Governance is essentially about effective leadership.  Responsible leaders direct company strategies and operations with a view to achieving sustainable economic, social and environmental performance. The PLI Group holds a robust view with regards to Governance.

Broadly, governance is about the responsible leadership of organisations:  leadership that is transparent, answerable and accountable towards the organisations stakeholders.  Our methodology of governance extends further to ensure that there is alignment of the interests of the organisation, key stakeholders, and society at large.

Governance Methodology:

  • The implementation of a system that ensures compliance by our organisation with regards to its legal and regulatory obligations;
  • The development of practices which make and keep the organisation accountable to the broader society in which we operate;
  • Strategy, risk, performance management and sustainability have become inseparable concepts with regards to ensuring the sustainable performance of organisations. As a result such themes as: inclusivity of stakeholders; Innovation; Fairness; Collaboration; and Social transformation have evolved (particularly within the South African context where the redress of apartheid is a focal point);
  • Sustainability, and the implementation of a process whereby risks to the sustainability of the organisation’s business are identified and managed within agreed parameters; and
  • The creation and continuous monitoring of a system of checks and balances to ensure a balanced exercise of power within our organisation.

 

Governance Element

Key areas and principles

Leadership

  • Ensure that the organisation’s performance and interaction with its stakeholders is guided by ethical principles.
  • Ensure that corporate values, business principles and KPI’s have been established.
  • Ensure that a sustainability strategy has been developed.

 

Board of Directors

  • Ensure that the role and function of the board is fully understood by all board members and the management team, and ensure that board members are adequately trained to undertake their role and responsibilities.
  • Ensure understanding amongst the board that ultimate responsibility of the continued success of the organisation lies with it.
  • Ensure that the board informs and approves the company’s strategy.
  • Ensure that the company’s ethics are managed effectively.
  • Ensure that the board reports on the effectiveness of the organisation’s internal controls.

 

Risk Management

  • Ensure that risk assessments are undertaken at consistent intervals.
  • Ensure that annual risk management plans are approved, implemented and monitored.
  • Ensure that the biggest risk exposures of the organisations are adequately managed.

 

Compliance with Legislations and Regulations

  •  Identification of relevant laws and regulatory obligations of the organisation.
  • Ensure that the organisation complies with applicable laws and regulations.
  • The development of an effective compliance framework and compliance processes.

Stakeholder Relationship Management

  • Ensure that a stakeholder strategy is in place, and that both formal and informal processes for interaction with key stakeholders are in place.
  • Ensure that identification of key stakeholders has been undertaken.
  • An assessment of whether the current forms of stakeholder communication are effective.

 

Integrated Governance Reporting

  • The integrity of the organisation’s integrated report should be ensured by the board of directors.
  • Adequate information regarding the company’s financial and sustainability performance should be conveyed by the board of directors.
  • Ensure that a sustainability strategy has been developed.

Auditing

  • Ensure that internal and financial controls are in place and are effective.
  • Internal controls should be established not only for financial matters, but also for operational, compliance and sustainability issues.
  • Ensure that controls operate as they are supposed to, and are appropriately evidenced.

 

 

PLI Group’s governance framework is founded on the Code of Governance Principles for South Africa 2009 (also known as King III), and is reviewed periodically by the Board of Director’s and the company’s Auditors.