BUSINESS CRITERIA: ITEM AND CATEGORY DESCRIPTIONS
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1.2 Governance and Social Responsibilities

Purpose

This Item examines key aspects of your organization’s governance system. It also examines how your organization fulfills its public responsibilities, how your senior leaders ensure that you behave legally and ethically, and how your senior leaders and employees encourage and practice good citizenship.

Comments

- The organizational governance requirement is intended to address the need for a responsible, informed, and accountable governance or advisory body that can protect the interests of key stakeholders, such as stockholders. It should have independence in review and audit functions. It also should have a performance evaluation function that monitors organizational and CEO performance.

- An integral part of performance management and improvement is proactively addressing (1) the need for ethical behavior, (2) legal and regulatory requirements, and (3) risk factors. Addressing these areas requires establishing appropriate measures or indicators that senior leaders track in their performance reviews. Your organization should be sensitive to issues of public concern, whether or not these issues are currently embodied in law. Role model organizations look for opportunities to exceed requirements and to excel in areas of legal and ethical behavior.

- This Item addresses the use of resource-sustaining processes. These processes might include “green” technologies, replacement of hazardous chemicals with water-based chemicals, energy conservation, use of cleaner energy sources, or the recycling of by-products or wastes.

- Social responsibility implies going beyond a compliance orientation. Good citizenship opportunities are available to organizations of all sizes. These opportunities include encouraging and supporting your employees’ community service.

- Examples of organizational community involvement include partnering with schools and school boards to improve education; partnering with health care providers to improve health in the local community by providing education and volunteer services to address public health issues; and partnering to influence trade, business, and professional associations to engage in beneficial, cooperative activities, such as sharing best practices to improve overall U.S. global competitiveness and the environment.

Item Description Links: 1.1 - 1.2 - 2.1 - 2.2 - 3.1 - 3.2 - 4.1 - 4.2 - 5.1 - 5.2 - 5.3 - 6.1 - 6.2 - 7.1 - 7.2 - 7.3 - 7.4 - 7.5 - 7.6 - P.1 - P.2

Note: All information above relates to Item descriptions. All information below relates to the actual Criteria.

2006 Criteria Items: 1.1 - 1.2 - 2.1 - 2.2 - 3.1 - 3.2 - 4.1 - 4.2 - 5.1 - 5.2 - 5.3 - 6.1 - 6.2 - 7.1 - 7.2 - 7.3 - 7.4 - 7.5 - 7.6 - P.1 - P.2

Click to download a copy of 2006 Baldrige Actionable Criteria