|
The draft states:
Good governance is essentially about effective
leadership.
Leaders need to define strategy, provide direction and establish the
ethics and values that will influence and guide practices and
behaviour with regard to sustainability performance.
Sustainability
is the primary moral and economic imperative for the 21st Century,
and it is one of the most important sources of both opportunities
and risks for businesses. Nature, society, and business are
interconnected in complex ways that need to be understood by
decision makers.
Innovation, fairness, and collaboration
are key aspects of any transition to sustainability – innovation
provides new ways of doing things, including profitable responses to
sustainability; fairness is vital because social injustice is
unsustainable; and collaboration is often a prerequisite for large
scale change.
Integrating sustainability and social transformation
in a strategic and coherent manner will give rise to greater
opportunities, efficiencies, and benefits, for both the company and
society, than the fragmented and at times contradictory approach
currently adopted by many companies.
King II explicitly required companies to implement the practice of
sustainability reporting as a core aspect of corporate governance.
Since 2002, sustainability reporting has become a widely accepted
practice and South Africa is an emerging market leader in the field
(partially due to King II). However,
sustainability reporting is in need of renewal
in order to respond to:
-
The lingering distrust among civil society of the intentions and
practices of big business and;
-
Concerns
among business decision makers that sustainability reporting is not
fulfilling their expectations in a cost effective manner.
|