January 24, 2018

IS 10610: 2012 Indian Standard Good Governance – Guidance

Organizational governance is the system by which an organization is directed and managed in pursuit of its objectives. All organizations make and implement decisions within a governance system, having formal or informal processes and structures.
Organizational governance is the set of processes, customs, policies, laws, systems and institutions affecting the way in which a organization is directed, administered or controlled. The governance system within an organization is operationalized by the person or group of persons having the authority and responsibility for pursuing the
organization’s objectives, that is, the purpose for which organization exists.
Through the process of governance, organizations aim to meet the owners’/promoters’ aspirations and societal expectations. Good governance is backed by the fundamental belief of maximizing value for all stakeholders, transparency in functioning, and respect and mutual trust amongst all constituents of organization and stakeholders.
It is a culture that guides the board, management and employees to function towards best interest of all stakeholders.
A committed and effective leadership is a pre-requisite for strengthening the principles of good governance in an organization. The leader could either be a CEO or a manager/supervisor at the shop floor or any other employee/ person displaying the qualities of accountability, transparency, integrity and ethical behaviour in all walks of life.
From the perspective of ensuring that good governance is upheld, the selection of significant personnel in an organization must therefore be done by a process of diligent screening of eligible candidates. The greater the emphasis being placed on selecting good leaders, the greater are the chances that the policies, processes, systems and institutions in the organizations which strengthen good governance being reinforced and invigorated.
Good governance makes an organization committed to sound operating practices based on conscience, openness, fairness, professionalism, mutual respect and trust, transparency and accountability in building confidence of its various stakeholders thereby paving the way for its long-term success and sustainability.
This standard provides guidance on good governance practices by an organization irrespective of its size, type, location or nature of activities. It is intended to provide assistance to organizations engaged in public private partnerships (PPP), having varying governance structures.
This standard is generic and is not intended to enforce uniformity of practices or overwrite the existing rules and regulations as they would vary from organization to organization depending upon its structure, policies, objectives, products and services,
processes and specific practices employed.
For managing an organization, management should adopt a value based approach, which should be based on the following principles:
a) Integrity
b) Accountability
c) Transparency
d) Ethical Conduct and Values
The organization should determine the applicable laws, statutes, regulations, issued by various legislations or through notification of statutory authorities as applicable and relevant to its activities, functions and liabilities.

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