ISO 26000 Guidance On Social Responsibility: What It Means .
ISO 26000 Guidance on Social Responsibility:What it means for your companyPeter Hall, MACTEC / Carolyn Schmidt, ECOLOGIA
“ISO 26000:What it Means for Your Company”Ted Freeman, Session ModeratorPrincipal, Praxis Consulting Group (Philadelphia)1.2.3.4.5.Peter Hall, PanelistCarolyn Schmidt, PanelistPrincipalSustainability Practice LeaderEHS ManagementMACTEC (Portland, Maine)Member of US TAG for ISO 26000Program DirectorECOLOGIA (Middlebury, Vermont)Expert Member, ISO WGSR (WorkingGroup on Social Responsibility)ECOLOGIA is a D Liaison (NGO)Framework for the SessionIntroduction (5 minutes)Background on ISO 26000 (15 minutes)Ways ISO 26000 is already being used globally (15 minutes)Suggestions for use of ISO 26000 by US companies (15 minutes)Issues and questions raised by the audience (40 minutes)
2. Background on ISO 26000What is ISO?ISO : International Organization for Standardization- Private, not-for-profit organization established in 1947 (Geneva, Switzerland)- Promotes the development of international standards- Voluntary standards: positive contribution to our world; encourage global trade- Worldwide collaboration (WTO, UN, ILO, WHO )- 157 country members, representing 98% of the world economy and 97% of itspopulation. (ISO-Annual Report 2008)3
What is the purpose and scope of ISO 26000? To assist organizations in addressing their SR; To provide practical guidance related to operationalizing SR, identifying and engagingwith stakeholders, and enhancing credibility of reports and claims made about SR; To emphasize performance results and improvement; To increase confidence and satisfaction in organizations among their customers andother stakeholders; To be consistent with and not in conflict with existing documents, international treatiesand conventions and existing ISO standards; To promote common terminology in the SR field and broaden awareness of SR. It is not intended to reduce any government's authority to address the SR oforganizations; it is not intended to be a “non-tariff barrier to trade” (WTO) It is not intended or appropriate for certification purposes. Any offer to certify, or claimsto be certified to ISO 26000 would be a misrepresentation of the intent and purpose ofthis International Standard.Std Pres Kit4
Timeline, Goals and Applicability Initial ISO SR meeting 2001First Working Group meeting 2005DIS (Draft International Standard) approved by vote of ISO member bodies,February 2010Final Draft International Standard approved by Working Group, May 2010Planned publication December 2010“ISO 26000 provides guidance on the principles of SR, core subjects andissues, and guidance on SR implementation”Likely recognized as universal and international SR standardStandard that can link many of the existing global SR standards / initiativesGlobal benchmark across all organizations in any industry, includingoutsourcing
How does ISO 26000 define“social responsibility”? 2.16 social responsibility responsibility of an organization for the impacts of its decisions and activities onsociety 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 ofbehaviour; and is integrated throughout the organization and practiced in its relationships. Note 1 Activities include products, services and processes Note 2 Relationships refer to an organization’s activities within its sphere of influence
INTRODUCING ISO/DIS 26000ISO 26000 overviewStd Pres Kit7
INTRODUCING ISO/DIS 26000SRCORESUBJECTS8
SR CORE SUBJECTAREAISSUEOrganizational governanceHuman rightsààààDue diligenceHuman rights risk situationsAvoidance of complicityResolving grievancesààààDiscrimination and vulnerable groupsCivil and political rightsEconomic, social and cultural rightsFundamental rights at workLabour PracticesàààHealth and safety at workHuman development and training in the workplaceààEmployment and employmentrelationshipsConditions of work and social protectionSocial dialogueThe environmentààPrevention of pollutionSustainable resource useààFair operating practicesàààAnti–corruptionResponsible political involvementFair competitionààClimate change mitigation and adaptationProtection and restoration of the naturalenvironmentPromoting social responsibility in the sphere ofinfluenceRespect for property rightsàFair marketing, information andcontractual practicesProtecting consumers’ health and safetySustainable consumptionààààConsumer service, support, and dispute resolutionConsumer data protection and privacyAccess to essential servicesEducation and awarenessCommunity involvementEducation and cultureEmployment creation and skillsdevelopmentààààTechnology developmentWealth and income creationHealthSocial investmentConsumer issuesààCommunity involvement and àdevelopmentàà
3. Ways ISO 26000 is already being usedglobally – Carolyn Schmidt, ECOLOGIAyy“trial runs” / “early implementer” efforts publicity(Netherlands; Denmark; Germany; Canada; China; Japan;South Africa . . .)Stakeholder engagement using the ISO 26000 “multistakeholder” consensus processIndustry, Consumer, NGO, Government, Labor, SSRO* [ Finance ?]DIFFERENT AND COMPLEMENTARY APPROACHESyValidate existing beliefs in and strengthen implementation of “SRprinciples” – accountability, transparency, ethical behavior, etc.; usein choice of business partners; build SR networksyUse specific recommendations in ISO 26000 to document CSR–strengthen your negotiating hand and marketing effortsyFollow the structure of ISO 26000, work through principles, coresubjects, stakeholder engagement, reporting, improvement plans etc.(ex. MACTEC’s “gap analysis”; ECOLOGIA’s “handbook”, others)10NHBSR Spring 2010 Conference - ECOLOGIA /ISO 26000
Yang Qi’s Tea Houses, Sichuan Province –value-added business model: organic tea from local cooperatives;cultivate urban domestic market; report / advertise CSR benefitsy 6.7.5 Consumer issue:Sustainable consumptiony 6.5 3 & 6.5.4:Prevention of pollution &sustainable resource usey 6.8.7:Community involvement:wealth & income creationy 6.6.6.2 Fair sharing of costsand benefits of SRthroughout the value chain11NHBSR Spring 2010 Conference - ECOLOGIA /ISO 26000
Sustainable Cashmere:working throughout the global supply chainPROBLEM: Increasingglobal sales of anunsustainably grown andunsustainably pricedhigh-end luxury product(cashmere clothing)Too many goats desertification long-termdestruction of regionLow prices for rawcashmere dramaticexpansion of herds12NHBSR Spring 2010 Conference - ECOLOGIA /ISO 26000
Building a “triple bottom line”sustainable supply/value chainTHE SOLUTIONy 6.2.3 Organizationalgovernance – decisionmaking processes andstructures (herders’cooperatives; SR factories)y 6.5.6 Environment –protection of the environmentand restoration of naturalhabitatsy 6.6.6 Fair operatingpractices – promoting socialresponsibility in the sphere ofinfluence
Hi-min SolarCorporate headquarters,education and conference center in Shandong
Hi-min Solary World class high tech alternative energy company aspiringto go global ( recent 100,000,000 FDI from GoldmanSachs British Ministry of Trade)y What kinds of questions will they need to address, to reachglobal market?y ISO 26000 as guide to international expectationsMost relevant:y 7.5 Communication on social responsibility (reporting) andstakeholder dialogueandyClause 6 (the 7 core subjects)
Priorities when implementing ISO 26000ECOLOGIA’s focusECOLOGIA’s WORK IN CHINA:y Strengthen existing Chinese SR entrepreneurs’ competitiveness andbrand appeal; expand into local, national and global SR marketsy Show how ISO 26000 guidance supports current Chinese nationalgovernment policy to promote sustainable development and quality oflife (economic, human health, environment)GENERAL – APPLIES TO ANY SIZE COMPANY AND ANY LOCATIONy Attention to each of the 7 core subjects (Clause 6)y Stakeholder involvement, two-way communication (Clause 5, Clause 7)y Reporting; independent verification; marketing (Clause 7)y Fair sharing of costs and benefits of implementing social responsibilitythroughout the value chain / supply chain (Clause 6.6.6.2)y FLEXIBILITY - TAILOR YOUR USE OF ISO 26000 TO YOUR OWNCONTEXT, NEEDS, SIZE, ETC.
4. Suggestions for use of ISO 26000 byUS companies - Peter Hall, MACTEC Implementation Strategies
Stakeholders & Business DriversStrategic Social Responsibility PlanningInvestment in low carbontechnologies/services andforward cost curvesRising power costs,consumption andscarcityImpact of climatechange includingweather eventsSustainable consumption,limited Resources andconsumer educationsGrowth in financialperformance of sustainablecompanies with progressiveclimate-change programsExpectation fromClients/BusinessUnits/ShareholdersCarbon Cap and Trade marketsystem, carbon tax, governmentregulations and compliance
Key Implementation/Planning for SR Programs§Legal & “Other” Requirementsand egulatorsInterestGroupsHuman RightsExternal/Internal Parties; Consumers/CommunityContinual Improvement/Culture
Integration with Existing Systems/Programs ISO 14001OHSAS 18001SA8000EU Eco-LabelFTSE4Good Criteria & DJSICERES PrinciplesSarbanes OxleyGlobal Reporting Initiative (GRI)Many Other Sustainability Reporting/Programs20
Examples of Implementation Tips Spend Time Understanding “Stakeholders”Use Established Management Practices & ProgramsPrioritize Core Issues within SR Core Subject AreasSet Specific Short-Term Targets (with Long-Range in Mind) & EstablishResponsibilitiesLeverage Cross-functional TeamsTop Management and Respected Company Leaders is KeyAllocate Sufficient Resources to Allow Targets and Goals to be MetRevise/Develop Operating Procedures/Training/Norms Consistent with theSR ProgramInternal and then External CommunicationIncorporate SR into Purchasing and Investment PracticesBuild Issues of SR into HR Management and other Keyorganization/business areas (Integrate!)21
“GREEN FACTORY” as a Framework for SR Uses Green Materials and Processesfor Manufacturing Produces lowest possibleemissions Recycling Promotes a Healthy WorkEnvironment Uses closed loopcleaning processes Is Energy Efficient Minimizes the generationof hazardous and nonnonhazardous waste
Strategic SR Planning – DfE and Supply Chain23
Observations of ISO 26000 by SMEs Many Small & Medium Sized Enterprises (SMEs) see ISO 26000 asmore designed for large multi-national companies (broad-basedinternational standard)Labor practices in less developed countries still a concernSMEs that are linked to international value chains are moreinterestedMany SMEs lack expertise/resources to understand the SR agenda,prioritize with business, estimate resources/costs to implementNeed to communicate internally how SR activities contribute tobusinessPersonal values of owner/Sr. managers are a key driver of SR atSMEsMany SMEs approach SR issues in a “non-integrated” mannerSMEs financed by SR investors more likely to address SR programs(2008 IISD Survey)24
Using a ManagementSystem/Governance to Drive SRtrustthe“Our social license to operate and ourresponsibility as a steward of the land is athat we continuously strive to uphold forbenefit of future generations”.Red Dog operates the world’s largest zinc mine in a remote, Arctic environment. We believe thatbusiness growth and success are based on, sound economics, efficiency, innovation, as well asrespect for people and the environment. In order to achieve our vision, Red Dog will: Demonstrate (due diligence towards achieving compliance with environmental laws and permits)Respect (the importance of subsistence and traditional lifestyles and historical artifacts of theNorthwest Arctic region)Prevent (pollution through waste minimization strategies and source reduction)Minimize (the area impacted by mining activities)Design (engineered structures for environmental impact during and after their usable life)Foster (open communications with major stakeholders including NANA, employees and customers)Implement (and maintain an Environmental Management System)Strive (for continual improvement)ENGINEERING AND CONSTRUCTING A BETTER TOMORROW
Example: ISO 26000 Gap Analysis
5.Open discussion –Ted Freeman, Praxis Consulting Groupquestions, comments, ideas srStd Pres Kit27
Example: ISO 26000 Implementation Schedule2009Q2SR Assessment/StakeholderSR Gap AnalysisQ3Q4Q1Q22011Q3Q4Q1July 1Aug 16SR Status/Action PlanPresentation to ManagementSR Implementation Plan2010Aug 21Oct 10FY2010 Business PlanningSR Program DevelopmentSR Review/Assessment(Recommended)June 1SR Implementation (ongoing)Internal SR Audits(Recommended)Jan 31Oct 1Communication (SR Report)Jan 15
Communication of ISO 26000 Part of existing system/program Integrated in “Legal and OtherRequirements” for an organization “[Organization] has implemented ordeveloped a Social Responsibility (SR)program consistent with ISO 26000”29
Member of US TAG for ISO 26000. Framework for the Session. 1. Introduction (5 minutes) 2. Background on ISO 26000 (15 minutes) 3. Ways ISO 26000 is already being used globally (15 minutes) 4. Suggestions for use of ISO 26000 by US companies (15 minutes) 5. Issues and questions raised by the audience (40 minutes) Carolyn Schmidt, Panelist .
ISO 26000:2010, Guidance on social responsibility ISO 26000 provides guidance on how businesses and organizations can operate in a socially responsible way. The standard helps to define social responsibility and translate principles and issues into effective actions based on international norms of behaviour. The guidance provided in ISO 26000 is
ISO 26000 and OECD MNE Guidelines Page 7 of 32 ISO 26000 Post Publication Organization 2. Comparison, key similarities 2.1 In general The OECD Guidelines for Multinational Enterprises and ISO 26000, Guidance on social responsibility, aim to promote responsible practices in organizations. Both instruments provide guidance for
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 CONTENTS ABSTRACT The purpose of this white paper is to provide an introduction to the ISO
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