Corporates, listed or unlisted, private or public, are fast evolving into 'purpose-driven' organisations. Gone are the days of organisations having vision statements. It’s now all about how they can build meaningful relationships with their respective stakeholders.
This then begs the question in respect of non-executive directors – as a member of the board, do they support the organisation’s purpose? Thereafter they can assess how they will make a contribution to the organisation executing its purpose and ultimately ensuring that the organisation behaves as a good corporate citizen.
For the first time, we look at aligning organisation’s purpose with executive remuneration and discuss whether or not there should be a link and if so, how strong this should be. Also for the first time, we see stakeholder engagement giving non-executive directors a better understanding of the risks they now face. Finally, in order to obtain an objective view of how directors are responding to the shift to integrated thinking and reporting, we share the findings of a survey undertaken by PwC among JSE company secretaries to see how they perceive board readiness in this regard.
We trust that you will find this publication of interest and gain a better understanding of the issues, challenges and trends that we have raised and identified. We look to all our directors to play their role in ensuring South African corporates move to becoming more purpose-driven corporate citizens.