Latest news with #ISO37000
IOL News
12-08-2025
- Business
- IOL News
The governance imperative of trust: Why boards must prioritise stakeholder confidence
Stakeholder trust is a strategic asset, influencing whether investors commit capital, customers remain loyal, employees stay engaged and regulators exercise discretion or impose sanctions Image: AI Lab By Nqobani Mzizi Trust is not just earned; it is governed. This governance imperative applies universally. From private corporations to State-Owned Enterprises, trust is the invisible currency that dictates whether an organisation thrives or collapses. It is the bedrock of reputation and the lens through which all governance actions are judged. Yet, for many boards, trust is spoken of only in the context of crises, not as a standing governance priority. An organisation can meet every regulatory requirement, produce clean audit reports, and still forfeit stakeholder confidence. Why? Because trust is built not through compliance alone, but through conduct, culture and consistency. The governance challenge is to make trust a conscious, measurable and strategic outcome rather than a by-product of other decisions. Stakeholder trust is a strategic asset, influencing whether investors commit capital, customers remain loyal, employees stay engaged and regulators exercise discretion or impose sanctions. In King IV, trust is woven into the principle of stakeholder inclusivity, reminding boards that sustainable value creation requires both performance and legitimacy. ISO 37000 takes it further, framing ethical culture and organisational legitimacy as non-negotiable governance outcomes. Boards that neglect trust governance forfeit their licence to operate; not legally, but socially. Once lost, this licence is far harder to regain than any regulatory permit. The solution? Proactive governance. Trust, though abstract, becomes manageable when broken into components. Take competence: the ability to deliver on promises and meet performance standards. Integrity shines when decisions are transparent, fair and consistent. Reliability is demonstrated through follow-through over time, not only when circumstances are favourable. Care is shown when organisations prioritise stakeholder interests, even at short-term cost. Each lies within a board's remit through strategic oversight, executive accountability and ethical leadership. But how can boards translate these principles into action? Turning trust into a governance deliverable requires more than statements of values. Boards must integrate trust indicators into dashboards, using measures such as stakeholder sentiment, employee engagement results and customer satisfaction trends. They must carve out agenda time to review stakeholder perspectives, ensuring these are not reduced to token consultation exercises. Scenario planning must include potential trust shocks, with directors asking how decisions will affect stakeholder perceptions months or years ahead. Boards should also exercise close oversight over communication to ensure disclosures are honest, timely and clear, even when difficult. Neglecting trust carries a steep price. It takes years to build and seconds to lose. Once eroded, governance costs rise, scrutiny intensifies, talent leaves and stakeholders doubt leadership. In extreme cases, organisations lose the mandate that allows them to operate. Few cases illustrate this better than Toyota's 2010 crisis. The automaker faced one of the largest recalls in history, involving millions of vehicles worldwide due to safety concerns. The crisis damaged its reputation for quality and reliability. The board acted decisively, overhauling governance structures, establishing safety oversight committees and elevating accountability for product safety to the highest executive levels. Importantly, Toyota engaged directly with stakeholders, from customers to regulators, with humility and transparency. It acknowledged the failures, corrected them and embedded the lessons into its governance processes. Over the following decade, Toyota regained market share and restored its position as a trusted brand, proving that trust can be rebuilt through sustained governance commitment. Eskom's struggles illustrate how governance failures erode trust. Years of load shedding, governance instability and opaque communication eroded public confidence to historic lows. While governance structures were in place, they often failed to deliver operational stability or meaningful stakeholder engagement. However, recent reforms are turning the tide. Strengthened board oversight, improved operational planning and more candid public communication have shown early signs of recovery. Challenges remain, but Eskom's progress proves that even deeply broken trust can be repaired if governance acts with transparency, competence and reliability. These experiences, from Toyota's global recall to Eskom's operational crisis, show that trust is not static. It shifts with how stakeholders experience the organisation over time. Governance that actively tends to trust through systems, accountability and culture can withstand shocks and recover from them. Governance that neglects it will inevitably face a legitimacy crisis. Boards cannot delegate trust. It must be owned at the top, sitting alongside financial performance and risk management as a standing priority. It should be measured, discussed and protected with the same vigilance as any other strategic asset. When trust is embedded in governance thinking, decision-making becomes sharper, stakeholder relationships more resilient and organisational legitimacy stronger, yet this work also demands humility. Boards must be willing to ask uncomfortable questions and confront truths that may challenge their perceptions. Directors need to look beyond quarterly reports and consider the lived reality of stakeholders. Are customers confident that promises will be honoured? Do employees feel valued and secure? Do regulators see the organisation as transparent and cooperative? These perceptions feed into the reservoir of trust that sustains the social mandate to operate. Rebuilding trust, once lost, is not a quick fix. It demands consistency over time, a willingness to admit mistakes and a visible commitment to change. Toyota's journey shows that recovery is possible when governance aligns with genuine accountability. Eskom's recent progress suggests that even a deeply damaged trust relationship can be repaired if the board stays the course and communicates progress honestly. The lesson is that trust is both fragile and recoverable, but only through deliberate and sustained effort. Trust's absence is catastrophic. It determines which doors remain open, which partnerships endure and how resilient an organisation can be under pressure. Without it, even the most compliant governance structures will struggle to deliver value. With it, boards can navigate uncertainty, engage stakeholders constructively and sustain their social licence to operate. So, the questions for every board are these: Does your board govern trust proactively or only to address it in crises? If stakeholders rated your trustworthiness today, what would they say and would you agree? What metrics track trust, and do they shape board decisions? When last did your board discuss strengthening trust without a crisis prompting it? In governance, trust is a strategic enabler that influences every outcome. Boards that choose to govern it intentionally will safeguard their legitimacy and position their organisations to thrive in an environment where stakeholder expectations are higher than ever. Once embedded into governance thinking, trust becomes both a shield in turbulence and a catalyst for enduring value. Nqobani Mzizi is a Professional Accountant (SA), (IoDSA) and an Academic. Image: Supplied * Nqobani Mzizi is a Professional Accountant (SA), (IoDSA) and an Academic. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. BUSINESS REPORT
IOL News
22-07-2025
- Business
- IOL News
Purpose at the pinnacle: Why boards must reclaim organisational intent
Stakeholders are increasingly attuned to authenticity, and they hold boards accountable not just for financial results, but for moral coherence. Image: AI Lab Nqobani Mzizi For many organisations, the word "purpose" has become an aspirational placeholder—framed on walls, repeated in reports, and recited at town halls. Yet too often, it remains disconnected from the daily decisions that shape an organisation's impact. When boards treat purpose as a branding exercise rather than a governance imperative, they reduce it to performance theatre. This squanders the board's most powerful tool—the ability to drive true strategic alignment and long-term value creation. The board is the highest custodian of purpose. Defining purpose is not management's job alone. That accountability lies at the board's apex. King IV echoes this, stating under Principle 1 that the governing body should lead ethically and effectively, and under Principle 4 that it should ensure the organisation is seen as a responsible corporate citizen. Purpose is the anchor aligning ethical conduct and strategic direction. According to ISO 37000, the international governance standard, organisational purpose is the foundation from which all governance conditions and practices flow. Yet in too many boardrooms, purpose is treated as abstract or sentimental—useful for external messaging, but irrelevant to risk oversight or financial strategy. This failure to anchor purpose at the governance level explains why so many organisations drift. Without clear organisational intent, strategy becomes reactive, culture becomes performative, and stakeholder trust becomes fragile. And while boards may pride themselves on fiduciary rigour or ESG compliance, they often overlook the foundational question: 'what are we here to do, and for whom'? Organisational purpose is not a slogan. It is a directional force. When articulated with clarity and courage, it helps boards make trade-offs, allocate capital more wisely, and weigh long-term implications against short-term wins. In times of crisis or disruption, purpose becomes the compass. But a compass only works when it is consulted. And boards that delegate purpose-setting to branding consultants or CSR departments are not governing; they are observing. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading South African examples illustrate this alignment. Take African Bank: its board anchored the organisation's mission to 'advance lives through financial services,' ensuring strategic decisions, from capital allocation to product approval, reflected this intent. When launching Isiko, a financial product designed for culturally significant events like lobola or cultural ceremonies, management's proposal was evaluated against the board's governance lens: does this meaningfully advance lives? Does it align with our broader social relevance? By treating purpose as a strategic filter, not just a slogan, the board turned intent into accountability. This contrasts with organisations where purpose is rubber-stamped but absent from key decisions. Discovery, under Adrian Gore's leadership, provides another example. The Vitality-based business model, which incentivises healthier behaviour through financial rewards, has been underpinned by a clear purpose: making people healthier and enhancing lives. The board has integrated this purpose into international expansion strategies, risk frameworks, and partnerships, ensuring that the business logic aligns with its social intent. Discovery's directors understand that purpose, when governed actively, is not a constraint, but a multiplier of innovation and differentiation. Another glaring case is that of Unilever under the leadership of Paul Polman. He challenged the status quo by embedding sustainability into the core of business strategy, encouraging longer-term thinking even when quarterly earnings suffered. The board backed a shift away from short-termism, aligning its oversight functions with Unilever's Sustainable Living Plan. The board's resolve to support Polman's decisions amid investor resistance shows how purpose can be governed with conviction, not just communicated. Conversely, when purpose is absent or allowed to fracture, organisations risk governance drift, cultural malaise, and even catastrophic ethical failure. Intention is not enough. Purpose must be fully embedded in strategy, oversight, and reward, integrated into board processes and strategic decisions. Is purpose considered when approving strategy, setting KPIs, evaluating executive performance, or assessing risk appetite? Does the board measure the alignment between stated purpose and stakeholder perception? Or is purpose left behind once the mission statement is signed off? Purpose also acts as a powerful diagnostic tool. When governance failures emerge, whether through ethical lapses, reputational harm or cultural toxicity, they often reflect a disconnection between stated intent and actual behaviour. Purpose, when governed well, is a form of risk mitigation. But when left untethered, it can become a source of disillusionment. Stakeholders are increasingly attuned to authenticity, and they hold boards accountable not just for financial results, but for moral coherence. This is not to suggest that boards must become moral philosophers or abandon profit. Rather, it is to remind us that profit without purpose is extractive and unsustainable. A well-governed purpose does not undermine commercial viability; it enhances it by providing a consistent framework for decisions, a north star during uncertainty, and a narrative that binds employees, customers, and investors to a shared vision. Reclaiming purpose is not about rewriting taglines but about embedding intent into the DNA of governance. Boards serious about reclaiming purpose should ask: Are we governing purpose as a core board responsibility or outsourcing it to brand managers? Do our strategic decisions reflect our declared intent, especially when trade-offs are required? Have we built governance processes that test for purpose alignment across performance, risk, and remuneration? Are we willing to revisit our purpose when stakeholder needs, societal expectations or market realities shift? As boards prepare for increasingly complex futures shaped by technological disruption, climate imperatives, and shifting social expectations, purpose becomes more than a virtue. It becomes a necessity. It is the one thing that cannot be automated, outsourced or legislated. It must be owned. At the highest level. With clarity. And with courage. Nqobani Mzizi is a Professional Accountant (SA), (IoDSA) and an Academic. Image: Supplied * Nqobani Mzizi is a Professional Accountant (SA), (IoDSA) and an Academic. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. BUSINESS REPORT
Hi Dubai
02-04-2025
- Business
- Hi Dubai
DEWA's Internal Audit Earns Top Recognition for Global Standards Compliance
Dubai Electricity and Water Authority's (DEWA) Internal Audit Department has achieved the prestigious 'Generally Conforms' rating from the UAE chapter of the Internal Auditors Association (IAA). This is the highest level of conformance to the International Standards for the Professional Practice of Internal Auditing set by the Institute of Internal Auditors (IIA). The recognition underscores DEWA's unwavering commitment to global best practices in governance, risk management, and internal control processes. By adhering to these standards, DEWA enhances confidence in its operations and reinforces its strategic objectives. Saeed Mohammed Al Tayer, MD & CEO of DEWA, received the certification at the authority's headquarters, accompanied by Ahmed Hassan Mohammad Noor, Acting Vice President of Internal Audit, and the internal audit team. 'We align with the vision of our wise leadership to drive sustainable excellence in all operations. Our internal audit methodologies leverage advanced analytics and AI-driven tools to strengthen auditing processes. This rating affirms our dedication to transparency, integrity, and world-class governance, furthering DEWA's vision of being a globally leading sustainable innovative corporation committed to net-zero by 2050,' said Al Tayer. Ahmed Noor emphasized DEWA's commitment to adopting cutting-edge AI and data analytics in auditing, ensuring rigorous compliance with local and international standards. 'With strong leadership support, we execute comprehensive audit procedures with integrity and efficiency, fostering stakeholder confidence,' he stated. DEWA adheres to key global governance frameworks, including ISO 37000 and BS 13500, while aligning with the Security and Commodities Authority (SCA) and Dubai Financial Market (DFM) regulations. The authority continuously benchmarks its internal audit functions against leading international practices, solidifying its position as a governance and management excellence leader. News Source: Emirates News Agency
Zawya
28-03-2025
- Business
- Zawya
DEWA receives highest rating from UAE Internal Auditors Association for conformance to international standards
Dubai, UAE: The Internal Audit Department of Dubai Electricity and Water Authority (DEWA) has received a 'Generally Conforms' rating in a review conducted by the UAE chapter of the Internal Auditors Association (IAA). This is the highest rating for conformance to IIA's international standards for the professional practice of internal auditing. This recognition reflects DEWA's adherence to globally recognised internal audit standards and guidelines, as well as its commitment to best practice in governance, risk management and control processes, thereby enhancing confidence in its operational processes and contributing to the achievement of its strategic objectives. HE Saeed Mohammed Al Tayer, MD & CEO of DEWA, received the certificate at DEWA's head office. Ahmed Hassan Mohammad Noor, Acting Vice President of Internal Audit, and DEWA's internal audit team were present. 'We work in line with the vision and directives of the wise leadership to ensure the sustainability of excellence across all our operations. This is achieved by developing internal audit methodologies and adopting advanced analysis tools and AI technologies to further enhance the efficiency of auditing processes and consolidate DEWA's position as a global role model in good governance and effective management. Receiving the 'Generally Conforms' rating in the review conducted by the UAE Internal Auditors Association reflects our commitment to the highest standards of transparency, integrity and institutional governance. Internal auditing is pivotal to supporting DEWA's vision as a globally leading sustainable innovative corporation committed to achieving net zero by 2050,' said Al Tayer. Ahmed Noor said:"With the support and guidance of DEWA's top management, the Internal Audit Department adopts the latest data analysis and AI technologies in auditing processes, in accordance with the highest local and global standards. We are further committed to implementing comprehensive audit procedures and delivering results with integrity and efficiency to enhance the confidence of all stakeholders." DEWA follows the guidance and requirements of the ISO 37000 guide on Governance of Organisations, the BS 13500 guide on Effective Governance Management Systems, the Security and Commodity Authority (SCA) and the Dubai Financial Market (DFM). DEWA also benchmarks its activities with leading international companies and industry best practice.
