Responsible leaders build sustainable businesses

Item 2 of Chapter 1 of the King 3 report stipulates the following:

Responsible leaders build sustainable businesses by having regard to the company‘s economic, social and environmental impact on the community in which it operates. They do this through effective strategy and operations.

The tone of this point is clearly set from the outset. The drafters clearly make mention  of "Responsible leaders" which shows that they are referring to not only wanting these individuals to be responsible, from which can be inferred accountable, but also that they want them to be leaders. It may be stated that referring to the various persons as leaders implies a more leadership driven approach which includes the collaborative nature of that relationship.

It is valuable to consider that these leaders are to be found throughout the business. It will be interesting to see to what degree lower level leaders may be help to the values espoused in the report.

The key point is that businesses need to be sustainable and by inference long term commercial citizens of the country; with rights, duties and obligations; which accompany that privilege.

The clause also highlights the fact that the business needs to be responsible not only in its business dealings as a business but it also needs to heed its expanded responsibilities such as its environmental impact and its social impact on  society. This expanded view of a business's responsibilities has become a global phenomenon. The importance of this expanded view of corporate responsibility has triggered a whole new view of what good governance is.

The report's drafters clearly mention that 'operations and strategy' should serve these lofty aims and that these should operate as the channels through which the above mentioned objectives must be achieved.

It may be noted that in the spirit of a completely aligned organisation, that these aspects and values shall need to form part of mission statements etc because only through inclusion will this provision truly be taken on board and not merely be seen as a beautifully word craft. It is through incorporation and alignment that these values can truly become inculcated in the very fibre of the organisation.

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