Why King V Matters for Every Organisation

On 31 October 2025, the Institute of Directors in Southern Africa (IoDSA) released the King V Code on Corporate Governance for South Africa.

What does this mean for your organisation – whether you’re a small business or a multinational? And how does King V differ from its predecessors (notably King IV, 2016)? 

Governance in a New Era

Corporate governance isn’t just for big, listed companies checking compliance boxes. Today, it’s about resilience, trust, competitiveness and sustainability. King V recognises that every organisation – regardless of size or sector – exists within social, economic and environmental systems where governance standards count.

Put simply: Good governance builds credibility and long-term value. It’s not just about avoiding risk, but about unlocking opportunity. For organisations that aim to thrive – not just survive – King V offers a modern compass. 

What’s New with King V

King V is not a radical overhaul, but an evolution that streamlines principles and aligns governance with contemporary realities.

Here are the key updates:

• Simplified structure and clearer language: The Code is presented as distinct documents, with the 17 principles under King IV consolidated to 13 under King V.
• Enhanced disclosure framework: King V continues the “apply-and-explain” model but adds a standardised disclosure template, improving transparency and comparability.
• Focus on value creation and sustainability: Governance is now tied more explicitly to purpose, strategy and long-term value, including social, environmental and economic impact. King V encourages “integrated thinking”, linking strategy to sustainable outcomes.
• Data, information and technology governance: Recognising the digital era, King V gives boards explicit responsibility for Artificial Intelligence (AI), cybersecurity, technology risk and privacy. Governance now extends into the tech-stack.
• Stakeholder relevance: The Code embeds the idea of “contextual embeddedness” i.e. that organisations exist within society and nature, and must account for broader stakeholders.
• Proportional application: The principles are universal, but practices should be scaled to fit an organisation’s size, complexity and resources. While small businesses need not mirror listed entities, they should apply the same spirit. 

How King V Applies to You

Whether you’re a small consultancy or a large enterprise, King V offers practical guidance:

• Start with mindset: Governance is about ethical and effective leadership, rather than just compliance. It influences how you make decisions, treat people, and build organisational resilience.
• Tailor your approach: The Code recognises that governance must be context-driven. A small business may adapt practices without diluting principles while focusing on material risks, strategy and stakeholder impact.
• Be transparent: The “apply-and-explain” model doesn’t demand lengthy reports. It asks for meaningful communication with all stakeholders (employees, clients, suppliers and communities) about how you’re aligning with good governance.
• Address technology and risk: Even smaller enterprises use data, cloud systems or AI tools. King V emphasises data ethics, security and privacy which are all areas increasingly defining reputation and compliance.
• Think beyond profit: King V reframes success around value creation beyond financial results. It asks: What legacy are we building? How do our actions affect society and the environment?
• Commit to continuous improvement: Governance is a dynamic process that involves ongoing reflection, adaptation and disclosure.

When It Takes Effect

King V applies to financial years beginning on or after 01 January 2026. Early adoption is encouraged as doing so signals a strong commitment to responsible, future-focused leadership. Organisations should use the time ahead to align governance frameworks and disclosures with the new standard. 

Leverage it to Your Benefit

King V is not just another compliance document. It’s a strategic framework for navigating a complex, interconnected and digital world. By embracing its principles early and tailoring them to your organisation’s context, you’ll strengthen trust, sustainability and long-term success.

Find the full King V Code and supporting documents on the IoDSA website: IoDSA: Publications – King V Report on Corporate Governance and Resources

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