ISO Guidance on Social Responsibility Development Status, June 2009 An Industry View A Tool to Check for Effectiveness David Felinski, Vice-President IFAN (International Federation of Standards Users) and IFAN Expert to ISO/TMB WG SR, and Guido Guertler, ICC Observer to ISO/TMB WG SR

Available Slide Series 1. The Project 2. ISO Contents and Players 3. Applicability Aspects 4. ISO CD Vote by March Success Criteria 6. Risk of Failure 7. Tool: Check for Effectiveness The present subset is the one marked in bold

Outline Recognition (awareness), “but”… Recognition (awareness), “but”… What is the “Effectiveness Matrix”? What is the “Effectiveness Matrix”? The “Effectiveness Matrix” Logic The “Effectiveness Matrix” Logic The “Effectiveness Matrix” Example The “Effectiveness Matrix” Example Downloadable Documents Downloadable Documents Encouragement Encouragement

Recognition, but… (1/3) YES, I really want to do something! Can I? Where should I start… A most frequent notion about SR is: …and what could I effectively influence?

Recognition, but… (2/3) Recognizing what 400+ experts from all over the world consider important for the enhancement of organizations’ social responsibilities, … Recognizing what 400+ experts from all over the world consider important for the enhancement of organizations’ social responsibilities, … Recognizing the overall ISO goal to globally promote social responsibility to all kinds of organizations, … Recognizing the overall ISO goal to globally promote social responsibility to all kinds of organizations, … …there is a small “but” …there is a small “but”

Recognition, but… (3/3) Suppose an organization is willing to do more on social responsibility, the “but” relates to its real human and financial resources/abilities to - transpose the offered guidance into practice and to - what degree of effectiveness it can reasonably expect to attain. Suppose an organization is willing to do more on social responsibility, the “but” relates to its real human and financial resources/abilities to - transpose the offered guidance into practice and to - what degree of effectiveness it can reasonably expect to attain. The Effectiveness Matrix helps identifying possibilities

The Effectiveness Matrix…(1/2) …is an easy to understand and easy to use tool to gauge how effective an organization can reasonably expect to be in applying SR core subjects and issues …is an easy to understand and easy to use tool to gauge how effective an organization can reasonably expect to be in applying SR core subjects and issues …can be used by „all types of organizations, regardless of their size and location“ (to quote the ISO Scope) …can be used by „all types of organizations, regardless of their size and location“ (to quote the ISO Scope)

Die Wirksamkeitsmatrix … (2/2) …does not need any advisors or consultants external to the organization …does not need any advisors or consultants external to the organization …is a good instrument for initiating a dialogue with stakeholders or any other parties. …is a good instrument for initiating a dialogue with stakeholders or any other parties.

Clause 6 of ISO mentions these core subject: Organizational Governance Organizational Governance Human Rights Human Rights Labor Practices Labor Practices The Environment The Environment Fair Operating Practices Fair Operating Practices Consumer Issues, and Consumer Issues, and Community Involvement and Development Community Involvement and Development Effectivenss Matrix; Terms (1/2)

Core subjects issues Organisational Governance 1 Human Rights 8 Labor Practices 5 The Environment 4 Fair Operating Practices 5 Consumer Issues 7 Community Involvement and Development 7 37 A “core subject“ is structured by several „issues“: Effectivenss Matrix; Terms (2/2)

The Effectiveness Matrix; Basic Logic (1/5) The left-most column reproduces the ISO core subjects and issues Remaining columns ask five questions in each row Relevance ? Core Subjects and Issues Effectiveness?Activities?Impact? Stake holders?

1 SR Core subjects and issues 2 Is the core subject or issue seen as relevant to the organization? 3 What degree of effectiveness could the organization have on this issue? 4 What kind of activities could the organization undertake? 5 What effect/impact would the activities have on the organization’s social responsibility? 6 Which stakeholders to involve are seen as useful? Use is from left to right: If an answer in a box is positive (YES on the next slide) continue with this line, if it is negative (NO on the next slide) this line is done The actual column headings read as follows: The Effectiveness Matrix; Basic Logic (2/5)

The Effectiveness Matrix; Basic Logic (3/5) Rele- vance?Effectiveness? Activi- ties?Impact? Stake- holders? Core Subject A YES continue with issues of Core Subject A Issue A1 yes no Go to issue A2 Issue A2 no Go to issue A3 Issue A3 yes Issue A... yes no Core Subject B no continue with Core Subject C Issue B...

Relevance of a core subject Question: is the core subject relevant to my organization? Question: is the core subject relevant to my organization? If NO, go to next core subject If NO, go to next core subject If YES, continue with checking whether the issues of this core subject can effectively be dealt with If YES, continue with checking whether the issues of this core subject can effectively be dealt with Effectiveness Matrix; Basic Logic (4/5)

Relevance of an issue Question: is the issue relevant to my organization? Question: is the issue relevant to my organization? If NO, go to next issue of this core subject If NO, go to next issue of this core subject If YES, continue with checking the next of the five questions on this “issue”; if one check is negative, the line is done; go to next issue If YES, continue with checking the next of the five questions on this “issue”; if one check is negative, the line is done; go to next issue Effectiveness Matrix; Basic Logic (5/5)

The following represents the practical application of the „Effectiveness Matrix“ by a 30-person software developing company in Germany. The following represents the practical application of the „Effectiveness Matrix“ by a 30-person software developing company in Germany. The complete matrix (Word document) is downloadable from estimation.com/html/english.html The complete matrix (Word document) is downloadable from estimation.com/html/english.html estimation.com/html/english.html estimation.com/html/english.html Effectiveness Matrix; Example (1/6)

1 SR Core subjects and issues 2 Is the core subject or issue seen as relevant to the organization? 3 What degree of effectiveness could the organization have on this issue? 4 What kind of activities could the organization undertake? 5 What effect/impact would the activities have on the organization’s social responsibility? 6 Which stakeholders to involve are seen as useful? Effectiveness Matrix; Example (2/6) “Anticorruption” 6.6 Core subject Fair operating practices Anti– corrup- tion some relevance This is part of both national law and our understanding of our company We include this issue into relations with our customers and act accordingly Is beneficial to our general image Customers, employees

1 SR Core subjects and issues 2 Is the core subject or issue seen as relevant to the organization? 3 What degree of effectiveness could the organization have on this issue? 4 What kind of activities could the organization undertake? 5 What effect/impact would the activities have on the organization’s social responsibility? 6 Which stakeholders to involve are seen as useful? Effectiveness Matrix; Example (3/6) “Climate Change” Climate change mitigation and adaptation YES Very little Sponsor actions that increase public awareness; include measures into communication material Enhance our good image none

1 SR Core subjects and issues 2 Is the core subject or issue seen as relevant to the organization? 3 What degree of effectiveness could the organization have on this issue? 4 What kind of activities could the organization undertake? 5 What effect/impact would the activities have on the organization’s social responsibility? 6 Which stakeholders to involve are seen as useful? Effectiveness Matrix; Example (4/6) “Health and Safety at Work” Health and safety at work Not relevant ; all covered by regulation, we run very normal office workplaces Not Applicable

ISO offers guidance for 37 issues ISO offers guidance for 37 issues 5 issues can be effectively dealt with: - Sustainable resource use - Anti-corruption - Promotion in the own sphere of influence - Education and culture - Employment creation and skills development 5 issues can be effectively dealt with: - Sustainable resource use - Anti-corruption - Promotion in the own sphere of influence - Education and culture - Employment creation and skills development 32 issues can not be effectively dealt with 32 issues can not be effectively dealt with Effectiveness Matrix; Example (5/6) Spezific Result

To work through the matrix is a relatively easy and efficient process to select those core subjects and issues, where “my” organization can try to enhance its social responsibility - substantially; - effectively; - reasonably; and - in a sustainable manner. To work through the matrix is a relatively easy and efficient process to select those core subjects and issues, where “my” organization can try to enhance its social responsibility - substantially; - effectively; - reasonably; and - in a sustainable manner. Effectiveness Matrix; Example (6/6) Summary

Encouragement Feel free to try the „Effectiveness Matrix“ with your own organization! It can be downloaded from Feel free to try the „Effectiveness Matrix“ with your own organization! It can be downloaded from Any proposals on further development of this tool, or on creating additional ones for an effective use of ISO are more than welcome! Any proposals on further development of this tool, or on creating additional ones for an effective use of ISO are more than welcome! Please send your ideas to Please send your ideas to