Definition of Corporate Governance

It is a concept that is applied to the business world, specifically to those entities that use organizational systems based on transparency and criteria of efficiency and sustainability.

The fundamental idea that arises

It is a set of rules and practices with which it is intended that the managers and administrators of the companies act in a responsible manner.

The fundamental axes are the following:

1) a government code or manual that serves as a base document that establishes the responsibility of those who make up an entity,

2) this code details the role of the shareholders as a management group of the company and the functions of the management as a management body. administration,

3) At the same time, the external (for example, audits) and internal control systems are developed, as well as risk management.

The above-mentioned axes allow decision-making to be more fluid and effective and, at the same time, that the strategy follow a consistent course.

Corporate governance and ISO standards

ISO standards are global quality standards that are developed in collaboration between governments, consumers and companies. The purpose of these standards is the sustainability and proper functioning of the organizations.

ISO 38500 is a rule with an international character that focuses on the concept of corporate governance. This standard establishes the standards for good corporate governance and its recommendations. They serve so that all the heads of an entity adopt criteria of effectiveness and professionalism.

The set of guidelines developed in ISO 38500 are applicable to both private companies and public entities, as well as non-profit entities, regardless of the size of the entity or organism.

Regarding the objectives of this standard, the following can be highlighted:

1) generate a weather from confidence among all those who make up a company or are related to it,

2) inform and guide administrators on the use of information technologies within their organization and

3) provide a valid reference so that the entity can be evaluated with objective criteria.

The benefits that can be obtained with a correct corporate governance can be synthesized in two main axes:

1) the organization meets criteria of safety and internationally recognized efficacy and

2) the legislation on issues of a different nature, such as privacy, SPAM legislation, practices commercial, environmental regulations, accessibility of information or property rights intellectual.

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