1. ISO 26000:2010 and Draft Guideline ESR
Birendra Raturi
CBI Trainer
Venue: 8-9 June 2011
FICCI New Delhi India

2. Contents How does ISO 26000 define “social responsibility”?
Back Ground on ISO 26000:2010
What is the purpose and scope of ISO 26000?
Outline of ISO26000
Principles of social responsibility
ISO and Draft National Voluntary
Core subjects of social responsibility
Schematic overview of ISO26000
SR Core Subject and Issues
Business Drivers for SR
Observations of ISO by SMEs Observations SMEs
Adopting the Guidelines: A Suggested Approach
Six Steps for Building A Strategy
Indicators
Indian MSME Sector at a Glance
Business Responsibility Reporting Framework
The Business Case
Centre for the Promotion of Imports from developing countries | June 2011

3. How does ISO 26000 define “social responsibility”?
2.16 social responsibility •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; and •Is integrated throughout the organization and practiced in its relationships. •Note 1 Activities include products, services and processes •Note 2 Relationships refer to an organization’s activities within its sphere of influence
Centre for the Promotion of Imports from developing countries | June 2011

4. Back Ground on ISO 26000:2010
What is ISO? ISO : International Organization for Standardization -Private, not-for-profit organization established in 1947 (Geneva, Switzerland) -Promotes the development of international standards -Voluntary standards: positive contribution to our world; encourage global trade -Worldwide collaboration (WTO, UN, ILO, WHO…) -157 country members, representing 98% of the world economy and 97% of its population. (ISO-Annual Report 2008)
Centre for the Promotion of Imports from developing countries | June 2011

5. What is the purpose and scope of ISO 26000?
To assist organizations in addressing their SR;
To provide practical guidance related to operationalizing SR, identifying and engaging with stakeholders, and enhancing credibility of reports and claims made about SR;
To emphasize performance results and improvement;
To increase confidence and satisfaction in organizations among their customers and other stakeholders;
To be consistent with and not in conflict with existing documents, international treaties and conventions and existing ISO standards;
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 of organizations; it is not intended to be a “non-tariff barrier to trade”(WTO)
It is not intended or appropriate for certification purposes. Any offer to certify, or claims to be certified to ISO would be a misrepresentation of the intent and purpose of this International Standard.
Not a Certifiable standard
Centre for the Promotion of Imports from developing countries | June 2011

6. Outline of ISO26000 Clause Title Clause No
Description of Clause Contents
Scope
Clause-1
Provide Guidance to all type of organizations to go beyond legal and complement other initiatives not replace them
Terms and Definitions
Clause-2
There are 27 Definitions
Understanding Social Responsibility
Clause-3
Describes the past and contemporary subjects and trends , expectations of society
Principle of Social Responsibility
Clause-4
Principles of Social Responsibility
Recognizing Social Responsibility and stake holder identification
Clause-5
Identification and engagement of Stake holders, organizations spheres of Influence
Social responsibility Core Subjects
Clause-6
Explain the 7 core subjects and actionable points
Integrating SR througout the organization
Clause-7
Provide guidance to practice SR integrations throughout the organizations
Centre for the Promotion of Imports from developing countries | June 2011

7. Principles of social responsibility
ISO highlights the 7 principles of SR
Accountability
Transparency
Ethical behaviour
Respect for stakeholder interests
Respect for the rule of law
Respect for international norms of behaviour
Respect for human rights
Centre for the Promotion of Imports from developing countries | June 2011

8. Defined within each Principle and vary in with each nos Focus
Comparison of ISO and Draft National Voluntary Guidelines for the Social, Environmental and Economic Responsibilities of Business
Parameters
ISO 26000
Draft National Voluntary Guidelines for the Social, Environmental and Economic Responsibilities of Business
Index
6 Clauses
6 Chapters
Principle 7 9
Core Elements
Defined within each Principle and vary in with each nos
Focus
All Kind of organizations
Special Chapter on MSME
Business Responsibility Reporting Framework
Reference
Ref to 133 standards
No reference as such
Integration
A very important clause
Not detailed as such
Centre for the Promotion of Imports from developing countries | June 2011

9. Core subjects of social responsibility
Centre for the Promotion of Imports from developing countries | June 2012

10. Centre for the Promotion of Imports from developing countries | June 2011

11. Observations of ISO 26000 by SMEs Observations SMEs
Many Small & Medium Sized Enterprises (SMEs) see ISO as more designed for large multi-national companies (broad-based international standard)
Labor practices in less developed countries still a concern
SMEs that are linked to international value chains are more interested
Many SMEslack expertise/resources to understand the SR agenda, prioritize with business, estimate resources/costs to implement
Need to communicate internally how SR activities contribute to business
Personal values of owner/Sr. managers are a key driver of SR at SMEs
Many SMEsapproach SR issues in a “non-integrated”manner
SMEsfinanced by SR investors more likely to address SR
programs(2008 IISD Survey)
Centre for the Promotion of Imports from developing countries | June 2011

12. Indian MSME Sector at a Glance
Number : 26 Million
Employment : 60 Million
Account for : 40% to Industrial Production; 45% of Exports; 9 % of GDP
Shape : 97% are partnership or proprietorships
Formality : 94% are unregistered
In Industrial growth consistently outperforms large corporate sector by 2%
SMEs account for:
90-95%, or more, of industrial enterprises
70-75% of industrial employment
50-60% of industrial output (Source Unido)
Centre for the Promotion of Imports from developing countries | June 2011

13. What benefits can be achieved
by implementing ISO 26000? The perception and reality of an organization’s performance on social responsibility can influence, among other things : • Competitive advantage • Reputation • Ability to attract and retain workers or members, customers, clients or users • Maintenance of employees’ morale, commitment and productivity • View of investors, owners, donors, sponsors and the financial community • Relationship with companies, governments, the media, suppliers, peers, customers and the community in which it operates.
Centre for the Promotion of Imports from developing countries | June 2011

14. Who can benefit from ISO 26000 and how?
ISO provides guidance for all types of organization, regardless of their size or location, on : 1. Concepts, terms and definitions related to social responsibility 2. Background, trends and characteristics of social responsibility 3. Principles and practices relating to social responsibility 4. Core subjects and issues of social responsibility 5. Integrating, implementing and promoting socially responsible behaviour throughout the organization and, through its policies and practices, within its sphere of influence 6. Identifying and engaging with stakeholders 7. Communicating commitments, performance and other information related to social responsibility.
Centre for the Promotion of Imports from developing countries | June 2011

15. Questions?