- Ethics Management Consulting Ethics are the main pivots over which the businesses now revolve. Ethics has taken the forefront in organisational governance. The King IV code, the first 3 principles for a leadership talk to ethics: Principle 1- The governing body should lead and ethically and effectively. Principle 2 – The governing body should govern the ethics of the organisation in a way that supports the establishment of an ethical culture. Principle 3 – The governing body should ensure that the organisation is and is seen to be a responsible corporate citizen. This is congruent with Section 195 of the Constitution in terms of which public administration must be governed by the democratic values and principles enshrined in the Constitution including that a high standard of professional ethics must be promoted and maintained. Moreover, ethics governance and management are legislative mandate for companies. The New Company’s Act makes it mandatory for State-Owned entities to have Social and Ethics committee. Although NMISA is not a state-owned entity as defined by the company’s act, as a consequence of their legal form, they are required to comply with the Companies Act.
The importance in enforcing ethical behaviour in the public sector is further elevated by Acts such as the Public Service Regulations, 2016 that regulates anti-corruption and ethics management practices and the Prevention and Combating of Corrupt Activities Act, 2004 that seeks to strengthen measures in the prevention and combating of corruption and corrupt activities. With the ethics governance committee often, combined with the Social and at times the Human Resource governance; matters of ethics fall in the back banner. This is often since management do not have the necessary content, supported by a defined ethics management function. They also do not have much of an idea of the ethics culture of the organisation and an ethics management strategy to work towards.