Corporate governance and corporate collapse: the failure of Steinhoff

Abstract

This research will evaluate the corporate governance practices of Steinhoff International Holdings N.V. from December 2017, when the scandal started, until 30 April 2023. The assessment contains several newspaper articles that reflected the timeline of the events as they unfolded. The annual reports of Steinhoff are the most important documents that were produced by the company reflecting the corporate governance policy and practices during a specific financial year.

The research aims to examine the role of corporate governance measures in South African company law to prevent future corporate collapses. The failure of Steinhoff International N.V.¹ ("Steinhoff") will serve as a case study to indicate the success or failure of corporate governance measures in South Africa. This study investigates corporate governance and the board of directors’ responsibilities in South African companies with specific reference to Steinhoff to investigate whether the directors of Steinhoff fulfilled these responsibilities. Therefore, the thesis's primary objective is to investigate and evaluate corporate governance measures and interventions in order to determine why the measures do not prevent corporate collapses. Secondly, the thesis aims to evaluate legislation and other measures in South Africa, Germany, Australia and the United States of America to make recommendations for preventing future corporate catastrophes. The global corporate governance failures were severe. It seems as if fraud and corruption may be the major sources of these corporate collapses. In most instances, there is either the active involvement of the directors and managers in these fraudulent or corrupt practices, or there is either a negligent or even intentional failure to act by directors to prevent these activities.

The study shows that the prevention of corporate failure remains a complex endeavour. Legislation, codes of conduct, structures, and processes cannot resolve all problems on their own. The ethical and responsible behaviour of company directors, managers, and officers is crucial. Regardless of the outcome of any legal proceedings, the collapse of Steinhoff demonstrates the crucial role of the companies’ board, company secretary, auditors, directors, shareholders, and other stakeholders in assuring compliance with all applicable legislation and it operates with integrity and transparency. I believe that, similar to Enron, Steinhoff will become the new benchmark for corporate governance failures.

Hierdie navorsing evalueer die korporatiewe bestuurspraktyke van Steinhoff International Holdings vanaf Desember 2017, toe die skandaal begin het, tot 30 April 2023. Die evaluering bevat verskeie koerantartikels wat die tydlyn van gebeure weerspieël soos dit ontvou het. Die jaarverslae van Steinhoff is die belangrikste dokumente wat deur die maatskappy opgestel is en wat die korporatiewe bestuursbeleid en -praktyke gedurende ’n spesifieke finansiële jaar weerspieël. Die navorsing het ten doel om die rol van korporatiewe bestuursmaatreëls in die Suid-Afrikaanse maatskappyereg te ondersoek ten einde toekomstige korporatiewe ineenstortings te voorkom. Die mislukking van Steinhoff International Holdings (“Steinhoff”) sal dien as ’n gevallestudie om die sukses of mislukking van korporatiewe bestuursmaatreëls in Suid-Afrika aan te toon. Hierdie studie ondersoek korporatiewe bestuur en die verantwoordelikhede van die direksie in Suid-Afrikaanse maatskappye, met spesifieke verwysing na Steinhoff, om vas te stel of die direkteure van Steinhoff aan hierdie verantwoordelikhede voldoen het. Die primêre doelwit van die navorsing is dus om korporatiewe bestuursmaatreëls en ingrypings te ondersoek en te evalueer ten einde vas te stel waarom hierdie maatreëls nie korporatiewe ineenstortings voorkom nie. Tweedens poog die studie om wetgewing en ander maatreëls in Suid-Afrika, Duitsland, Australië en die Verenigde State van Amerika te evalueer om aanbevelings te maak vir die voorkoming van toekomstige korporatiewe katastrofes. Die wêreldwye mislukkings in korporatiewe bestuur was ernstig. Dit blyk dat bedrog en korrupsie moontlik die hoofbronne van hierdie korporatiewe ineenstortings is. In die meeste gevalle is daar óf aktiewe betrokkenheid van direkteure en bestuurders by hierdie bedrieglike of korrupte praktyke, óf ’n nalatige of selfs doelbewuste versuim van direkteure om op te tree om hierdie aktiwiteite te voorkom. Die studie toon dat die voorkoming van korporatiewe mislukking ’n komplekse onderneming bly. Wetgewing, gedragskodes, strukture en prosesse kan nie alle probleme op hul eie oplos nie. Die etiese en verantwoordelike gedrag van maatskappydirekteure, bestuurders en beamptes is van kardinale belang. Ongeag die uitkoms van enige regsgedinge, demonstreer die ineenstorting van Steinhoff die kritieke rol van die maatskappy se direksie, maatskappysekretaris, ouditeure, direkteure, aandeelhouers en ander belanghebbendes in die versekering van die nakoming van alle toepaslike wetgewing en dat die maatskappy met integriteit en deursigtigheid funksioneer. Uit hierdie studie blyk dit dat Steinhoff, soortgelyk aan Enron, die nuwe maatstaf vir korporatiewe bestuursmislukkings sal word.

Diphuputso tsena di tla lekola mekgwa wa tsamaiso ya kgwebo ya Steinhoff International Holdings N.V. ho tloha ka Tshitwe 2017, ha koduwa e qala, ho fihlela ka la 30 Mmesa 2023. Tlhahlobo ena e na le dihlooho tse mmalwa tsa dikoranta tse bontshang tatellano ya diketsahalo ha di ntse di etsahala. Ditlaleho tsa selemo le selemo tsa Steinhoff ke ditokomane tsa bohlokwa ka ho fetisisa tse hlahisitsweng ke khamphani tse bontshang leano le mekgwa ya puso ya dikgwebo selemong se itseng sa ditjhelete. Diphuputso tsena di reretswe ho hlahloba karolo ya mehato ya tsamaiso ya dikgwebo molaong wa dikhamphani wa Afrika Borwa ho thibela ho wa ha dikgwebo nakong e tlang. Ho wa ha Steinhoff International NV 1 ("Steinhoff") ho tla sebetsa e le diphuputso tse ikgethileng ho bontsha katleho kapa ho hloleha ha mehato ya puso ya dikgwebo Afrika Borwa. Diphuputso tsena di fuputsa tsamaiso ya dikgwebo le boikarabelo ba lekgotla la batsamaisi dikhamphaning tsa Afrika Borwa. Ka ho qolleha di bua ka Steinhoff ho fuputsa hore na batsamaisi ba Steinhoff ba phethahatsa boikarabelo bona. Ka hona, sepheo sa diphuputso tsena ke ho fuputsa le ho lekola mehato ya puso ya dikgwebo le ho kenella e le ho fumana hore na ke hobaneng ha mehato eo e sa thibele ho wa ha dikgwebo. Ntlha ya bobedi, diphuputso tsena di ikemiseditse ho lekola melao le mehato e meng Afrika Borwa, Jeremane, Australia le United States of America ho etsa dikgothaletso bakeng sa ho thibela dikoduwa tsa kgwebo nakong e tlang. Ho wa ha tsamaiso ya dikgwebo lefatsheng ka bophara ho ne ho tebile. Ho bonahala eka bolotsana le bobodu e ka nna yaba ke tsona disosa tse ka sehloohong tsa ho wa ha dikgwebo tsena. Maemong a mangata, ho na le ho ameha ha batsamaisi mesebetsing ena ya bolotsana kapa ya bobodu, kapa ho na le ho se tsotelle kapa esita le ho hloleha ho etsa ka boomo ke batsamaisi ho thibela mesebetsi ena. Diphuputso di bontsha hore ho thibela ho wa ha dikgwebo e ntse e le boiteko bo thata kapa qaka. Melao, melao ya boitshwaro, mehaho le mekgwa di ke ke tsa rarolla mathata ohle ka botsona. Boitshwaro bo nang le boikarabelo ba batsamaisi ba dikhamphani, batsamaisi le diofisiri, bo bohlokwa haholo. Ho sa tsotellehe phello ya dinyewe leha e le dife, ho wa ha Steinhoff ho bontsha karolo ya bohlokwa ya lekgotla la dikhamphani, mongodi wa khamphani, bahlahlobi ba dibuka, batsamaisi, ba nang le kabelo le ba bang ba nang le thahasello ho nnetefatsa hore ho latelwa melao yohle e sebetsang mme e sebetsa ka botshepehi, le ka ho hlaka. Ke dumela hore, jwaloka Enron, Steinhoff e tla ba tekanyetso e ntjha ya ho hloleha ha puso ya kgwebo.

Lolu cwaningo luzohlola izinqubo zokuphatha izinkampani ze-Steinhoff International Holdings N.V. kusukela ngoZibandlela 2017, ngesikhathi kuqala ihlazo, kuze kube umhla zingama-30 kuMbasa 2023. Ukuhlola kuqukethe izihloko zamaphephandaba ezimbalwa ezibonisa umugqa wesikhathi sezenzakalo njengoba zenzeka. Imibiko yonyaka ye-Steinhoff iyimibhalo ebaluleke kakhulu ekhiqizwe yinkampani ekhombisa inqubomgomo kanye nezindlela zokuphatha ngokubambisana phakathi nonyaka wezimali othize. Ucwaningo luhlose ukuhlola indima yezinyathelo zokuphatha izinkampani emthethweni wezinkampani waseNingizimu Afrikha ukuvimbela ukuwa kwezinkampani esikhathini esizayo. Ukwehluleka kwe-Steinhoff International N.V.¹ ("Steinhoff") kuzosebenza njengesibonelo sokukhombisa impumelelo noma ukwehluleka kwezinyathelo zokuphatha ngokubambisana eNingizimu Afrikha. Lolu cwaningo luphenya ngokuphathwa kwebhizinisi kanye nezibopho zebhodi labaqondisi ezinkampanini zaseNingizimu Afrikha kubhekiselwa ku-Steinhoff ukuze kuphenywe ukuthi abaqondisi bakwaSteinhoff bazifezile yini lezi zibopho. Ngakho-ke, inhloso eyinhloko yomqulu wocwaningo ukuphenya nokuhlola izinyathelo zokuphatha nokungenelela ukuze kutholwe ukuthi kungani izinyathelo zingakuvimbi ukuwa kwebhizinisi. Okwesibili, umqulu wocwaningo uhlose ukuhlola umthetho nezinye izinyathelo eNingizimu Afrikha, eJalimane, e-Australia naseMelika ukwenza izincomo zokuvimbela izinhlekelele zezinkampani ezizayo. Ukwehluleka kokuphathwa kwebhizinisi emhlabeni wonke kwakukubi kakhulu. Kubonakala sengathi ukukhwabanisa nenkohlakalo kungase kube yimithombo emikhulu yalokhu kuwa kwezinkampani. Ezimweni eziningi, kuba khona ukubandakanyeka okuqinile kwabaqondisi nabaphathi kule mikhuba yokukhwabanisa noma yenkohlakalo, noma kuba nobudedengu noma ngamabomu ukwehluleka ukuthatha izinyathelo zabaqondisi ukuvimbela le misebenzi. Ucwaningo lubonisa ukuthi ukuvimbela ukwehluleka kwebhizinisi kusewumzamo onzima. Imithetho, izimiso zokuziphatha, izinhlaka, nezinqubo azikwazi ukuxazulula zonke izinkinga ngokwazo. Ukuziphatha okuhle nokwethembeka kwabaqondisi benkampani, abaphathi, nezikhulu kubalulekile. Kungakhathaleki umphumela wanoma yiziphi izinyathelo zomthetho, ukuwa kwe-Steinhoff kukhombisa indima ebalulekile yebhodi lezinkampani, unobhala wenkampani, abacwaningi mabhuku, abaqondisi, abaninimasheya, nabanye ababambiqhaza ekuqinisekiseni ukuthotshelwa kwayo yonke imithetho esebenzayo futhi isebenza ngobuqotho nangokungafihli lutho. Ngikholwa ukuthi, ngokufana no-Enron, i-Steinhoff izoba uphawu olusha lokuhluleka kokubusa kwebhizinisi.