Transcript Document

Ethics, Governance and
Transparency Post-Crisis
2012 Global Summit of Women, Athens
1 June 2012
Dr Vuyo Mahlati, South Africa
Introduction
• Purpose: Linking Women as Engines of
Economic Growth with Ethics and Good
Governance
• Context: The “Mutating Global Crisis” with
local hard-hitting dimensions
(Finance/Banking – Sovereign debt –
Unemployment with rising inequality), and
• Consequences: Job insecurity/ Uncertainty/
Greed and the deteriorating Moral Fibre
South African Context
• Commendable resilience against crises, but slow recovery
• Recognition of ethics and governance as organizational
issues “catastrophic corporate failures caused by
unethical individual behaviour, ethically weak corporate
cultures and dubious accounting or auditing practices”
Ethics SA
• Fraud and Corruption and the related costs. The National
Planning Commission (NPC) identified corruption as one
of the nine major factors that prevent South Africa from
eliminating poverty and inequality.
Implications for women leaders
• Limited pool (generalization of isolated
incidents)
A man can lose his honour and regain it.
But
A woman’s reputation is all she has, there’s no
forgiveness for women.
• Women as human beings affected by context
• Women as nurturers
• Director liability and increased responsibility
Census Trend Pyramids (BWA 2012)
Percentages focus on number of women in JSE-listed companies and SOEs as a
percentage of all positions
CEOs
Chairpersons
Directorships
Executive Managers
Women as % of
South African
population
2010
2011
2012
4.5%
4.4%
3.6%
6.0%
5.3%
5.5%
16.6%
15.8%
17.1%
19.3%
21.6%
21.4%
51.6%
51.3%
52.0%
Results for CEOs and Chairpersons do not include subsidiaries. Directorships and Executive Managers
include subsidiaries
5
Responses
• Governance and ethical risk management:
Companies Amendment Act (no. 3 of 2011) with
mandatory social and ethics committee. The Act
stipulates (in section 72(4)) that the Minister may
pass regulations requiring of certain companies to
put social and ethics committees in place.
• Self-regulation and Reward: Sustainability Reporting
with Annual awards for listed and state owned
enterprises
• Anti-corruption Agencies
• Limitations of all – limited outreach, with
fragmented and under-resourced responses.
Recommendations
• Shared agenda, promoting value-based compliance culture,
transparency and accountability (from the Shareholder(s),
Board, Executive Management to all levels of staff, [NB this is
a process not event];
• Training and on-going learning for all parties;
• Nurture Ethical/Accountable leadership and Knowledge
exchange – e.g. Transparency International and Social
Accountability International initiatives; Business Principles for
Countering Bribery to encourage companies to develop antibribery codes or policies;
• An agenda item for all women’s gatherings and publications
to share ideas on the complexities: - cost of compliance,
proactive risk and conflict management, assurance, managing
emotions and keeping the balance.
Transformative Knowledge Exchange
Email [email protected] Website www.socialwheel.co.za