A practical explanation of ethics as a good corporate governance principle in South Africa and New Zealand – A case study
Koers 85(1) 2020 Cover Art


corporate governance
King IV
NZX code
corporate culture


This article uses two case law examples (New Zealand and South Africa), to illustrate how a questionnaire could be developed in practice as a method to identify a breach of ethics with reference to King IV, the FMA handbook and the NZX code. These two cases use terminology as found in relevant corporate governance codes and illustrate how to interpret those terminologies correctly, i.e. in terms of honesty and integrity. Relevant literature is reviewed in reference to the two case law examples. To interpret a corporate governance term properly, reference should also be made to appropriate legislation, e.g., the Companies Act when drafting a questionnaire. To understand corporate governance codes a holistic view should be adopted by the board of directors when drafting a corporate governance questionnaire. Such a questionnaire could provide the necessary insight as a method to prevent unethical business behaviour in future.

Keywords: corporate governance; integrity; honesty; director; ethics; King IV; NZX code;
corporate culture


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Copyright (c) 2020 Neels Kilian