Insights | 14 September 2021
ISO Standard 37000 – The first international standard on good organizational governance published today
The first international standard on good organizational governance, ISO 37000, was published today (14 September) by the International Organization for Standardization (ISO). This important standard sets out 11 core principles of good governance and the role of senior business and public management leaders around the world in defining and upholding standards relating to purpose, values, performance and social responsibility.
Daniel Lucien Bühr, a partner in LALIVE’s Zurich office, is a member of the ISO Expert Committee which has been working on the new Standard since 2017. For the first time, the governing bodies of all public and private organizations have a duty of care, not only to their own organisation, but also to all their stakeholders and future generations. The governing bodies of businesses, public organisations and NGOs are expected to ensure ethical and effective leadership, as well as effective oversight through an internal control system and assurance processes. The internal control system consists of the risk management system, the compliance management system, and the system of financial controls. Through clearly defined assurance processes (including private sessions of the governing body with the risk function, the compliance function and internal audit) governing boards will also need to verify the accuracy of management reporting and the effectiveness of the internal control system.
This new international standard represents the pinnacle of good governance and explains state-of-the-art governance, the “G” of “ESG”. Business and public leaders around the globe should carefully consider and embrace the guidance, thereby demonstrating their commitment to all their stakeholders and future generations. The ISO Expert Committee is made up of expert delegates from over 70 countries and international organizations.
The new ISO 37000 standard sits neatly with the United Nations Global Compact (UNGC) initiative, the largest voluntary sustainability initiative in the world which LALIVE joined recently. The UNGC calls for companies to align their operations and strategies with 10 principles on human rights, labour, environment, and anti-corruption and to support the UN’s 17 Sustainable Development Goals (SDGs).
Click here to visit the ISO website and here to read an overview on the new ISO 37000 standard.
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