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1.7. Governance

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Governance is not governing, which consists of making people do what one wants them to do and which falls within the scope of management; governance is a set of values. Management can be defined as running a household. The components of management are: planning, organizing, activating, controlling (Dal Pont 2012, p. 54). The concept of corporate governance is relatively recent and is derived from taking into account the concept of sustainable development in its operation.

Governance can be defined as a set of good practices, of procedures that will make it possible to manage a company in accordance with ethics, with a set of core values. The main governance tools relate to:

1 – quality, i.e. customer satisfaction;

2 – health, safety, and environment (HSE).

The IS0 26000 standard deals with this notion, which obliges large companies to be more transparent, in particular, in their annual report (see Figure 1.6).


Figure 1.6. Schema of the ISO 26000 standard

NOTE.- Corporate social responsibility, or CSR, is described by the ISO 26000 standard. CSR is defined as the voluntary contribution of companies to the challenges of sustainable development, both in their activities and in their interactions with their stakeholders.

It concerns three areas: environmental, social, and societal. This last domain concerns the relations of the company with its partners, in particular commercial, seen from the angle of sustainable development.

Process Industries 1

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