Governance, planning and organizational sustainability

Governance, planning and organizational sustainability are discussed in this informative article from Vcare.

Organizational governance

Organizational governance is the system by which an organization makes and implements decisions to pursue its goals. These decisions are usually made during the planning phase of sustainability in the organization. Organizational governance can include several aspects. Such as, for example, formal governance mechanisms based on defined structures and processes as well as informal mechanisms that arise in connection with the organization's culture and values. The latter is often influenced by the people running the organization.

Organizational governance is a core function of any type of organization, as it is the framework for decision-making within the organization. The organizational system varies depending on, among other things:

• The size of the organization;
• Organization type;
• The ecological context;
• Economic context;
• The political context;
• Cultural context;
• Social context.

The organizational system is led by a person or group of persons (owners, charges, constituents or others). These have the authority and responsibility for pursuing the planning and goals of the organization.

Organizational governance is the most important factor in enabling an organization to take responsibility. For example, regarding the consequences of its planning, decisions and activities and to integrate organizational sustainability throughout the organization and its relationships.

Effective governance and leadership

Effective governance must be based on the inclusion of several principles of social responsibility in planning, decision-making and implementation. The principles are:

• Justification;
• Transparency;
• Ethical behavior;
• Respect for stakeholder interests;
• Respect for the rule of law;
• Respect for international standards of conduct;
• Respect for human rights.

In addition to these principles, an organization must consider the practices and issues of social responsibility when it determines and assesses its governance system and leadership.

Leadership is also crucial to effective organizational governance. This applies not only to planning and decision-making. But also for motivating employees to put organizational sustainability into practice and to integrate social responsibility into organizational culture.

Decision-making processes and structures

Every organization has decision-making processes and structures. In some cases, these are formal, sophisticated and even subject to laws and regulations. In other cases, they are informal, rooted in the culture and values of the organization. All organizations must put in place processes, systems, structures or other mechanisms that allow them to implement the principles and practices of organizational sustainability.

How they help

An organization's planning and decision-making processes and structures should enable it to:

• Plan and develop strategies and objectives that reflect the organization's commitment to organizational sustainability and social responsibility;
• Demonstrate leadership commitment and responsibility;
• Create and nurture the environment and culture in which the principles of social responsibility are applied;
• Create a system of economic and non-economic incentives related to social responsibility performance within an organizational sustainability environment;
• Making efficient use of financial, natural and human resources;
• Promote a fair opportunity for underrepresented groups to hold senior positions in the organization;
• Balancing the needs of the organization and its stakeholders. Including immediate needs and those of future generations;
• To establish two-way communication processes with its stakeholders. This involves identifying areas of agreement and disagreement to resolve potential conflicts;
• Encourage effective participation of all levels of employees in social responsibility activities;
• Balance the level of authority, responsibility and capacity of people who make decisions on behalf of the organization;
• Track the implementation of decisions to ensure that these decisions are followed in a socially responsible manner. This is to determine accountability for the results of the organization's decisions and activities, both positive and negative;
• Periodically review and evaluate the organization's governance processes. On this, processes can be adjusted based on the outcome.

ISO 26000:2010 is a good source of ideas for planning support.

• ISO 26000 social responsibility guidelines;
• How to use the GRI G4 guidelines and ISO 26000 in conjunction;
• ISO 26000:2010 social responsibility guidelines.

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VCARE Academy

This article on governance, planning and organizational sustainability was written by Dr. Bob Pojasek, from VCARE Academy.

Who is Bob?

Chairman Education and Research Executive Board (EREB).

VCARE Academy Inc. managing director

Sustainability Legend | ESG Reporting & Disclosures | Uncertainty Risk | Pollution Prevention Expert | Process Improvement | Organizational Sustainability Reporting | Sustainable Procurement Professor