What does this mean for SMEs?

If your business is a registered entity (company or CC), the law requires that you recognise and practice good corporate governance. According to the King Code of Governance Principles (King III) all businesses will ‘comply or explain’ non-compliance to governance legislations, which applies equally to corporates and SMEs. SMEs can use the key recommendations of King III to improve chances of success and improving ethical conduct.

We can help you achieve and implement corporate governance by:

·        Create simple internal policies such as a code of conduct that clearly sets-out duty of care, skill and diligence.

·        Demonstrate effective leadership characterized by ethical values of responsibility, accountability, fairness and transparency.

·        Separate roles and responsibilities of the shareholder, director and manager to limit liability and ensure effective division of labour and function. Consider creating a small board of directors if you are a company or implement a management structure.

·        Do your bit for your local environment and community – nature, society and business are interconnected.