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OVERVIEW OF ISO 26000 SOCIAL OVERVIEW OF ISO 26000 SOCIAL RESPONSIBILITY AND THE BENEFITS TO RESPONSIBILITY AND THE BENEFITS TO
INDUSTRIESINDUSTRIES
SEMINAR STANDARD 2011: STANDARDS TOWARDS INCREASING MARKET
COMPETITIVENESS-13 DECEMBER 2011ORGANISED BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY
MALAYSIA
SPEAKER: AB RAZAK SALIMSIRIM
Brief process of ISO 26000 ISO 26000 FRAMEWORK Highlight on clauses Benefits of social responsibility
OUTLINE PRESENTATIONOUTLINE PRESENTATION
BRIEF PROCESS OF ISO 26000
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How did the ISO 26000 effort get started?
COPOLCOReport
AGReport
May 2001 Jun 2002 Sept. 2002 April 2004 June 2004
Swedish Industry Association
Env. Mgt Consultants of CV
Industry Stds Committeefor Petroleum and Gas
MoUs established
Work begins
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Who has been participating in the process?
99 countries represented through their NSBs
42 liaison organisations(including MoUs with ILO,UNGC and OECD)
450 experts and 210 observers from 6 stakeholder categories(Industry, Government, Consumers, Labour, NGO,SSRO)
(2010)
6Stage 3-5: Building national consensus/vote, D-liaison backing
Stage 2: Building consensus among individual experts
STAGE 1STAGE 1
New Work
Item Proposal
(NWIP)
STAGE 2STAGE 2
Working
Draft (s)
(WD)
STAGE 3STAGE 3
Committee
Draft (s)
(CD)
ISO 26000 writing process
STAGE 4STAGE 4
Draft Intern.
Standard
(DIS)
STAGE 5STAGE 5
Final Draft
Intern. Stand.
(FDIS)
STAGE 6STAGE 6
International
Standard
(IS)
STAGE 2STAGE 2
Working
Draft (s)
(WD)
STAGE 2STAGE 2
Working
Draft (s)
(WD 4.3)
PUBLICATION -1 NOV 2010
ISO 26000 FRAMEWORK
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HIGHLIGHT ON CLAUSES 1-SCOPE
SCOPE- PROVIDE GUIDANCE TO ALL TYPES OF ORGANISATION,
REGARDLESS OF SIZE OR LOCATION
ENCOURAGE ORGANISATION TO GO BEYOND LEGAL COMPLIANCE
NOT A MANAGEMENT SYSTEM
NOT INTENDED FOR CERTIFICATION OR REGULATORY OR CONTRACTUAL USE
CLAUSE 2
Terms and definitions ~ 27
Organisation (2.12)
-Entity or group of people and facilities with an arrangement of responsibilities, authorities and relationships and identifiable objectives
International norms of behaviour (2.11)
expectations of socially responsible organizational behaviour derived from customary international law, generally accepted principles of international law, or intergovernmental agreements that are universally or nearly universally recognized
Supply chain (2.22)
Sequence of activities or parties that provides products or services to the organisation
Value chain (2.25)
Entire sequence of activities or parties that provide or receive value in the form of products or services
IN/ID - YYYY-MM-DD Title / Titre –
Value & supply chain
Customers
MediaGovernmentCitizens NGO’s
Consumers
Workers
IndustryOrganization
Value chain
Sub-Suppliers
Raw material providers Waste
services
Supply chain
Sphere of Influence2.19
•Definition: range/extent of political, contractual,
economic or other relationships through which an organization has the ability to affect the decisions or activities of individuals or organizations
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Distributors
Value chain
Supply chain
Sector association
MediaGovernmentCitizens NGO’s
Social , Economic and Environment
ConsumersSuppliers ASub-Suppliers A
Raw material providers
Waste services
Workers
EmployeesIndustryOrganization
Partners Banks /Insurance
Shareholders
Suppliers B
Customers A
Sub-Suppliers B
Customers B
Sphere of influence
Assessment on an organization's SOI:
• ownership and governance• economic relationship• legal/political authority• public opinion
CLAUSE 3-Understanding social responsibility
Essential characteristics of SR
Willingness of an organisation to incorporate social and environmental considerations in its decision making and be accountable for the impacts of its decision and activities on society and environment.
Relationship between social responsibility and sustainable development
-Sustainable development-meeting the future needs of society without jeopardizing the ability of future generations to meet their needs
-Social responsibility- focus on organisation and its responsibilities to society and environment
-objective of organization's SR should be to contribute to sustainable development
CLAUSE 4 Principles of Social Responsibility
Accountability
Transparency
Ethical behaviour
Respect for stakeholder
Respect for the rule of law
Respect for international norms of behaviour
Respect for human right
CLAUSE 3-Understanding social responsibility
Fundamental of SR
Identifying and engaging with stakeholders is central to SR.
Stakeholder (2.20)
- individual or group that has an interest in any decision or activity of an organisation
25IN/ID - YYYY-MM-DD Title / Titre –
Stakeholder map
MediaGovernment
Citizens NGO’s
Consumers
IndustryOrganization
Stakeholder engagement
Dialogue between organisation and stakeholders
Various forms~ meeting, conferences, workshops, public hearings, advisory committees, round table discussions
CLAUSE 5: RECOGNIZING SR AND ENGAGING STAKEHOLDERS
CLAUSE 6
SR core subjects and issues
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Labourpractices
Fair operating practices
Consumer issues
Theenvironment
CommunityInvolvement and
developmentHuman rights
Or g a n i z a t i o n a l
ORGANIZATION
7 CORE SUBJECTS
Std Pres Kit 29
GUIDANCE ON SR CORE SUBJECTS
Organizational Governance Issue
1.Decision-making processes and structures
Std Pres Kit 30
SR core subjects
Human Rights Issues1.Due diligence2.Human rights risk situations3.Avoidance of complicity4.Resolving grievances5.Discrimination and vulnerable groups6.Civil and politics rights7.Economic, social and cultural rights8.Fundamental principles and rights at work
Std Pres Kit 31
SR Core Subjects
Labour Practices Issues 1.Employment and employment relationships2.Conditions of work and social protection3.Social dialogue4.Health and safety at work5.Human development and training in the workplace
Std Pres Kit 32
SR Core Subjects
Environmental Issues
1.Prevention of pollution
2.Sustainable resource use
3.Climate change mitigation and adaptation
4.Protection of the environment and restoration of natural habitats
Std Pres Kit 33
SR Core subjects
Fair Operating Practices Issues1.Anti-corruption2.Responsible political involvement3. Fair competition4. Promoting social responsibility in the sphere of influence5. Respect for property rights
Std Pres Kit 34
SR Core Subjects
Consumer Issues1.Fair marketing, factual and unbiased information and fair
contractual practices2.Protecting consumers’ health and safety3.Sustainable consumption4.Consumer service, support and dispute resolution5.Consumer data protection and privacy6.Access to essential services7.Education and awareness
Std Pres Kit 35
SR Core subjects
Community involvement and development 1.Community involvement 2.Education and culture3.Employment creation and skills development 4.Technology development and access5.Wealth and income creation6.Health7.Social investment
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Organizational governance
Human rights
Labour practices
The environment
Fair operating practices
Consumer issues
Community involvement and
development
1. Due diligence2. Human rights risk situations3. Avoidance of complicity4. Resolving grievances5. Discrimination and vulnerable groups6. Civil and politics rights7. Economic, social and cultural rights8. Fundamental principles and rights at work
1. Employment and employment relationships
2. Conditions of work and social protection
3. Social dialogue4. Health and safety at work5. Human development and
training in the workplace
1. Prevention of pollution2. Sustainable resource use3. Climate change mitigation and
adaptation4. Protection of the environment and
restoration of natural habitats
1. Anti-corruption2. Responsible political involvement3. Fair competition4. Promoting social
responsibility in the sphere of influence
5. Respect for property rights
1. Fair marketing, factual and unbiased information and fair contractual practices
2. Protecting consumers’ health and safety3. Sustainable consumption4. Consumer service, support and dispute resolution5. Consumer data protection and privacy6. Access to essential services7. Education and awareness
1. Community involvement 2. Education and culture3. Employment creation and skills
development 4. Technology development and access5. Wealth and income creation6. Health7. Social investment
NOT ALL ISSUES WILL BE RELEVANT
FOR EVERY ORGANIZATION
Decision-makingprocesses
and structures
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~ Practices for integrating social responsibility throughout an organization
~ Communication on social responsibility
~ Enhancing credibility regarding social responsibility
~ Reviewing and improving the organization’s actions and practices related to social responsibility
7 Guidance on integrating social responsibility throughout an organization
Role of communication
- Raising awareness
- Legal and disclosure requirement
- Engage and create dialogue
- Facilitate comparison, stimulate improvement
- Enhance reputation
7.5 Communication should be:
- Complete- Understandable- Responsive- Accurate- Balanced- Timely- Accessible
Types of communication ~ examples
- Meetings or conversation
- Dialogues- Articles in media- Advertisement or public statement- Periodic public reporting
Reporting on social responsibility
- Report on SR at appropriate intervals/ periodic basis- Report on core subject and
relevant issues- Fair and complete picture, achievement and shortfall- Ways shortfall will be addressed
Enhancing credibility.. (7.6)
Stakeholder engagement~ help build trust~ the verification of organization's
claim concerning its performance
Through participation in specific certification scheme eg environment, labour practices, processes
Social Responsibility (2.18)
. Responsibility of an organization for the impacts of its decisions and activities on society and the environment through transparent and ethical behaviour that:
contributes to sustainable development, including health and the welfare of society
takes into account the expectations of stakeholders is in compliance with applicable law and consistent
with international norms of behaviour
is integrated throughout the organization and practiced in its relationships
Implementation Challenges
SR often not seen as commercially important, benefits are seen as “intangible” or “soft” and seek greater proof of hard financial benefits and how to measure them
Need financial and human resources
Need know-how and information
Large business faces external pressures e.g. reporting on CSR. SME are more interested in day to day survival.
Box 5 — Benefits of social responsibility for an organization
These include: enhancing the reputation of the organization
and fostering greater public trust enhancing employee loyalty, involvement,
participation and morale; improving the safety and health of workers; preventing or reducing potential conflicts
with consumers about products or services.
organization's ability to recruit, motivate and retain its employees;
achieving savings associated with increased productivity and resource efficiency, lower energy and water consumption, decreased waste
improving the reliability and fairness of transactions fair competition, and the absence of corruption
ConclusionA Pathway For the Future
Social Responsibility helps in achieving sustainable development.
The need for social responsibility behaviour is needed more than ever before from the huge environmental and social problems that the world face.
Industry activities have impacts on social responsibility
Thank you …