ISO Guidance on Social Responsibility Development Status, June 2009 An Industry View Applicability Aspects 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 What is a Guidance Standard? What is a Guidance Standard? Stakeholder Definition Stakeholder Definition Other Standards and Codes Other Standards and Codes Who decides about the applicability of ISO 26000? Who decides about the applicability of ISO 26000? User Groups, Estimation User Groups, Estimation Applicability to Stakeholder Groups Applicability to Stakeholder Groups Applicability to Certification Organizations Applicability to Certification Organizations

It offers What is a Guidance Standard? (1/5) guidanceadvicerecommendations The user decides on whether and how to use it, often in dialogue with stakeholders orientation

It does not contain What is a Guidance Standard? (2/5) requirements It can not be used for Procurement Contracts Certification

What is a Guidance Standard? (3/5) …and what ISO is not? The ISO is not an ‘international standard‘ under the terms of WTO agreements. World Trade Organization

This International Standard is intended to provide guidance to organizations concerning social responsibility and may used as part of public policy activities. However, for purposes of the Marrakesh Agreement establishing the World Trade Organization (WTO) it is not intended to be interpreted as an “international standard”, “guideline” or “recommendation”. Further, it is not intended to provide a basis for legal actions, complaints, defenses or other claims in any international, domestic, or other proceedings, nor is it intended to be cited as evidence of the evolution of customary international law. …and what ISO is not? What is a Guidance Standard? (4/5) The draft scope (of 19 June 2009) explains clearly:

ISO is voluntary in use and does not prescribe anything: What is a Guidance Standard? (5/5) One can not conform to, or be in conformity with a guidance* One can not comply, or be in compliance with, a guidance* One can follow a guidance * …even if some circles want to make one believe it. One can comply with law, conform to a standard, but one can neither comply nor conform with guidance.

The 19 June 2009 definition reads: “2.19 stakeholder individual or group that has an interest* in any* activities or decisions of an organization” The 19 June 2009 definition reads: “2.19 stakeholder individual or group that has an interest* in any* activities or decisions of an organization” Stakeholder Definition (1/2) * These are undefined terms (that should not occur in a “definition”): by this definition everyone/anyone simply declaring any interest would be a “stakeholder”! Since „stakeholder“ is a key term, this unrealistic definition may detract from the image of the entire document.

The ICC answer: “Individual or group significantly affected by an organization’s activities.” Stakeholder Definition (2/2) Only practicable definitions will make the ISO applicable.

ISO will meet, in the “market place”, other standards, codes, and regulations that are… Other Standards and Codes (1/4) …proven in daily practice, and… …short, precise, and free of repetitions and redundancies* * like „standards“ normally are

There are numerous other non-consensus* documents around, like SA8000, AA1000, OHSAS all examples of private initiatives that were primarily set up to generate revenues from certification SA8000, AA1000, OHSAS all examples of private initiatives that were primarily set up to generate revenues from certification National laws and regulations in different countries at different levels of detail National laws and regulations in different countries at different levels of detail Other Standards and Codes (2/4) * Not having passed a public consensus process

Enterprise Codes of Conduct: issued by larger organizations, self- committing, and used in supply chains Enterprise Codes of Conduct: issued by larger organizations, self- committing, and used in supply chains Associations’ Codes of Conduct: * for orientation of association members, * as an offer to publicize subscription on the association’s website * of high value for SMOs Associations’ Codes of Conduct: * for orientation of association members, * as an offer to publicize subscription on the association’s website * of high value for SMOs Other Standards and Codes (3/4)

Other Standards and Codes (4/4) Since these „other ones” are already practically used…. …the “added value” of ISO will determine & shape …its global market use, its usefulness and ultimate success

User Groups, Estimation Industry and services stand for 96% of all users. User Groups % Government 1,5 Labor 1 Consumers 0,5 NGO 1 Services36 Industry 60 36% 60%

Governments are “organizations”: if the ISO scope claims to give guidance applicable by ALL organizations, it does include governmental organizations Governments are “organizations”: if the ISO scope claims to give guidance applicable by ALL organizations, it does include governmental organizations Governments run different types of organizations: - constitutional, judicial, regulatory organs - administration agencies - commercial organizations Governments run different types of organizations: - constitutional, judicial, regulatory organs - administration agencies - commercial organizations Applicability to Governments (1/6)

At the national level primarily exist these organizations: - national or federal government departments, At the national level primarily exist these organizations: - national or federal government departments, ministries, agencies, bureaus, etc. - sub-national government authorities ministries, agencies, bureaus, etc. - sub-national government authorities - national standards bodies - national standards bodies - governmental run or owned advisory or research - governmental run or owned advisory or research institutions, laboratories institutions, laboratories At the regional level exist these organizations: - regional or state government authorities At the regional level exist these organizations: - regional or state government authorities At the international level exist these organizations: - intergovernmental organizations (e.g. United At the international level exist these organizations: - intergovernmental organizations (e.g. United Nations, OECD, and others) Nations, OECD, and others) Applicability to Governments (2/6)

…commercial organizations?* YES! Applicability to Governments (3/6) Is ISO applicable to… …constitutional, judicial, regulatory organs? NO*, …administration agencies? YES! *Offering guidance on legal matters is not within ISO’s role at any time; ISO has no authority under any jurisdiction anywhere * From a global perspective, governments are owners (to 100% or less) of an uncountable number of commercial organizations (enterprises)

…millions of commercial organizations Applicability to Governments (4/6) By global numbers, governments own/run organizations … …many thousands of administrative agencies ISO needs to express clearly that the term ALL ORGANIZATIONS includes administrative and commercial entities regardless of ownership

3.4 The state and social responsibility (as of 19 June 2009) reads: "The state can assist organizations in their efforts to operate in a socially responsible manner in many ways, in particular by ensuring the application of law and regulations so as to foster a culture of compliance with law.” 3.4 The state and social responsibility (as of 19 June 2009) reads: "The state can assist organizations in their efforts to operate in a socially responsible manner in many ways, in particular by ensuring the application of law and regulations so as to foster a culture of compliance with law.” Applicability to Governments (5/6) ISO needs to express more clearly that properly working legal and regulatory systems are a prerequisite for sustainable develop- ment of SR activities by the private sector

3.4 The state and social responsibility (as of 19 June 2009) reads: "The state can assist organizations in their efforts to operate in a socially responsible manner in many ways, in particular by ensuring the application of law and regulations so as to foster a culture of compliance with law.” 3.4 The state and social responsibility (as of 19 June 2009) reads: "The state can assist organizations in their efforts to operate in a socially responsible manner in many ways, in particular by ensuring the application of law and regulations so as to foster a culture of compliance with law.” Applicability to Governments (6/6) It will be interesting to see how governments not only assist others but use ISO in their own organizations (agencies and governmentally owned commercial organizations) and how they will demonstrate their social responsibility.

These are basically unions. They have many employees and run their own commercial organizations/operations. Applicability to Labor Organizations It will be interesting to see how unions and union-owned organizations will use ISO and how they will demonstrate their social responsibility.

Remember: ISO COPOLCO, the Consumer Policy Committee, was the initiator of the project Remember: ISO COPOLCO, the Consumer Policy Committee, was the initiator of the project Applicability to Consumers (1/2) It will be interesting to see how consumer organizations like CI (Consumers International) and others will use ISO and how they will demonstrate their social responsibility.

Applicability to Consumers (2/2) ISO COPOLCO members are the 160 National Standards Bodies (NSBs) which are members of ISO. ( deID= June 2009) ISO COPOLCO members are the 160 National Standards Bodies (NSBs) which are members of ISO. ( deID= June 2009) deID=96556http:// deID=96556 It will be interesting to see how ISO national member bodies like ANSI, AFNOR, BSI, DIN, etc. will use ISO and how they will demonstrate this.

NGOs (Non-Governmental Organizations) are “organizations” in the context of the guidance standard. They generally cultivate an image of providing public interest oversight to the behavior and conduct of other organizations. Several of them are WG SR members. Applicability to NGOs It will be interesting to see how NGOs will use ISO and how they will demonstrate their social responsibility.

Applicability to Certification Organizations (1/3) Certification bodies are commercial organizations regardless of being: - internationally active like DNV or TUV - separate legal entities, or - sub-organizations of other entities like ISO national member bodies - a testing & certification body for technical products or “management systems” Certification bodies are commercial organizations regardless of being: - internationally active like DNV or TUV - separate legal entities, or - sub-organizations of other entities like ISO national member bodies - a testing & certification body for technical products or “management systems”

Applicability to Certification Organizations (2/3) The ISO scope (of 19 June 2009) says: “Any offers to certify, or claims to be certified, to ISO would be a misrepresentation of the intent and purpose of the International Standard.” The ISO scope (of 19 June 2009) says: “Any offers to certify, or claims to be certified, to ISO would be a misrepresentation of the intent and purpose of the International Standard.” This clear wording was introduced after identifying the first cases of ISO certification offers well before its publication

Applicability to Certification Organizations (3/3) In the context of ISO 26000, certification bodies are organizations like any other organizations. It will be interesting to see how certification organizations will use ISO in their own organizations and how they will demonstrate this.

Industry and Services are commercial organizations and represent some 96% of all potential ISO users Industry and Services are commercial organizations and represent some 96% of all potential ISO users Some 98% of that 96% are SMOs; the other 2% are “large” organizations Some 98% of that 96% are SMOs; the other 2% are “large” organizations Some 3% of SMOs may be medium, some 97% small or micro organizations Some 3% of SMOs may be medium, some 97% small or micro organizations Applicability to Industry and Services (1/5) Structure of potential users:

In general, they issue their own “Codes of Conduct” and adhere to them. In general, they issue their own “Codes of Conduct” and adhere to them. Applicability to Industry and Services (2/5) Large organizations (more than 250 persons*): ISO may be a source of developing such “Codes” further *micro up to 10, small up to 50, medium up to 250, large more than 250: this grouping follows European practices; other regions may practice other groupings

They contribute more to economy than the “large” ones They contribute more to economy than the “large” ones They often follow their association’s Codes They often follow their association’s Codes Applicability to Industry and Services (3/5) Medium organizations (between 50 and 250 persons): ISO may be a source for developing or enhancing their own or their associations’ Codes

They are the principle drivers of economy, mostly privately owned or led by the owner They are the principle drivers of economy, mostly privately owned or led by the owner Most of them run local or national operations, and follow the guidance of their customers Most of them run local or national operations, and follow the guidance of their customers Applicability to Industry and Services (4/5) Small organizations (up to 50 persons): ISO may be “interesting” for them, but of nominal value and not a particularly compelling reason to change practices

Regularly privately owned and managed Regularly privately owned and managed They normally run local operations only They normally run local operations only They follow the guidance of their customers They follow the guidance of their customers Struggling to survive prevails over all other issues Struggling to survive prevails over all other issues Applicability to Industry and Services (5/5) Micro organizations (up to 10 persons): ISO may be of negligible value

Who decides finally about ISO 26000’s applicability? Not ISO Not the Working Group* …only the “ market ” * …regardless of whoever claimed “consensus” was achieved.