Understanding the Iso 26000 Social Responsibility Standard and How It Relates to and Can Be Assessed Alongside Other Standards

Home , ISO 26000, Stakeholder engagement

UNDERSTANDING THE ISO 26000 SOCIAL RESPONSIBILITY STANDARD AND HOW IT RELATES TO AND CAN BE ASSESSED ALONGSIDE OTHER STANDARDS

A discussion about social responsibility issues and how they can be managed within a business for the benefit of society today and in the future

JANUARY 2011

AUTHOR Rebecca Bowens Global Product Manager, Sustainability Report Assurance, SGS ABSTRACT

The purpose of this white paper is its implementation. Rather, it aims to how the ISO 26000 standard relates to to provide an introduction to the ISO promote understanding of the standard and can be assessed alongside other 26000 standard on Social Responsibility. and its benefits to organisations standards and assessments both at the This document is not intended to be adopting socially responsible behaviour, international and national level. a full explanation of the standard or of as well as providing information on

CONTENTS

I. EXECUTIVE SUMMARY 1

II. CORPORATE SOCIAL RESPONSIBILITY AND THE ISO 26000 2

III. THE FRAMEWORK FOR SOCIAL RESPONSIBILITY 4

IV. HOW ISO 26000 RELATES TO OTHER STANDARDS 7

V. STEPS TOWARDS SOCIAL RESPONSIBILITY 14

VI. THE BENEFITS OF FOLLOWING ISO 26000 15

VII. CONCLUSION 17

I. EXECUTIVE SUMMARY

Organisations today are responsible at making the world a better place responsible behaviour into existing for the impact of their decisions both currently and for generations organisational strategies, systems, and activities on society and the to come. Businesses that neglect practices and processes*. By looking environment. In addition, legislation to incorporate socially responsible at an organisation’s behaviour, the in many countries enables access behaviour into their strategies, systems Standard evaluates to what extent it to detailed information about the and practices are likely to lose out transparently and ethically: activities of some organisations, which to competitors as customers, staff, • Contributes to sustainable means they are subject to increased stakeholders, investors, business development, including the health and scrutiny by a wide variety of groups partners, governments and communities welfare of society; and individuals. In consequence, increasingly decide not to support organisations around the world, and their companies that care little for the planet • Takes into account the needs and stakeholders, are becoming increasingly and the well-being of the people in it. expectations of stakeholders; aware of the need for and benefits The new ISO 26000 Standard, published • Is compliant with applicable laws and of socially responsible behaviour. For in November 2010, provides guidance consistent with international norms; a business to be respected it has to on the underlying principles of social and respect the environment and respect responsibility, the core subjects and • Integrates and implements these human rights. Every organisation issues pertaining to social responsibility behaviours throughout needs to instigate actions aimed and on ways to integrate socially the organisation.

* Reference: ISO 26000:2010 standard

1 II. CORPORATE SOCIAL RESPONSIBILITY AND THE ISO 26000

WHAT IS SOCIAL RESPONSIBILITY? necessity to consistently consider INCREASING AN ORGANISATION’S the affect of business practices. With Social responsibility is a broad subject FOCUS ON SOCIAL RESPONSIBILITY these factors and concerns for global and not one than can be overlooked by As organisations realise that if they environmental issues and the increasing any organisation that wishes to have neglect to ensure that they are acting economic interdependence of countries a successful future. It is centred on in a socially responsible manner they around the world, it is no surprise that taking ownership of the impact that an will lose out to competitors, more social responsibility has now come organisation’s decisions and activities and more are looking for ways to to the forefront of corporate strategic have on the society and environment better understand the breadth of planning. There have also been a in which it operates. It is no longer an responsibilities they need to consider. It number of international instruments option for an organisation to ignore is a complex subject that applies to all and agendas that have emphasised the social responsibilities as customers and organisations. Irrespective of their size, growing global interdependence such investors favour businesses that are line of business or service they need to as the Rio Declaration on Environment caring and respectful to the world and ensure social obligations are met. This and Development, the Johannesburg the people that exist in it. is where the ISO 26000 Guidance on Declaration of Sustainable Development Social Responsibility Standard comes Corporate social responsibility is not and the Millennium Development Goals. in. It has been created to guide all a new concept; acceptable rules of Now, organisations are expected to types of organisations through the full conduct for businesses and the people exhibit their social responsibility through range of issues and actions that need within them have been debated for as transparent and ethical behaviour that to be taken. By guiding organisations long as business transactions have been through a myriad of approaches to social contributes to, and protects society in a in existence. The 1953 book the ‘Social and environmental issues it promotes number of different ways. Organisations Responsibilities of the Businessman’ sustainable development on a global need to demonstrate explicitly that by Howard Bowen is often heralded as scale. It is not designed to be a third they act within internationally accepted the start of the modern debate about party assessment and certification norms of behaviour at the same the issues that organisations need to Standard, but instead provides a time as complying with the laws consider, but it was in the 1970s that the guidance framework that can be used of each country. They also need to focus increased. The first consideration in conjunction with certified Standards. clearly contribute to the sustainable was an organisation’s philanthropic These could be other international ISO development of the societies they activity, such as giving to charity. This Standards or national level assessments. operate in, paying careful attention to gradually expanded over the years to health and welfare issues. In order to do include elements such as labour and fair all this effectively an organisation needs operating practices, human rights, the to integrate the views and wishes of all environment, countering corruption and stakeholders and ensure that the full consumer protection. range of socially responsible behaviours Globalisation and the ease with which are adopted throughout the organisation information is shared on an international and are practised in all relationships. scale have majorly affected the

2 DEVELOPING THE ISO 26000 STANDARD governments, labour, NGOs, service, This thorough development process support and research, among others. highlights the global recognition of the With such all-encompassing global The process went even further to need for organisations to focus on social implications one of the most important ensure that a full and complete current responsibility for the benefit of society, attributes of the ISO 26000 Standard is understanding of social responsibility the environment and the world as that it is internationally recognised and was reached by involving 60 experts a whole. supported. This is not just because it from 34 Liaison Organisations. These has been launched by the International ISO Secretary-General Rob Steele experts assisted with international Organization for Standardization (ISO), notes: “…whether they are business leadership twinning processes that also but is more the result of its extensive enterprises, or public sector helped to identify all the key aspects of multi-stakeholder development process. organizations. Operating in a socially social responsibility and how to evaluate There were over 400 experts from 80 responsible manner is no longer an them within the Standard. In addition, different countries involved in identifying option. It is becoming a requirement of the content of the Standard has been the principles and core subjects related society worldwide…ISO26000 is based supported through Memorandum’s of to social responsibility along with on broad stakeholder input, including Understanding from the ILO, UNGC the details of how these need to be from developing countries, business, and OECD. exhibited by organisations. This in-depth government, consumers, labour, non- process incorporated stakeholders from governmental organisations groups such as industry, consumers, and others.”

3 III. THE FRAMEWORK FOR SOCIAL RESPONSIBILITY

HOW DOES THE ISO 26000 and challenging an organisation in It then looks at whether the organisation STANDARD FUNCTION terms of the underlying principles of truly understands social responsibility social responsibility – accountability, and the impacts its activities have on The ISO 26000 Standard transparency, ethical behaviour, respect its sphere of influence. This phase also comprehensively covers the full for stakeholder interests, respect for the includes guidance on identifying and range of current social responsibility rule of law and international norms of engaging with stakeholders. issues. It starts by asking questions behaviour, and respect for human rights.

STAKEHOLDERS AND the sphere of influence

Professional Partners Shareholders Banks Associations

CHAIN of SUPPLY CHAIN influence Supplier

2nd Tier Sub-contractor Sub-contractor Clients A A A Employees

2nd Tier Sub-contractor Distributors Consumers Sub-contractor Organisation B B

Clients B

Suppliers of Waste raw materials Treatments

Government Citizens ONGs Media

Organisations have many stakeholders who are affected by their activities and decisions and they must ensure that they have methods in place to identify these stakeholders, recognise the issues of concern to their stakeholders and prioritise the actions that will be taken as a result. This may include an evaluation of their sphere of influence as an organisation so that they can target their resources most effectively.

4 The third key element of the standard issues and community involvement heart of the questions that need to is the social responsibility core subjects and development. This is where the be answered. By doing this it quickly – organisational governance, human Standard goes into the most depth by becomes evident how an organisation rights, labour practices, environment, taking each of the subjects and drilling can ensure it addresses its social fair operating practices, consumer down into them to really get to the responsibilities.

THE ISO 26000 SEVEN CORE SUBJECTS

Holistic approach

6.8* Community 6.3* involvement and Human rights development

Organisational governance 6.7* 6.4* Consumer ORGANISATION Labour practices issues

6.6* Fair operating 6.5* practices The environment

Interdependence

* The figures denote the corresponding clause numbers in ISO 26 000 Source: ISO

The final phase provides guidance put social responsibility into practice, significant issues for the organisation, on putting social responsibility into although some activities are likely to then building social responsibility for practice in an organisation. In most be conducted in new ways or with these issues into procedures and cases, organisations can build on consideration for a broader range of processes. Finally, it includes some existing systems, policies, structures factors. It also includes guidance on guidance on communication and and networks of the organisation to identifying and prioritising the most achieving improvements.

5 THE ISO26000 CLAUSES

CLAUSE 4 CLAUSE 5

Seven principles of Two fundamental practices of social responsibility social responsibility Recognising social Stakeholder identification responsibility and engagement Accountability

CLAUSE 6 Transparency Social responsibility core subjects

Ethical behaviour Organisational governance

Community Labour The Fair operating Consumer Respect for stakeholder Human rights involvement and practices environment practices issues interests development

Related actions and expectations development Sustainable Respect for the rule of law CLAUSE 7

Respect for Integrating social responsibility throughout an organisation international norms of behaviour

The relationship of Understanding the social an organisation`s Respect for responsibility of characteristics to human rights the organisation social responsibility

Practices for Voluntary initiatives for integrating social Communication on social responsibility responsibility social responsibility throughout an organisation

Reviewing and improving Enhancing credibility an organization`s actions regarding social and practices related to responsibility social responsibility

Annex: Examples of voluntary initiatives and tools for social responsibility

Source: ISO Reference: ISO 26000:2010 Standard

6 IV. HOW ISO 26000 RELATES TO OTHER STANDARDS

OTHER SERVICES RELATED TO SOCIAL RESPONSIBILITY While the ISO 26000 Standard offers a guidance framework it has close synergies with other standards, guides and international instruments related to Social Responsibility and continuous improvement and can be assessed alongside them. In some instances this can be in the form of a joint assessment. The below details the assessments that are closely linked to each clause of the ISO 26000:

Standards related to ISO 26000 Clause 4: Principles

Many standards require commitments to comply with legal and other requirements in relevant socially responsible areas such as environment, occupational health and safety, and labour issues. Therefore organisations using these standards are likely to be adhering to some of the principles in ISO26000 already. Some of the standards below address other ISO26000 principles, such as those relating to accountability, transparency and respect for stakeholder interests.

• UN Global Compact – allows • GRI – creates conditions for the • SA8000 Certification / Social businesses to commit to aligning transparent and reliable exchange of Accountability – encourages their operations and strategies with sustainability information organisations to develop, maintain and ten universally accepted principles • ISO14001:2004 Environmental apply socially acceptable practices in the areas of human rights, labour, Management System Certification in the workplace and requires environment and anti-corruption – demonstrates an organisations’ commitments to legal compliance and • AA1000 Accountability Principles environmental responsibility and respect for international norms and Standard – provides a framework requires commitment to human rights for an organisation to identify, legal compliance • Codes of Conduct on workplace prioritise and respond to its • OHSAS18001 – enables organisations conditions (e.g. BSCI, CIS, EICC, sustainability challenges through to manage operational risks and ETI, FLA, WRAP) – require member commitments to three key principles improve performance and requires a organisations to comply with all – Stakeholder Inclusivity, Materiality commitment to legal compliance elements with the codes including and Responsiveness. One of the commitments to legal compliance aims of the standard is to enable • Equator Principles – benchmark for and respect for international norms organisations to be accountable to determining, assessing and managing of behaviour, in particular with their stakeholders and to respect social and environmental risk in reference to human rights and labour their interests. project financing practices. Some of these codes also expect organisations to engage with stakeholders, in particular employees and suppliers.

CLAUSE 4 - PRINCIPLES

• UN Global Compact • AA1000 Accountability Principles Standard • GRI • ISO14001:2004 Environmental Management System Certification ISO 26000 • OHSAS18001 • Equator Principles • SA8000 Certification / Social Accountability • Codes of Conduct on workplace conditions (e.g. BSCI, CIS, EICC, ETI, FLA, WRAP)

7 Standards related to ISO 26000 Clause 5: Recognising Social Responsibility and Engaging with Stakeholders

Stakeholder engagement is not a new concept and most organisations engage with a variety of stakeholders on relevant social responsibility issues. However, it is important to ensure that all stakeholders are identified and the relevant issues are recognised. This enables an organisation to determine engagement and improvement priorities while ensuring voice-less stakeholders are not ignored. Specific standards in relation to stakeholder engagement are already available and other standards also make reference to specific stakeholders and issues. In addition, some standards require an organisation to develop methodologies for identification of significant issues. These methodologies could then be expanded to address the full range of social responsibility issues included in ISO26000.

• AA1000 Accountability Principles help organisations ensure stakeholder • BS 8900 Guidance for Managing Standard – provides a framework for engagement processes are purpose Sustainable Development – helps an organisation to identify, prioritise driven, robust and deliver results organisations to develop an approach and respond to its sustainability - AA1000 Stakeholder Engagement to sustainable development challenges. The standard requires Manual – Volume 2 – Practitioners • BS 8901 Sustainable Event organizations to adhere to the Guidance - Provides methodologies Management System – defines principle of Inclusivity which and tools for stakeholder the specification for a sustainability involves stakeholder engagement to engagement management system for event understand the issues of concern to management certification stakeholders and to prioritise issues • SA8000 Certification / Social in terms of significance – this is linked Accountability – encourages to the principle of materiality which organisations to develop, maintain requires organizations to take into and apply socially acceptable account the views of stakeholders in practices in the workplace and determination of significant issues. includes a requirement for outside communication and stakeholder • AA1000 Stakeholder Engagement engagement Standard – provides a framework to

CLAUSE 5 - Recognising Social Responsibility and Engaging with Stakeholders

• AA1000 Accountability Principles Standard • AA1000 Stakeholder Engagement Standard - AA1000 Stakeholder Engagement Manual ISO 26000 • SA8000 Certification / Social Accountability • BS 8900 Guidance for Managing Sustainable Development • BS 8901 Sustainable Event Management System

8 Standards related to ISO 26000 Clause 6: Core Social Responsibility Subjects

There are many existing and planned standards that refer to elements of the of ISO26000 Clause 6 core subjects. Annex A of the standard contains a table with brief information on some, but it is not comprehensive, and other ISO standards and international instruments are also referenced throughout the standard and bibliography. Organisations using these other standards can determine whether the Clause 6 actions and the applicable core subject principles are already being met through their existing systems or whether procedural changes are needed.

Human Rights: • Equator Principles – benchmark for at reducing greenhouse gas emissions determining, assessing and managing and emissions trading • SA8000 Certification / Social social and environmental risk in Accountability – encourages • PAS2050 – assesses the life cycle of project financing organisations to develop, maintain and greenhouse gas emissions of goods apply socially acceptable practices in • Codes of Conduct on workplace and services the workplace conditions (e.g. BSCI, CIS, EICC, • Water Footprint (Water Footprint ETI, FLA, WRAP) – set standards for • UN Global Compact – allows Network) – enables better performance in relation to working businesses to commit to aligning management and use of conditions such as working hours, their operations and strategies with water resources remuneration, holiday, overtime and ten universally accepted principles occupational health and safety • FSC (CoC and FM) – provides in the areas of human rights, labour, internationally recognised standard- environment and anti-corruption setting, trademark assurance and The environment: • GRI – creates conditions for the accreditation services to companies, transparent and reliable exchange of • ISO14001:2004 Environmental organisations, and communities sustainability information Management System Certification interested in responsible forestry – demonstrates an organisations • Equator Principles – benchmark for • ISO14040: 2006 Environmental environmental responsibility determining, assessing and managing Management – provides the social and environmental risk in • EMAS – enables organisations to principles and framework for life cycle project financing evaluate, report and improve their assessment environmental performance • Codes of Conduct on workplace • Equator Principles – benchmark for conditions (e.g. BSCI, CIS, EICC, ETI, • BS EN 16001/ISO 50001 Energy determining, assessing and managing FLA, WRAP) – set standards Management System Certification – social and environmental risk in for performance in relation to forced helps organisations to continuously project financing improve energy efficiency and child labour, discrimination, • WWF Hong Kong Low Carbon Office freedom of association and • UN Global Compact – allows Operation Program / Low Carbon disciplinary procedures businesses to commit to aligning Manufacturer Program – addresses their operations and strategies with climate change through better carbon Labour practices: ten universally accepted principles footprint management in the areas of human rights, labour, • SA8000 Certification / Social • Some Codes of Conduct on workplace environment and anti-corruption Accountability – encourages conditions (e.g. BSCI, EICC, WRAP) organisations to develop, maintain and • GRI – creates conditions for the – set standards for performance in apply socially acceptable practices in transparent and reliable exchange of relation to the environment sustainability information the workplace • BS 8905 Guide on the Sustainable • OHSAS18001 – enables organisations • IECQ HSPM Certification Use of Materials – will look at the to manage operational risks and (IECQ 080000) – develops processes lifecycle of materials from sourcing to improve performance to identify, control, quantify and report disposal (under development) the amounts of hazardous and toxic • UN Global Compact – allows Fair operating practices: substances in the products being businesses to commit to aligning manufactured or supplied • SA8000 Certification / Social their operations and strategies with Accountability – encourages ten universally accepted principles • ISO14064 Greenhouse Gas organisations to develop, maintain and in the areas of human rights, labour, Accounting and Verification – apply socially acceptable practices in environment and anti-corruption provides an integrated set of tools the workplace for the quantification and reporting of • GRI – creates conditions for the emissions and emissions reductions transparent and reliable exchange of as well as supporting programs aimed sustainability information

9 • UN Global Compact – allows • ISO13485:2003 Medical Devices • ISO22716 Cosmetics Good businesses to commit to aligning Certification – provides the basis Manufacturing Practices – sets their operations and strategies with for quality management system very high requirements to ensure ten universally accepted principles compliance for most medical devices consumers’ safety in the areas of human rights, labour, regulations worldwide • ISO/TS16949 – defines the quality environment and anti-corruption • ISO10002 – helps organisations to management system requirements • GRI – creates conditions for the create a high-quality and reliable for the design and development, transparent and reliable exchange of complaints management system production and, when relevant, sustainability information • ISO9000 – improves an organisations installation and service of automotive- • Equator Principles – benchmark for productivity and quality related products determining, assessing and managing • IECQ HSPM Certification (IECQ • ANSI/ESD S20.20-2007 – provides social and environmental risk in 080000) – develops processes to the requirements necessary to design, project financing identify, control, quantify and report establish, implement, and maintain an • EICC Code of Conduct – sets the amounts of hazardous and toxic ESD control program standards for performance in relation substances in the products being • AS/EN 9100 – demonstrates an to business ethics manufactured or supplied organisations commitment to quality • BS 8902 Responsible Sourcing • ISO27001: 2005 Information Security in the aeronautics industry Sector Certification Schemes for Management Systems – ensures • EICC Code of Conduct – sets Construction Products (Specification) safety of information over the standards for performance in relation – enables suppliers and contractors long-term to restrictions on product content to improve their sustainability • ISO20000 Information Technology and labelling performance Certificate – demonstrates • BS 8903 Principles and Framework commitment to a reliable IT Community involvement for Procuring Sustainably (Guide) infrastructure with the support and development: – provides recommendations and from professionals • GRI – creates conditions for the guidance on how to adopt and embed • TAPA FSR / CTAP – demonstrates transparent and reliable exchange of sustainable procurement principles the capability to safely handle sustainability information and practices across an organisation customers high value and high • Equator Principles – benchmark for and its respective supply chains technological products determining, assessing and managing • ISO28000: 2007 Supply Chain social and environmental risk in Consumer issues: Security Management System – project financing • GRI – creates conditions for the implements a security management • BS 8904 Guide to the Sustainable transparent and reliable exchange of system and integrates the security Development of Communities – will sustainability information management into the overall quality address sustainable communities, management system • Equator Principles – benchmark for allowing any physical or virtual determining, assessing and managing • FSSC 22000 – provides recognised community to monitor its progress social and environmental risk in superior food safety standards; towards more mature sustainability project financing • 5S – methodology to improve practice (under development; due for business activity publication in mid-2011)

10 CLAUSE 6 - Core Social Responsibility Subjects

ISO 26000 ISO 26000

Human Rights: Fair operating practices: • SA8000 Certification / • SA8000 Certification / Social Accountability Social Accountability • UN Global Compact • UN Global Compact • GRI • GRI • Equator Principles • Equator Principles • EICC Code of Conduct • Codes of Conduct on workplace conditions • BS 8902 Responsible Sourcing Sector Certification (e.g. BSCI, CIS, EICC, ETI, FLA, WRAP) Schemes for Construction Products (Specification)

Labour practices: • BS 8903 Principles and Framework for Procuring Sustainably • SA8000 Certification / Social Accountability

• OHSAS18001 Consumer issues: • UN Global Compact • GRI • GRI • Equator Principles • Equator Principles • ISO13485:2003 Medical Devices Certification • Codes of Conduct on workplace conditions • ISO10002 (e.g. BSCI, CIS, EICC, ETI, FLA, WRAP) • ISO9000

The environment:: • IECQ HSPM Certification (IECQ 080000) • ISO14001:2004 Environmental Management • ISO27001: 2005 Information Security System Certification Management Systems • EMAS • ISO20000 Information Technology Certificate • BS EN 16001/ISO 50001 Energy Management • TAPA FSR / CTAP System Certification • ISO28000: 2007 Supply Chain Security • UN Global Compact Management System • GRI • FSSC 22000 • IECQ HSPM Certification (IECQ 080000) • 5S • ISO14064 Greenhouse Gas Accounting • ISO22716 Cosmetics Good Manufacturing Practices and Verification • ISO/TS16949 • PAS2050 • ANSI/ESD S20.20-2007 • Water Footprint (Water Footprint Network) • AS/EN 9100 • FSC (CoC and FM) • EICC Code of Conduct • ISO14040: 2006 Environmental Management Community involvement and development: • Equator Principles • GRI • WWF Hong Kong Low Carbon Office Operation Program / Low Carbon Manufacturer Program • Equator Principles • Some Codes of Conduct on workplace conditions • BS 8904 Guide to the Sustainable Development (e.g. BSCI, EICC, WRAP) of Communities • BS 8905 Guide on the Sustainable Use of Materials

11 Standards related to ISO 26000 Clause 7: Integrating Social Responsibility

The ISO26000 Clause 7 guidance is intended to enable organisations to integrate social responsibility throughout their operations and actions. It provides basic descriptions of suggested methodologies that can be supplemented by related standards and readily available guidance.

Communication on Reviewing and improving an sustainability performance social responsibility: organisation’s actions and practices • BS 8903 Principles and Framework • GRI – creates conditions for the related to social responsibility: for Procuring Sustainably (Guide) transparent and reliable exchange of • ISO14001:2004 Environmental – provides recommendations and sustainability information Management System Certification guidance on how to adopt and embed – demonstrates an organisations sustainable procurement principles and practices across an organisation Enhancing credibility regarding environmental responsibility and its respective supply chains social responsibility: • OHSAS18001 – enables organisations • BS 8909 Specification for a • AA1000 Assurance Standard – to manage operational risks and Sustainability Management System provides a methodology for improve performance for Film – will set out the requirements assurance practitioners to evaluate • SA8000 Certification / Social for improving the sustainability of the the nature and extent to which Accountability – encourages UK film industry (under development) an organisation adheres to the organisations to develop, maintain and Accountability Principles apply socially acceptable practices in • AA1000 Accountability Principles Standard – provides a framework • ISAE3000 International Standard on the workplace for an organisation to identify, Assurance Engagements – provides a • BS 8900 Guidance for Managing prioritise and respond to its basic framework for large scale audits Sustainable Development – helps sustainability challenges concerned with non-financial data organisations to develop an approach process monitoring to sustainable development • Some Codes of Conduct (e.g. BSCI, EICC, ETI) – include requirements for • GRI – creates conditions for the • BS 8901 Sustainable Event management systems in relation to transparent and reliable exchange of Management System – defines workplace conditions sustainability information the specification for a sustainability management system for event • SEDEX (SMETA) – compilation of management certification best practice in ethical trade audit technique, intended for experienced • BS 8902 Responsible Sourcing auditors to help them to conduct high Sector Certification Schemes quality audits that will be accepted by for Construction Products multiple retailers and brands (Specification) – enables suppliers and contractors to improve their

12 CLAUSE 7 - Integrating Social Responsibility

Communication on social responsibility: • GRI

Enhancing credibility regarding social responsibility: • AA1000 Assurance Standard • ISAE3000 International Standard on Assurance Engagements • GRI

Reviewing and improving an organisation’s actions and practices related to social responsibility: • ISO14001:2004 Environmental Management System Certification ISO 26000 • OHSAS18001 • SA8000 Certification / Social Accountability • BS 8900 Guidance for Managing Sustainable Development • BS 8901 Sustainable Event Management System • BS 8902 Responsible Sourcing Sector Certification Schemes for Construction Products (Specification) • BS 8903 Principles and Framework for Procuring Sustainably (Guide) • BS 8909 Specification for a Sustainability Management System for Film • AA1000 Accountability Principles Standard • Some Codes of Conduct (e.g. BSCI, EICC, ETI). • SEDEX (SMETA)

13 V. STEPS TOWARDS SOCIAL RESPONSIBILITY

Once the ISO26000 is fully understood Step two: Identify existing initiatives Next steps: Build networks and along with how it links in to other within the organisation - many voluntary improve performance. standards and guidance, the challenge initiatives are specified in the annex of for organistions is where to begin. There the ISO 26000 Standard and links to The ISO 26000 Standard can be used as are a number of different steps needed other standards, guidance documents the basis for an assessment system that to manage sustainable development and other schemes are shown in defines and measures an organisation’s and to measure and improve an this document. performance and improvements in the organisation’s performance in the area area of socially responsible behaviour. of social responsibility. Step three: Initiate internal training As with the Standard this assessment for managers and employees to ensure system is suitable for all organisations Step one: Carry out a diagnosis: gain an that socially responsible behaviours and should look at an organisation’s awareness of the impacts of activities are implemented throughout the current standing against the framework, and decisions made by the organisation organisation and integrated into the independent of any historical actions in on the environment and society; day-to-day business of the organisation. regards to social responsibility. recognise its stakeholders; measure its strengths and weaknesses and An ISO 26000 assessment should define its priorities. This could include Step four: Consider an external involve three key areas that relate to the a gap analysis of the organisation’s assessment of socially responsible standard’s clauses and should rate an performance against elements of performance. organisation against each and provide an ISO26000. overall organisational grading:

Area Clause in the ISO 26000 standard

Principles of Social Responsibility 4 Recognising Social Responsibility and Engaging Stakeholders 5 Social Responsibility Core Subjects 6

The overall organisational grading should Ideally an organisation should first be Improved performance against only be achieved if all three sections are assessed in the early stages of setting ISO 26000 clearly demonstrates evaluated. The total score covering the an agenda in social responsibility. the positive actions taken by an three areas can then be assigned to a Following that, it would be best organisation to contribute towards performance level, each of which should applied as a continuous assessment sustainable development. Over time, relate to an increasing degree method, against which to set an organisation should aim to move of performance. organisational targets. incrementally through the associated performance levels.

14 VI. THE BENEFITS OF FOLLOWING ISO 26000

Any organisation choosing to follow Any organisation that can demonstrate the Standard will optimise its processes, its commitment to behaving in a socially management systems and activities responsible manner will generate relating to social responsibility support from government and the local and contribute towards global community, positive relationships with sustainable development. suppliers and goodwill from customers. This provides organisations with many The benefits are extensive already, positive outcomes such as: but in a world that is increasingly focused on securing our future and 1. A competitive advantage over that of future generations the benefits companies that have not been of demonstrating social responsibility assessed against the Standard and are will grow over time. Any company therefore unable to prove the extent of embarking on the evaluation process their socially responsible behaviours now will be well placed to prove their 2. Improved relationships with corporate social responsibility strategies stakeholders, customers and should demands be placed upon them suppliers who view the organisation to do so. more positively as a result of its dedication to behave in a socially responsible manner 3. Increased staff morale and the ability to attract and keep qualified professionals 4. Enhanced perceptions of the organisation within the financial community

15 16 VII. Conclusion

The ISO 26000 standard combines the benefits of engaging in socially responsible behaviour with the ability to meet the growing global demand for more transparent and ethical operations. The ISO 26000 addresses a range of core subjects related to social and environmental issues that drive the optimum goal of promoting sustainable development. Its guidance framework and strong links to other standards and assessments means that it can be used alone or in conjunction with other industry benchmarks available. It provides support and value to any organisation, irrespective of size and complexity, and sends a strong signal about its social and environmental commitments and credibility.

ABOUT THE AUTHOR ABOUT SGS Rebecca Bowens SGS is the world’s leading inspection, Global Product Manager, verification, testing and certification Sustainability Report Assurance, SGS company. Recognised as the global benchmark for quality and integrity, Rebecca Bowens is responsible for the we employ over 64 000 people and development and delivery of all global operate a network of more than 1 250 services in report assurance and social offices and laboratories around the responsibility assessment services for world. We are constantly looking beyond SGS. In addition she also trains all SGS customers’ and society’s expectations in staff in the subject area and continually order to deliver market leading services reviews best practice in this area. wherever they are needed. As a Registered Environmental Auditor Partnering with SGS opens the door and experienced Social Systems Auditor to better performing processes, with over 12 years experience of social, increasingly skilful talent, consistent ethical and environmental consultancy, and compliant supply chains and more training, auditing, verification and sustainable customer relationships assurance Rebecca has a wealth of delivering profitable competitive expertise and knowledge. Her work advantage. Work with the global has been largely within the fields of leader and take your commitment environmental management, social and to the next level in managing ethical accountability, sustainability and sustainable development. corporate responsibility. She also holds an MSc in Environmental Monitoring We have a history of undertaking and and Assessment. successfully executing large-scale, complex international projects. With a presence in every single region around the globe, our people speak the language and understand the culture of the local market and operate globally in a consistent, reliable and effective manner. SGS is a leading independent body helping organisations improve their performance related to sustainable development.

17 For more information, visit WWW.SGS.COM/ISO26000 or email [email protected].

The information contained in this document represents the current view of SGS SA on the issues discussed as of the date of publication. Because SGS must respond to changing market conditions, it should not be interpreted to be a commitment on the part of SGS, and SGS cannot guarantee the accuracy of any information presented after the date of publication. This White Paper is for informational purposes only. SGS makes no warranties, express, implied or statutory, as to the information in this document. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of SGS. SGS may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from SGS, the furnishing of this document does not give you any license to these patents, trademarks, copyrights, or other intellectual property. ANY REPRODUCTION, ADAPTATION OR TRANSLATION OF THIS DOCUMENT WITHOUT PRIOR WRITTEN PERMISSION IS PROHIBITED, EXCEPT AS ALLOWED UNDER THE COPYRIGHT LAWS. © SGS SA 2011. ALL RIGHTS RESERVED.