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OVERVIEW OF ISO 26000 SOCIAL OVERVIEW OF ISO 26000 SOCIAL RESPONSIBILITY AND THE BENEFITS TO RESPONSIBILITY AND THE BENEFITS TO

INDUSTRIESINDUSTRIES

SEMINAR STANDARD 2011: STANDARDS TOWARDS INCREASING MARKET

COMPETITIVENESS-13 DECEMBER 2011ORGANISED BY MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY

MALAYSIA

SPEAKER: AB RAZAK SALIMSIRIM

Brief process of ISO 26000 ISO 26000 FRAMEWORK Highlight on clauses Benefits of social responsibility

OUTLINE PRESENTATIONOUTLINE PRESENTATION

BRIEF PROCESS OF ISO 26000

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How did the ISO 26000 effort get started?

COPOLCOReport

AGReport

May 2001 Jun 2002 Sept. 2002 April 2004 June 2004

Swedish Industry Association

Env. Mgt Consultants of CV

Industry Stds Committeefor Petroleum and Gas

MoUs established

Work begins

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Who has been participating in the process?

99 countries represented through their NSBs

42 liaison organisations(including MoUs with ILO,UNGC and OECD)

450 experts and 210 observers from 6 stakeholder categories(Industry, Government, Consumers, Labour, NGO,SSRO)

(2010)

6Stage 3-5: Building national consensus/vote, D-liaison backing

Stage 2: Building consensus among individual experts

STAGE 1STAGE 1

New Work

Item Proposal

(NWIP)

STAGE 2STAGE 2

Working

Draft (s)

(WD)

STAGE 3STAGE 3

Committee

Draft (s)

(CD)

ISO 26000 writing process

STAGE 4STAGE 4

Draft Intern.

Standard

(DIS)

STAGE 5STAGE 5

Final Draft

Intern. Stand.

(FDIS)

STAGE 6STAGE 6

International

Standard

(IS)

STAGE 2STAGE 2

Working

Draft (s)

(WD)

STAGE 2STAGE 2

Working

Draft (s)

(WD 4.3)

PUBLICATION -1 NOV 2010

ISO 26000 FRAMEWORK

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HIGHLIGHT ON CLAUSES 1-SCOPE

SCOPE- PROVIDE GUIDANCE TO ALL TYPES OF ORGANISATION,

REGARDLESS OF SIZE OR LOCATION

ENCOURAGE ORGANISATION TO GO BEYOND LEGAL COMPLIANCE

NOT A MANAGEMENT SYSTEM

NOT INTENDED FOR CERTIFICATION OR REGULATORY OR CONTRACTUAL USE

CLAUSE 2

Terms and definitions ~ 27

Organisation (2.12)

-Entity or group of people and facilities with an arrangement of responsibilities, authorities and relationships and identifiable objectives

International norms of behaviour (2.11)

expectations of socially responsible organizational behaviour derived from customary international law, generally accepted principles of international law, or intergovernmental agreements that are universally or nearly universally recognized

Supply chain (2.22)

Sequence of activities or parties that provides products or services to the organisation

Value chain (2.25)

Entire sequence of activities or parties that provide or receive value in the form of products or services

IN/ID - YYYY-MM-DD Title / Titre –

Value & supply chain

Customers

MediaGovernmentCitizens NGO’s

Consumers

Workers

IndustryOrganization

Value chain

Sub-Suppliers

Raw material providers Waste

services

Supply chain

Sphere of Influence2.19

•Definition: range/extent of political, contractual,

economic or other relationships through which an organization has the ability to affect the decisions or activities of individuals or organizations

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1818

Distributors

Value chain

Supply chain

Sector association

MediaGovernmentCitizens NGO’s

Social , Economic and Environment

ConsumersSuppliers ASub-Suppliers A

Raw material providers

Waste services

Workers

EmployeesIndustryOrganization

Partners Banks /Insurance

Shareholders

Suppliers B

Customers A

Sub-Suppliers B

Customers B

Sphere of influence

Assessment on an organization's SOI:

• ownership and governance• economic relationship• legal/political authority• public opinion

CLAUSE 3-Understanding social responsibility

Essential characteristics of SR

Willingness of an organisation to incorporate social and environmental considerations in its decision making and be accountable for the impacts of its decision and activities on society and environment.

Relationship between social responsibility and sustainable development

-Sustainable development-meeting the future needs of society without jeopardizing the ability of future generations to meet their needs

-Social responsibility- focus on organisation and its responsibilities to society and environment

-objective of organization's SR should be to contribute to sustainable development

CLAUSE 4 Principles of Social Responsibility

Accountability

Transparency

Ethical behaviour

Respect for stakeholder

Respect for the rule of law

Respect for international norms of behaviour

Respect for human right

CLAUSE 3-Understanding social responsibility

Fundamental of SR

Identifying and engaging with stakeholders is central to SR.

Stakeholder (2.20)

- individual or group that has an interest in any decision or activity of an organisation

25IN/ID - YYYY-MM-DD Title / Titre –

Stakeholder map

MediaGovernment

Citizens NGO’s

Consumers

IndustryOrganization

Stakeholder engagement

Dialogue between organisation and stakeholders

Various forms~ meeting, conferences, workshops, public hearings, advisory committees, round table discussions

CLAUSE 5: RECOGNIZING SR AND ENGAGING STAKEHOLDERS

CLAUSE 6

SR core subjects and issues

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Labourpractices

Fair operating practices

Consumer issues

Theenvironment

CommunityInvolvement and

developmentHuman rights

Or g a n i z a t i o n a l

ORGANIZATION

7 CORE SUBJECTS

Std Pres Kit 29

GUIDANCE ON SR CORE SUBJECTS

Organizational Governance Issue

1.Decision-making processes and structures

Std Pres Kit 30

SR core subjects

Human Rights Issues1.Due diligence2.Human rights risk situations3.Avoidance of complicity4.Resolving grievances5.Discrimination and vulnerable groups6.Civil and politics rights7.Economic, social and cultural rights8.Fundamental principles and rights at work

Std Pres Kit 31

SR Core Subjects

Labour Practices Issues 1.Employment and employment relationships2.Conditions of work and social protection3.Social dialogue4.Health and safety at work5.Human development and training in the workplace

Std Pres Kit 32

SR Core Subjects

Environmental Issues

1.Prevention of pollution

2.Sustainable resource use

3.Climate change mitigation and adaptation

4.Protection of the environment and restoration of natural habitats

Std Pres Kit 33

SR Core subjects

Fair Operating Practices Issues1.Anti-corruption2.Responsible political involvement3. Fair competition4. Promoting social responsibility in the sphere of influence5. Respect for property rights 

Std Pres Kit 34

SR Core Subjects

Consumer Issues1.Fair marketing, factual and unbiased information and fair

contractual practices2.Protecting consumers’ health and safety3.Sustainable consumption4.Consumer service, support and dispute resolution5.Consumer data protection and privacy6.Access to essential services7.Education and awareness

Std Pres Kit 35

SR Core subjects

Community involvement and development 1.Community involvement 2.Education and culture3.Employment creation and skills development 4.Technology development and access5.Wealth and income creation6.Health7.Social investment

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Organizational governance

Human rights

Labour practices

The environment

Fair operating practices

Consumer issues

Community involvement and

development

1. Due diligence2. Human rights risk situations3. Avoidance of complicity4. Resolving grievances5. Discrimination and vulnerable groups6. Civil and politics rights7. Economic, social and cultural rights8. Fundamental principles and rights at work

1. Employment and employment relationships

2. Conditions of work and social protection

3. Social dialogue4. Health and safety at work5. Human development and

training in the workplace

1. Prevention of pollution2. Sustainable resource use3. Climate change mitigation and

adaptation4. Protection of the environment and

restoration of natural habitats

1. Anti-corruption2. Responsible political involvement3. Fair competition4. Promoting social

responsibility in the sphere of influence

5. Respect for property rights

1. Fair marketing, factual and unbiased information and fair contractual practices

2. Protecting consumers’ health and safety3. Sustainable consumption4. Consumer service, support and dispute resolution5. Consumer data protection and privacy6. Access to essential services7. Education and awareness

1. Community involvement 2. Education and culture3. Employment creation and skills

development 4. Technology development and access5. Wealth and income creation6. Health7. Social investment

NOT ALL ISSUES WILL BE RELEVANT

FOR EVERY ORGANIZATION

Decision-makingprocesses

and structures

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~ Practices for integrating social responsibility throughout an organization

~ Communication on social responsibility

~ Enhancing credibility regarding social responsibility

~ Reviewing and improving the organization’s actions and practices related to social responsibility

7 Guidance on integrating social responsibility throughout an organization

Role of communication

- Raising awareness

- Legal and disclosure requirement

- Engage and create dialogue

- Facilitate comparison, stimulate improvement

- Enhance reputation

7.5 Communication should be:

- Complete- Understandable- Responsive- Accurate- Balanced- Timely- Accessible

Types of communication ~ examples

- Meetings or conversation

- Dialogues- Articles in media- Advertisement or public statement- Periodic public reporting

Reporting on social responsibility

- Report on SR at appropriate intervals/ periodic basis- Report on core subject and

relevant issues- Fair and complete picture, achievement and shortfall- Ways shortfall will be addressed

Enhancing credibility.. (7.6)

Stakeholder engagement~ help build trust~ the verification of organization's

claim concerning its performance

Through participation in specific certification scheme eg environment, labour practices, processes

Social Responsibility (2.18)

. Responsibility of an organization for the impacts of its decisions and activities on society and the environment through transparent and ethical behaviour that:

contributes to sustainable development, including health and the welfare of society

takes into account the expectations of stakeholders is in compliance with applicable law and consistent

with international norms of behaviour

is integrated throughout the organization and practiced in its relationships

Implementation Challenges

SR often not seen as commercially important, benefits are seen as “intangible” or “soft” and seek greater proof of hard financial benefits and how to measure them

Need financial and human resources

Need know-how and information

Large business faces external pressures e.g. reporting on CSR. SME are more interested in day to day survival.

Box 5 — Benefits of social responsibility for an organization

These include: enhancing the reputation of the organization

and fostering greater public trust enhancing employee loyalty, involvement,

participation and morale; improving the safety and health of workers; preventing or reducing potential conflicts

with consumers about products or services.

organization's ability to recruit, motivate and retain its employees;

achieving savings associated with increased productivity and resource efficiency, lower energy and water consumption, decreased waste

improving the reliability and fairness of transactions fair competition, and the absence of corruption

ConclusionA Pathway For the Future

Social Responsibility helps in achieving sustainable development.

The need for social responsibility behaviour is needed more than ever before from the huge environmental and social problems that the world face.

Industry activities have impacts on social responsibility

Thank you …