, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
Please also note that the author of this document will not be responsible for any plagiarism you
commit.
Question 1
1. According to the ‘King Code of Governance’, called King IV, the principle regarding
stakeholders states the following: “As part of its decision-making in the best interests of the
organisation, the governing body should ensure that a stakeholder-inclusive approach is
adopted”.
1.1. What are the three factors that a company should prioritise to understand who their
stakeholders are, and by having a good relationship with them?
To understand who their stakeholders are and build strong relationships with them, a company
should prioritize three key factors: identifying stakeholder groups and their interests, engaging in
meaningful communication to understand their needs and expectations, and fostering trust through
transparency and accountability. These factors align with the principles of the King IV Code of
Governance, which emphasizes a stakeholder-inclusive approach to ensure that decision-making
serves the best interests of the organization. By prioritizing these elements, companies can create
mutually beneficial relationships, enhance stakeholder confidence, and ensure long-term
sustainability. While the specific three factors are not explicitly detailed in the provided excerpts, the
overarching principle of stakeholder inclusivity remains central to effective governance and
relationship-building.
1.2. How is the reputation of the Lonmin Platinum Mining Company, based on the case study?
Motivate your answer.
The reputation of the Lonmin Platinum Mining Company, as depicted in the case study, is
overwhelmingly negative due to its handling of the 2012 Marikana strike and the subsequent
massacre. The company’s failure to address miners' demands for better wages and improved living
conditions, coupled with its refusal to engage directly with workers, highlighted a lack of concern for
employee welfare. Lonmin’s close ties with the National Union of Mineworkers (NUM) and its
preference for state intervention over peaceful negotiation further damaged its credibility. The
involvement of senior executives, including Cyril Ramaphosa, in lobbying for police action against
striking workers exacerbated the situation, leading to widespread condemnation. The local
community’s anger and blame toward Lonmin for the tragic loss of life, along with revelations of
distorted media narratives, further tarnished its reputation. Overall, Lonmin’s actions during the
crisis portrayed it as unresponsive, heavy-handed, and ethically compromised, resulting in a severely
damaged public image.
Please also note that the author of this document will not be responsible for any plagiarism you
commit.
Question 1
1. According to the ‘King Code of Governance’, called King IV, the principle regarding
stakeholders states the following: “As part of its decision-making in the best interests of the
organisation, the governing body should ensure that a stakeholder-inclusive approach is
adopted”.
1.1. What are the three factors that a company should prioritise to understand who their
stakeholders are, and by having a good relationship with them?
To understand who their stakeholders are and build strong relationships with them, a company
should prioritize three key factors: identifying stakeholder groups and their interests, engaging in
meaningful communication to understand their needs and expectations, and fostering trust through
transparency and accountability. These factors align with the principles of the King IV Code of
Governance, which emphasizes a stakeholder-inclusive approach to ensure that decision-making
serves the best interests of the organization. By prioritizing these elements, companies can create
mutually beneficial relationships, enhance stakeholder confidence, and ensure long-term
sustainability. While the specific three factors are not explicitly detailed in the provided excerpts, the
overarching principle of stakeholder inclusivity remains central to effective governance and
relationship-building.
1.2. How is the reputation of the Lonmin Platinum Mining Company, based on the case study?
Motivate your answer.
The reputation of the Lonmin Platinum Mining Company, as depicted in the case study, is
overwhelmingly negative due to its handling of the 2012 Marikana strike and the subsequent
massacre. The company’s failure to address miners' demands for better wages and improved living
conditions, coupled with its refusal to engage directly with workers, highlighted a lack of concern for
employee welfare. Lonmin’s close ties with the National Union of Mineworkers (NUM) and its
preference for state intervention over peaceful negotiation further damaged its credibility. The
involvement of senior executives, including Cyril Ramaphosa, in lobbying for police action against
striking workers exacerbated the situation, leading to widespread condemnation. The local
community’s anger and blame toward Lonmin for the tragic loss of life, along with revelations of
distorted media narratives, further tarnished its reputation. Overall, Lonmin’s actions during the
crisis portrayed it as unresponsive, heavy-handed, and ethically compromised, resulting in a severely
damaged public image.
