1. Standardized Voluntary Codes for
Social Responsibility By
Bill Blackburn
October 26, 2007
The Conference Board
Council of Senior International Attorneys
Philadelphia, PA
William Blackburn Consulting, Ltd.
Web:
Phone:
© Copyright 2007: William R. Blackburn

2. Sustainability-Related Codes
The Big Three
ISO SR Guideline Standard
GRI G3 Sustainability Reporting Guidelines
UN Global Compact
Other Sustainability Codes of Behavior
Sustainability Management Systems Standards
American Bar Assn Model Sustainability Policy for Law Organizations

3. ISO 26000 Guidance Standard on Social Responsibility

4. ISO 26000 Update: Scope & Issues
What it will be
- International “guidance standard” providing practical guidance on
1. operationalizing social responsibility
2. engaging stakeholders
3. enhancing the credibility of SR reports and claims
- Complementary to other intergovernmental and global SR
initiatives (e.g., UN, ILO, OECD, GRI)
- Applicable to all types and sizes of organizations
- Guidance emphasizing results and performance improvement
What it will NOT be
- A management systems (PDCA) standard
- A specification standard for certification
- A set of social obligations or expectations of
the type properly defined by governments

5. ISO 26000 Update: Content: Definitions; Principles
Definitions of “social responsibility,” other terms
SR principles
legal compliance
respect for internationally recognized instruments
recognition of stakeholders and their concerns
accountability
transparency
sustainable development
ethical conduct
precautionary approach
fundamental human rights
respect for diversity

6. ISO 26000 Update: Content: Implementing SR
General guidance for organizations in implementing SR
Vision, strategy development
Stakeholder identification and engagement
Monitoring and measurement
Reporting and communication
Etc.
Reference existing tools??
Management system elements??

7. ISO Update: Schedule
Mar. 06: 1st draft
Nov. 06: 2nd draft
Dec. 07: Enquiry draft to national ISO orgs. for
comment and preliminary vote
July 08: Final draft to national ISO orgs. for vote
Oct. 08: Final standard published
Will be delayed!

8. Global Reporting Initiative’s G3 Sustainability Reporting Guidelines

9. Why GRI Matters Growth of company sustainability reporting
- 2/3 of Global Fortune 250
- Up 40+% from 2002
- Investor resolutions; UK, France, S. Africa initiatives
Source: KPMG Survey—January 2005

10. Uptake Over Time >950 Reporters/ 40% of Global Fortune 250 use GRI
GRI Reporters
Look at the growth in reporting!
Highlight the growth post release of 2002 Guidelines… be part of the increase post the G3 release!
By mid 2006, XX were In Accordance reporters.
GRI-based reports continue to feature heavily in sustainability indexes. In May, 2006, 59% of organizations listed in the DJSI produced GRI reports; 69% of the S&P Global 100 were GRI reporters;
Year

11. Top Strategies for Strengthening the Credibility of Reports
External verification
Being honest about mistakes and bad practices
External reporting standard
(GRI)
Source: Pleon Kohtes Klewes Global Stakeholder Survey--2005

12. G3 Launch October 2006
Key message: (Presenter: take stock. Recap that you’ve just walked through the G3 Guidelines).
So, that’s the G3. How does it relate to the huge array of corporate governance standards/codes/frameworks etc out there. To ensure we reach our goal – a more sustainable future – we must work together. Streamlining corporate governance so that acting responsibility does not become burdensome for organizations.
a) Good reports: are those that are not isolated. Reporting is part of the process of demonstrating, understanding, improving corporate responsibility goals.
Organizations have a suite of CR tools available to them: harmonization is important so reporters have consistent approach, can satisfy multiple needs.
b)… GRI has always sought synergies; G3 is stronger than ever in allowing this.
2) Supporting facts
At our conference in October, the GRI recently united in a strategic alliance with the UN-Global Compact
This aims to provide global private sector (the core audience of the UNGC) with an opportunity to embrace a responsible business strategy that is comprehensive, organizing, and integrated.
Ernst (GRI CEO) and Georg Kell (UNGC executive head) were proudly ‘married’ at the conference. They announced their commitment to undertake advocacy and other partnership efforts to encourage companies and corporate responsibility organizations to support the synergistic platforms of the Compact and the GRI.
For each, the harmonization is clear. The UNGC require public disclosure from their signatories as to their progress on the 10 principles of the UNGC.
It makes sense to use a trusted, widely used and credible framework – the GRI – to do this.
In working together, it is hoped efforts can be consolidated, are targeted and focused, and achieve the common goal of improved sustainability outcomes, for organizations all around the world.

13. The Reporting Framework
Principles G3
Standard Disclosures +
Sector Supplements
Key message:
Good reports: are based on a credible, trusted, transparent framework, which facilitates comparable reporting.
The G3: The improved Guidelines are part of the world’s most used and trusted framework.
2) Supporting facts: (overview of the following few slides, which provide greater detail)
The Guidelines are the basis of all the Reporting Framework. They are the entry point for all reporting organizations. They contain principles and guidance (helping determine the content of the report) as well as standard disclosures, including performance indicators
Indicator protocols: provide ‘the recipe’ for the indicators: eg, compilation methodology, further reference. Ensure consistency and comparability when different organizations report on the same indicator.
Sector supplements: respond to the limits of a ‘one size fits all’ and contains some guidance for sector specific information.
National annexes: soon to start, not yet existing. enables thorough reporting that fits in with national-specific reporting requirements, legislation, or issues – whilst being GRI based enables globally comparable information disclosures.
National Annexes

14. Reporting Principles (with Tests)
Principles that help define report content
Materiality (significant impacts, substantially influence stakeholder decisions)
Stakeholder inclusiveness
Sustainability context
Completeness
Boundary setting
Principles that help determine report quality
Balance
Comparability
Accuracy
Timeliness
Reliability
Clarity

15. G3 Report Content Strategy and analysis Organizational profile
Governance, commitments & engagement
Discussion of management approach (DMA)
Performance indicators
Core and additional indicators
Sector supplements
National annexes

16. Examples of the 3 Classification Levels of Indicators
Category (6)
-Economic
-Environment
-Social (4)
Environment
Social: Labor Practices and Decent Work
Aspect (35)
Water
Occupational Health and Safety
Indicator (79)
-49 core
-30 additional
Total water withdrawal by source
Injury, illness and lost-day rates, absenteeism, fatalities, by region

17. Disclosure on Management Approach
Report on each of the 6 indicator categories covering those 35 aspects that are material:
Economic (3)
Environmental (9)
Social: labor and decent work (5), human rights (8), society (5), product responsibility (5)
DMA content:
Goals and performance
Policy
Organizational responsibility
Training and awareness
Monitoring and follow-up
Additional contextual info

18. Sector Supplements Development completed (but not final yet):
automotive, telecom, metals & mining, tour
operators, financial services, public
agencies, logistics & transportation,
In development:
energy utilities, apparel & footwear,
nonprofit, foodservice

19. Reporting Application Levels
Rpt
Content
Application Level C C+ B B+ A A+
Profile, Governance
Rpt all but 12 items
Ext. Assurance
Rpt all items
Same as B
DMA
Not req’d
Rpt for each of
6 categories
Indicators
Min 10 (1 each
for econ, env, social)
Min 20 (1 each for econ, env, HR, labor, soc’ty, prod resp)
Rpt on each core and sect. suppl. indicator or explain

20. In Support
The common disclosure framework is out there… and now introducing new support services to help you

21. UN Global Compact

22. UN Global Compact Code of corporate social responsibility
Launched 2000
Approx 4000 participants
Over 3000 businesses
100 countries

23. GC Support Network Global Compact Office Guardians
Office of the High Commissioner for Human Rights
UN Environment Programme
International Labour Organization
UN Office on Drugs and Crime
Implementing arm: UN Development Programme
SME Resources: UN Industrial Development Organization

24. Company GC Requirements
Adopt principles
Annual progress report to GC and stakeholders
Engage in dialogue on legitimate complaints about adherence to the code

25. GC 10 Principles for Business
Human Rights
• Principle 1: Support internationally proclaimed human rights;
• Principle 2: No complicity in abuses

26. GC 10 Principles for Business
Labour
• Principle 3: Supporting freedom of association; right to collective bargaining;
• Principle 4: Eliminating forced and compulsory labour;
• Principle 5: Eliminating child labour;
• Principle 6: Eliminating employment discrimination

27. GC 10 Principles for Business
Environment
• Principle 7: Precautionary approach to environmental challenges;
• Principle 8: Greater environmental responsibility;
• Principle 9: Promoting environmentally friendly
technologies
Anti-Corruption
• Principle 10: Eliminating corruption, including extortion and bribery.

28. Other Sustainability
Codes of Behavior

30. How to Select Voluntary Standards
Is the topic relevant and material to the company?
Is this an important area where improvement or companywide consistency is needed?
What burden is imposed on endorsing companies? Does the company have the resources to meet the code requirements?
Is the code sufficiently flexible and not overly prescriptive?

31. How to Select Voluntary Standards
How much credibility does the code and its issuing body have with company management and key stakeholders?
Will future amendments to the code be likely, and will the company be expected to conform to them?
Is the company already supporting an internal or external code on the same topic?
Are there legal implications?

32. Sustainability Management Systems Standards

33. Sustainability Management System Standards
ISO (26000, 9004?, etc.)
UK (SIGMA, BS 8900)
Australia (AS 8000 series)
Mexico (IMNC SAST 004)
France (AFNOR Guide SD 21000)
Austria (Guide ON-V 23)
Int’l Finance Corp. (Env & Soc. Mgmt System)

34. Compliance Management Framework?

35. The Sustainability Handbook– The Complete Management Guide to Achieving
Social, Economic and Environmental Responsibility (order thru
The Drivers
The Efficient Enablers
The Pathway
The Evaluators
A champion/leader
Approach for selling the organization on sustainability
Accountability mechanisms
Organizational structure
Deployment and integration
Vision and policy
Operating system standards
Strategic planning for aligned priorities
Indicators and goals
Measuring and reporting progress
Stakeholder engagement and feedback

36. Continual Improvement Cycle
(Sustainable quantum leap in performance)
Collect Data to
Measure Performance
Implement
Plan
Identify Strengths
and Gaps
Plan Priorities for
Addressing Gaps
Report Data
Solicit Stakeholder
Feedback

37. Model Sustainability Policy
American Bar Assn
Model Sustainability Policy

38. ABA Model Sustainability Policy for Law Organizations
Vision: It is in the best interests of our law organization and society as a whole that our organization move along the path to sustainability. To that end, we will strive to achieve the following vision of performance, publicly communicate this commitment, and periodically report our progress and challenges in fulfilling it:
1. Economic success: the wise use of financial resources
a. Organization’s Economic Prosperity. Our organization is positioned to survive and prosper economically.
b. Community’s Economic Prosperity. We help our community survive and prosper economically through the taxes, salaries, and suppliers we pay, and through our civic and philanthropic efforts.

39. ABA Model Sustainability Policy for Law Organizations-cont.
2. Social responsibility: respect for people
Respect for Employees. We treat our employees in a respectful, fair, non-exploitative way, especially with regard to compensation and benefits; promotion; training; open, constructive dialogue with management; involvement in decision-making; working conditions that are safe, healthy and non-coercive; right of privacy; employment-termination practices; and work-life balance.
Diversity, Fair Hiring Practices. We promote diversity and use hiring practices that are fair, responsible, non-discriminatory, and non-exploitative for our employees, management board, and suppliers.
Responsible Governance; Professional Courtesy. We manage our risks properly, use our economic power responsibly, and operate our organization in a way that is ethical and legal. We treat with due respect others who are involved with us in the discussion of legal issues and resolution of legal claims.

40. ABA Model Sustainability Policy for Law Organizations-cont.
2. Social responsibility: respect for people
Dealing With Clients. We acknowledge that our primary legal and ethical duty is to serve our clients honestly and effectively. We compete fairly for their business, respect their privacy and confidentiality, and provide them efficient and effective services under the conditions we promise.
Awareness and Advice. We help raise the awareness of our employees about sustainability issues in the primary fields of our legal practice, and include consideration of such issues in the advice we provide our clients.
Well-being of Stakeholders. We work collaboratively with our communities and other stakeholders to enhance the well-being of others through pro bono services, philanthropy, and/or other ways.

41. ABA Model Sustainability Policy for Law Organizations-cont.
3. Environmental responsibility: respect for life; the wise management and use of natural resources
a. Resource and Energy Conservation. We conserve our use of natural resources and energy to the extent practicable.
b. Waste and Pollution Prevention and Management. We reduce to the extent practicable the quantity and degree of hazard of the wastes we generate from our operations, and handle them in a safe, legal, and responsible way to minimize their environmental effects. We also reduce to the extent practicable the direct and indirect emissions of greenhouse gases and other harmful air pollutants from our operations and travel.
c. Reduction of Supply Chain Impacts. We work with others in our supply chain to help assure adverse environmental impacts and risks associated with our operations are reduced and properly controlled, and environmental benefits optimized.

42. Piloting ABA Model Policy
Adopt policy substantially like model
Develop implementation plan, considering guidelines/checklist of ideas
Provide feedback on tool
Periodically report progress
Post materials on ABA website

43. Firms Piloting ABA Model Policy
Levenfeld Pearlstein, LLC
Ballard Spahr Andrews & Ingersoll, LLP
Manko, Gold, Katcher & Fox, LLP
Schwabe Williamson & Wyatt
Holland + Knight
McMahon DeGulis LLP

44. Takeaways for the International Lawyer
Global and national SR codes are proliferating
Changing stakeholder expectations for lawyers and their clients
Can aid positive change, manage legal and other risks
Can create standards of care even if you don’t adopt them
Need to evaluate them carefully, be selective

45. William Blackburn Consulting, Ltd.
Web:
Phone:
Book: The Sustainability Handbook—
The Complete Management Guide
to Social, Economic and
Environmental Responsibility
(See Web site)