Governance and risk management

Transparent and effective governance is a hallmark of a responsible organisation. Recent accounting scandals have prompted regulatory reform that has led to a constrictive, 'box-ticking' attitude from auditors. Governance was an issue of compliance and many boards became risk-averse. Governance, however, should not inhibit enterprise - it should be forward and outward in orientation, recognising the risk that attends opportunity, and set in place an appropriate policy and systemic framework to pro-actively manage the risk. It should enable and control enterprise, not constrain it.

Governance reinforces the integrity of a board, defines its relation with shareholders and stakeholders, and establishes the ethos of acceptable organisational behaviour. Governance thus embodies the stance of an organisation toward its social and environmental responsibilities as well as its financial propriety. Governance is fundamental to creating sustainable organisations.

How regularly does your organisation review its CSR policy, its programmes, its progress and its plans? Who sponsors CSR? Who is accountable and responsible and how are the interests of all employees and stakeholders represented? CSR is integral to how an organisation is run. It is not an add-on, some afterthought or PR gimmick. And it starts at the very top.