Spisto, Michael (2005) Stakeholder Interests in Corporate Governance: Is a New Model of Governance a Change for the Better for South Africa? - Part 1. Australian Journal of Corporate Law, 18 (2). pp. 129-147. ISSN 1037-4124

Abstract

South Africa is emerging from a protracted period of relative isolation in terms of being a competitive player on international markets. Because many of South Africa’s competitors have evolved corporate governance systems that reflect sound practices with regard to employee participation, while South Africa has not, it is important that South Africa’s economic performance is therefore maximised by a change in its approach to corporate governance. This would result in an improvement in the productivity and efficiency levels attained by its corporations. There are three key issues: firstly, corporate governance systems and legislation in South Africa have become anachronistic, especially in regard to employee participation; secondly, in order to achieve higher levels of corporate performance and to become more competitive on the global market, South Africa needs, amongst other things, to update its corporate governance systems, structures and legislation; and thirdly, corporate governance models based on systems, which have proven successful elsewhere and can be adapted to South Africa’s specific needs and cultural dimensions, will provide a strategic platform to facilitate substantial improvements in corporate performance and productivity. This article sets out to identify the problems associated with South Africa’s current corporate governance systems and structures, especially with regards to the rights and interests of the non-shareholder constituents including the employees.

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