Beyond Profits: Why Ethics Matter

Corporate governance is often seen as a checkbox exercise, but as Yaniv Kleitman, Director at Cliffe Dekker Hofmeyr, points out in this compelling conversation with Tony, it’s quickly becoming a central legal and reputational consideration for companies in South Africa. The discussion zeroes in on one crucial area that often flies under the radar—the Social and Ethics Committee.

Yaniv walks us through the committee’s origins, introduced in the Companies Act of 2008 and enforced from 2011, as part of South Africa’s stakeholder-inclusive approach to governance. He explains how the committee’s purpose is to ensure companies remain accountable not only to shareholders, but also to employees, customers, communities, and the environment.

The discussion covers which companies are required to establish these committees, how the public interest score is calculated, and what the recent Companies Tribunal ruling clarified regarding the committee’s composition—particularly the role of non-executive directors. Yaniv highlights the legal implications for non-compliant companies and the growing use of the King IV Report in South African case law as a benchmark for measuring directors' fiduciary duties.

As ethics and sustainability become more important in the corporate landscape, companies can no longer afford to treat governance as a formality. This podcast is essential listening for anyone involved in corporate leadership, compliance, or risk management—offering clear insights into an area of governance that is only becoming more critical with time.