Good corporate governance is indispensable to the long-term sustainability of an organisation. In fact, bad corporate governance kills. A critical role of the SACAU Board is ensuring the observance and practice of good corporate governance, and to do that effectively they need to be consciously aware of their roles and responsibilities.
To this end, the Secretariat successfully organised an induction workshop for all Board members to familiarise themselves with the corporate governance tenets in South Africa. Basically, corporate governance comprises the law and the “code of ethics and conduct” – so to speak. Being registered as a not for profit company under Section 21 of the Companies Act (2008), good corporate governance begins with SACAU complying with the law.
Thus, familiarity with the law is an essential starting point for Board members who are ultimately responsible for the organisation. But corporate governance is not only about the law, it is also about the exercise of ethical and effective leadership by the governing body that results in achievement of governance outcomes, namely an ethical culture, performance and value creation, effective control, and legitimacy.
The workshop was intense and interactive and Board members found it enlightening and informative. Being aware of their roles and responsibilities, as well as the associated risks, the outcomes of the workshop will enable Board members to carry out their duties in accordance with the prescribed good corporate governance expectations, legal or otherwise.