Bowing to the King Code
Does King 4 have value?
While there was initial enthusiasm for the King code in the afterglow of SA’s first democratic elections, hard questions now need to be asked, writes Ann Crotty
It’s been just over a year since the King 4 code was released and while it is keeping possibly thousands of corporate governance advisers busy, it’s difficult not to wonder: what is the point? Why doesn’t everybody just obey the laws and have done with it? And if they’re not going to obey the laws, is there much chance they’ll obey a set of codes and recommendations formalised by self-appointed members of the private sector? The problem with the King code is that it’s impossible to know whether or not it’s effective. It’s even difficult to know what "effective" means in the context of the code. It’s so wordy and all-encompassing in its purpose that it defies useful and succinct definition. Is it pointless to suggest it’s about leading a company ethically while creating value for stakeholders? Doesn’t that lead to the next question: what is "ethical" in the context of a multistakeholder organisation? King 4 was released on November 1 2016 and became effective for financial years comm...
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