The 2024 Social and Ethics Committee (SEC) Trends Survey Report by the Institute of Directors in South Africa (IoDSA) and The Ethics Institute notes the latest SEC trends in South African organisations.
This fifth annual survey of SEC chairs saw a notable diversity shift, with women now comprising 55% of SEC membership, surpassing male representation for the first time. While SEC members are primarily African professionals with business-related experience, a slight increase in social sciences representation suggests greater governance approach to social issues. The report notes that 139 chairs responded to the survey, with respondents representing organisations in the public sector, state-owned companies, private businesses, listed entities and nonprofit organisations.
Organisations demonstrated a greater commitment to dedicated social and ethics governance. Eighty-two percent of SECs function as standalone committees. Where overlap with other committees exists, perceptions of overlap have declined.
SECs reported their interests as largely aligning with South Africa’s regulatory landscape and social priorities. Focus areas include organisational ethics, fraud prevention, Broad-Based Black Economic Empowerment (BBBEE), employee health and safety, and employment equity. Emerging global issues and risks such as artificial intelligence and climate change received less time investment.
The survey suggested improved perceptions of SEC effectiveness and revealed increased confidence in regulatory frameworks, including the Companies Act of 71 of 2008 and King IV Report on Corporate Governance for South Africa 2016 recommendations.
Looking ahead, the report emphasises two critical areas for SEC advancement, namely expanding focus on emerging risks and enhancing education and resources. As SECs face growing responsibilities, particularly in Environment, Social and Governance (ESG) matters, the report recommends prioritising capacity building within organisations to support implementation and reporting.
Trialogue is a contributor to the IoDSA’s SEC sub-committee working group.
Read the full report: Social and Ethics Committee Trends Survey Report 2024