Organisations will often have a vision and a mission which will in turn link to goals and objectives and related strategic planning. To enable an organisation to achieve is mission, objectives, and goals requires a well-designed, organisational-relevant governance system. An organisational governance system will have a myriad of integrated policies and procedures inclusive of various forms of social and environmental audits.
The extent to which an organisation is effectively applying particular governance procedures can be assessed through various forms of independent social and environmental audits, the results of which will be reported through different forms of audit/assurance reports. Selecting and/or developing appropriate policies and procedures, such as those referred to above, is a fundamental role of management. Quests to operate sustainably demand a suite of sustainability-related policies and procedures which requires critical thinking. Appropriate governance policies reduce the risks, and heighten the opportunities, that the sustainable development agenda creates for an organisation.
It is important that graduates understand the need and role of good governance. Employer groups, professional accounting bodies and course advisory committees have consistently highlighted the need for business students to be critical thinkers; be able to demonstrate skills that extend beyond technical competencies; and to be able to demonstrate an understanding that organisations are part of a broader social system on which they rely for organisational survival.
This unit responds to this expectation, as it:
• Explores the meaning and role of organisational governance in helping an organisation be a valuable member of society
• Identifies the components of a well function governance system with a particular focus on policies and procedures aimed at addressing problems associated with modern slavery, environmental performance generally, and climate change
• Explains the role of social audits and how to implement them
• Explores the types and roles of third-party assurance statements particularly as they relate to non-financial aspects of performance