ISO Guidance on Social Responsibility Development Status, June 2009 An Industry View Success Criteria 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 What exists around ISO 26000? What exists around ISO 26000? ISO 26000; success merely by existence? ISO 26000; success merely by existence? 1: Meeting NWIP and Design Specification 1: Meeting NWIP and Design Specification 2: Applicability to ALL Organizations 2: Applicability to ALL Organizations 3: Relevance of ALL Core Subjects 3: Relevance of ALL Core Subjects 4: Volume of Document 4: Volume of Document 5: Easy to Understand 5: Easy to Understand 6: Terms and Definitions 6: Terms and Definitions 7: Equal Meaning of Language Versions 7: Equal Meaning of Language Versions

What Exists Around ISO 26000? (1/3) …many other documents on Social Responsibility … Standards Laws Regulations Conventions …at the different levels - binding and not binding ones… national InstrumentsCodes organizational regional international multinational ?ISO 26000?

All the other documents, codes, international instruments etc. already exist …. All the other documents, codes, international instruments etc. already exist …. What Exists Around ISO 26000? (2/3) The scope says: “It is intended to complement other instruments and initiatives related to social responsibility, and not to replace them.“ ISO 26000, the ‘UBER’ Standard, Code, Instrument… ? ?

To replace others?  ISO would not have the authority! To replace others?  ISO would not have the authority! To complement all others:  is a virtually impossible task… To complement all others:  is a virtually impossible task… What Exists Around ISO 26000? (3/3) …a wise decision to draft a Guidance Standard, which users can select relevant portions from, and that are complementary to their existing actions !!

ISO 26000; Success Merely By Existence ? (1/2) Not at all! … but as a relevant and useful Guidance Standard, it must also measure up to its criteria for success Of Course, the ISO will:  Intensify global discussion and awareness  Be recognized for its extensive content

ISO 26000; Success Merely By Existence ? (2/2) Critical factors: Volume Meeting the Design Specification Applicability to ALL organizations Relevance of ALL Core Subjects Equal Meaning of Language Translations Terms and Definitions Easy to understand ISO 26000

1: Meeting NWIP and Design Spec (1/8) assists organizations in addressing their social responsibilities while respecting cultural, societal, environmental and legal differences and economic development conditions; yes Requirement*Fulfillment *according to N049 Design Specification emphasizes performance results and improvement; yes

1: Meeting NWIP and Design Spec (2/8) Requirement*Fulfillment *according to N049 Design Specification provides practical guidance related to - operationalizing social responsibility; - identifying and engaging with stakeholders; and - enhancing credibility of reports and claims made about social responsibility; yes

1: Meeting NWIP and Design Spec (3/8) Requirement*Fulfillment *according to N049 Design Specification increases confidence and satisfaction in organizations among their customers and other stakeholders; debatable is consistent with, and not in conflict with, existing documents, international treaties and conventions and existing ISO standards; needs to be checked case-by- case

1: Meeting NWIP and Design Spec (4/8) Requirement*Fulfillment *according to N049 Design Specification is not intended to reduce government's authority to address the social responsibility of organizations; debatable promotes common terminology in the field of social responsibility yes broadens awareness of social responsibility yes

1: Meeting NWIP and Design Spec (5/8) Requirement*Fulfillment *according to N049 Design Specification the standard should be applicable by all types of organizations (e.g. regardless of their size, location, the nature of their activities and products, and the culture, society and environment in which they carry out their activities.) no limiting the proliferation of SR sector standards; no

1: Meeting NWIP and Design Spec (6/8) Requirement*Fulfillment *according to N049 Design Specification facilitate trade liberalization and remove trade barriers (implement open and fair trade); and dubious complement and avoid conflicts with other existing SR standards and requirements. needs to be checked case-by- case

1: Meeting NWIP and Design Spec (5/8) Requirement*Fulfillment *according to N049 Design Specification Easy to read, or, as quoted in the Design Specification N049, lines 63 and 64: „The language must be clear, understandable and objective throughout the guidance standard.“ no

1: Meeting NWIP and Design Spec (8/8) Summary in figures:  13 requirements in total --  5 are met  3 are debatable/dubiuos  2 need case-by-case checks  3 seem not to be met

2: Applicability to ALL Organizations The IISD Study and the „Quick User Survey“ found that the applicability by all organizations will be limited and that SMOs especially will have problems Volume and Language in particular are seen as hindrances A user survey conducted by ISO could help to increase the market relevance

3: Relevance of ALL Core Subjects  Interviewed organizations* denied that ALL core subjects would be relevant to them The decision about relevance of a core subject should be left to the organization attempting to enhance its social responsibility * having participated in the Quick User Survey

4: Volume of Document  Interviewed organizations* asserted that a volume of more than 100 pages is by far too large to be practicable, emphasized by SMOs in particular!  The content could be shortened to half the volume without losing substance * having participated in the Quick User Survey A shorter document would be more palatable and practical, as underscored by multiple comments from numerous and disparate sources since 2006

5: Easy to Understand  Interviewed organizations* found the text: - not easy to understand - too much use of a pedagogic style - the extensive use of “should”** conveys an implicit imperative rather than offering informed encouragement * having participated in the Quick User Survey ** even if so required by the Design Specification A substantive re-write to address these deficiencies would be a beneficial value proposition, and can never be too late

6: Terms and Definitions (1/4)  An ISO document should not use broadly interpreted and undefined terms like - welfare of society - expectations of society, or - International Norms of Behaviour  Nebulous terms need to be understandably* defined which is not the case for several (see next slides) * understandable for possible users, not for experts

„2.19 stakeholder „2.19 stakeholder individual or group that has an interest in any activities or decisions of an organization”* individual or group that has an interest in any activities or decisions of an organization”* Deficiency: - “an interest” and - “any” can be interpreted indefinitely Deficiency: - “an interest” and - “any” can be interpreted indefinitely 6: Terms and Definitions (2/4) * Source: draft working version of 19 June 2009

„2.10 international norms of behaviour „2.10 international norms of behaviour expectations of socially responsible organizational behaviour derived from customary international law, generally accepted principles of international law, or intergovernmental agreements (such as treaties and conventions) that are universally or nearly universally recognized”* expectations of socially responsible organizational behaviour derived from customary international law, generally accepted principles of international law, or intergovernmental agreements (such as treaties and conventions) that are universally or nearly universally recognized”* Deficiencies exist by using undefined terms in this definition like expectations, customary, generally accepted, universally, nearly universally Deficiencies exist by using undefined terms in this definition like expectations, customary, generally accepted, universally, nearly universally 6: Terms and Definitions (3/4) * Source: draft working version of 19 June 2009

6: Terms and Definitions (4/4) Easily understandable terms and definitions are key to the applicability of every standard New? Terms and definitions should be double-checked by possible USERS, particularly from the SMO faction Experts‘ consensus on definitions is all well and good, but users decide about their acceptance.

7: Equal Meaning of Language Versions Translation from English into the multiple languages used is a very significant and substantial problem! Key nouns and key verbs need to have the same meaning in all languages; like - stakeholder - social, societal - welfare of society - should, can, may, might Without this “equal meaning” the ISO will create confusion rather than globally enhance social responsibility

Outlook Unless the DIS (Draft International Standard, anticipated in September 2009) meets these main success criteria… Unless the DIS (Draft International Standard, anticipated in September 2009) meets these main success criteria… …the market success of ISO will not be the one it deserves… …the market success of ISO will not be the one it deserves… …particularly in view of the hundreds of millions of dollars and thousands of expert- hours already, and yet-to-be, invested …particularly in view of the hundreds of millions of dollars and thousands of expert- hours already, and yet-to-be, invested