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CGF Articles & Editorials

LEADERSHIP IS RESPONSIBLE FOR ACHIEVING GOOD CORPORATE GOVERNANCE OUTCOMES (2018-01-23)

By Terrance M. Booysen and peer reviewed by Professor Michael Katz (Chairman: ENS Africa)

With the media spotlight on the dismal state of governance in some of South Africa’s public and private organisations, as well as many of its state-owned enterprises, there cannot be enough said about the enormous role and duties expected of the directors of an organisation.

NEW APPOINTMENT: CGF STRENGTHENS ITS HUMAN CAPITAL PORTFOLIO TO BOLSTER ITS GOVERNANCE SERVICES (2018-01-22)

CGF is delighted to welcome a renowned South African Human Capital specialist, Hannes Janse van Rensburg as the newest member of its team of Lead Consultants.  Hannes has a multi-disciplined business background that covers the full spectrum of Human Capital services, Adult Education at tertiary level as well business consulting.

IGNORE STAKEHOLDERS AT YOUR PERIL (2017-10-05)

By Terrance M. Booysen

Recent local and international headlines have been explosive in their exposure of the involvement of large organisations in the perpetuation of political instability and increased racial tensions in South Africa, as well as the alleged facilitation of so-called ‘state capture’.  These headlines have brought into sharp focus the importance of strong, ethical leadership within organisations such that the organisation is not only seen to be, but is operating an ethical business.

WHY NON-EXECUTIVES SHOULDN’T DO IT FOR THE FEES ALONE (2017-09-15)

By Terrance M. Booysen

While the board attendance fees paid to Non-Executive Directors (‘NEDs’) may be a strong incentive for certain individuals to avail themselves for these boardroom positions, it may be well worth reconsidering the risk and rewards.  The onerous duties and responsibilities which are placed on NEDs -- including the demands made by the organisation’s key stakeholders on the board -- significantly increase the liability factor and make the ‘lure’ of the board attendance fees less appealing.

D&O LIABILITY INSURANCE: AN ESSENTIAL COMPONENT OF AN ORGANISATION’S RISK-MITIGATION TOOLBOX (2017-08-16)

By Terrance M. Booysen and peer reviewed by David Loxton (Partner: Dentons)

Directors and officers of all organisations are facing an increased risk of personal exposure.  Their roles and responsibilities have become progressively more onerous in recent years, mainly as a result of new legislation and regulatory requirements, stakeholder pressure and increased governance and social responsibilities, as well as the complexity of trans-continental and macro-economic trading conditions.

A THRIVING ORGANISATIONAL CULTURE DRIVES EMPLOYEE ENGAGEMENT (2017-07-17)

By Dr Dicky Els and Jené Palmer

Culture shapes the wellness of individuals, businesses, communities and nations.  Although it is not static and can change, it generally manifests itself in the behaviour of a group of people at any given point in time.  Culture is a collective identity that is based on a set of unspoken rules that underpin personal values and interpersonal relationships.

IMPORTANT STRATEGIC QUESTIONS FOR RECESSIONARY TIMES (2017-07-11)

By Paul Aucamp and Jené Palmer

Is your business equipped to survive the pressures of a rapidly changing business world, which is being exacerbated by the growing uncertainty presented by South Africa’s re-entry into another recession?  To ensure the sustainability of the organisation, this critical question needs to be asked of South African boards of directors and senior executives alike.

POLYGRAPH TESTING: IS IT A LEGITIMATE MEANS TO CURTAIL CRIMINAL BEHAVIOUR IN THE WORKPLACE? (2017-07-07)

By Terrance M. Booysen and reviewed by Osborne Molatudi (Partner: Hogan Lovells)

On a worldwide basis, criminal activity in the workplace -- detected or undetected -- is at an all-time high.  Fraud, corruption and other forms of economic crimes are rife, and perceptions of increasing illicit behaviour are backed by reputable subject matter experts and research agencies, with alarming statistics.  Research conducted by the Association of Certified Fraud Examiners (ACFE) show that workplace fraud has steadily increased between 2012 and 2016.  In 2012, case studies showed that the median loss caused by workplace related occupational fraud was US$140,000.  But by 2016, figures showed that the median loss caused by such cases had increased to US$150,000.

THE FINANCIAL INTELLIGENCE CENTRE ACT IS AMENDED: IT NOW NEEDS IMPLEMENTATION (2017-06-05)

By Terrance M. Booysen and peer reviewed by David Loxton (Partner: Dentons)

With South Africa already on precarious ground as a result of its alleged ‘state capture’; not least also the effects of South Africa being downgraded to “junk-status” by Standard and Poors and Fitch rating agencies, it was in the nick of time that President Jacob Zuma signed the Financial Intelligence Centre Amendment Act 1 of 2017 (‘the Amendment Act’) into law on 28 April 2017.

NEW PREFERENTIAL PROCUREMENT REGULATIONS LIKELY TO BE CHALLENGED (2017-05-15)

By Terrance M. Booysen and reviewed by Bulelwa Mabasa (Werksmans: Partner)

In his State of the Nation Address in 2017, President Jacob Zuma noted the intention of the South African government to influence the behaviour of the private sector and to drive economic transformation.  He stated that this objective would be achieved through the government playing a role in the economy through legislation, regulations, licensing, budget and procurement, as well as Broad-Based Black Economic Empowerment (‘B-BBEE’) imperatives.