ISO9001 and Corporate Governance - ISO 37000 being developed to guide standardized Corporate Governance (updated thread March 2019)

J

JJ777

#1
Corporate Governance is the new buzzword. What will the effects be on ISO9001 or how will ISO9001 help in reaching corporate governance goals?
 
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Sidney Vianna

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Staff member
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#2
What will the effects be on ISO9001 or how will ISO9001 help in reaching corporate governance goals?
Beyond ISO 9001, which is a small subset of the ISO 9000 family of standards, an organization can use the documents to establish corporate governance towards quality management, including, obviously, customer satisfaction. After all, without (sustainably & continually satisfied) customers, most organizations have nothing to govern....:tg:
 

Jim Wynne

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Admin
#3
Corporate Governance is the new buzzword. What will the effects be on ISO9001 or how will ISO9001 help in reaching corporate governance goals?
The thing about "buzz" language is that it almost always represents an attempt to make something sound more grave and important than it really is, or, as George Orwell put it, to "...give the appearance of solidity to pure wind."

What is "corporate governance," and how is it different from "corporate management"?
 

Jim Wynne

Staff member
Admin
#5
Long, but interesting read.

Corporate Governance.

Stijloor.
From that Wikipedia article, under "Definition":
In A Board Culture of Corporate Governance, business author Gabrielle O'Donovan defines corporate governance as 'an internal system encompassing policies, processes and people, which serves the needs of shareholders and other stakeholders, by directing and controlling management activities with good business savvy, objectivity, accountability and integrity. Sound corporate governance is reliant on external marketplace commitment and legislation, plus a healthy board culture which safeguards policies and processes'.
Is this not all bloody obvious?
 

Stijloor

Staff member
Super Moderator
#6
From that Wikipedia article, under "Definition":


Is this not all bloody obvious?
I do not disagree. ;)

The word "Governance" was revived when corporate executives were caught with their hands in the cookie jar.
It does not sound as direct as "Management."

Stijloor.
 
R

rgunn1

#7
This seems to me to attempt to break down the implications of a Quality Management System. Many people define a QMS as a method of controlling output quality. "Corporate Gonvernance" is attempting to define the degree of quality of the management systems in place. Maybe? Just a thought.
 
D

DrM2u

#8
This seems to me to attempt to break down the implications of a Quality Management System. Many people define a QMS as a method of controlling output quality. "Corporate Gonvernance" is attempting to define the degree of quality of the management systems in place. Maybe? Just a thought.
I agree with Jim & Stijloor on this Corporate Governance. It is a bunch of BS, a new 'buzz' that someone is going to exploit and make a lot of money out of. Very much like 6-Sigma IMHO. :truce:

As far as the impact on QMS or vice-versa, I don't think there is any. I think this is just semantics and has nothing to do with management's commitment to meet customer's requirements. However, I am interested on what you mean by ["Corporate Gonvernance" is attempting to define the degree of quality of the management systems in place]. What do you mean by 'quality' in this sentence? Who is the customer and what are the requirements? :confused:
 

Sidney Vianna

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#9
Reviving this old thread on corporate governance, because, it seems, as with any buzzword relevant topic, it is deserving of it's own ISO Standard, the upcoming ISO 37000. According so news from ISO TC309:

ISO 37000 Guidance for the Governance of Organizations
In November 2016, ISO/ TC309 formed an Ad Hoc Group (AHG) to examine the feasibility of, and prepare the new work item proposal for, a new international guidance standard on the governance of organizations. The work of the AHG came to an end at the second plenary meeting of TC309 in May 2017 in Quebec, and a new work item proposal was submitted for ballot which was subsequently approved. Work on the new standard ISO 37000 Guidance for the Governance of Organizations was assigned to ISO/TC 309 Working Group 1 (WG1) in September 2017. The standard is scheduled for completion by the end of 2020.

Intent of the standard
Organizations of all types and sizes need to have good governance in place as it will help increase organizational effectiveness, sustainability, accountability and fairness and help avoid major incidents. The starting definition of governance for ISO/TC309 Working Group 1 (WG1) is "the system by which the whole organization is directed, controlled and held accountable to achieve its core purpose over the long term" (BS 13500).

The need for good governance is increasingly clear as society’s expectations of organizational behaviour and performance, and thus “governance”, are rising. There is a steady flow of major or adverse incidents and perceived abuses of authority. Enron, Lehman Brothers, FIFA, and other high- profile organizational failures demonstrate just how essential good governance is to organizations. At the same time, there is often confusion over even the most basic concepts of governance including their distinction from concepts of management – the proposed standard is intended to address this. The approach within this standard is based on the evidence that good governance positions organizations, and society, for success.

ISO 37000 is not intended to replace or negate existing national legislation, policy, regulation, or guidance, but to support it. There are many significant existing documents, however these are limited to national perspectives, or particular industries, interest groups, fora, or specific kinds of organizations. There is a need for a market-driven International Standard based on knowledge and information on which there is global consensus that gives relevant guidance on governance for all types of organizations.

Scope of the standard
The scope of ISO/NP 37000 is defined as follows:

“This document will provide guidance for governance of organizations, including principles, terminology, framework, and the expected benefits. It would apply to all types and sizes of organizations.”

The following is out of scope for Working Group 1:

  • It will not be a management systems standard and management processes will not be described.
  • ISO 37000 will be a guidance standard. Other deliverables, such as Technical Reports, Technical Specifications or Publicly Available Specifications, or may be produced at a later stage.
  • This work item would not seek to influence the development of regulation, public policy or interpret international treaties as specified in the ISO/IEC Directives, Part 1 – Consolidated ISO Supplement – Procedures specific to ISO – Annex SO.
Timeline & process
The Committee is working with the following target dates:

  • availability of working draft (WD) for WG1: within 6 months of approval of the work (March 2018)
  • availability of committee draft (CD) for TC309: 12 months (September 2018)
  • availability of enquiry draft (DIS) for TC309 and ISO national member bodies: 24 months (September 2019)
  • availability of approval draft (FDIS) for TC309 and ISO national member bodies: 33 months (June 2020)
  • availability of published standard: 36 months (September 2020).
 

John Broomfield

Staff member
Super Moderator
#10
If we are to avoid wasting $millions checking to see if the output is right, correcting things and once good reputations we had better continually invest in maintaining our organization’s leadership thinking and acting on preventive actions.

We may then refresh their attention on understanding the needs of their stakeholders, understanding the opportunities to serve, making competitive promises and keeping those promises and how their organization works as a system to reduce adverse risks as we achieve this.

This system will also engage employees in reporting any perceived wrongdoing with confidence that such reports will be listened to, investigated impartially and followed up by any necessary corrective action.

Internationally agreed standards share information, knowledge and some wisdom in giving us a head start in all of this.

We have no need to use the buzzwords in nurturing this thinking as part of our nature.

John
 
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