Large South African Companies Research Articles

Signalling of internal audit effectiveness

The internal audit function is increasingly recognised as an important internal governance mechanism and consequently factors that contribute to its effectiveness are now an area of great interest to researchers and practitioners. This study draws on signalling theory to fill a gap in the internal audit effectiveness (IAE) literature by investigating which IAE signals are sent by large South African companies in their company reports. Using a self-developed IAE signalling frame, a content analysis was performed on the integrated reports and other annual reports of the top 100 listed companies in South Africa over a five-year period. Thereafter a multiple correspondence analysis was used to extract IAE signals. The results revealed that IAE disclosure patterns of South African listed companies follow the normative dictates of the King Code and the Companies Act. The study also discovered a low average IAE disclosure rate linked to non-mandatory disclosure requirements. Disclosing more detail on IAE represents a missed opportunity to signal superiority through voluntary communication of the IAE signals especially on internal aspects such as management support for internal audit recommendations and the continuous professional development of internal auditors.

The association between corporate social responsibility reporting and firm value for South African firms

Background: Corporate social responsibility (CSR) disclosure is widespread among the largest companies in South Africa due to the listing requirements of the Johannesburg Stock Exchange (JSE). These companies have also increasingly pursued external assurance of their CSR disclosures in recent years. The increased regulation of CSR disclosure and the increased rate of obtaining assurance of these disclosures motivated us to perform our study.Aim: To examine the association between CSR reporting, including both CSR disclosure and CSR assurance, and firm value of large South African companies.Setting: The JSE listing requirements place South Africa, the setting for our study, at the forefront of corporate governance and CSR reporting.Method: Tobin’s Q is used as a measure of firm value. Three measures of CSR disclosure and three of CSR assurance are used in this study. The measures are based on data collected by Klynveld Peat Marwick Goerdeler (KPMG) International on the CSR reporting practices of large South African companies. The sample period for this study coincides with the sample period covered in the KPMG surveys conducted during 2008, 2011 and 2013.Results: No significant association is found between CSR disclosure and firm value. However, a significant negative association is found between CSR assurance and firm value. Additional analysis found that the negative association between firm value and CSR assurance is more significant for companies that are not listed on the Socially Responsible Investment (SRI) index.Conclusion: The results found between CSR disclosure and firm value may suggest that firm value is unaffected by CSR disclosures. Taken together, the findings on CSR assurance and firm value and the additional analysis may suggest that in South Africa managers with negative CSR issues are more likely to obtain assurance on their CSR disclosure. The findings may be of interest to regulators when considering current and future disclosure and assurance requirements for CSR reporting in South Africa, as well as other parts of the world, shareholders when considering investment options, and managers when considering the benefit of certain CSR reporting practices.

Entrepreneurial Factors Affecting the Sustainable Growth and Success of a South African Construction Company

The study examines a case of how the South African construction industry nurtured an entrepreneur and a large successful entrepreneurial construction company, even though the founder had no formal education and the company was founded during the Apartheid era. The question of whether entrepreneurs are born or are made is based on the age-old question of nurture or nature. The paper presents the narratives of the successful entrepreneur Mr. Sam Lubbe and the business strategy he used in growing a sustainable business. The information presented is collected through a case study research approach. The data collected suggests that although Sam does not have any formal education, he succeeded based on the nurturing given to him when he had the opportunity to work for a large South African construction company, his innate characteristics of self-confidence, task–result orientation, and originality, as well as his planning for the future and the use of a unique business model which helped him access international construction work opportunities. The study of this particular individual and his unique company is significant because it further validates previous research undertaken in other contexts and sectors on the traits of entrepreneurs and the success of companies.

From the Big Five to the Big Four? Exploring extinction accounting for the rhinoceros

PurposeThe purpose of this paper is to explore a possible framework for extinction accounting which builds on but also extends significantly the existing GRI guidelines relating to species identified by the International Union for the Conservation of Nature Red List as under threat of extinction.Design/methodology/approachThe paper analyses disclosures relating to rhinoceros conservation and protection produced by top South African-listed companies in order to assess the current state of “extinction accounting”. Following this analysis, the authors explore and discuss a potential framework for extinction accounting which may be used by companies to demonstrate their accountability for species and disclose the ways in which they are working alone, and in partnerships, to prevent species extinction.FindingsCorporate disclosures relating to rhinoceros may be interpreted as emancipatory. The authors identify several disclosure themes dealing with rhinoceros in integrated and sustainability reports of large South African companies and on their websites. Contrary to initial expectations, there is evidence to suggest corporate awareness of the importance of addressing the risk of this species becoming extinct.Research limitations/implicationsThe authors have relied on public corporate disclosures and would like to extend the work further to include interview data for a further paper.Practical implicationsAn extinction accounting framework may be applied to corporate accounting and accountability for any species under threat of extinction. The framework may also be considered for use as a tool for institutional investors as well as NGO engagement and dialogue with stakeholder companies.Social implicationsThe rhinoceros has, from the analysis, significant cultural, heritage, eco-tourism and intrinsic value. Developing and implementing an emancipatory extinction accounting framework to prevent extinction will have a substantial social and environmental impact.Originality/valueThis is the first attempt to the knowledge to explore accounting for extinction and a possible extinction accounting framework. It is also the first attempt to investigate accounting and accountability for the rhinoceros.

Antecedents and outcomes of satisfaction in buyer–supplier relationships in South Africa: A replication study

Background: There is a clear difference of opinion amongst researchers on the interrelatedness of the variables trust, commitment, satisfaction, coordination, cooperation and continuity in a business-to-business (B2B) environment. The reason is that in previous studies much emphasis has been placed on creating and testing new theories, and not on providing practical generalities.Aim: The aim of this study was to determine how the variable satisfaction is positioned in relation to trust and commitment, and how satisfaction relates to the variables coordination, cooperation and continuity in a South African B2B environment.Setting: This study replicates a similar study conducted in 2013 in a B2B environment in South Africa and hopes to validate the outcome of that study by determining the relationship between the constructs postulated in the current study. The relationships between the different constructs in the proposed model will, therefore, provide a longitudinal perspective which is unique in terms of B2B research in South Africa.Methods: Both the original and replication studies followed a quantitative approach and targeted large companies in South Africa. In the original study, data were collected from 500 large South African companies, while in the replication study data were collected from 250 large companies. Structural equation modelling was used to analyse the data.Results: The findings specifically point to the need for organisations to direct resources towards the establishment of relationships that are founded on trust and commitment. Doing so will help ensure increased satisfaction, which, in turn, will result in greater coordination and cooperation in B2B relationships as well as long-term continuation of the relationship.Conclusion: The foundation for strong B2B relationships is to secure customer satisfaction. Business managers ought to understand that when business customers are dissatisfied, it can result in the discontinuation of the business relationship.

The psychometric properties of a shortened corporate entrepreneurship assessment instrument

Background: The entrepreneurial climate in organisations is often seen as an important antecedent to innovation and organisational success. Assessing the nature of the climate in a reliable and valid manner is essential, as this will guide the implementation of appropriate interventions where necessary as well as assessing the effects of such interventions.Aim: The aim of this research was to evaluate the psychometric properties of a measure of entrepreneurial climate. Entrepreneurial climate was measured using a shortened version of the Hornsby, Kuratko and Zahra (2002) instrument, called the Corporate Entrepreneurship Assessment Instrument (CEAI). Making information on the psychometric properties of the instrument available directly relates to its utility.Setting: The setting was medium to large South African companies. A random sample of employees was drawn from 53 selected companies across South Africa, with 60 respondents per company (N = 3 180).Methods: A cross-sectional survey design was used. Several instruments were administered, including the shortened version of the CEAI. Cronbach’s alpha was used to test for reliability and several methods were used to test for validity. Correlation analysis was used to test for concurrent validity, convergent validity and divergent validity. Principle component factor analysis was used to test for factorial validity and a t-test to test for known-group validity.Results: The results showed that the reliability for the total score of the shortened version of the CEAI was acceptable at 0.758. The results also showed some evidence of concurrent validity, as well as homogeneity among the items. With regard to factorial validity, all items loaded in accordance with the subscales of the instrument. The measure was able to distinguish, as expected, between government organisations and private business entities, suggesting known-group validity. Convergent validity and divergent validity were also assessed. Interesting to note was that entrepreneurship climate correlates more with general employee attitude (e.g. employee engagement; R= 0.420, p < 0.001 and organisational commitment, R = 0.331, p < 0.001) than with self-reported innovation (R = 0.277, p < 0.001 and R = 0.267, p < 0.001).Contribution: This paper not only provided information on the reliability and validity of the shortened version of the CEAI in the South African context but also provides norms to be used when researchers or consultants work with smaller groups. Recommendations on the appropriate use of the instrument are offered and this contributes to the responsible use of the instrument.

Between a rock and a hard place: Management and implementation teams’ expectations of project managers in an agile information systems delivery environment

Background: To address the low success rate in information system (IS) projects, organisations in South Africa are adopting agile implementation methodologies. Agile delivery environments advocate an iterative approach where autonomous, self-organising teams share project management (PM) activities. This encroaches on the traditional project manager role. Are project managers still relevant in agile delivery environments and how should they adapt?Objectives: This case study investigated how project managers could adapt to agile IS implementation environments to remain relevant. Specifically, the views of their key stakeholders (the management and implementation teams) were elicited to provide insights into what is expected from agile project managers.Method: A qualitative, inductive content analysis approach using purposive sampling was used to identify 13 participants (comprising management and implementation team members) within a large South African insurance company. Semi-structured interviews were conducted with all participants.Results: The management and implementation teams agreed that PM remains highly relevant in an agile environment for ensuring project governance including delivery, risk management, reporting and budgeting. There was, however, disagreement between the management and implementation teams on project management interaction with the implementation team. Management preferred a command and control type project manager, while the implementation team favoured a more inclusive, facilitative PM style.Conclusion: To remain viable in an agile IS project implementation environment within large corporates, project managers need to be aware of what various stakeholders expect of them. They need to retain some of the classic PM functions while adapting to the interpersonal and collaborative requirements of the agile way.

Initial trends in corporate disclosures following the introduction of integrated reporting practice in South Africa

PurposeThe purpose of this paper is to explore the implications of IR reforms in South Africa on corporate disclosure practices of South African companies. In particular, the authors explore initial trends in corporate disclosures following the adoption of IR practice.Design/methodology/approachDrawing from Suchman’s (1995) framework of strategic and institutional legitimacy, the authors use content analysis to examine corporate disclosure practices. The authors conduct industry-specific analyses based on various industries to explore corporate disclosures practices across and within various industries in South Africa. The evidence is drawn from 246 integrated reports of large South African companies across six major industries over a three-year period (2011-2013), a period following the introduction of an “apply or explain” IR requirement in South Africa.FindingsThe results first show a significant increase in the overall amount of corporate disclosures following the adoption of IR practice. In particular, the authors find that intellectual capital and human capital disclosure categories have increased over time, with relational capital disclosures showing a decreasing trend. Second, the authors find that corporate disclosures are increasingly becoming institutionalised over time across and within industries following the adoption of IR practice. However, companies fail to provide meaningful disclosures on the interdependencies and trade-offs between the capitals, or components of a capital following the adoption of IR practice. Overall, the authors find that companies use specific disclosure strategies to respond to external pressures (strategic legitimacy), and that such disclosure strategies are increasingly becoming institutionalised across and within various industries (institutional legitimacy).Practical implicationsThe theoretical implication of this study is that the strategic and institutional perspectives of legitimacy theory are complementary, rather than conflicting, and dovetail to explain corporate reporting practices. In terms of practical implications, the adoption of specific reporting frameworks such as the emerging IR framework is a double-edged sword. On the one hand, such reporting frameworks could potentially enhance comparability and consistency of organisational reports across and within industries. On the other hand, corporate reports could become a set of monotonous reports motivated by considerations other organisational accountability. Hence, to overcome the latter, this study emphasises the importance of specific accountability metrics and reporting guidelines, rather than the current generic IR guidelines, to enhance organisational reporting practices.Originality/valueThe paper’s longitudinal analysis of a large sample of integrated reports following the adoption of IR practice has the potential to inform growing academic research and ongoing policy initiatives for the emerging IR agenda.

An analysis of the financial reporting compliance of South African public agricultural companies

This article assesses the extent to which South African public companies that are engaged in agricultural activities are complying with the compulsory recognition and measurement and compulsory and voluntary disclosure requirements of IAS 41 Agriculture. Sixteen large South African public companies with material holdings of biological assets in their statements of financial position were selected for analysis. The results of the analysis show that the majority of South African agricultural companies are using fair value to measure their biological assets at initial recognition as well as at the end of each reporting period. Most of these companies are complying with the compulsory disclosure requirements of IAS 41, and are also providing certain of the recommended voluntary disclosures listed in IAS 41. The study concludes that the measurement methods used by companies to value their biological assets and the nature and extent of both compulsory and voluntary disclosures of these assets are sector-specific. This is consistent with previous research findings. This study contributes to the existing literature by providing a baseline on the financial reporting of agricultural entities in South Africa prior to the implementation of IFRS 13.

Audit committee and integrated reporting practice: does internal assurance matter?

Purpose This paper aims to examine the role of the audit committee function as an internal assurance provider in the emerging integrated reporting (IR) practice. In particular, the authors examine the role of the overall effectiveness, as well as specific aspects, of the audit committee function in IR practice. Design/methodology/approach The authors examine the integrated reports of 246 firm-year observations of large South African companies over a three-year period (2011-2013), following the introduction of an “apply or explain” IR requirement and an embedded “combined assurance” model in South Africa. Drawing from conflicting theoretical perspectives of economics-based (e.g. agency theory) and socio-political theories (e.g. legitimacy theory), the authors develop competing hypotheses to predict the role of the overall, as well as specific aspects, of the audit committee function in IR practice. Findings Consistent with the predictions of economics-related theories, the authors find that the overall effectiveness of the audit committee function has a strong positive association with the extent and quality of IR practice. In particular, audit committee authority and meetings are shown to have a significant positive impact on IR practice. However, as implied by socio-political theories, the authors do not find a significant association between key aspects of the audit committee function such as audit committee independence and financial expertise and IR practice. Practical implications This study informs local and international regulatory authorities, as well as the business community, about the potential significance of internal assurance mechanisms such as the audit committee function in the emerging IR practice. Given the practical challenges associated with independent external assurance provisions, the findings of this study suggest that internal assurance mechanisms – such as the audit committee function – can be genuine and cost-effective alternative assurance mechanisms in enhancing the credibility and reliability of non-financial reporting practices, particularly the emerging IR practice. The results also inform academic researchers to take cognisance from the expanding roles and responsibilities of audit committees and conduct in-depth investigation on “how” the audit committee function is handling the increasing responsibilities. Originality/value The study provides initial empirical account towards the role of the audit committee function in the emerging IR practice. The study is novel because it shows the significance of internal assurance mechanisms in wider organisational reporting practice.

The trend of integrated reporting practice in South Africa: ceremonial or substantive?

Purpose The purpose of this paper is to examine the trend of integrated reporting (IR) practice following the introduction of an “apply or explain” IR requirement in South Africa. In particular, the authors examine whether the IR practice is ceremonial or substantive in the context of a soft regulatory environment. Design/methodology/approach By way of content analyses, the authors examine the extent and quality of IR practice using an IR checklist developed based on normative understanding of existing IR guidelines. The evidence is drawn from 246 integrated reports of large South African companies over a three-year period (2011-2013), following the introduction of IR requirement in South Africa. Findings The results show a significant increase in the extent and quality of IR practice. The findings also reveal significant improvements in individual IR categories such as connectivity of information, materiality determination process and reliability and completeness of the integrated reports. However, despite the increasing trend and evidence of both symbolic and substantive IR practice, the authors conclude that the current IR practice is largely ceremonial in nature, produced to acquire organisational legitimacy. Practical implications For academics, the authors argue that there is a need to move away from the “what” and “why” aspects of the IR agenda to “how” IR should work inside organisations. In particular, academics should engage with firms through interventionist research to help firms implement integrated thinking and substantive reporting practices. For organisations, the findings draw attention to specific aspects of IR that require improvement. For policymakers, the study provides evidence based on the developmental stage of IR practice and draws attention to certain areas that need clarification. In particular, the International Integrated Reporting Council and Integrated Reporting Committee of South Africa should provide detailed guidelines on connectivity of information, material issues and disclosure of multiple capitals and their trade-offs. Finally, for educators, in line with the ACCA’s embedment of IR in its accounting courses, there is a need to incorporate IR in the curriculum; in particular, the authors argue that the best way to advance IR is in a “ubiquitous” spread in accounting and management courses. Originality/value This study provides empirical account of IR practice over time in the context of a regulatory IR environment. The construction of an IR checklist developed based on normative understanding of local and international IR guidelines is another novel approach of this study.

Tensions, ambivalence, and contradiction: a small story analysis of discursive identity construction in the South African workplace

AbstractRecently there has been an increased focus on narratives produced within or about the workplace. A number of different analytical approaches to narrative exist and there has been quite a vigorous debate between researchers interested in life stories (or so-called big stories) and those researchers proposing an increased focus on small stories. This paper will use small story analysis (SSA) to examine workplace identity in discourses on organizational processes in one workplace in South Africa. The data for this study were collected by conducting interviews and focus group discussions with 19 members of a large South African retail company. We find that participants often introduce small stories which offer discourses that contradict or contest “official” company discourses (or the so-called sanctioned grand narrative stories). We argue that small stories can be a valuable resource to investigate organizational discourses, as participants often introduce questions of identity which do not necessarily fit the dominant organizational discourses through small stories. Small story analysis seems to be an ideal tool to investigate contradictions and inconsistencies which occur in all discourses but are typical of contexts of diversity and transformation such as the South African workplace.

Generational Sub-cultures: Generation Y a Sub-culture?

The aim of this study was to determine (1) if there is a difference between Baby Boomers’, Generation X’s and Generation Y’s perceptions of organisational culture and if so, (2) to determine if generational sub-cultures are formed within an organisation as a result of these different perceptions. A qualitative research design was utilised that sampled employees (n = 455) within a large South African ICT company who completed the South African Culture Instrument (SACI). The data was statistically analysed to determine employees’ perceptions of organisational culture and to establish if generational sub-cultures exist within the organisation. This study indicates that generational sub-cultures can be identified within the organisation based on significantly different perceptions of five of the seven dimensions of organisational culture examined. Identifying generational sub-cultures within an organisation can lead to the development of an organisational talent management strategy for effectively attracting, managing and retaining generationally-diverse employees. DOI: 10.5901/mjss.2014.v5n21p147

USING THE BUSINESS ENGINEERING APPROACH IN THE DEVELOPMENT OF A STRATEGIC MANAGEMENT PROCESS FOR A LARGE CORPORATION: A CASE STUDY

Most South African organisations were historically part of a closed competitive system with little global competition and a relatively stable economy (Manning: 18, Sunter: 32). Since the political transformation, the globalisation of the world economy, the decline of world economic fundamentals and specific challenges in the South African scenario such as GEAR and employment equity, the whole playingfield has changed. With these changes, new challenges ', appear. A significant challenge for organisations within this scenario is to think, plan and manage strategically. In order to do so, the organisation must understand its relationship with its environment and establish innovative new strategies to manipulate; interact with; and ultimately survive in the environment. The legacy of the past has, in many organisations, implanted an operational short-term focus because the planning horizon was stable. It was sufficient to construct annual plans rather than strategies. These plans were typically internally focused rather than driven by the external environment. Strategic planning in this environment tended to be a form of team building through which the various members of the organisation 's management team discussed and documented the problems of the day. A case study is presented of the development of a strategic management process for a large South African Mining company. The authors believe that the approach is a new and different way of addressing a problem that exists in many organisations - the establishment of a process of strategic thinking, whilst at the same time ensuring that a formal process of strategic planning is followed in order to prompt the management of the organisation for strategic action. The lessons that were drawn from this process are applicable to a larger audience due to the homogenous nature of the management style of a large number of South African organisations.

Assessment of talent retention strategies: The case of a large South African company (CSA)

The primary purpose of this study is to investigate the extent to which the key elements of talent management (TM) and employee engagement (EO) are being utilized to retain employees at a large South African Company (herein-often referred to as CSA). Skills shortages have become a feature of the South African business environment. As such competition to attract human capital in the form of talented individuals and the ability to retain them have become a major competitive consideration even when compared to other competitive dimensions such as capital, strategy and even research and development. Although the South African Company (CSA), is committed on paper to appointing, developing and retaining talented employees it is unclear as to how successful this strategy is, given the high turnover rates. The study therefore seeks to assess the extent to which talent management as a competitive device is being implemented successfully. Much of the available literature has concentrated on the key strategies that lead to talent management and employees retention in countries and settings that are outside Africa. The lack of scholarly investigation of this phenomenon in Africa where the reality of brain drain is constantly being published, suggests that there is an important lacuna with respect to the African setting and in particular post-apartheid South Africa which has witnessed significant brain drain. There is therefore an important need for such a study in order to inform the African context and specifically the South African environment. The study applies an adapted Gallup Workplace Audit (or GWA) developed by Kahns (1990) and refined by Bhatnagar (2007). The GWA dimensions consist of 12 areas covering retention of employees, business unit productivity, profitability and customer loyalty (Buckingham and Coffman, 1999). It is argued that managers need to attend to these key dimensions in order to ensure better talent management practices. The study undertakes a de-constructivist approach, which entails the use of quantitative research techniques in the form of structured questionnaires based on the Gallup Workplace Audit (GWA). The study utilises a descriptive design in order to ascertain the extent of employee engagement in the case of SA. The study sampled a number of managers and employees at SA to ascertain the extent to which these samples agree that talent management is practiced in this organization. The main finding is that despite CSA’s commitment to retaining talent, this study finds that these employee engagement strategies in a few important instances may only be partially realised. Key words: Employee engagement, talent management, employee retention, gallup workplace audit (GWA), South Africa.

Staff perceptions of organisational values in a large South African manufacturing company: exploring socio-demographic differences

Orientation: Companies’ concerns about increasing their competitiveness, responsiveness and adaptability in a globalised, highly complex and turbulent business environment have led to a renewed interest in the role of corporate values and culture in improving organisational effectiveness and performance.Research purpose: The objective of the study was to explore the perceptions of men and women staff members, as well as members of various race and age groups, in a large South African manufacturing company about the current enactment of organisational values and the importance of these values.Motivation for the study: The challenge of managing multi-cultural work forces from different gender, race and generational backgrounds makes an understanding of how peoples’ values align with those of their organisations, as reflected in their cultures, necessary. Research design, approach and method: Using an organisational values scale, the researchers conducted a quantitative survey on a random sample of 988 participants employed in a large South African manufacturing company.Main findings: ANOVAs and post hoc multiple comparison of means tests revealed that gender, race and age have a significant effect on some of the dimensions of organisational values and that these biographical groups differ significantly in their perceptions of the importance of certain organisational values as well as how their organisations enact them.Practical/mangerial implications: The findings highlight the importance of understanding staff perceptions in creating greater commitment to organisational values as important aspects of an effective organisational culture.Contribution/value-add: This study is original research that contributes new knowledge to the field of organisational psychology and management practices.

Critical elements in defining work-based identity in a post-apartheid South Africa

Orientation: The main focus of the study was to answer the question: ‘Who am I at work?’ in a post-apartheid South African organisation.Research purpose: The aim of the specific research questions was to determine which life sphere and life role elements, and which work-based identity facets were significant in forming work-based identity.Motivation for the study: The findings of the study will enable the formulation of an integrative definition of work-based identity applicable to the South African context.Research design, approach and method: Qualitative data was collected by means of unstructured interviews with 29 employees representing a range of job titles, levels and demographics in a large South African manufacturing company. A grounded theory approach (open and axial coding) was used to analyse the data.Main findings: Distinctive individual self-definitions and a number of common themes integrating social and personal identity perspectives emerged from the data. These themes provided a sound basis for the proposed integrative model to define work-based identity.Practical/managerial implications: The findings of this research will assist human resource practitioners to develop training interventions and management strategies for the potential enhancement of work-based identities. This will result in a more engaged and harmonised workforce.Contribution/value-add: This was the first study of its kind to identify and delineate significant work-based identity elements for the formation of a work-based identity within a South African work context.

Perceptions on the value added by South African internal audit functions

This article explored the perceptions on value added by internal audit functions (IAFs) of South African companies. Six attributes of value added by IAFs (including in-house, outsourced and co-sourced activities) were investigated: organizational status, staffing and work environment, the extent to which IAFs’ recommendations are implemented, risk assessments, internal audit services and performance measures. Data was gathered via questionnaires from the chief executive officers (CEOs) or the chief operating officers (COOs) or the chief financial officers (CFOs), audit committee chairpersons (CACs) as well as the chief audit executives (CAEs) of 30 large South African companies. The findings revealed that IAFs are perceived to add value. With reference to the attributes investigated, it was found that IAFs report to the CACs, recommendations of IAFs are implemented, IAFs are well managed and not exploited by other functions within the organization and IAFs add value with regard to risk. Given the evolution of internal audit in recent years and the different attributes used in the literature to measure value-adding IAFs, further research could be conducted to identify generally accepted value-added attributes for IAFs, including those in the public sector. Key words: Internal audit, internal audit quality, quality internal audit function, internal audit attributes, internal audit value added.

HIV epidemiology and trends in a large national manufacturing company in South Africa, 2001–2006

This paper presents epidemiological data from ongoing HIV-prevalence surveillance in a large South African manufacturing company located in various provinces, as well as one location in Swaziland. A survey of the workforce in 12 of the manufacturer's business units (BUs) throughout these locations was carried out in 2001–2003, and each was repeated three years later, in 2004–2006. The company is typical of manufacturing in South Africa, in that it is labour-intensive, male-dominated, and has high proportions of semi-skilled and unskilled employees. The surveys were anonymous, cross-sectional and unlinked. The workforce was stratified at the level of analysis by workplace, geographical location, job status (permanent or contract), job skill level, and age group. In 2001/3 a total of 5 177 permanent employees, representing 76% of those on duty at the time, plus 1 966 contract employees were surveyed. In 2004/6, 5 445 permanent employees, representing 81% of those on duty, and 2 688 contract employees were surveyed. HIV prevalence in the 2004/6 survey ranged from 0.9–30.7% throughout the 12 BUs, with a mean of 15.4%, showing an increase from the previous mean of 13% prevalence in the 2001/3 survey of the same locations (p = 0.0001). Differences in HIV prevalence across the BUs were determined by geographical location and the profile of the workforce. Similar proportions of contract employees were found to be HIV-positive in the initial survey and repeat survey (23% and 24.5%, respectively). HIV prevalence was inversely proportionate to permanent employees' job skill level. The 2004/6 data show lowest HIV prevalence in the upper-management category (3.6%) and highest prevalence in the unskilled category (22.6%). HIV prevalence did not increase in the upper- and middle-management categories but increased significantly in the skilled (p = 0.02), semi-skilled (p < 0.001) and unskilled (p < 0.001) job categories. HIV prevalence was similar among contract employees and unskilled permanent employees. Race (not considered in the study) may in part confound these findings. In both surveys, HIV prevalence was highest in the age group 30–39. Prevalence did not increase between surveys in the age group 18–29; however, significant increases occurred in the age groups 30–39 and 40–49 (p < 0.001), and possibly also in the age 50+ category (p = 0.09).

Perceptions of the corporate identity management process in South Africa

This article reports on a qualitative study of how the corporate identity management process is perceived and managed by senior executives in large South African companies. The concepts of identity, corporate reputation, corporate branding, and the corporate identity management process are discussed. It is suggested that these concepts create confusion among executives and academics and therefore the image and reputation of a company may be affected. Results are reported from an in-depth study of 14 senior managers and directors from 8 large companies. Key recommendations are made and a step-by-step guide is given on how to develop an effective and successful corporate identity, leading to a good reputation in the long term.