Ethics and auditing concerns drag corporate governance index to record lows
SA has regressed to record lows in its corporate governance controls and the gap between what business leaders say and what their company culture promotes keeps widening, according to the 2018 Corporate Governance Index released by the Institute of Internal Auditors SA (IIASA). The study comes in the wake of corporate scandals that have hit SA in the past year. Unsurprisingly, ethics and audit assurance were two components of corporate governance that registered the biggest declines. The other areas the index measured include compliance, leadership, performance and risk. Only 48% of the country’s chief audit executives said ethics form an integral part of their organisations. “What really worries me is that when we started the index, we were at 66%. We’ve seen a drop of 18% overall from 2013… Right noises are being made at the top, but it’s not filtering through to the culture of the organisation. That gap is growing,” said Dr Claudelle von Eck, CEO of IIASA. The institute received ...
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