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DELIVERY - internal controls and external influence - D3
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Key Questions
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‘Are the links between word and action strong enough?’
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Alignment with principles
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Organisations should ensure that:
| They develop a method of aligning and comparing their existing management practice, systems and procedures, against the organisation’s vision and mission for sustainable development and any operating principles they have adopted, in order to identify gaps in internal controls. |
| They develop internal controls where their absence may lead to a deviation from their operating principles or any planned outcomes. |
| They review the opportunities to integrate and embed existing management practice, systems and procedures to improve internal efficiency and assure closer alignment with their operating principles. |
| They exercise their influence on suppliers, subcontractors, peers and end-users of their products and services to further their vision for sustainable development and their alignment with their operating principles. Such influence needs to be exercised sensitively and supportively, especially for small suppliers in emerging markets. |
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When
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Identifying key internal control issues and how to manage them - during planning and initial delivery phase.
Executing internal control measures and maximising opportunities for positive influence - during planning and delivery.
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Who
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Project Champions, Board Members and Senior Management Team, Implementation Team.
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Internal controls
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Key activities
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| Establishing/refining internal controls that facilitate the organisation's vision, adopted operating principles, strategy, objectives and targets and management programmes and measuring and reviewing their effectiveness over time |
| Reviewing and refining corporate governance arrangements and performance |
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Suggested resources
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Outcomes & outputs
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Establishment/refinement of robust internal controls - including documented procedures and monitoring approach and schedule |
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Corporate governance review |
| Strategy for maximising the benefits of third party influence on internal control (or minimising the risk of unforeseen third party intervention that may adversely affect the organisation's ability to deliver t its vision for sustainable development) |
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External influence
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Key activities
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| Identifying opportunities where the organisation can influence external bodies and create a more positive enabling environment for business sustainability. This may include lobbying of, and/or collaborations with, trade associations, industry peers, government departments and agencies, academia, think tanks and NGOs |
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Suggested resources
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Outcomes & outputs
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| Constructive dialogue and engagement with key external stakeholders and enablers. |
| New partnerships and collaborative programmes - e.g. new sectoral codes of conduct, joint ventures and R&D programmes. |
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Supply chain management
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Key activities
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| Developing supply chain management, evaluation and partnership approaches that minimise negative embedded sustainability impacts and maximise opportunities for performance improvement and enhanced internal control |
| Work in partnership with relevant stakeholders to develop workable approaches |
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Suggested resources
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Outcomes & outputs
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Supply chain report, including coverage of supply chain risk, critical issues, opportunities for supply chain driven performance improvement, any additional training and awareness requirements, spend profile analysis to identify opportunities for influencing supplier behaviours and performance, partnership opportunities with suppliers - e.g. involving suppliers in product design issues, etc. |
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Key Issues
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Useful documents:
| Performance review report/compliance report/actions, impacts and outcomes report/governance reviews |
| Documentation and records of existing internal controls and operational control processes, systems and technologies |
| Data and information from existing internal and external audit/assurance activities |
| Records of accidents, incidents and near misses relating to health and safety or environmental performance/issues |
| Information on existing supply chain management/evaluation/partnership programmes and techniques, including any information on their effectiveness. |
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