THEORETICAL AND PRACTICAL OVERVIEW OF ISO – SOCIAL RESPONSIBILITY APPLICATION AT THE EUROPEAN LEVEL Irina-Eugenia IAMANDI, Laura-Gabriela CONSTANTIN Bucharest Academy of Economic Studies The International Conference PRESENT ISSUES OF GLOBAL ECONOMY - 8th Edition - April 16th-17th, 2011 “Ovidius” University of Constanta, Faculty of Economic Sciences Constanta, Romania
Objectives of the paper Brief description of CSR and its voluntary character Comprehensive review of the main CSR benefits General presentation of ISO Research on the computed analysis of ISO application at the European level Attempt to offer a macroeconomic computed approach on the main CSR key-drivers at the European level in order to identify the specific country-level progresses on the implementation of ISO associated core subjects and issues.
Structure of the paper 1. Introduction 2. Benefits of adopting a socially responsible behavior 3. General presentation of ISO – Social Responsibility 4. Analysis of ISO application at the European level: data, methodology and results 5. Recommendations and conclusions.
1. Introduction CSR – An integral & strategic part of business operations CSR – A concept whereby companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis (EMF on CSR, 2004) A voluntary international standard for CSR was needed ISO – SR.
2. Benefits of adopting a socially responsible behavior (1) Obtaining a social operational licence from the main stakeholders Harmonizing business practices with the expectations of the stakeholders Increasing efficiency and cost reduction Achieving sustainable competitiveness Creating new business opportunities Differentiating from competitors Achieving production or commercialization brand loyalty
2. Benefits of adopting a socially responsible behavior (2) Increasing possibilities of recruiting and retaining high quality employees Attracting and retaining high quality investors and business partners Cooperating with local communities Avoiding crises due to CSR deviations Better managing operational and commercial risks Obtaining governmental support and avoiding stricter governmental regulations Building political capital.
3. General presentation of ISO – Social Responsibility (1) November 2010 ISO WG: - 83 ISO member countries (participating countries) - 42 liaison organizations - 16 ISO member countries (observer countries) Romania It contains 7 clauses and 2 annexes Not a management system standard Not intended for third-party certification Not intended for regulatory or contractual use.
3. General presentation of ISO – Social Responsibility (2) ISO Core Subjects 1. Organi- zational governance 2. Human rights 3. Labour practices 4. Environ- ment 5. Fair operating practices 6. Consumer issues 7. Community involve- ment and develop- ment
4. Analysis of ISO application at the European level (1) DATA: - CSR Europe, “A Guide to CSR in Europe” (Oct. 2010) METHODOLOGY: - Computed approach - Company-level info national / regional pattern - ISO issues in 22 European countries - Common framework of ISO 26000
4. Analysis of ISO application at the European level (2) RESULTS: - Important achievements on 4 th and 7 th core subjects of ISO For most developed countries: also 2 nd and 3 rd core subjects - Voluntary CSR - Integrated CSR - Ignored CSR.
5. Recommendations and conclusions A special focus should be put on 5 th and 6 th core subjects of ISO standard Highly CSR context dependence corporate, sub- sector or sector level SR Correlation of CSR practices with business objectives The European countries made consistent progresses in what concerns the implementation of CSR practices and their inclusion in the core business activities.
Acknowledgements: This work was co-financed from the European Social Fund through Sectoral Operational Programme Human Resources Development , project number POSDRU/89/1.5/S/59184 “Performance and excellence in postdoctoral research in Romanian economics science domain”. Thank You!