Context of the organization is the business environment determined by external factors like legal, financial, social, regulatory and cultural, etc. and organization’s internal environment determined by internal factors like internal structures, governance, resource capabilities.
Context of the organization also depends on the requirements of the Interested Parties. Both internal and external context can influence strategic plans of an organization. Business environments is changing quickly. Organizations who captures these changing business needs quickly are more able to survive in a highly competitive environment.
In today’s business environment, a single customer compliant on a social media platform can spoil a company’s reputation. Customer pressures can force organizations to change various policies on product returns, customer support and much more. Similarly, internal context like organizational structures or skills of employees can result in procedural changes within organizations. When developing a Management system, it is important organizations understand these contexts when determining the scope of the Management System. I-Context plays a vital role in determining such internal and external issues and the needs and expectations of the interested parties which can affect the organization at any level. I-Context is line with clause number 4.1 Understanding the organization & its context & Clause number 4.2 Understanding the needs and expectations of the interested parties.