Lasting success requires credible business practices and the prevention of such activities as fraudulent accounting and labour exploitation.
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.
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.
International Business Environments and Operations 16th Global Edition test b...
ISO 26000 : 2010
1. 1
Guidance on Social Responsibility
- Compiled & edited by Ravikeerthi Rao
ISO 26000
2. 2
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
3. 3
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.
4. 4
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.
5. 5
Lasting success requires credible business practices and the
prevention of such activities as fraudulent accounting and labour
exploitation.
6. SOCIAL RESPONSIBILITY (SR)
6
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).
7. SOCIAL RESPONSIBILITY
7
• 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.
8. 8
The objective of social responsibility (SR) is to contribute to
sustainable development in which everyone has a share of
responsibility.
9. SUSTAINABLE BUSINESS
9
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.
10. CORPORATE SOCIAL RESPONSIBILITY
10
Corporate social responsibility (CSR) is a business approach that
contributes to sustainable development by delivering :
• economic,
• social and
• environmental benefits for all stakeholders.
11. 11
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.
12. THE EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY
12
• 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 practices—which amounted to little more than obeying
the law—and commitments to respect internationally recognized
human rights, even those not codified in national law.
13. THE EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY
13
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.
14. CORPORATE SOCIAL RESPONSIBILITY
14
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.
15. SOCIAL RESPONSIBILITY
15
• 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.
16. SOCIAL RESPONSIBILITY
16
• 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?
17. ISO 26000 : 2010
17
• 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.
18. SOCIAL RESPONSIBILITY
18
• “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.
19. ISO 26000 : 2010
19
• 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.
20. ISO 26000 : 2010
20
• 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”.
21. ISO 26000 : 2010
21
• 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.
22. ISO 26000 : 2010
22
• 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.
23. ISO 26000 : 2010
23
• 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.
24. ISO 26000 : 2010
24
• 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.
25. ISO 26000 : 2010
25
• 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.
26. ISO 26000 : 2010
26
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
27. ISO 26000 : 2010
27
b) Recognizing social responsibility and engaging stakeholders
28. ISO 26000 : 2010
28
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.
29. ISO 26000 : 2010
29
d) ways to integrate socially responsible behaviour into the
organization
30. WHAT DOES ISO 26000 ACCOMPLISH?
30
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
31. ISO 26000 : 2010
31
• This standard is not intended to reduce government’s authority
to address the social responsibility of organizations.
32. ISO 26000 : 2010
32
• The standards make it clear, that companies should proceed in
good faith, applying the seven principles of socially responsible
behaviour .
33. ISO 26000 : 2010 - SEVEN PRINCIPLES
33
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.
34. ISO 26000 : 2010 - SEVEN PRINCIPLES
34
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.
35. ISO 26000 : 2010 - SEVEN PRINCIPLES
35
3) Ethical behaviour
An organization’s behaviour should be based on the
ethics of honesty, equity, and integrity.
36. ISO 26000 : 2010 - SEVEN PRINCIPLES
36
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.
37. ISO 26000 : 2010 - SEVEN PRINCIPLES
37
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.
38. ISO 26000 : 2010 - SEVEN PRINCIPLES
38
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.
39. ISO 26000 : 2010 - SEVEN PRINCIPLES
39
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.
40. ISO 26000 : 2010
40
Steps involved in implementation :
• Gap Assessment
• Strategy Development
• Training on ISO 26000
• Verification of Compliance
41. BENEFITS OF THE ISO 2600 STANDARD
41
• 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.
42. BENEFITS OF THE ISO 2600 STANDARD
42
• 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.
43. BENEFITS OF THE ISO 2600 STANDARD
43
• 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.
44. BENEFITS OF THE ISO 2600 STANDARD
44
• 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.
45. SUSTAINABILITY REPORTING
45
• 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.
46. SUSTAINABILITY REPORTING
46
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.
47. SUSTAINABILITY REPORTING
47
• 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.
48. TRIPLE BOTTOM LINE REPORTING
48
The model of the triple bottom line :
Economic – Environment - Social
or
Profit-Planet-People
49. TRIPLE BOTTOM LINE REPORTING
49
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)
50. TRIPLE BOTTOM LINE REPORTING
50
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.
51. SO WHAT'S IN IT FOR THE BUSINESS?
51
• 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.
52. DIFFERENT VIEW POINT
52
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.
53. DIFFERENT VIEW POINT
53
• 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.
54. DIFFERENT VIEW POINT
54
• 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.