due course the IoD also wishes to embark upon the training of individuals who will assist with cascading the implementation of the governance assessment instrument at SMEs and non-profit organisations. We are furthermore planning to eventually roll out this project in the whole of Southern Africa. Posted 02/22/2010 * * * CalPERS Board Toughens Ethics Guidelines CalPERS is the largest public pension fund in the United States with about $200 billion in market assets. It provides retirement benefits to more than 1. million State, school and local public employees, retirees and their families, and health benefits for nearly 1. 3 million members The Board of the California Public Employees’ Retirement System (CalPERS) announced that it has strengthened ethics policies that guide how the nation’s largest public pension fund is governed. At its December meeting, the 13-member Board tightened rules regulating its interaction with CalPERS staff concerning investment proposals and gave the Board President authority to discipline members whose actions violate policy. Board Members also will be required to attend annual training