1. THEORETICAL AND PRACTICAL OVERVIEW OF ISO 26000 – SOCIAL RESPONSIBILITY APPLICATION AT THE EUROPEAN LEVEL Irina-Eugenia IAMANDI, Laura-Gabriela CONSTANTIN Bucharest Academy of Economic Studies The International Conference PRESENT ISSUES OF GLOBAL ECONOMY - 8th Edition - April 16th-17th, 2011 “Ovidius” University of Constanta, Faculty of Economic Sciences Constanta, Romania

2. Objectives of the paper  Brief description of CSR and its voluntary character  Comprehensive review of the main CSR benefits  General presentation of ISO 26000  Research on the computed analysis of ISO 26000 application at the European level  Attempt to offer a macroeconomic computed approach on the main CSR key-drivers at the European level in order to identify the specific country-level progresses on the implementation of ISO 26000 associated core subjects and issues.

3. Structure of the paper 1. Introduction 2. Benefits of adopting a socially responsible behavior 3. General presentation of ISO 26000 – Social Responsibility 4. Analysis of ISO 26000 application at the European level: data, methodology and results 5. Recommendations and conclusions.

4. 1. Introduction  CSR – An integral & strategic part of business operations  CSR – A concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis (EMF on CSR, 2004)  A voluntary international standard for CSR was needed  ISO 26000 – SR.

5. 2. Benefits of adopting a socially responsible behavior (1)  Obtaining a social operational licence from the main stakeholders  Harmonizing business practices with the expectations of the stakeholders  Increasing efficiency and cost reduction  Achieving sustainable competitiveness  Creating new business opportunities  Differentiating from competitors  Achieving production or commercialization brand loyalty

6. 2. Benefits of adopting a socially responsible behavior (2)  Increasing possibilities of recruiting and retaining high quality employees  Attracting and retaining high quality investors and business partners  Cooperating with local communities  Avoiding crises due to CSR deviations  Better managing operational and commercial risks  Obtaining governmental support and avoiding stricter governmental regulations  Building political capital.

7. 3. General presentation of ISO 26000 – Social Responsibility (1)  November 2010  ISO 26000 WG: - 83 ISO member countries (participating countries) - 42 liaison organizations - 16 ISO member countries (observer countries)  Romania  It contains 7 clauses and 2 annexes  Not a management system standard  Not intended for third-party certification  Not intended for regulatory or contractual use.

8. 3. General presentation of ISO 26000 – Social Responsibility (2) ISO 26000 Core Subjects 1. Organi- zational governance 2. Human rights 3. Labour practices 4. Environ- ment 5. Fair operating practices 6. Consumer issues 7. Community involve- ment and develop- ment

9. 4. Analysis of ISO 26000 application at the European level (1)  DATA: - CSR Europe, “A Guide to CSR in Europe” (Oct. 2010)  METHODOLOGY: - Computed approach - Company-level info  national / regional pattern - ISO 26000 issues in 22 European countries - Common framework of ISO 26000

10. 4. Analysis of ISO 26000 application at the European level (2)  RESULTS: - Important achievements on 4 th and 7 th core subjects of ISO 26000 - For most developed countries: also 2 nd and 3 rd core subjects - Voluntary CSR - Integrated CSR - Ignored CSR.

11. 5. Recommendations and conclusions  A special focus should be put on 5 th and 6 th core subjects of ISO 26000 standard  Highly CSR context dependence  corporate, sub- sector or sector level SR  Correlation of CSR practices with business objectives  The European countries made consistent progresses in what concerns the implementation of CSR practices and their inclusion in the core business activities.

12. Acknowledgements: This work was co-financed from the European Social Fund through Sectoral Operational Programme Human Resources Development 2007-2013, project number POSDRU/89/1.5/S/59184 “Performance and excellence in postdoctoral research in Romanian economics science domain”. Thank You!