Creating an Aligned Organizational Management System

There are three key elements of operational management systems found in organizations see the figure:

1. Financial management and enterprise risk management (ERM)

2. Operating management systems (OMS)

3. Functional management systems (e.g. quality, environment, health & safety, energy management, and social responsibility.

These systems of management provide a level of management oversight for the organization’s compliance with local, state, and federal laws and regulations and the work instructions for the organization’s employees. The operational management system is also helpful for providing an interface between a “stand-alone sustainability program” and the more structured company programs that should support the sustainability efforts.

This organization management approach should involve the following:

• The integrated application of the ISO management system standards to control the activities involved in the preparation of products and services to customers.

• Dealing with operations that are regulated to prevent releases to the environment in the provision of products and services that may be of interest to external stakeholders.

• Provision for the enterprise risk management activities that are managed by the CFO now that mandatory management of sustainability and ESG results will be reported on using financial materiality.

• Operations are carefully monitored to prevent losses and take advantage of opportunities to improve the process.

• Managing business continuity risks that provide a faster response to disruptive events.

• Establishing controls to protect the organization’s assets.

• Using ISO 37301:2021 to provide everything an organization needs to know to develop, implement, maintain, and improve an effective compliance management system (https://www.iso.org/news/ref2656.html)

As the beginning of an international regulated “sustainability and ESG reporting program” commences later this year (https://www.ifrs.org/projects/work-plan/sustainability-reporting ), companies should revisit their decision on creating structured programs supported by the organization’s management systems. With the improvements being made to integrate these structured programs and align them with international sustainability guidelines (e.g. ISO Guide 82: Sustainability), this should be a simple choice.

Dr. Bob Pojasek

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

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VCARE Academy Inc.

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Center for Corporate Performance & Sustainability

📩 rpojasek@sprynet.com

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