CGF ARTICLES, OPINIONS & EDITORIALS
Paying lip service to corporate governance (2013-04-15)
February 20,
2015 3627 3627 
It is a fact that since the collapse of so many iconic organisations across the world, the subject of corporate governance has intensified and gripped the minds of many boards of directors.
But have boards and their directors taken the issues attached to corporate governance seriously enough, particularly since the demise of Enron, Worldcom, LeisureNet, Regal Bank and so many others who have all collapsed through poor leadership and poor governance and which has resulted in a general worldwide tightening up of regulatory matters?
In South Africa, the topic of corporate governance appears to have lost traction, notwithstanding the sterling efforts and recommendations found in the Corporate Governance Codes documented in King I, II and III. Almost every day South Africa is bombarded with examples where poor governance practices are exposed or highlighted in government departments, private and listed companies, universities, schools, sport churches - in fact in all areas of society. South Africa’s moral compass seems to have lost direction, and our leadership across many sectors has degenerated to such an extent that it is becoming increasingly difficult to see the light at the end of the tunnel. Of course most leaders will claim their allegiance to moral behaviour and good governance practices; but few are willing to have these claims publically tested.
What is disappointing is that many societal and business leaders appear to lack the political will or ability to make the changes required to change South Africa’s current downward trends, evidenced in for example, the continual and negative reports from the Auditor General’s office through the qualified audits of so many government departments. Indeed, government is not the only culprit; many corporates fail to provide a true reflection of their own daily malpractices, mismanagement and greed. This may be evidenced by setting inadequate or inappropriate operational plans and deliverable targets, lowering the bar and standards, awarding excessive remuneration packages to undeserving directors, the continual environmental polluting practices, anti-competitive behaviour, unfair labour practices and even inaccurate annual reporting to cite just a few examples within the corporate sector.
