Governing right using Global First Governance Standard “The ISO 37000:2021 Governance Principles”

Introduction

The governing bodies of all types of organizations are being called on, more than ever, to ensure that their organizations not only builds trust and improves principled and sustainable performance but also contributes to social and environmental integrity. This implies upping of their Good governance competence for more accountable stewardship (Decide and Direct), effective oversight and appropriate assurance (Control) to be able to steer their organizations in today’s complexities, rapidly changing world, and risk volatility. Competent governing bodies would also help to ensure alignment between the organizational purposes, strategy, performance, resource stewardship resilience, enhanced decision-making, promotion of stakeholder confidence but would also result to positive environmental, social and general economic impacts.

?The international standards organization (ISO) recently issued the first ever international benchmark for good governance.?“The ISO 37000:2021?Governance of organizations — Guidance?providing governing bodies. This standards provides those charged with governance with the tools they need to govern well. The standards seek to support governing bodies perform better in their duties while behaving ethically and responsibly following a set of principles that conceptualizing what good governance including duties that relate societal and environmental ?expectations.?

ISO Governance Principles

The ISO 37000 standard is applicable to all organizations regardless of type, size, location, structure or purpose. Among other prescription, the standard provides principles that can guide governing bodies on how to meet their responsibilities so that the organizations they govern can fulfil their purpose these include;

1.????Defining Purpose explicitly expressing the reason for existence from all perspectives?thus forming basis for alignment with all other organization activities.

2.????Value Model where elements of strategic value creation and value generation, value delivery and sustainability ?required to fulfil purpose are clearly defined

3.????Referencing value generation model, continuously govern the Strategy including resource use, directing through policy, ethics commitment, innovation and sustainability.

4.????Providing effective Oversight for organizational performance and ensuring that the organization fulfils all expectations including own competence to govern, upholding capability to perform, ?effective oversight, offering appropriate assurance, ensuring value protection and value erosion recovery.

5.????Provision of Accountability mechanism holding to account those to whom the governing body has delegated authority(s) ensuring key actors integration, effective compliance management and disclosers.

6.????Based on ethical principles, ensuring stakeholder engagement and meeting of stakeholder expectations?including human resources management and relationship management.

7.????Providing Leadership encompassing ethical (Integrity) and effective leadership (Performance) arrangements including setting tone at the top for ethical, trust and cooperation culture. This principle also require creation of system that create culture of transparency, accountability, probity, competence, inclusivity and respect of diversity.

8.????Provide security, ensure appropriate access and application of data as a resource for decision making placing accountable use of technology within relevant legal and regulatory framework as priority.

9.????Ensure effective Risk Governance “the effect of uncertainty on organizational purpose and strategic outcomes” focusing on strategy and risk appetite driven risk management regime integrated at strategic and operational level with clear ownership and oversight accountabilities”. The governing body should also ensure consistent risk management process application and embedding risk formation in decision making aimed at creating a positive risk culture.

10.??Ensuing Social responsibility where the organization take responsibility to its impact to the society it is part of and transparent balanced decision making aligned with broader societal expectations.

11.??The governing body should also evaluate, innovate and reasonably assure viability and principled performance over time ?while addressing broader sustainability issues i.e. doing well over time without compromising current and future generations?

Conclusion

Research shows that applied good governance policy i.e. following above considerations, leads to lasting success. Imperatively good governance can helps align organization’s purpose with the interests of society, and environment, building strong stakeholder relationships while effectively managing and maintaining its resources. This way, good governance lays the foundation for sustainable performance, resilience and ensures organizations contribute to the protection and restoration of social, economic and the environment.