Page 47 - FOL2023

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2.DEFINITION: evaluation of the core culture
and values.
2.1 Corporate governance is the
• Ensuring that the company is
overreaching set of policies,
transparent and purposeful
procedures and relationships that
and allows stakeholders an
enable an organisation to establish
opportunity to evaluate whether
objectives, set ethical boundaries to
the chosen policies and
the acceptable means with which
procedures are optimal for the
those objectives will be met, monitor
specific company.
the achievement of objectives, reward
successful achievements and discipline 3.2 This is broadly the framework upon

unsuccessful or inappropriate attempts which corporate governance is
to meet objectives, in order to keep the based. The Human Resource element
organization aligned with the needs and is expected to review talent and
interest of its primary stakeholder (per development, including succession

Neel, Corporate Governance Centre). plans.

2.2 In other publications, the governance 4.
structure establishes the fundamental
4.1 The political transition in South Africa
relationship among the Board, its
ushered in the 1990s coincided with
committees, management shareholders
the rise of labour militancy. This forced
and other stakeholders (read workers).
a rethink on the labour dispensation
The last category will normally be under
to try and curb the wildcat strikes
Human Resources, and, depending on
that threatened economic stability.
the structure, forms a very small part of
A new model of corporate structure
the bigger group.
and governance was called for. This
3. resulted in the formation of the National
Economic Development and Labour
3.1 The guiding principles can be summed
Council (NEDLAC), which is an umbrella
up as:
organization consisting of Industry,
• Effective and regular interaction Government and Labour.
among the stakeholders.
4.2 The result from this development was
• Stakeholder feedback to
the establishment of the Commission
evaluate whether policies meet
for Conciliation, Mediation and
expectations.
Arbitration (CCMA), which would found
• Balancing the interests of the
its mandate from the new Labour
company and its shareholders.
Relations Act.
• Maintaining long-term
performance and values. 4.2.1 A key element of the CCMA’s
• Ensuring healthy and regular functioning was to ensure a

Issue 2022 FOL Quarterly 49