The King Reports on Corporate Governance in South Africa: An Ubuntu African Philosophy Analysis

Abstract

In 1994, South Africa opened its doors to democracy. It was a utilitarian effort; the previously disadvantaged/marginalised sections of its society could now participate in the economic and political sphere of the South African landscape (Stewart 2010). In that same year the first King Report on corporate governance was introduced and which sought to educate and align the newly democratic South Africa to the machinations of the capitalist market system. A revised King Report culminated into King (ii) in 2002, then King (iii) in 2009. King (iii) came into effect in 2010 and sought to emulate the United Kingdom Combined Code of 2010. One can posit that the King Reports reflected the changes in the socio-economic and political sphere apparent in South Africa and the ideal corporate governance frameworks at particular times in history (1994, 2002 and 2009). King (i) was meant to address the face of a new corporate governance and laid the foundations of an institutionalised corporate governance. King (ii) identified the changes in the economic environment and global corporate world. King (iii) noted the need for comprehensive reporting, the credit crunch a crisis in corporate capitalism and argued that the harsh and inflexible Sarbanes Oxley Act failed to prevent the collapse of many of the leading corporate entities in the USA.