The launch of the HR Governance Framework for South Africa emphasizes the need for ethical and effective HR leadership to support corporate governance. Central to this initiative is the development of a working definition of HR governance that aligns HR practices with business strategies while addressing people management risks. The framework aims to position HR as a key player in fostering ethics and ensuring compliance with legislative standards in the organization.

1. LAUNCH OF HR GOVERNANCE
FRAMEWORK FOR SOUTH
AFRICA
HR GOVERNANCE COMMITTEE
STAKEHOLDER REFLECTIONS
ELIZABETH DHLAMINI-KUMALO
21 June 2018
#SABPP2018AGM
2018 ANNUAL GENERAL MEETING

2. We made this promise to you at the end of 2016
when King IV was still a draft
• King IV provides many opportunities for HR to step up in
playing the HR Governance role. We need to apply our
corporate governance role as HR Directors. We also need
to develop an HR Governance Framework to strengthen
the HR value chain and all HR practices in support of good
corporate governance in the organisation. The SABPP HR
Governance Steering Group will lead these efforts.

3. HR Governance Committee
Elizabeth Michael Sivaan Getty
Dhlamini-Kumalo Glensor Marie Simelane
CHAIRPERSON VICE-CHAIRPERSON
Merriman
Ponoane

5. Evolution to HR governance
HR
Leader
(business partner)
HR
Governor
HR
Manager
HR
Regulator
P
e
r
f
o
r
m
a
n
c
e
High
Low
C o m p l i a n c e HighLow

6. Progress to date
• We have drafted and received input on a
Position Paper
• We were guided by Merriman Ponoane’s
thesis in developing the Position Paper
• Developed a working definition of HR
Governance

7. Draft Position Paper

8. Progress to date
We have been to 3 of our branches
• East London
• Port Elizabeth
• Mthatha
To share the work we have done and to get
their input

9. “Good human
resource
management is
imperative for
good governance”
Mervin King

10. Definition of Corporate
Governance
Corporate Governance is about the exercise
of ethical and effective leadership by the
governing body.
King IV™ (IODSA, 2016)

11. King IV Code of Corporate
Governance
CHAPTER AND CONTENT GOVERNANCE OUTCOME
Chapter 1: LEADERSHIP, ETHICS AND
CORPORATE CITIZENSHIP
Ethical leadership; Organisational values, ethics and
cultures, Responsible corporate citizenship
ETHICAL CULTURE (1-3)
Chapter 2: PERFORMANCE AND REPORTING
Strategy, implementation, performance, Report and
disclosure
PERFORMANCE AND VALUE CREATION
(4 -5)
Chapter 3: GOVERNANCE BODY STRUCTURES
AND DELEGATION
Role of the governing body, composition of the
governing body, committees of the governing body,
delegation to management and performance
evaluations
ADEQUATE AND EFFECTIVE CONTROL (6-10)
Chapter 4: GOVERNANCE FUNCTIONAL AREARS
Risk and opportunity governance, technology and
information governance, compliance governance,
remuneration governance and assurance
ADEQUATE AND EFFECTIVE CONTROL
(11- 15)
Chapter 5: STAKEHOLDER RELATIONSHIPS
Stakeholders (Responsibilities of shareholders)
TRUST, GOOD REPUTATION AND
LEGITIMACY (16-17)

12. KING IV ™ CODE ELEMENTS
Practices
Principles
Governance
Outcomes
Download full document: www.iodsa.co.za

13. STRENGTHS OF KING IV ™
• Ethical culture
• Integrated thinking
• Sustainable development
• Triple context – integrated/combined
• Social transformation
• Strategy, risk, opportunity, performance,
sustainable development – inseparable
• Digital communication platforms
• Information + technology

14. STRENGTHS OF KING IV ™
• Role of leadership upfront
• Leadership responsibility: Strategy, Policy,
Oversight, Disclosure
• Sector supplements (SMEs and NPOs etc)
• Role of board in broader society
• Governance as key enabler for growth

15. STRENGTHS OF KING IV ™
• Strong focus on role of CG in value-
creation and strategic goals
• Ethics + ethical leadership
• More systematic governance value-chain
(Strategy, Policy, Oversight, Disclosure)
• Ethical leadership + corporate citizenship
• Underpinning values: Fairness,
Responsibility, Accountability, Transparency

16. STRENGTHS OF KING IV ™
• Compliance
• Accountability in remuneration
• Strong assurance – combined assurance
• Shareholder activism
• Dispute resolution
• Practices, principles, governance
outcomes
• Mindful application
• Application – voluntary + legal

17. Companies Act, 2011
If Corporate Governance is about ethical and effective leadership, what is HR
Governance then?
HR Governance is about ethical and effective HR leadership.
Fulfilling our roles as board/exco members or prescribed officers (Companies Act).
Ensuring that HR adds value and providing assurance of HR work.
Leading to a working definition….

18. Companies Act, 2011
Describes the legal duties of a director: (inclusive view and
prescribed officers:
Directors: Two key duties(internationally accepted):
Duty of care, skill and diligence
Fiduciary duty
It is expected that directors act with utmost good faith
towards the company, must act with necessary skill and care
in performing their duties.
FIDUCIARY DUTIES
- act in good faith
- in the best interest of the company – avoid conflicts of
interest
- do not use position for personal gain
- exercise powers for the purpose for which they were
granted

19. Governance
“There is a commonly held belief that governance is
a tick-box system to ensure compliance to
legislation, regulations and financial reporting
standards. Governance is so much more than
that. It is a business philosophy that values the
establishment of a business foundation based
on sound decision-making capability, visionary
strategic thinking, sustainability and mobilising
the organisation to effectively and efficiently
support the vision.”
(Traversing the Avalanche by Carl Bates)

20. HR Governance
If Corporate Governance is about ethical and
effective leadership, what is HR Governance
then?
HR Governance is about ethical and effective
HR leadership.
Fulfilling our roles as board/exco members or
prescribed officers (Companies Act).
Ensuring that HR adds value and providing
assurance of HR work.
Leading to a working definition….

21. HR Governance
A working definition:
HR Governance: the act of leading, controlling and guiding people management in an
ethical, legitimate, fair and credible manner.
This will done in a sustainable manner, which ensures:
• Human dignity
• Alignment of the strategic people priorities of the organisation with business strategy
• Establishment and maintenance of sustainable relationships with the people
employed by the organisation, and people related stakeholders
• Enablement of consistent people related decision-making across the organisation
• Optimisation of the people performance of the organisation relative to its objectives,
now and in the future
• Mitigation of the organisation’s people risk
• Positioning HR as a key role-player in driving ethics in the organisation
• Reporting on the contribution of human capital to the sustainability of the organisation

23. HR Governance
Is about the human face of Governance
Is about the respect of the individual, the
human being, their contribution in the
organisation
The self respecting adult who is at work
commanding and deserving respect

24. © SABPP (2018)
GLOBAL
CONTINENT
UN
REGIONAL
NATIONAL/
SECTOR/INDUSTRY
ORGANI-
SATIONAL
HUMAN
(Self-
governance)
UN
WEFIIRF
ILO
ISO
OECD
IMF
WB
GRI
AU EUSADCBRICS
NDP
Laws
King IV
Risks
DoL
DHET
NQF
SAQA
Standards
6LEVELSOFHRGOVERNANCE

25. BUSINESS STRATEGY – HR BUSINESS ALIGNMENT
Strategic
HRM
49
Talent
Management
37
HR Risk
Management
54
FUNCTIONAL & CROSS FUNCTIONAL HR VALUE CHAIN
HR VALUE &
DELIVERY PLATFORM
Work-
force
Planning
48
Learning
53
Perfor-
mance
52
Reward
56
Well-
ness
59
ERM
61
OD
45
HR Service
Delivery
49
HR Technology
(HRIS) 49
Prepare
Imple-
ment
Review ImproveMEASURING HR SUCCESS 41
HR Audit: Standards & Metrics
HRCOMPETENCIES
AUDITED RATINGS – OVERALL AVERAGE
(39 companies audited)

26. Scope of HR Governance

27. HR GOVERNANCE FRAMEWORK FOR SOUTH AFRICA
CORPORATE GOVERNANCE LINK
Externalstakeholder
engagement
HR
CombinedAssurance
Corporate Governance
Structures
(Remco, Nomco, Socco)
Strategic HRM
HR Risk
Management
Other HR Governance structures
(Exco, EECo, Skillsco)
HR Policies
and
Standards
HR
Value Chain
Delivery
HR
Compliance
HR
Operating
Model:
Roles
HUMAN CAPITAL SCORECARD
Internalstakeholder
engagementin
HR-BUSINESS ALIGNMENT: BOARD HUMAN CAPITAL STRATEGY
HR Leadership
HRReporting
Talent
Management
SABPP (2018), Prof. T Veldsman and Prof. A Grobler
Organisationalvaluechain

28. Guidelines for HR Governance
• Develop clear approach to HR Governance
• Strengthen HR Risk Management
• Analyse the role and contribution of all your
governance structures/committees
• Assess the contribution of HR policies to
sound HR governance
• Position HR as a key stakeholder driving
ethics in the organisation
• Conduct HR Audits as part of combined
assurance

29. Key questions - HR Governance
• Do you have a framework for governing and managing HR from an HR GRC
perspective in your organisation?
• Does your top HR leader represent the HR function at Board or Exco level?
• How sound is HR governed at your organisation?
• Is your Board informed about HR governance issues?
• Do you have appropriate governance mechanisms or structures for HR
decision-making?
• Do you apply the King IV Code on governance in the way you do HR work?
• Do you comply with all HR and labour legislation in South Africa?
• Are your HR professionals registered as professionals - NQF Act?
• Does your organisation meet the requirements of the National HR
Management System standard?
• Have you HR function been audited internally and/or externally?
• Have you identified all the HR risks in your organisation?
• Have you developed risk mitigation strategies to address your HR risks?
• Do you have adequate controls in place to ensure that all HR is properly
governed?

30. HR Governance – the way forward
• Provide feedback by 30 June 2018 to the
HR Governance committee via email:
executiveoffice@sabpp.co.za
• HR Governance workshop : 24 July 2018
– Facilitation of HR Governance Position paper
– Finalization of the HR Governance framework
• See you there!

31. Acknowledgement

33. Conclusion
Let us make a contribution to good corporate
governance with good HR governance work. It
is time to clean up HR functions, and to create
the ripples of change, which start at the core
of human dignity…..