Standards New Zealand is seeking feedback on a proposal for a new field of technical activity on Organizational Governance. BSI has proposed this activity.
The scope of the proposal is the following:
Standardization of organizational governance, including aspects of accountability, direction and control - which may include principles of governance, anti-bribery, conflict of interest, due diligence, whistleblowing, compliance, remuneration structures and external reporting, amongst others.
This proposal is for a new technical committee in the field of organizational governance. For the purposes of this proposal, governance may be defined as a "system by which the whole organization is directed, controlled and held accountable to achieve its core purpose over the long term". The term “corporate governance” is typically used for the governance of private and publicly-listed companies. The TC would develop and maintain standards applicable for all organizations to improve the effective delivery of governance.
This proposal recognizes that, although interrelated, there is an important distinction between management and governance. The above definition of governance places it into a context of accountability whereas management can be deemed to be "the act of bringing people together to accomplish desired goals and objectives, using available resources in an efficient, effective and riskaware manner." While governance is linked to management, it is distinct from it because it deals with the accountability of a whole organization to all of its stakeholders and helps ensure that the organization, as a whole, fulfils its full purpose. Thus, governance is a unique area that merits a distinct portfolio of work, separate but complementary to management standards.
The portfolio of work would be applicable to all types and sizes of organizations, whether large or small, public or private, listed or unlisted, not-for-profit or for-profit, and so on.
Standards New Zealand is consulting with stakeholders in this area to determine New Zealand's response. There is more information on our International Engagement page.
To submit comments including support for or opposition to the proposal, please email email@example.com. Comments received will be used to form a New Zealand position on this proposal. Please provide your comments by Wednesday, 13 July 2016.