UNDERSTANDING KING IV Syd Eckley

KING IV PROFILE What is King IV? What does it mean? A set of 17 reliable guidelines towards a ‘value created’ organisation What does it mean? Governed by responsible, transparent, accountable leaders Towards ethical management practices To be a corporate citizen

KING IV PROFILE (2) Is King IV compulsory? NO However, in the event of external or internal conflict, a King IV aligned organisation will save the day PWC and deLoittes is committed to ensure compliance of their clients When will King IV become operational? 1 April 2018

KING IV MAP Who should adopt the King IV approach? All types of organisations (profit & non profit organisations) 1. Basic Responsibilities Strategic structures and processes Policies to cover total management spectrum Oversight towards quality assurance and built-in checks and balances Disclosure towards transparency and accountability

KING IV MAP (2) 2. Ethical culture 3. Performance and Value creation Leadership Management ethics Responsible citizenship 3. Performance and Value creation Acknowledge and appreciate sound codes of practice regarding money, people and things Stakeholder involvement – consulted, informed assessment and decision making

KING IV MAP (3) 4. Adequate and effective Management & Control Custodian governance Effective and competent Board appointments Balanced power and responsibilities Appointment of competent Executive Management Performance evaluation /assessment Govern risk and opportunities effectively

KING IV MAP (3 continued) 4. Adequate and effective Management & Control Manage technology and information Legal compliance Fair and transparent management practices including remuneration Internal and external quality assurance-DQA

KING IV MAP (4) 5. Trust Reputation and Legitimacy Inclusivity of stakeholders /clients Responsible institutional investors – future perspective

KING IV COMPLIANCE SCORE CARD NO REQUIREMENTS YES 1. Agreements fully legal, clear, fair with full disclosures 2. Vision, Mission and Core Values – 100% buy-in of stakeholders (internal and external) 3. Organisational structure: Representative, legally compliant—decision making and communication clear

KING IV COMPLIANCE NO REQUIREMENTS YES 4. Code of Conduct for Board Members – fiduciary alignment 5. Induction of Board Members 6. Annual assessment of Board and management operations – self and independent

KING IV COMPLIANCE NO REQUIREMENTS YES 7. Declaration of Board interests and gifts 8. Inclusive Financial Policy: control, disclosure, contracts, interests 9. Conduct rules – clear and applied

KING IV COMPLIANCE NO REQUIREMENTS YES 10. Internal Ombud System and dispute resolution process