ISO 26000

Guidance on Social Responsibility

- Compiled & edited by Ravikeerthi Rao

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There is high awareness and realization that the gains from
economic development need to reduce the inequalities and play a
key role in social development and poverty reduction.

The main reasons for this awareness are :

Global nature of the trade,
Improved connectivity, and
Advancement in communication & technologies

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Customers are demanding not only quality and safety of the
products they are buying, but also who are supplying these, how
they are operating, etc.

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The performance of an organization in relation :

to the society in which it operates, and

to its impact on the environment

has become a critical part of measuring its overall performance and

ability to continue operating effectively.

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Lasting success requires credible business practices and the
prevention of such activities as fraudulent accounting and labour
exploitation.

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 SOCIAL RESPONSIBILITY (SR)

Recognition of the need for more ethically responsible business

practices has seen the emergence of a strong global movement to
embrace and promote the concept of social responsibility (SR).

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 SOCIAL RESPONSIBILITY

When we call People and organizations are socially

responsible?

We call them socially responsible, if they behave ethically and

with sensitivity toward :
social,
cultural,
economic , and
environment issues.

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The objective of social responsibility (SR) is to contribute to
sustainable development in which everyone has a share of
responsibility.

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 SUSTAINABLE BUSINESS

What is Sustainable business for organizations?

Providing products & services that satisfy the customer, without

jeopardizing the environment, and also operating in a socially
responsible manner will be Sustainable business for organizations.

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 CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility (CSR) is a business approach that

contributes to sustainable development by delivering :

economic,
social and
environmental benefits for all stakeholders.

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The reality is that no organisation operates in isolation; there is
interaction with employees, customers, suppliers and stakeholders.

Organisations relationship to the society and environment in which they

operate is a critical factor in their ability to continue to operate effectively.

This relationship is also increasingly being used as a measure of their

overall performance.

CSR is about managing these relationships to produce an overall positive

impact on society, whilst making money.

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 THE EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY

The modern concept of corporate social responsibility began to

emerge in the United States in the late 1960s.

CSR, as initially understood, was a combination of best

corporate practiceswhich amounted to little more than obeying
the lawand commitments to respect internationally recognized
human rights, even those not codified in national law.

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 THE EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY

As it evolved over the years, the concept of good works was

broadened to include funding for health care, education, or even
infrastructure construction in poorer countries.

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 CORPORATE SOCIAL RESPONSIBILITY

CSR is a very broad concept that addresses many and various topics such
as :

human rights,
corporate governance,
health and safety,
environmental effects,
working conditions and
contribution to economic development.

Whatever the definition is, the purpose of CSR is to drive change towards
sustainability.

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 SOCIAL RESPONSIBILITY

Ethical practices
Minimizing environmental impacts
Ensuring fair & transparent processes beneficial to all
stakeholders

are the USPs which the organizations are utilizing to gain

significant competitive advantages.

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 SOCIAL RESPONSIBILITY

While the importance of corporate social responsibility is

generally accepted, there are as many definitions of social
responsibility as there are organizations.

What is the solution for this ambiguity?

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 ISO 26000 : 2010

ISO 26000 : 2010 standard offers a definition of what it means

to be a socially responsible organization and why it is important
that companies adopt this position.

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 SOCIAL RESPONSIBILITY

ISO 26000 : 2010 , Guidance on Social Responsibility is a first

attempt to harmonize the socially responsible behavior of
enterprises at international level.

ISO 26000 was released on 1st November 2010.

This standard is one of the most comprehensive standards ever

developed by ISO and is received global attention and
acceptance.

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 ISO 26000 : 2010

ISO 26000 gives guidance on :

social responsibility,
what it means,
what issues an organization needs to address in order to
operate in a socially responsible manner,
and what is the best practice in implementing social
responsibility.

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 ISO 26000 : 2010

As per the standard the Social Responsibility is the

responsibility of an organisation for the impacts of its decisions
and activities on society and the environment.

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 ISO 26000 : 2010

What is Operating in a socially responsible way?

Operating in a socially responsible way means acting in an

ethical and transparent way that contributes to the health and
welfare of society.

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 ISO 26000 : 2010

ISO 26000 is the international standard developed to help

organizations effectively assess and address those social
responsibilities that are relevant and significant to their :
- mission and vision;
- operations and processes;
- customers,
- employees,
- communities, and other stakeholders; and
- environmental impact.

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 ISO 26000 : 2010

The standard is valid for all types of organizations, small and

large, governmental, commercial or non-governmental.

This standard intended as guidance, not for certification.

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 ISO 26000 : 2010

ISO 26000:2010 is intended to assist organizations in

contributing to sustainable development.

It is intended to encourage them to go beyond legal compliance,

recognizing that compliance with law is a fundamental duty of
any organization and an essential part of their social
responsibility.

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 ISO 26000 : 2010

As a guidance document the ISO 26000 is an offer, voluntary in

use, and encourages organizations to discuss their social
responsibility issues and possible actions with relevant
stakeholders.

The organizations needs to identify which issues are relevant

and significant for them to address in prioritized manner,
through its own consideration and through dialogue with
stakeholders.

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 ISO 26000 : 2010

The ISO 26000 standard provides guidance on :

a) the seven key underlying principles of social responsibility:
accountability,
transparency,
ethical behaviour,
respect for stakeholder interests,
respect for the rule of law,
respect for international norms of behaviour, and
respect for human rights

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 ISO 26000 : 2010

b) Recognizing social responsibility and engaging stakeholders

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 ISO 26000 : 2010

c) the seven core subjects and issues pertaining to social

responsibility:
organizational governance,
human rights,
labor practices,
the environment,
fair operating practices,
consumer issues, and
community involvement and development.

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 ISO 26000 : 2010

d) ways to integrate socially responsible behaviour into the

organization

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 WHAT DOES ISO 26000 ACCOMPLISH?

The scope of ISO 26000 includes the following:

Assist organizations in addressing their social responsibilities while respecting
cultural, societal, environmental, and legal differences and economic development
conditions
Provide practical guidance related to making social responsibility operational
Assist with identifying and engaging with stakeholders and enhancing credibility of
reports and claims made about social responsibility
Emphasize performance results and improvement
Increase confidence and satisfaction in organizations among their customers and
other stakeholders
Achieve consistency with existing documents, international treaties and conventions,
and existing ISO standards
Promote common terminology in the social responsibility field
Broaden awareness of social responsibility
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 ISO 26000 : 2010

This standard is not intended to reduce governments authority

to address the social responsibility of organizations.

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 ISO 26000 : 2010

The standards make it clear, that companies should proceed in

good faith, applying the seven principles of socially responsible
behaviour .

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 ISO 26000 : 2010 - SEVEN PRINCIPLES

1) Accountability
An organization is answerable to those affected by its decisions
and activities, as well as to society in general, for the overall
impact on society and its decisions and activities.

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 ISO 26000 : 2010 - SEVEN PRINCIPLES

2) Transparency
An organization should disclose, in a clear, accurate manner
and to a reasonable and sufficient degree, the policies,
decisions, and activities for which it is responsible, including
known and likely impacts.

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 ISO 26000 : 2010 - SEVEN PRINCIPLES

3) Ethical behaviour

An organizations behaviour should be based on the

ethics of honesty, equity, and integrity.

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 ISO 26000 : 2010 - SEVEN PRINCIPLES

4) Respect for Stakeholder Interests

In addition to owners, members, and customers or

constituents, other individuals or groups may also have
rights, claims, or specific interests that should be taken into
account.

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 ISO 26000 : 2010 - SEVEN PRINCIPLES

5) Respect for the Rule of Law

An organization is to comply with all applicable laws

and regulations. It informs those within the
organization of their obligation to observe and to
implement measures.

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 ISO 26000 : 2010 - SEVEN PRINCIPLES

6) Respect for International Norms of Behaviour

An organization respects international norms of

behaviour while adhering to the principle of respect for the
rule of law.

An organization should not stay silent in response to or

benefit from wrongful acts.

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 ISO 26000 : 2010 - SEVEN PRINCIPLES

7) Respect for Human Rights

An organization respects and fosters rights set out in the

International Bill of Human Rights. This includes situations
where human rights are not protected.

ISO 26000 then applies those principles to seven core subjects

that describe socially responsible areas of activity or focus.

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 ISO 26000 : 2010

Steps involved in implementation :

Gap Assessment
Strategy Development
Training on ISO 26000
Verification of Compliance

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 BENEFITS OF THE ISO 2600 STANDARD

You can improve your relationship with partners, government, the media,
suppliers, peers, customers and the community in which you operate.

Risk management is improved as the likelihood of stakeholder conflicts, bad

publicity and reputational crises is greatly reduced.

An improved reputation will increase staff morale and the ability to attract
and retain workers.

Investors, sponsors and the financial community are also more interested in
investing in ethically sound organisations.

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 BENEFITS OF THE ISO 2600 STANDARD

CSR contributes to a consumers sense of well-being, and

that this benefit is rewarded by consumers in the market.

Outcomes from CSR include :

positive company evaluations,
higher purchase intentions,
resilience to negative information about the organization,
positive word-of-mouth, and
a willingness to pay higher prices by some consumers.

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 BENEFITS OF THE ISO 2600 STANDARD

Global consumers are willing to put their money where their

heart is when it comes to goods and services from companies
committed to social responsibility.

Global retail analysis shows increased sales for brands with

sustainability claims on packaging or active marketing of
corporate social responsibility efforts.

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 BENEFITS OF THE ISO 2600 STANDARD

Fifty-five percent of global online consumers across 60

countries say they are willing to pay more for products and
services provided by companies that are committed to positive
social and environmental impact, according to a study by
Nielsen (June 17, 2014).

Research examining corporate social responsibility (CSR)

demonstrates a relatively consistent level of positive support by
consumers.

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 SUSTAINABILITY REPORTING

Companies are increasingly disclosing their social and

environmental performance together with their financial
reporting.

Good communication helps to manage the expectations of a

wide range of stakeholders scrutinizing the business, from
investors, auditors and regulators to non-governmental
organisations and the media.

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 SUSTAINABILITY REPORTING

What and why

Sustainability reports disclose performance along social,
environmental, and increasingly economic parameters.
Reporting can go a long way in satisfying stakeholders'
demands for transparency on corporate responsibility issues.
It is no longer enough jut to claim that the company is a
responsible corporate citizen that contributes to a sustainable
world. Now they have to prove it too.
Credible communication contributes strongly to the companys
reputation and therefore to the companys market position and
value.
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 SUSTAINABILITY REPORTING

The term sustainability reporting is used to cover a broad range

of online or printed formats in which companies report on their
social, environmental, and economic performance.

It is also known as triple bottom line reporting.

Sustainability reporting satisfies the need for a more holistic

approach to corporate reporting on performance, beyond the
purely financial disclosure.

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 TRIPLE BOTTOM LINE REPORTING

The model of the triple bottom line :

Economic Environment - Social

or
Profit-Planet-People

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 TRIPLE BOTTOM LINE REPORTING

The basic idea of triple bottom line is :

to measure the success of your business not only by

its profits, but also by what impact your business
activities have on the planet and its people.

(http://www.sustainability4success.com/triple-bottom-line.html)

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 TRIPLE BOTTOM LINE REPORTING

Meaning and relevance of the Triple Bottom Line

The idea behind the triple bottom line can form the foundation
for a sustainable business. Sometimes it only takes three words
to change things.

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 SO WHAT'S IN IT FOR THE BUSINESS?

This basic idea is a one size fits all! No matter what the companies think
about sustainability reporting, whether or not it's important to the business
right now.

Companies need to take the triple bottom line as a guide for all things in
business.

They need to think how does that next step affect people, the planet and the
profit?

And, find the balance between the three one that the future generation will
be fine with, too.

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 DIFFERENT VIEW POINT

Same people says :

ISO 26000 is a quixotic attempt to find technical solutions to

political problems, and will be fertile ground for future WTO
litigations.

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 DIFFERENT VIEW POINT

While CSR is promoted as a path to laudable social goals (such

as health care, education, and infrastructure construction in
developing countries), in practice it can devolve into a thinly
disguised form of coercion requiring companies to transfer some
of their profits to host government authorities or to organizations
or people favoured by them.

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 DIFFERENT VIEW POINT

Sustainable economic growth and prosperity requires free

markets.
Needless regulation on business, even for a seemingly positive
purpose such as corporate social responsibility, threatens the
growth sought by every nation.

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