King 3 fails to recognise governance in NPO sector

The release of the King 3 report on corporate governance in 2009 and its imminent application have invigorated debate on corporate governance and social responsibility. Although this is a positive step, there is a need to orientate the debate towards the responsibilities of the nonprofit sector in a more meaningful way.

According to Shelagh Gastrow, Executive Director of Inyathelo - The South African Institute for Advancement, the problem with King 3 in its present form is that it fails to mention specifically the role of governance in the nonprofit sector. As a result, it inadvertently sees nonprofit organisations’ activities within the same prism as those of the corporate sector. This is a mistake given the vast inherent differences between the two sectors and represents a misunderstanding of the significant role of civil society organisations in South Africa.

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