ISO 26000 : 2010

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1 Guidance on Social Responsibility - Compiled & edited by Ravikeerthi Rao ISO 26000

Transcript of ISO 26000 : 2010

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Guidance on Social Responsibility

- Compiled & edited by Ravikeerthi Rao

ISO 26000

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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.

SOCIAL RESPONSIBILITY (SR)

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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).

SOCIAL RESPONSIBILITY

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• 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.

SUSTAINABLE BUSINESS

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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.

Organisation’s 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.

THE EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY

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• The modern concept of corporate social responsibility began to emerge in the United States in the late 1960s.

• CSR, as initially under stood, was a combination of best corporate prac tices—which amounted to little more than obeying the law—and commitments to respect internationally recognized human rights, even those not codified in national law.

THE EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY

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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.

SOCIAL RESPONSIBILITY

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• 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.

SOCIAL RESPONSIBILITY

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• 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?

ISO 26000 : 2010

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• 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.

SOCIAL RESPONSIBILITY

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• “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.

ISO 26000 : 2010

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• 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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• 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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• 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 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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• 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 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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• 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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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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b) Recognizing social responsibility and engaging stakeholders

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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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d) ways to integrate socially responsible behaviour into the organization

WHAT DOES ISO 26000 ACCOMPLISH?

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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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• This standard is not intended to reduce government’s authority to address the social responsibility of organizations.

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• The standards make it clear, that companies should proceed in good faith, applying the seven principles of socially responsible behaviour .

ISO 26000 : 2010 - SEVEN PRINCIPLES

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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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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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3) Ethical behaviour

An organization’s behaviour should be based on the ethics of honesty, equity, and integrity.

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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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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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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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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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Steps involved in implementation :

• Gap Assessment

• Strategy Development

• Training on ISO 26000

• Verification of Compliance

BENEFITS OF THE ISO 2600 STANDARD

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• 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 consumer’s 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 company’s reputation and therefore to the company’s 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 authori ties or to organizations or people favoured by them.

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DIFFERENT VIEW POINT

• Sustainable economic growth and prosperity requires free markets.

• Need less regulation on business, even for a seemingly positive purpose such as corporate social responsi bility, threatens the growth sought by every nation.

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