Abstract

This article provides an overview of the impact of Covid-19 on organisations from a corporate governance perspective and the possible mitigation of such impact by applying the Principles in the King IV Report on Corporate Governance for South Africa 2016 (King IV). The article highlights how these fundamental philosophies, concepts and aspects of corporate governance have been considered and incorporated into King IV and how their application could, firstly, serve to mitigate the impact of Covid-19 on organisations and, secondly, enable it to position itself better going forward, to ensure the correct strategy, business model and sustainable value creation in the most optimal and efficient manner, ie across the six capitals, given the current situation and outlook for the future. The article also touches briefly on the institutional shareholder role, the evolving world of ESG, responsible business, and stakeholder inclusivity. Engagement with and the impact of stakeholders, particularly given the failure of organisations and their dependency on stakeholders, including shareholders in many instances, are discussed. Key ideas: Covid-19; King IV; stakeholders; shareholders; strategy; corporate citizenship; triple context; six capitals; information and communications technology (ICT); institutional investors; responsible investing; risk management, assurance, disaster recovery, business continuity; environment, social and governance (ESG)

Abstract

As this crisis continues to unfold, boards must pause to consider the important role they have during the crisis itself and, perhaps more importantly, in positioning their organisations for an uncertain future. There is much that a board can do to put its organisation back on an even keel, to ensure it is ready for this uncertain future. Key ideas: Covid-19; boards; management; communication; employees; external stakeholders

Abstract

While there is a lot of uncertainty about how conditions in the coming months will affect local businesses, an understanding of the law of insolvency can provide a lot of clarity on the available options for companies that find themselves in a difficult financial position. This article gives a brief introduction to the concepts of liquidation and business rescue, what they are designed to do, and how they function.

Key ideas: Covid-19; insolvency; liquidation; business rescue

Abstract

Like other modern constitutions, our supreme law serves two main purposes: it guarantees certain human rights and it structures, empowers and limits the state. In this new coronavirus reality, large sections of government have suspended operations, and many of our rights and freedoms have been severely curtailed. If the Constitution has not been cryogenically frozen, how does it apply now? Key ideas: Covid-19; Constitution; national state of disaster; government; judiciary; public participation

Abstract

The Covid-19 lockdown is a real test of an NGO’s ability to survive the worst a pandemic can throw at its projects, staff and beneficiaries. An NGO’s governance structures, reserves, leadership, administrative systems and its professionalism are equally tested. Such an emergency is a true measure of the health of an organisation: the relationship it has with its staff, beneficiaries, donors and the community that supports it. It is also a test of how effectively an organisation has invested the corporate social investment (CSI) it has received over many years.
Key ideas: Covid-19; NGOs; corporate social investment