Module_1_ISO26000

Module -1

General concept and scope of ISO 26000 and terms and definitions

Project code: 15-IN-06-GE-TRC-A-01

Self learning e-Course on ISO 26000:2010-Guideline on Social Responsibility

Course Developed by

Timing and duration: July 30 September 2015

Learning objectives

-About and ISO and standards

-Gather fair understanding of social responsibility( what, why SR?)

-Introduction and overview of ISO 26000: 2010guidance on social responsibility

-Learn the benefits of implementing this standards?

-Scope of this international standard, limitations andexclusions.

-Definition of key terms

-Example and case studies

Module 1, self-learning e-course, ISO26000:2010 2

Course content

Slide no ISO 26000 Ref clause /chapter

Content

4-13 Introduction Introduction to social responsibility

14-25 Introduction ISO 26000:2010

26-28 1 Scope of the standard, limitations and exclusion

29-30 - Example

31-33 2 Terms and Definitions

34-35 - Example


Introduction to social responsibility

Some powerful thoughts

*** Corporate Social Responsibility is the continuing commitment by business tobehave ethically and contribute to economic development while improving the qualityof life of the workforce and their families as well as of the local community and societyat large. World Business Council For Sustainable Development

*** Meets the needs of the present without compromising the ability offuture generations to meet their own needs - Brutland Commission- 1987

the concept of needs, in particular the essential needs of the world'spoor, to which overriding priority should be given; andthe idea of limitations imposed by the state of technology and socialorganization on the environment's ability to meet present and futureneeds.

*** A business that makes nothing but money is a poor business Henry Ford.

5Module 1, self-learning e-course, ISO26000:2010

Introduction to Social Responsibility

Evolution of Social

responsibility building Blocks

Public pressureEnvironmentISO 14000

Organizational core valuesEthics, community, citizenship, workforce, public health, safety

Charitable goodwill / Philanthropy

Governance

QualityISO 9001

Baldrige criteria

Economic Criteria

Globalization and Risk

There has been consistent development and progression for addressing socially responsible business and eventually ISO 26000:2010 published to integrate and apply SR in a holistic manner

OECD guide on CSR for MNC

Social Responsibility started with Philanthropy /charity and getting nurtured towards sustainable development ..

Evolution process



The concept of social responsibility

The elements that characterize Social Responsibility are:

It is voluntary nature enterprises voluntarily adopt socially responsibleconduct by going beyond their legal obligations;

The fact that it is an integral part of company management;

The fact that SR actions are systematic not occasional;

Its link with the concept of sustainable development;

Its consideration of the impact of business operations on society.

It is also important to underline that SR cannot substitute for the role ofgovernment.

It is also important to underline that SR cannot substitute for the role ofgovernment.



Responsibility of an organization for the impacts of its decisions and activities on society and the environment , through transparent and ethical behaviors that

Contribute to sustainable development including health and welfare of the society;Takes into account the expectations of stake holders Is in compliance with applicable law and consistent with international norms of behavior and is integrated throughout the organization and practiced in its relationships

The objective of social responsibility is to contribute to sustainable development.

A concept whereby companies integrate social, economic and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntarily basis

NOTE 1 Activities include products, services and processes.NOTE 2 Relationships refer to an organization's activities within its sphere of influence.

What is social responsibility? ISO 26000:2010



What is SR?

9

Economic

Social Environmental

Triple bottom line (People ( society) , Planet (environment) and Profit ( economic))

meets the needs of the present without compromising the

ability of future generations to meet their own needs.

Triple bottom line is an accounting framework with three parts: social, environmental (or ecological) and

economic. These three are also called the three Ps: people, planet and profit, or the "three pillars of

sustainability"

Module 1, self-learning e-course, ISO26000:2010


Why SR?

Legal obligation

Pressure from corporate

Customer requirements

Reputation and public image

Employees morale

Ethical reason

Etc..

Why an organization needs to implement practices to manage SR?

Managing SR Performance

Demonstrating SR Performance

10

Stakeholders

Because stakeholders are interested to know about such as

are addressed. Stakeholders wound want organization to demonstrate

the interest as they may have in a particular organization.



Financial Performance

Social responsible business

Why SR? The stakeholders are not only concerned with

what is delivered ? ( means product and services) they arealso becoming more and more concerned about how it is delivered ( means governance ,Processes)

-Organizational governance and processes impacts reputation, brand image, credibility, trust, access to capital, investment etc.

-Financial performances and responsible business go hand in hand



Because organization

face pressure from all

spheres of life such as

Globalization- availability of instant communicationmeans, media, NGOs, pressure groups

Global nature of social, environmental, health and safetyissues

Community right-to-know, pressures from consumers,donors, investors,

Greater visibility of supply chain

Economic and financial crisis, significant impact on morevulnerable groups

Greater stake holders pressure to demonstrate socially responsible performance

Why SR?



International convention &

instruments behind SR

The united nation convention againstcorruption- December 2005

The Rio declaration on environment anddevelopment -1992

The ILO declaration on fundamentalprinciples and rights to work-1998



Introduction: ISO 26000:2010

ISO i.e. International organization for standardization based in Geneva andis into developing standards, some of the key highlights are as follows

ISO has 163* member countries, representing 98% of the world economy and97% of its population. (ISO- annual report 2008).

ISOs portfolio of over 18400* standards provides business, government andsociety with practical tools for all three dimensions of sustainabledevelopment: economic, environmental and social.

ISO standards make a positive contribution to the world we live in.

ISO only develops standards.

An ISO international standard represents a global consensus on the state ofthe art in the subject of that standard.


ISO 26000:2010

ISO 26000 history and

stage of development

Standard developed by the international standardorganization which comprises the standard-settingbodies in 162 countries

The text was adopted in Sept. 2010 with 93% of thevotes of the participating countries

Work on ISO 26000 began in 2005

Standard published on Nov. 1, 2010


ISO 26000:2010

What will ISO 26000 achieve ?

ISO 26000 will integrate international expertise on socialresponsibility what it means, what issues an organizationneeds to address in order to operate in a socially responsiblemanner, and what is best practice in implementing SR.

Standards Tomorrow

Good intention

Good actions

The standard will help in transforming


ISO 26000:2010

ISO 26000 is a document formatted in the form ofguideline , which do not specify requirements for amanagement system, and in which different items arefound in different paragraphs of chapters

Definition and

Structure of ISO 26000


ISO 26000:2010

ISO 26000 is a system standard, but not a managementsystem standard.

ISO 26000 will provide background, definitions,recommendations / advice as to how to behave, whatmeasures to take, what to take into consideration, whatto conform to, i.a. advice as to what to implement in themanagement system to be socially responsible.

ISO 26000 is not a certification standard:

There will be no such thing as an ISO 26000certification

A system standard,

but advisory only


ISO 26000:2010

Benefits of SRLegislative Framework

Benefits

of SR

Winning new

businesses

Enhancing your

influence in the

industry

Attracting,

Retaining and

Maintaining a happy

workforce

Increase in

customer retention

Differentiating

yourself from the

competitor

Saving money

on energy and

operating cost

Access to funding

opportunities

Media interest

and good

reputation

Enhanced

Relationship with

stakeholders


ISO 26000:2010

Contentsof

ISO 26000

Introduction

1. Scope

2. Terms and definitions

3. Understanding social responsibility

4. Principles of social responsibility

5. Recognizing social responsibility and engaging stakeholders

6. Guidance on social responsibility core subjects

7. Guidance on integrating social responsibility into anorganization

- Annex - Voluntary initiatives and tools for socialresponsibility- Bibliography


ISO 26000:2010

Seven principle of social responsibility

Organization should be accountable for its impact on society, the economy and the environment

An organization should be transparent in its decision and activities that impact the society and the environment

Organization shall behave ethically

Organization should respect, consider and respond to the interest of stakeholders

Organization should accept and respect for the rule of the law is mandatory

Organization should respect international norms of behavior, while adhering to the principles of respect for the rule of the law

Organization should respect human rights and recognize both their importance and their universality

Accountability

Respect for human rights

Transparency

Ethical behavior

Respect for stakeholders interest

Respect for the rule of the law

Respect for the international norms of behavior


ISO 26000:2010

Organizational

governance

Fair Operating Practices

Consumer Issues

Community Involvement and

Development

Human Rights

Labor practices

The Environment

-Due diligence-Risk Situations-Prevention of complicity-Infringement remedy-discrimination-civil and political rights-Economic, social and cultural rights-Rights at work

-Involvement with communities-Education and culture- Job creation and skills development-Technology development and technology access-Wealth creation and income-Health-Investment in society

-Fair Marketing practices-Health protection and consumer safety -Sustainable consumption-After sales service, assistance and resolution of claims and litigation-Confidentiality of consumer privacy-Access to essential services-Education and awareness

-Employment-Working condition and social protection

-Social dialogue-Health and safety- Human capital development

-Pollution prevention-Sustainable use of resources-Climatic change and mitigation-Protection of bio-diversity and rehabilitation of natural habitants

-Fight against corruption-Responsible political engagement -Fair competition--Promotion of CSR in the sphere of influence-Respect property rights

There are six core subjects and related issues for social responsibility as follows


ISO 26000:2010

Social responsibility can be integrated by applying following practices

Communication in Social Responsibility

Reviewing and Improving an origination's actions and

practices

Enhancing credibility regarding social

responsibility

Understanding the SR of the Organization

The Relationship of an organization's and

characteristics of SR

Voluntary Initiatives for Social Responsibility

Participate in relevant initiatives and measure

their effects

Macroscopic analysis of the context in which the

organization , stakeholders, concerns, structure, and governance interrelated

-Role of communication-Characteristics of information-Types of Information- Dialogue with stakeholders

-Due Diligence-Sphere of Influence-Determine importance and relevance of the action areas-- Establish priorities

-Method to improve SR-Improve the credibility of reports-Conflict resolution with stake holders

-Monitor activities in SR performances- Review progress and performances-Improving the reliability of data collection-Improve performance


ISO 26000:2010

Clause 1: Scope of the standard, limitations

and exclusion

Scope of this international

standard, limitations

and exclusions.

This International Standard provides guidance to all types oforganizations, regardless of their size or location, on:

a) concepts, terms and definitions related to social responsibility;

b) the background, trends and characteristics of social responsibility;

c) principles and practices relating to social responsibility;

d) the core subjects and issues of social responsibility;

e) integrating, implementing and promoting socially responsiblebehavior throughout the organization and , through its policiesand practices, within its sphere of influence;

f) identifying and engaging with stakeholders; and

g) communicating commitments, performance and otherinformation related to social responsibility.


Scope of the standard, limitations and exclusion

This International standard is intended to assist organizations in contributing

- To promote sustainable development

- To provide practical guidance related to operationalise SR, identifying andengaging with stakeholders, and enhancing credibility of reports and claims madeabout SR;

- Going beyond legal compliances & recognizing compliances as a fundamental duty

- To promote common terminology in the SR field and broaden awareness of SR.

- It is not intended to reduce any government's authority to address the SR oforganizations; it is not intended to be a non-tariff barrier to trade(WTO)

- Compliment other instruments and initiatives of SR and not to replace them

- To be consistent with and not in conflict with existing documents, internationaltreaties and conventions and existing ISO standards;

In applying this international standard, it is advisable that an organization take intoconsideration of the following dimensions

Societal Environmental Legal

Cultural Political Organizational diversity

Differences in economic conditions

Consistent with internal norms of behavior


Scope of the standard, limitations and exclusion

Example Aditya Birla Centre for Community Initiatives and Rural Development has identified following scoping areas as a part of their SR polices and program

29

http://www.adityabirla.com/csr/overview


Exercise -1

1- Categories the various initiatives under 3P )Planet, People and Profit).

2. What are environmental initiatives?

3. What are the three important stakeholders issues you think are missing as you navigate through their website. http://www.adityabirla.com/csr/overview


Clause 2: Terms and definitions

Terms and definitions

Accountability

State of being answerable for decisions and activities to theorganization's governing bodies, legal authorities and, more broadly, itsstakeholders.

Due diligence

Comprehensive, proactive process to identify the actual and potentialnegative social, environmental and economic impacts of an organization'sdecisions and activities over the entire life cycle of a project ororganizational activity, with the aim of avoiding and mitigating negativeimpacts

Impact of an organization

Positive or negative change to society, economy or the environment ,wholly or partially resulting from an organization's past and presentdecisions and activities

Environment

Natural surroundings in which an organization operates, including air,water, land, natural resources, flora,

fauna, people, outer space and their interrelationships



International norms of behavior

Expectations of socially responsible organizational behavior derived from customary international law,generally accepted principles of international law, or intergovernmental agreements that are universally ornearly universally recognized

Sustainable development

Development that meets the needs of the present without compromising the ability of future generationsto meet their own needs

NOTE: Sustainable development is about integrating the goals of a high quality of life, health and prosperitywith social justice and maintaining the earth's capacity to support life in all its diversity. These social,economic and environmental goals are interdependent and mutually reinforcing. Sustainable developmentcan be treated as a way of expressing the broader expectations of society as a whole.

Sphere of influence

Range/extent of political, contractual, economic or other relationships through which an organization hasthe ability to affect the decisions or activities of individuals or organizations



As a part its social responsibility Philips innovate products which are environmental friendly, consume less energy and safeguards health and safety issues

Example


Exercise-2

1- What are the features of product innovation in the picture/ case study you find?

2. How many peoples life and by what time they plan to improve?

3. Do you think energy saving products are eco friendly products?


Module_1_ISO26000

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