related to board committees in general, group boards, audit committees, social and ethics committees, risk committees, remuneration committees, and nomination committees. PricewaterhouseCoopers. “The board of directors and committees – a comparison between the new Companies Act and King III,” October 2011, http://www.pwc.co.za/en_ZA/za/assets/pdf/companies-act-series-3.pdf, accessed February 2014.
38
The UN-supported Principles for Responsible Investment initiative is an international network of investors working together to understand the implications of sustainability for investors and to support signatories to incorporate such issues into their investment decision-making and ownership practices by putting the UN's six Principles for Responsible Investment into practice. UN Principles for Responsible Investment. About the PRI Initiative, http://www.unpri.org/, accessed February 2014.
39
“Institutional Investors.” King III Introduction and Background, Section 7. http://www.library.up.ac.za/law/docs/king111report.pdf, accessed February 2014.
40
Institute of Directors in Southern Africa, “King Report on Governance for South Africa 2009,” p. 109, http://african.ipapercms.dk/IOD/KINGIII/kingiiireport, accessed February 2014.
41
Ibid., p. 111. Clarity and a long-term outlook were emphasized: “Integrated reporting should be focused on substance over form and should disclose information that is complete, timely, relevant, accurate, honest, accessible, and comparable with past performance of the company. It should also contain forward-looking information.” Sustainability was to be interwoven with financial reporting. In addition to reporting on the company's financial performance, the company should put its economic performance into context by discussing the environment in which it functioned and its impact on stakeholders, as well as strategies for mitigating any negative outcomes. In short, “the integrated report should describe how the company has made its money.”
42
Ibid., p. 111.
43
Ibid., p. 111. Since King III was published, the interplay between the 2008 Companies Act and the King Code has begged a number of questions about the relationship between governance principles and legislation. King III was written to reflect the changes in company law, but the Companies Act did not go into effect until 2011, causing many to believe a process of refinement is necessary to bring the reports into alignment with legislation. This in itself has caused strong reactions among supporters of principles-based approach. While King III was more progressive than its predecessors by leaps and bounds, some felt it had gone too far. Amid these debates, integrated reporting gained cachet on the international and domestic stages.
44
The UN Committee on Governance and Oversight was formed to recommend improvements that affect management and the governing structures that serve the United Nations. For further information, see “Implementation of decisions contained in the 2005 World Summit Outcome for action by the Secretary-General: Comprehensive review of governance and oversight within the United Nations and its funds, programmes and specialized agencies.” Report of the Secretary-General. 10 July 2006. United Nations General Assembly, http://www.un.org/ga/president/62/issues/resolutions/a-60-883.pdf, accessed in February 2014.
45
Schulschenk, “Interview Summary Report,” p. 9.
46
The IRC of SA was established by the joint efforts of the Association for Savings and Investment South Africa (ASISA), Business Unity South Africa (BUSA), Institute of Directors in South Africa (IoDSA), JSE Ltd, and the South African Institute of Chartered Accountants (SAIA).
47
The South African Institute of Chartered Accountants. The Integrated Reporting Committee (IRC) of South Africa “Framework for Integrated Reporting and the Integrated Report,” https://www.saica.co.za/Technical/SustainabilityandIntegratedReporting/IRGuidance/tabid/2372/language/en-ZA/Default.aspx, accessed April 2014.
48
Ibid.
49
Ibid., p. 9.
50
The Paper further explains that materiality needs to be defined by answering three questions: (1) Are the “right things” being reported? (2) What level of error or omission in the data would influence the assessments and decisions of stakeholders in the organization?, and (3) Is the organization being response to the legitimate interests and expectations of its key stakeholders (sometimes referred to as stakeholder inclusiveness)? Ibid.
51
Ibid., p. 17.
52
Ibid., p. 17.
53
For a list of members see “Framework for Integrated Reporting and the Integrated Report Discussion Paper,” by the Integrated Reporting Committee of South Africa, January 25, 2011, p. 25.
54
“IFAC Sustainability Framework 2.0,” International Federation of Accountants. International Federation of Accountants Website, http://www.ifac.org/publications-resources/ifac-sustainability-framework-20, accessed February 2014.
55
SustainabilitySA. Integrated Reporting, The Integrated Reporting Committee of South Africa, http://www.sustainabilitysa.org/IntegratedReporting/TheIntegratedReportingCommitteeofSouthAfrica.aspx, accessed April 2014.
56
Ernst & Young South Africa. “Integrated Reporting Survey Results,” 2011, pp. 1–15, http://hesabras.org/Portals/_Rainbow/images/default/download/Integrated%20Reporting.pdf, accessed February 2014.
57
PricewaterhouseCoopers. “Greater disclosure but little insight under new code,” PwC, Corporate Reporting, http://www.pwc.com/gx/en/corporate-reporting/integrated-reporting/corporate-reporting-south-africa-king-iii.jhtml, accessed January 2014. Since this first evaluation, PricewaterhouseCoopers has produced an annual analysis of the Top 40 listed companies' integrated reports.
58
http://www.nkonki.com/IR/awards.php?a=integrated-reporting&page=Nkonki-Top-100-Integrated-Reporting-Awards-Winners. While Nkonki produced a special report in 2011 on the Top 40 IR Award Winners, the Nkonki Top 100 Integrated Reporting Awards began in 2012.
59
Schulschenk, “Interview Summary Report,” p. 3.
60
Deloitte. “Integrated Reporting: Navigating Your Way to a Truly Integrated Report: Edition 2, February 2012,” p. 20, http://www.deloitte.com/assets/Dcom-SouthAfrica/Local%20Assets/Documents/Integrated%20Reporting%20Publication%20II%20.pdf. The report, like Ernst & Young's “Excellence in Integrated Reporting” awards, analyzed 100 JSE-listed companies and identified top trends.
61
These included The Companies Act, No. 71 of 2008, King Code on Governance Principles, International Financial Reporting Standards, Global Reporting Initiative Third Generation, International Organization for Standardization, AccountAbility, Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, United Nations Principles for Responsible Investment, Code for Responsible Investing in South Africa, International Council for Mining and Metals, United Nations Global Compact, Equator Principles, Carbon Disclosure Project, Water Disclosure Project, and eXtensible Business Reporting Language. Deloitte, “Integrated Reporting: Navigating Your Way to a Truly Integrated