APPENDIX A: ASSIGNMENT/ PROJECT COVER SHEET

ASSIGNMENT/ PROJECT COVER SHEET

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Assignment Number

Tutor’s Name

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Declaration: I hereby declare that the assignment submitted is an original piece of work produced by
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TABLE OF CONTENTS
QUESTION 1................................................................................................................... 2
QUESTION 2................................................................................................................... 5
Introduction...................................................................................................................... 5
1. Ethical Leadership (The governing body should lead ethically and effectively)........5
2. Ethical Organizational Culture..................................................................................6
3. Corporate Citizenship...............................................................................................7
REFERENCES.................................................................................................................7

QUESTION 1

Trust in corporations
The recent erosion of public trust in corporations may be one key reason of the tsunami
of corporate governance. Furthermore, the current emphasis on corporate governance
is often regarded as Tongaat Hulett's direct response to the negative effects that a
series of highly publicized business scandals have had on public perception of the
industry as a whole (Pargito, 2019:162). The expectation that following to sound
corporate governance practices and principles will restore society's faith in Tongaat
Hulett and their leaders is the source of the link between decreasing trust and
corporate-governance reform (Pargito, 2019:162). Reforming corporate governance can
be viewed as an attempt to ensure that Tongaat Hulett works in an accountable, fair,
transparent, and responsible manner. And it is Tongaat Hulett's commitment to these
core moral ideals that provides promise for the restoration of public trust in business.
Investor demand
While making investment selections, several of the world's top institutional investors
consider governance and sustainability (Pargito, 2019:163). As a result of the
emergence of a global market, national borders have become less of a commercial
barrier. Investors' capacity to profit from worldwide investment opportunities has
improved, and cash is now much more mobile. Investors are free to place their money
where they believe it will produce the most returns (Pargito, 2019:163). Under these
circumstances, it's easy to see why corporate governance has become a top priority for
Tongaat Hulett. Investors want to see solid governance. Investors, particularly
institutional investors, have elevated their expectations for greater corporate
governance in order to defend their interests.

Stakeholder activism
A shift in stakeholders' opinions on their companies also influences the importance of
corporate governance. Before, shareholders who were dissatisfied with a company's
performance might simply sell their shares (Pargito, 2019:163). But, in recent years,
institutional shareholders, in particular, have begun to play a much larger role in
company governance. Rather than exercising their right to quit a firm if they are
dissatisfied, they have begun to put pressure on boards and high management to
improve corporate governance standards. The boards of directors of Tongaat Hulett
have made effective corporate governance a fundamental component of their strategy
to avoid the risk of hostile takeovers. The risk of takeovers has prompted Tongaat
Hulett's boards of directors to enhance their corporate governance standards. Several
stakeholder organizations have also grown to prominence and amplified their voices in
recent years (Pargito, 2019:164). The disruption, boycotts, and reputational loss that
can arise from this type of stakeholder action have increased awareness of the
essential role that good corporate governance can play in establishing improved
relationships between Tongaat Hulett and its stakeholders.

Social influence of corporations

Tongaat Hulett's societal importance has grown as a result of its expansion and greater
worldwide mobility, which has influenced the present significance of corporate
governance (Pargito, 2019:164). They have risen in size and mobility over the world, as
has their societal influence. Companies like Tongaat Hullett have a tremendous impact
on the environment, economics, and society of the communities and countries in which
they operate (Pargito, 2019:164). They may have a substantial impact on the
economics or air quality of the town in which they are located. Tongaat Hulett's
decisions can have a positive or negative impact on people and communities. Special
interest groups organize around certain subjects linked to the effects of corporations on
society in attempt to reduce businesses' social dominance (Wang, 2019:733). If
Tongaat Hulett rejects this pressure, their company operations may be affected, and
their reputation may suffer. The pressure provides an additional motivation for Tongaat
Hulett to improve its corporate governance standards.

Risk management
A second reason for the increased importance of corporate governance is the new
forms of risks presented by information and communication technology, such as the
global exposure of a company's reckless action, such as that of Tongaat Hulett. Boards
of directors have always had the responsibility to protect the assets of the companies
they represent, and these assets have always been vulnerable (Pargito, 2019:165). Yet,
both director responsibilities and business risk have grown considerably in recent years.
Modern information technology is now required for running a successful business and
has created a plethora of new opportunities for commerce, but it has also exposed
enterprises to new types of hazards (Pargito, 2019:165). In addition to the risk of losing
critical data, information technology has exposed firms to confidentiality breaches,
sophisticated fraud, and other sorts of cybercrime. In the information technology age,
boards of directors face increased pressure and obligation to ensure that systems of
governance are developed and implemented that protect businesses' assets (Pargito,
2019:165). The new types of hazards made possible by information and communication
technology provide another reason for Tongaat Hulett to raise its corporate governance
standards.

QUESTION 2

Introduction
The three ethics principles address ethical leadership, ethical corporate culture, and
organizations' ethical responsibility to the environment in which they operate (Pargito,
2019:181).

1. Ethical Leadership (The governing body should lead ethically and effectively)
The first principle emphasizes the ethical leadership traits that members of the Tongaat
Hulett governing body should exhibit both collectively and individually. Members of the
Tongaat Hulett governing body should cultivate and display the following characteristics,
both individually and collectively (IoDSA, 2016: 43):

Integrity:
Members of the Tongaat Hulett governing body are expected to act honestly and in the
best interests of the organization. People should act morally rather than simply obeying
the law. They should serve as a model for an ethical organizational culture (Ferguson,
2019).

Competence:
Tongaat Hulett governing board members should take steps to ensure a full awareness
of the organization, its industry, and the three contexts in which it operates. In order to
acquire aware about matters for decision, they must exert reasonable care, skill, and
diligence (IoDSA, 2016: 43).

Responsibility:
Members of the Tongaat Hulett governing body should share responsibility for steering
and charting the organization's path, approving plans and policies, overseeing and
monitoring management's adoption and execution, and ensuring accountability for
organizational performance (IoDSA, 2016: 43).

Accountability:
Members of the Tongaat Hulett governing body should be prepared to answer for their
performance even if their tasks are allocated (IoDSA, 2016: 43).

Fairness:
Members of the Tongaat Hulett governing board should be inclusive of all stakeholders
when carrying out their governance tasks. They should run the business in such a way
that it has no detrimental impact on the environment, society, or future generations
(IoDSA, 2016: 44).

Transparency:
Tongaat Hulett governing body members should be transparent and honest about how
they carry out their responsibilities as elected authorities (IoDSA, 2016: 43).

They must exhibit the aforementioned ethical attributes in order to give successful
leadership that leads in the achievement of strategic goals and favorable outcomes
throughout time. It should be made public how the members of the Tongaat Hulett
governing board are held accountable for moral and effective leadership. These
arrangements would include codes of conduct and performance evaluations of the
governing body and its members (IoDSA, 2016: 44).

2. Ethical Organizational Culture

According to King IV's second guideline, the governing body should oversee the
organization's ethics in a way that supports the establishment of an ethical culture.
Tongaat Hulett governing bodies must be empowered to create and maintain an ethical
culture inside the business. The governing board of Tongaat Hulett should assume
responsibility for ethical governance by developing standards for how the company
should approach and address ethics. They should approve codes of conduct and ethics
policies that articulate and execute the organization's ethical orientation (IoDSA, 2016:
44). The governing board should ensure that the Tongaat Hulett's relationships with
internal and external stakeholders, as well as the greater society, are covered by codes
of conduct and ethics guidelines, and that the organization's substantial ethical dangers
are addressed. They should maintain continuing supervision of ethical management.

3. Corporate Citizenship
The third notion of King IV is organizational citizenship (IoDSA, 2016: 45). Tongaat
Hulett's governing board should guarantee that the organization is and is regarded to be
a responsible corporate citizen. Tongaat Hulett should have a governance framework in
place to oversee the organization's social and ethical performance. The governing
board should take charge of corporate citizenship by developing standards for how the
business should approach and address it (IoDSA, 2016: 45). They must ensure that the
organization's responsible corporate citizenship activities include compliance with the
South African Constitution, the law, and its own codes of conduct and regulations.
Tongaat Hulett's governing board should ensure that the organization's primary mission
and values, strategy, and behavior are in line with its position as a responsible
corporate citizen.

REFERENCES
Wang, J.C., 2019. Industry business associations: Self-interested or socially conscious.
Journal of Business Ethics, 143, pp.733-751.

IoDSA 2016, King IV code on corporate governance. Part 5: p 43

Pargito, D. & Van Vuuren, L. 2019. Business Ethics. 6th Edition. Oxford University
Press, SA.

Ferguson, C.S., 2019. Assessing the KING IV Corporate Governance Report in relation
to business continuity and resilience. Journal of Business Continuity & Emergency
Planning, 13(2), pp.174-185.
Biondi, L., Dumay, J. and Monciardini, D., 2020. Using the international integrated
reporting framework to comply with EU directive 2014/95/EU: can we afford another
reporting façade?. Meditari Accountancy Research, 28(5), pp.889-914.