ISO 26000 Richard Welford CSR Asia www.csr-asia.com © CSR Asia 2011

ISO26000: Now we know what CSR is not It is not about: Giving away money: Philanthropy is mentioned once Planting a few trees PR photo opportunities Feeling good and being a caring organization

But be warned: It is a standard but it is for guidance only It is not currently certifiable It is not only for businesses It is an ongoing process and not a ‘quick fix’ Use the standard to guide your material activities and for communications You cannot use ISO26000 without engaging your stakeholders

The rationale for social responsibility Brand and reputation Attract and maintain employees, customers, clients Employee commitment, morale productivity Interest from investors and the financial community Relationships with companies, government, the media, suppliers, peers, customers, communities = Stakeholders!

The context Emphasis on sustainable development A participative, open, stakeholder inclusive process leading to a standard agreed by over 90 countries Representation from developed and developing countries, civil society organizations, labour organizations, government and business Global recognition and support The ISO brand The most definitive and wide-ranging definition of social responsibility yet published A challenging standard that widens traditional definitions of responsibility

Related actions and expectations (issues) Seven principles of Social responsibility Recognizing social responsibility Stakeholder identification and engagement Seven core subjects Accountability Organizational governance Human rights Labour practices The environment Fair operating practices Consumer issues Community Involvement & development Transparency Ethical behaviour Related actions and expectations (issues) Respect for stakeholder interests Integrating social responsibility into the organization Relationship of the organization’s characteristics to social responsibility Understanding the social responsibility of the organization Respect for the rule of law Practices for integrating social responsibility throughout the organization Respect for international norms of behaviour Voluntary initiatives on social responsibility Communication on social responsibility Respect for human rights Reviewing and improving the organisation’s actions and practices related to social responsibility Enhancing credibility regarding social responsibility

Principles: Accountability Accountability for its impacts on society and the environment The organization should accept and encourage scrutiny Accountability imposes an obligation to be answerable to stakeholders

Principles: Transparency An organization should be transparent in its decisions and activities that impact on society and the environment Clear, accurate and complete disclosure of policies, decision-making and activities

Principles: Ethical behaviour An organization should behave ethically at all times based on principles of honesty, equity and integrity The organization should promote ethical conduct by: developing governance structures that promote ethical conduct identifying, adopting and applying its own standards of ethical behaviour encouraging and promoting good standards of ethical behaviour establishing oversight mechanisms establishing mechanisms for reporting of violations

Principles: Respect for stakeholder interests An organization should respect, consider and respond to the interests of its stakeholders The organization should: Identify its stakeholders Respond to the needs of its stakeholders Recognize the legal rights and legitimate interests of stakeholders Consider the views of stakeholders that may be affected by a decision even if they have no formal role in the governance of the organization

Principles: Respect for the rule of law An organization should accept that respect for the rule of law is mandatory The organization should: comply with legal and regulatory requirements ensure that is relationships and activities fall within the intended and relevant legal framework remain informed of legal obligations periodically review compliance

Principles: Respect for international norms of behaviour In countries where national law or its implementation does not provide for minimum environmental or social safeguards, an organization should strive to respect international norms of behaviour In situations of conflict with international norms of behaviour, and where not following these norms would have significant consequences, an organization should, as feasible and appropriate, review the nature of its activities and relationships within that jurisdiction

Principles: Respect for human rights An organization should respect human rights and recognize their importance and their universality Organizations should be careful not to be complicit in human rights abuses

Recognizing core subjects Organizational governance Human rights Labour practices Fair operating practices Consumer issues The environment Community involvement and development Materiality: Identification of relevant issues Assess significance of impacts Consider impacts on stakeholders and their concerns Consider ‘sphere of influence’

Broadening the boundaries of responsibility Broadening the boundaries of responsibility? Community involvement and development issues Community involvement and engagement Education and culture Employment creation and skills development Technology development and access to appropriate technology Wealth and income creation, poverty alleviation Community and public health Social investment (including philanthropy)

Recognizing core subject areas: Materiality matrix and communications Crucial Policy clarified in communications Strategic focus: Including performance indicators and measurement Importance to stakeholder Not considered Impacts clarified in communications Little importance Relevance/importance to business Crucial

Consider your ‘sphere of influence’ Core business activities Public policy & advocacy Value chains Community interaction

Communication on social responsibility The role of communications in social responsibility Characteristics of information relating to social responsibility Demonstrate accountability and transparency Disclosure of information relating to social responsibility Demonstrating how the organization meets it commitments Raising awareness inside and outside the organization Providing information about significant impacts Helping to engage stakeholders Enhancing the organization’s reputation Understandable Responsive Accurate Balanced Timely Available

What are leading companies already doing? Understanding the expectations of ISO26000 Training and capacity building, including all different functions, across the organization Assessing their own CSR strategies against ISO26000 Principles and Core Subject Areas Gap analysis: Strengths and weaknesses Determining materiality of issues based on stakeholder priorities Aligning policies and reporting with ISO26000

Strategic social responsibility Capacity building (Training) Capacity building (Training) Principles checklist Communications (Reporting) Strengths Gaps Risks Opportunities Assessment Issues evaluation Validation Materiality check (Materiality matrix) Strategy Stakeholder Review Panel Stakeholder engagement

The future: We now have a challenging, but workable definition of social responsibility with global credibility – this will help you define your responsibilities Greater links with communities and the development agenda Links between ISO26000, transparency and new modes of reporting and communications Embedding stakeholders into governance structures Your social responsibility activities will be judged against ISO26000

Thank you! www.csr-asia.com Richard Welford rwelford@csr-asia.com