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Corporate governance index reaches record lows

Publish date: 16 November 2018
Issue Number: 8
Diary: CompliNEWS Ethics
Category: General

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.

Full Fin24 report

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.

Full Business Day article

Working Smart

By Lee Rossini

Selecting, recruiting and onboarding a new employee takes time and resources.  Once settled and integrated into the business, employees develop the skills required to carry out the work effectively, they become an important part of the team, they contribute positively to the corporate culture and their institutional memory is deepened.  For these reasons, short-stay employees should be avoided.  The question is how to motivate employees to stay over the long term especially when faced with some of the challenges in the financial advice arena?  Motivation is a force that energises behavior, gives direction to behavior, underlies the tendency to persist, even in the face of one or more obstacles (Warnich, Carrell, Elbert and Hatfield, 2015). 

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