<P> In July 1993 the Institute of Directors in South Africa asked retired Supreme Court of South Africa judge Mervyn E. King to chair a committee on corporate governance . He viewed this as an opportunity to educate the newly democratic South African public on the working of a free economy . The committee's report was to be the first report of its kind in South Africa . </P> <P> Committee members included Phillip Armstrong, Nigel Payne, and Richard Wilkinson . </P> <P> Unlike other corporate governance codes such as Sarbanes - Oxley, the code is non-legislative and is based on principles and practices . It also espouses an apply or explain approach, unique to the Netherlands until King and now also found in the 2010 Combined Code from the United Kingdom . </P> <P> The philosophy of the code consists of the three key elements of leadership, sustainability and good corporate citizenship . It views good governance as essentially being effective, ethical leadership . King believes that leaders should direct the company to achieve sustainable economic, social and environmental performance . It views sustainability as the primary moral and economic imperative of this century; the code's view on corporate citizenship flows from a company's standing as a juristic person under the South African constitution and should operate in a sustainable manner . </P>

How many principles in the king iv report on corporate governance relate to ethics