Ben Marx

Sustainability reporting and assurance: An analysis of assurance practices in South Africa

Purpose – The purpose of this paper is to provide an overview of sustainability reporting and the assurance thereof in South Africa. Design/methodology/approach – The paper takes the form of a literature review and a study of empirical evidence obtained through content analysis of the sustainability reports of companies listed on the Johannesburg Securities Exchange Socially Responsible Investment Index for 2009. Findings – Although sustainability reporting and the independent assurance thereof are widely researched and advocated in the literature, only a limited number of companies obtained independent assurance on their sustainability reporting. Originality/value – The paper supports the recommendations of King III (effective from 1 March 2010) that companies should provide integrated reporting in terms of both their finances and sustainability, and that the sustainability reporting and disclosure should be independently assured.

Sustainability reporting at large public sector entities in South Africa

Public sector entities are central to the delivery of sustainable development, and every aspect of their role shapes how people live their lives. This, together with the fact that they are under constant and growing pressure to operate in an environmentally friendly and sustainable manner, and to show their stakeholders that they provide good value for money, highlights the need for open, honest and reliable sustainable reporting to public sector stakeholders. The objective of the paper is twofold: it aims, firstly, to provide a brief overview of sustainability and sustainability reporting and how it impacts on public sector entities, and, secondly, to provide evidence regarding the sustainability reporting practices at large public sector entities in South Africa. This is done through a literature review of current corporate governance and sustainability developments in the private and public sector, supported by empirical evidence obtained from assessing, through content analysis, the sustainability reporting of the largest public sector entities in South Africa. The study found that sustainability reporting by public sector entities is still in its infancy, and that the reporting by the largest public sector entities in South Africa ranges from excellent to sub-standard.

Audit committee responsibilities vis‐á‐vis internal audit: how well do Top 40 FTSE/JSElisted companies shape up?

Effectively functioning audit committees have proven to fulfil a vital role in strengthening the role of internal audit. This article presents the results of a literature review that pinpoints six responsibilities that audit committees should perform in relation to internal audit. These responsibilities were tested as part of an empirical study focusing on the 40 largest companies listed on the JSE to determine the extent to which large listed companies in South Africa fulfil and disclose these responsibilities. The study consisted of an analysis of annual reports and a questionnaire administered to the chairs of audit committees. The study returned significant findings, including sound empirical evidence that the audit committees of the largest listed companies in South Africa are executing their responsibilities for internal audit effectively, but are performing more functions and responsibilities than those actually disclosed and reported on. While this apparent deficiency in disclosure may not affect the effective functioning of audit committees, it may influence perceptions about this effectiveness.

The role of the audit committee in strengthening business ethics and protecting stakeholders' interests

It is imperative for companies to do business ethically and to respect the rights of all the company’s stakeholders, while still being accountable to the shareholders. This article examines evidence from a literature and empirical study conducted on the role of audit committees in strengthening business ethics and protecting stakeholders’ interests. The study found that the majority of audit committee chairs believe their audit committees to be effective in discharging their responsibilities regarding business ethics. Of concern, however, are the findings that a large number of audit committees are not reviewing compliance with their companies’ code of ethics, although most of them are reviewing or providing a channel for whistle-blowing. The inspection of the annual reports further indicated a lack of disclosure by the audit committees on their responsibilities regarding business ethics.

Sustainability in accounting education: An analysis of the teaching thereof at accredited South African universities

Accountants and auditors are key role players in the financial world and society at large and as such can play a vital role in fostering awareness of sustainability and creating sustainable business practices. The issue of sustainability in accounting education is a rather new theme, and academics are still exploring how to incorporate the concept into their curricula and finding the best ways to teach it. The objective of the paper is twofold: it aims, firstly, to provide a brief overview of the development of corporate governance, sustainability and corporate citizenship, and the higher education developments surrounding this, and secondly to provide evidence regarding the teaching of these aspects. This was done through a literature review and supported by empirical evidence obtained from questionnaires sent to the accountancy departments of the universities accredited by the South African Institute of Chartered Accountants. The study found that although the concept of sustainability is generally well established and researched, limited research has been done to date on how it is covered in accounting education, and the empirical findings further indicate that room for improvement exists on how accounting departments incorporate this into their curricula, teaching and assessments.