Richard Welford. CSR Asia

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1 ISO Richard Welford CSR Asia CSR Asia

2 ISO26000: Now we know what CSR is not It is not about: 1. Giving away money: Philanthropy is mentioned once 2. Planting a few trees 3. PR photo opportunities 4. Feeling good and being a caring organization

3 But be warned: It is a standard but it is for guidance only It is not currently certifiable It is not only for businesses It is an ongoing process and not a quick fix Use the standard to guide your material activities and for communications You cannot use ISO26000 without engaging your stakeholders

4 The rationale for social responsibility 1. Brand and reputation 2. Attract and maintain employees, customers, clients 3. Employee commitment, t morale productivity 4. Interest from investors and the financial i community 5. Relationships with companies, government, the media, suppliers, peers, customers, communities = Stakeholders!

5 The context Emphasis on sustainable development A participative, open, stakeholder inclusive process leading to a standard agreed by over 90 countries Representation from developed and developing countries, civil society organizations, labour organizations, government and business Global recognition and support The ISO brand The most definitive and wide-ranging definition of social responsibility yet published A challenging standard that widens traditional definitions of responsibility

6 Seven principles of Social responsibility Recognizing social responsibility Stakeholder identification and engagement Accountability Seven core subjects Organizational governance Transparency Human rights Labour practices The environment Fair operating practices Consumer issues Community Involvement & development Ethical behaviour Respect for stakeholder interests Respect for the rule of law Integrating social responsibility into the organization Related actions and expectations (issues) Relationship of the organization s characteristics to social responsibility Understanding the social responsibility of the organization Respect for international norms of behaviour Voluntary initiatives on social responsibility Practices for integrating g social responsibility throughout the organization Communication on social responsibility Respect for human rights Reviewing and improving the organisation s actions and practices related to social responsibility Enhancing credibility regarding social responsibility

7 Principles: Accountability Accountability for its impacts on society and the environment The organization should accept and encourage scrutiny Accountability imposes an obligation to be answerable to stakeholders

8 Principles: Transparency An organization should be transparent in its decisions and activities that impact on society and the environment Clear, accurate and complete disclosure of policies, decision-making and activities

9 Principles: Ethical behaviour An organization should behave ethically at all times based on principles of honesty, equity and integrity The organization should promote ethical conduct by: developing governance structures that promote ethical conduct identifying, adopting and applying its own standards of ethical behaviour encouraging and promoting good standards of ethical behaviour establishing oversight mechanisms establishing mechanisms for reporting of violations

10 Principles: Respect for stakeholder interests An organization should respect, consider and respond to the interests of its stakeholders The organization should: Identify its stakeholders Respond to the needs of its stakeholders Recognize the legal rights and legitimate interests of stakeholders Consider the views of stakeholders that may be affected by a decision even if they have no formal role in the governance of the organization

11 Principles: Respect for the rule of law An organization should accept that respect for the rule of law is mandatory The organization should: comply with legal and regulatory requirements ensure that is relationships and activities fall within the intended and relevant legal framework remain informed of legal obligations periodically review compliance

12 Principles: Respect for international norms of behaviour In countries where national law or its implementation does not provide for minimum environmental or social safeguards, an organization should strive to respect international norms of behaviour In situations ti of conflict with international ti norms of behaviour, and where not following these norms would have significant consequences, an organization should, as feasible and appropriate, review the nature of its activities and relationships within that jurisdiction

13 Principles: Respect for human rights An organization should respect human rights and recognize their importance and their universality Organizations should be careful not to be complicit in human rights abuses

14 Recognizing core subjects Human rights Community involvement and development The environment Organizational governance Consumer issues Labour practices Fair operating practices Materiality: Identification of relevant issues Assess significance of impacts Consider impacts on stakeholders and their concerns Consider sphere of influence

15 Broadening the boundaries of responsibility? Community involvement and development issues 1. Community involvement and engagement 2. Education and culture 3. Employment creation and skills development 4. Technology development and access to appropriate technology 5. Wealth and income creation, poverty alleviation 6. Community and public health 7. Social investment (including philanthropy)

16 Recognizing core subject areas: Materiality matrix and communications Crucial Impor rtance to stakeholde er Policy clarified in communications Not considered Strategic egc focus: Including performance indicators and measurement Impacts clarified in communications Little importance Relevance/importance to business Crucial

17 Consider your sphere of influence Core business activities Value chains Community interaction Public policy & advocacy

18 Communication on social responsibility The role of communications in social responsibility Demonstrate accountability and transparency Disclosure of information relating to social responsibility Demonstrating how the organization meets it commitments Raising awareness inside and outside the organization Providing information about significant impacts Helping to engage g stakeholders Enhancing the organization s reputation Characteristics of information relating to social responsibility Understandable Responsive Accurate Balanced Timely Available

19 What are leading companies already doing? Understanding the expectations of ISO26000 Training and capacity building, including all different functions, across the organization Assessing their own CSR strategies against ISO26000 Principles i and Core Subject Areas Gap analysis: Strengths and weaknesses Determining materiality of issues based on stakeholder priorities Aligning policies and reporting with ISO26000

20 Strategic social responsibility Capacity building (Training) Capacity building (Training) Validation Communications (Reporting) Assessment Principles checklist Issues evaluation Strengths Gaps Risks Opportunities Strategyt Materiality check (Materiality matrix) Stakeholder Review Panel Stakeholder engagement

21 The future: We now have a challenging, but workable definition of social responsibility with global credibility this will help you define your responsibilities Greater links with communities and the development agenda Links between ISO26000, transparency and new modes of reporting and communications Embedding stakeholders into governance structures Your social responsibility activities will be judged against ISO26000

22 Thank you! Richard Welford CSR Asia

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