King II and Proudly South African

As a first step, Proudly South African has endorsed the King Report on Corporate Governance for South Africa 2002 (King II), which was released on Tuesday.

According to Martin Feinstein, Proudly South African's CE, recent high profile company failures, particularly in service industries, highlight the direct link between corporate governance and service quality. He says that it is undeniable, for example, that the quality of a bank's service is directly linked to its corporate governance practices. Where companies are not managed tightly, it is always reflected in the quality of products and services. " But, the reverse is true as well. Sound management will pay off in improved quality, satisfied customers and higher profitability."

IoD's executive director, Richard Wilkinson, says that Proudly South African membership was a natural development for the Institute because the IoD and the King Committee both focus on the triple bottom line - economic, social and environmental responsibility. These ideals are mirrored in Proudly South African membership requirements.

Proudly South African believes that corporate governance is a quality issue. The campaign exists to recognize excellent local products and services and encourages improvement wherever possible. We endorse the King II Report because it is an example of local excellence and sets the international benchmark for corporate governance.

The previous report featured in hundreds of international studies, articles and documents. Sections of the report have also been used as a matrix for the development of other codes around the world. More importantly though, we recognise the role the first report played in improving corporate governance and quality standards in South Africa and anticipate that King II will take that good work further.