In light of the major challenges facing business owners in various fields, it has become necessary to implement the ISO 37000 corporate governance system, which aims to advance institutions and enhance trust between them and investors around the world. A renaissance and development can only be achieved by relying on a strong, fair system that achieves transparency, integrity, and benefit for all. Therefore, we will learn through the following lines about the governance system, and what is the ISO 37000 specification? And the importance of applying this system in companies and institutions in general.
What is the governance system?
The governance system consists of a set of laws and rules that seek to manage and direct institutions, whether public or private, governmental or non-governmental, and this system aims to achieve transparency, integrity, and monitoring, in a way that achieves the public benefit of all parties inside and outside institutions.
Learn about the ISO 37000 Organizational Governance System
We often hear about some institutions trying to implement the ISO 37000 Organizational Governance System without understanding the true meaning of this system and its most important principles. It is a system issued by the International Organization for Standardization (ISO) that adopts international standards to determine the principles and values necessary to start implementing the governance system within institutions and companies to prevent corruption and achieve justice for all.
What is the ISO 37000 specification for organizational governance?
As we mentioned earlier, international standards have been developed that define the general framework for this system, and the ISO 37000 specification for organizational governance is a detailed explanation of those standards and the axes covered by this specification, such as:
Principles of the governance system:
It sets international standards for how to achieve integrity and transparency and achieve the principle of oversight and accountability in organizations, to combat corruption or any ethical problem that may threaten the reputation of institutions.
Responsibility of the Board of Directors:
These standards show many of the responsibilities owed to the Board of Directors within institutions, and their main role in directing and monitoring the performance of the executive body, and ensuring that the internal system is in accordance with regulations and laws.
How to manage risks:
Any institution or organization may be exposed to some risks or negative variables at any moment, so the ISO 37000 organizational governance system helps to manage crises and risks well, by developing future plans to address risks, and training the executive body on how to implement those plans successfully.
The relationship between the parties concerned:
The system is concerned with setting international standards that govern the relationship between the parties concerned inside and outside the institutions, starting with the workers and administrators inside, and their relationship with external parties such as investors and customers, all of which are based on achieving justice and public benefit.
Achieving sustainability:
Of course, when the system is concerned with achieving transparency and integrity, good management, and addressing crises and risks, it aims to achieve sustainability, as these standards cannot ignore the necessary components to achieve permanent goals for institutions and help them stand like a mountain in the face of any crisis or corruption under any circumstances.
The importance of implementing the ISO 37000 organizational governance system
The importance of implementing the ISO 37000 organizational governance system is great, as it is a system that works to achieve several goals that form the infrastructure and elements of success for any institution or organization, such as:
- Improving the reputation and integrity of the organization or institution as a result of achieving the standards of transparency, integrity, and internal control.
- Building qualified cadres to take on the challenge and confront any potential risks, which results in strengthening and stabilizing the institution.
- It is natural that when achieving internal justice for institutions, this is reflected in the efficiency and productivity of the institution’s employees.
- Ensuring the sustainability of institutions that follow the ISO 37000 governance system and achieving honorable long-term results.
- Creating and enhancing trust among all parties, including employees of organizations, shareholders or investors, and members of society as well.
Challenges facing the implementation of the 37000 governance specification
We will now learn about the most important challenges facing the implementation of the 37000 governance specification and how to address them so that the ISO 37000 organizational governance system becomes the primary standard by which we measure the success of institutions:
Organizational structure of institutions:
Institutions differ in the size of the organizational structure, which increases the difficulty of applying the ISO 37000 organizational governance system to everyone in a unified manner. This can be addressed by having some flexibility in dealing with variables during the application of the law in a manner that is consistent with the size of the institution.
Internal resistance:
There may be a great difficulty and challenge in achieving integrity and accountability within the institution due to internal resistance from some responsible parties who refuse to work according to these standards, so firm measures must be taken to ensure that this system is applied to everyone.
Qualified human resources:
The place may lack qualified cadres to work according to the new governance system, so this must be addressed by providing a specialized and integrated team to train workers and benefit from the available human resources.
General culture of the organization:
Some organizations may adopt a traditional and old culture that is not compatible with the governance system, so awareness must be spread among employees of the executive body to accept constructive ideas.
Financing and costs:
Implementing the governance system requires a budget to qualify and train employees and may be expensive for some small organizations, so organizations must pay attention to setting a special budget to raise the level of the company to achieve integrity and transparency so that everyone benefits later.
Availability of wise and supportive leadership:
Implementing the system may face a problem in the availability of governing leaders who support its implementation, so the board of directors of organizations must be restructured, and those with experience and competence must be appointed to bear responsibility.
Achieving the ISO 37000 organizational governance system will bring about a major breakthrough in the way organizations are managed and will benefit all concerned parties from business owners, employees, investors, and stakeholders. The application of this system must be generalized on the widest scale so that integrity and transparency return to our organizations in various fields.
ISO 37000 Organizational Governance System