The third report on corporate governance in South Africa was prepared in 2009, due to the new Company Act of 2008. This report, known as King III, was prepared by the King two committee addressing the importance of putting financial results into perspective for ongoing activities. This essay summarizes and explains corporate governance and integrates King III for easier understanding. Corporate governance refers to the systems by which organizations are directed and controlled, whether private, public or not-for-profit (Media, 2013, p. 68). There are several governance factors, such as increasing globalization and internationalization, uniformity of treatment between domestic and foreign investors, financial reporting, and high-profile corporate scandals. According to King III, there are four good governance values ​​that organizations should clarify in their ethical code of conduct (Specialists, 2012): • Accountability • Accountability • Equity • Transparency There are three different perspectives on governance (Media, 2013, pp. 71 -72): • Agency theory: managers act in an agency capacity, serving their own interests instead of maximizing shareholder wealth. • Stewardship theory: Managers will act as responsible stewards of the resources they control. This theory is the alternative view to the Agency theory as certain mechanisms are used to reduce agency losses. • Stakeholder theory: This theory addresses morality and values ​​in managing businesses, stating that management has a duty of care, not only in creating value for shareholders. Most corporate governance codes are established on principles, based on a series of reports that companies disclose (Media, 2013, p. 72):• Help operational management by achieving objectives• Reduce r...... half of paper . .....stakeholders can obtain information about external events or market conditions and King advises companies to build and maintain stakeholder trust using transparent communication (Specialists, Chapter 8 Stakeholder Relations, 2012) In order to avoiding conflicts and resolving disputes, King III introduces a new principle called Alternative Dispute Resolution (Young, 2009, p. 10), an alternative to formal legal proceedings, in which the parties are mediated and participation is mandatory. A company's corporate governance framework should also empower performance improvement mechanisms that help inspire employees such as representation on the board of directors or profit-sharing provisions for creditors (Media, 2013, p. 101). In other words, corporate governance involves building, monitoring, and supporting all aspects of an organization, internal and external.