ISO 37301:2021 Compliance Standards for Sustainable Corporate Governance
ISO 19600:2014 to ISO 37301:2021: Elevating Compliance Standards for Sustainable Corporate Governance.
ISO 37301, titled "Compliance Management Systems — Requirements with guidance for use," marks a significant advancement in the global standardization of compliance practices. Replacing ISO 19600, "Compliance management systems — Guidelines," ISO 37301 raises the bar by establishing requirements that can be objectively audited, in contrast to the previously suggested guidelines.
Understanding ISO 37301
ISO 37301 is designed to be applicable to any organization, regardless of type, size, or nature, including businesses, public sector, NGOs, among others. Its purpose is to assist organizations in establishing, developing, implementing, evaluating, maintaining, and improving an effective compliance management system. This standard is based on principles of good governance, proportionality, transparency, and sustainability.
The Main Changes
The transition from ISO 19600 to ISO 37301 introduces a fundamental change: while ISO 19600 provided guidance, ISO 37301 sets requirements. This means that organizations can now be certified in compliance with this standard, offering a tangible assurance of their commitment and conformity to compliance management practices. Additionally, ISO 37301 incorporates a more robust risk-based approach, encouraging organizations to proactively identify, assess, and deal with compliance risks.
Benefits of Implementing ISO 37301
The adoption of ISO 37301 brings numerous benefits to organizations, including:
Improved Governance and Organizational Culture: Promotes a culture of integrity and ethics, essential for business sustainability.
Enhanced Risk Management: Provides a framework to identify, assess, and manage compliance risks, helping to avoid legal penalties and damage to reputation.
Facilitated International Operations: Eases trade and operations across different jurisdictions, providing an internationally recognized framework for compliance.
Stakeholder Trust: Certification according to ISO 37301 can increase the trust of clients, investors, and other stakeholders.
Implementation and Certification
For organizations interested in implementing ISO 37301, the process involves several steps, starting with understanding the standard, assessing current compliance needs, and developing and implementing a compliance management plan. After implementation, an organization may opt to conduct a certification audit to validate conformity with the standard's requirements.
Conclusion
ISO 37301 redefines the compliance landscape, offering organizations the opportunity to demonstrate their commitment to high-integrity management practices. The transition from ISO 19600 to ISO 37301 not only elevates the standard for compliance management systems but also provides a concrete means by which organizations can be recognized for their commitment to compliance excellence. Implementing this standard represents a significant step towards long-term sustainability and success, reinforcing the importance of responsible and ethical corporate governance.
Therefore, the adoption of ISO 37301 is highly recommended for organizations that seek not only to efficiently comply with applicable regulations but also to strengthen trust and security among their stakeholders.
