ISO Guidance on Social Responsibility Development Status, June 2009 An Industry View Risk of Failure 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 of Effectiveness The present subset is the one marked in bold

Outline (1/2) Preface Preface Two Key Statements Two Key Statements Missing its “Key Market” Missing its “Key Market” Volume of Document Volume of Document ISO will contribute to a more intensive worldwide discussion of social responsibility and in that context, be considered a success. But it may not be the success an ISO STANDARD deserves. Therefore, these slides highlight several risks at a time when actions still could be taken to minimize them.

Outline (2/2) Relevance of ALL Core Subjects Relevance of ALL Core Subjects Governments’ Responsibility Governments’ Responsibility Governments may misuse ISO Governments may misuse ISO Certifiers may misuse ISO Certifiers may misuse ISO Business may misuse ISO Business may misuse ISO 26000

Preface Risks can be viewed differently Risks can be viewed differently These slides describe major risks as seen by the authors; there may be more These slides describe major risks as seen by the authors; there may be more To highlight them is intended to cause actions toward preventing their occurrence. To highlight them is intended to cause actions toward preventing their occurrence. A concrete proposal is made at the end

Two Key Statements 1. The greatest positive effect of ISO is the promotion of the global debate on matters of social responsibility 2.Industry is in favor of an ISO guidance standard on social responsibility but it must be “good enough” for industry, which will become the main user group

Who will be the Main Users? micro small medium large up to 10 up to 50 up to 250 more than 250 employees Industry and Services = Business, 96% In industries, 98% are micro, small or medium organizations 36% 60%

Missing its “Key Market” (1/2) ISO/TMB WG SR did not perform a user survey in order to get the „primary user input“ into the draft guidance standard ISO/TMB WG SR did not perform a user survey in order to get the „primary user input“ into the draft guidance standard An IISD Study “How material is ISO … to SMEs?” of September 2008 is available at _26000.pdf An IISD Study “How material is ISO … to SMEs?” of September 2008 is available at _26000.pdf _26000.pdf _26000.pdf A “Quick User Survey” is available at estimation.com/html/quick_user_survey.html A “Quick User Survey” is available at estimation.com/html/quick_user_survey.html estimation.com/html/quick_user_survey.html estimation.com/html/quick_user_survey.html

Missing its “Key Market” (2/2) Both the IISD Study and the Quick User Survey show limits to the applicability and usefulness of ISO to small and medium organizations Both the IISD Study and the Quick User Survey show limits to the applicability and usefulness of ISO to small and medium organizations The ISO draft does not seem to reflect this feedback from reality The ISO draft does not seem to reflect this feedback from reality ISO may risk failing because “direct views” of possible users have not been taken into account

Volume of Document Micro and small organizations, in general, will not study 100+ pages in order to check for useful and applicable items… Micro and small organizations, in general, will not study 100+ pages in order to check for useful and applicable items… …and in particular, not in the least if they don’t conduct any trans-border activities… …and in particular, not in the least if they don’t conduct any trans-border activities… …and all the more, not so if their activities have no interaction with developing countries …and all the more, not so if their activities have no interaction with developing countries The 100+ pages have been repeatedly criticized since 12/2006 ISO may risk failing because the document is too voluminous for most of its potential users

Relevance of ALL Core Subjects to ALL Organizations (1/3) While the SCOPE of ISO states: “This International Standard provides guidance to all types of organizations, regardless of their size or location, on:… ….and while the logic of ISO is that ALL core subjects are relevant to ALL organizations …

Relevance of ALL Core Subjects to ALL Organizations (2/3) …this is flatly refuted, particularly by SMOs Some examples of non-relevance:  Micro organizations vs. “Community Involvement”  Locally operating SMO vs. “Fair Operating Practices”

Relevance of ALL Core Subjects to ALL Organizations (3/3)  Capital goods manufacturers vs. „Consumer Issues“  SMO in highly regulated countries vs. „Human Rights“ and „Labour Practices“  …and many more… ISO may risk failing because ALL core subjects being relevant to ALL organizations is not realistic

Governments’ Responsibility (1/4) Protection of its citizens is the core obligation of govern- ment (life, health, property, …) Protection of its citizens is the core obligation of govern- ment (life, health, property, …)  Industries can neither take this obligation, nor substitute government action

Governments’ Responsibility (2/4) It is governments’ social responsibility to set the legal framework under which private society related actions can develop It is governments’ social responsibility to set the legal framework under which private society related actions can develop

First governments need to care for their constitution, laws and regulations, and the enforcement of same First governments need to care for their constitution, laws and regulations, and the enforcement of same Then industries can act effectively and sustainably Then industries can act effectively and sustainably Governments’ Responsibility (3/4)

Governments’ Responsibility (4/4) But ISO creates an expectation as if the private sector could improve social deficits by itself, without preceding and accompanying government action But ISO creates an expectation as if the private sector could improve social deficits by itself, without preceding and accompanying government action ISO may risk failing because this expectation on the private sector is not realistic

Governments may Misuse ISO The DIS will express: "This International Standard is not a management system standard. It is not intended or appropriate for certification purposes or regulatory or contractual use. Any offers to certify, or claims to be certified, to ISO would be a misrepresentation of the intent and purpose of the International Standard." ISO may risk failing because government may mistakenly use it for procurement purposes

Certifiers may Misuse ISO The DIS will express: "This International Standard is not a management system standard. It is not intended or appropriate for certification purposes or regulatory or contractual use. Any offers to certify, or claims to be certified, to ISO would be a misrepresentation of the intent and purpose of the International Standard." ISO may risk failing because certifiers may ignore this unambiguous purpose description

Industry may Misuse ISO The DIS will express: "This International Standard is not a management system standard. It is not intended or appropriate for certification purposes or regulatory or contractual use. Any offers to certify, or claims to be certified, to ISO would be a misrepresentation of the intent and purpose of the International Standard." ISO may risk failing because some business organizations may mistakenly use it in contracts

Request of ISO’s Action (1/3) Request of ISO’s Action (1/3) ISO is a GUIDANCE STANDARD, offering guidance, advice and recommendations This type of Document is new, and not as commonly known as other ISO „products“ That gives ISO the chance to address the „education“ of users and justifies „after- publication actions“ organized by ISO

Rationale: ISO is a relatively new type of deliverable ISO is a relatively new type of deliverable The less it is under- stood, the greater the potential for (mostly) unintended misuse The less it is under- stood, the greater the potential for (mostly) unintended misuse Request of ISO’s Action (2/3) Request of ISO’s Action (2/3)

The first cases of misuse have already taken place without the document even being published, see estimation.com/html/misuse_of_ iso_26000.html The first cases of misuse have already taken place without the document even being published, see estimation.com/html/misuse_of_ iso_26000.html estimation.com/html/misuse_of_ iso_26000.html estimation.com/html/misuse_of_ iso_26000.html More cases to come… More cases to come… Request of ISO’s Action (3/3) Request of ISO’s Action (3/3)

How to Manage the Risks? (1/5) How to Manage the Risks? (1/5) Building on the good work of WG SR Task Group 2 on „Communications“, which may be disbanded after the ISO publication, ISO should set up a permanent unit called “ISO User Platform” ISO normally does not care about the use of its standards, but here it is recommended in view of the value of the ISO content and its global attention.

How to Manage the Risks? (2/5) How to Manage the Risks? (2/5) The ISO User Platform would address: 1.Taking measures to prevent the risks* 2.Clarifying any doubts or interpretations 3.Giving advice on concrete cases of use 4.Helping avoid cases of misuse 5.Running a website “pool of experiences” * More details on the next slides

How to Manage the Risks? (3/5) How to Manage the Risks? (3/5) ISO may risk failing because… Proposed way forward 1 … “direct views” of possible users have not been taken into account Perform a user survey under the auspices of ISO 2 … the document is too voluminous for the large majority of its potential users Redraft the document down to some 40 pages max. or write an “ISO User Guide” 3… because ALL core subjects being relevant to ALL organizations is not realistic Modify this claim by leaving the decision of relevance to the organization’s leadership

How to Manage the Risks? (4/5) How to Manage the Risks? (4/5) ISO may risk failing because… Proposed way forward 4 … this expectation of private sector action without preceding and accompanying government action is not realistic Include guidance on governments’ social responsibility more explicitly into the ISO … because government may mistakenly use it for procurement purposes Awareness and education; explain examples on the dedicated ISO website

How to Manage the Risks? (5/5) How to Manage the Risks? (5/5) ISO may risk failing because… Proposed way forward 6 … because certifiers may ignore this unambiguous description of purpose Awareness and education; explain examples on the dedicated ISO website 7… because some industry organizations may mistakenly use it in contracts Awareness and education; explain examples on the dedicated ISO website

In the end… …it is all in ISO‘s hands …it is all in ISO‘s hands..unless users feel the need to develop „their“ ISO User Guide(s), But that is not a preferred option. Thank You for your Consideration!