Effective and ethical leadership drives good governance outcomes. These outcomes are the cornerstone of the King IV Code on Corporate Governance and include, an ethical culture, good performance, effective controls and legitimacy.
Key components of governance & leadership include:
- Tone at the top – determines and models the overall values of the organization
- Strategy – establishes and monitors the strategic direction, goals and objectives of the organization and sets appropriate guidance for consistent action through policies and procedures
- Policies and procedures – Formulate standard practices which are implemented consistently throughout the organization
- Organizational structure – determines responsibility for governance, leadership, and execution as well as the way that responsibility is assigned throughout the organization to enhance accountability
- Compliance – encompasses expectations of key stakeholders in relation to expected behavior and establishes the boundaries in relation to acceptability and tolerance of deviations from the standard, in addition to ensuring awareness of the risks facing the organization
