Corporate governance index reaches record lows
Less than half of audit executives surveyed in a new report believe ethics is integral in the workplace. That, notes a Fin24 report, is according to the Institute of Internal Auditors SA whose Corporate Governance Index report revealed that the overall ranking of ethics, compliance and assurance dropped 6.6% compared to 2017. South Africa has seen a dip in corporate governance to the lowest overall scoring since the index's inception in 2013. The report surveyed 302 chief audit executives in the public and private sector, in conjunction with the University of South Africa.
Business Day also covered the story and noted that the study comes in the wake of corporate scandals that have hit South Africa in the past year. Unsurprisingly, ethics and audit assurance were two components of corporate governance that registered the biggest declines. The other areas the index measured include compliance, leadership, performance and risk. Only 48% of the country’s chief audit executives said ethics form an integral part of their organisations.