ISO Guidance on Social Responsibility Development Status, June 2009 An Industry View ISO Contents and Players David Felinski, Vice-President IFAN (International Federation of Standards Users) and IFAN Expert to ISO/TMB WG SR, and Guido Guertler, ICC Observer to ISO/TMB WG SR

Available Slide Series 1.The Project 2.ISO Contents and Players 3.Applicability Aspects 4.ISO CD Vote by March Success Criteria 6.Risk of Failure 7.Tool: Check of Effectiveness The present subset is the one marked in bold

Outline Contents Contents Working stages and comments Working stages and comments An estimation of main users An estimation of main users Who is drafting what for whom Who is drafting what for whom Players and Agendas Players and Agendas

About the Standard ISO “Guidance on Social Responsibility” ISO “Guidance on Social Responsibility” Target: To be applied by all types of organizations Target: To be applied by all types of organizations Type of standard: Type of standard: International standard providing guidance; International standard providing guidance; NOT for third-party certification; NOT for third-party certification; NOT a Management System Standard NOT a Management System Standard

ISO – Contents (1/8) 0 Introduction 1 Scope 2 Terms and definitions 3 Understanding SR of organizations 4 Principles of SR 5 Recognizing SR and engaging stakeholders 6 Guidance on SR subjects 7 Guidance on integrating SR throughout an organization Annex A: Voluntary initiatives and tools for SR Annex B: Abbreviations Bibliography

ISO (2/8) 0 Introduction Information on the content of the guidance standard including an overview, an outline, and a table of core subjects and issues of social responsibility. 1 Scope Defines the content covered by the guidance standard and identifies any limitations and exclusions. 2 Terms and definitions Identifies and provides the meaning of key terms that are of fundamental importance for understanding social responsibility and using the Standard.

ISO (3/8) 3 Understanding social responsibility The social responsibility of organizations Recent trends in social responsibility Characteristics of social responsibility The state of social responsibility

ISO (4/8) 4 Principles of social responsibility Identifies a set of SR principles drawn from a variety of sources   Principle of accountability   Principle of transparency   Principle of ethical behavior   Principle of respect for stakeholder interests   Principle of respect for the rule of law   Principle of human rights   Principle of respect for international norms of behavior

ISO (5/8) 5 Recognizing SR and engaging stakeholders   General concepts and discussion   Recognizing social responsibility   Stakeholder identification and engagement

ISO (6/8) 6 Guidance on SR core subjects Provides separate guidance on a range of core subjects/issues and relates them to organizations.   Organizational Governance   Labor Practices   Human Rights   The Environment   Fair Operating Practices   Consumer Issues   Community Involvement & Development

ISO (7/8) 7 Guidance on integrating SR throughout an organization Provides practical guidance on implementing and integrating SR in the organization, including policies, practices, approaches, issue identification, performance assessment, reporting and communication.   Relationship of an organization’s characteristics to SR   Understanding the SR of an organization   Practices for integrating SR throughout the organization   Communication on SR   Enhancing credibility regarding SR   Reviewing & improving the organization’s actions and practices related to SR   Voluntary initiatives on SR

ISO (8/8) Annexes Annex A: Voluntary initiatives of social responsibility Annex B: Abbreviations Bibliography Currently lists 125 documents! (13 ISO documents and 112 “Authoritative International Instruments”)

ISO Volume It has become an educational document of 100+ pages! …..Warnings on too big a size exist since Working Draft 2, late 2006…..

Working Stages and Comments Working Drafts 1, 2 and 3 caused some to comments each Working Drafts 1, 2 and 3 caused some to comments each WD 4.1 received comments WD 4.1 received comments WD 4.2 got comments (see also next slide) WD 4.2 got comments (see also next slide) Committee Draft got comments Committee Draft got comments

Comments on Drafts - Actual Numbers before any initial draft 1200 before any initial draft 2140 on WD on WD on WD on WD on WD on WD on WD on WD on WD on WD on CD on CD1 Most frequent comment: Most frequent comment: “ What happened to my comment? ”

Distribution of Comments on WD4.2

In view of the large number of comments, they Were grouped into „key topics“ Were grouped into „key topics“ In meetings, solutions were sought for new language on these key topics In meetings, solutions were sought for new language on these key topics Comment “Resolution” Thisprocess used was a way forward to manage the large quantity of comments, and designed to show progress, but it also lost a lot of substance offered in the details. This process used was a way forward to manage the large quantity of comments, and designed to show progress, but it also lost a lot of substance offered in the details. Consequently many comments had to be repeated, many of them several times.

An Estimation of Main Users Industry and service organizations stand for 96% of all users. Stakeholder % Government 1,5 Labor 1 Consumers 0,5 NGO 1 Services36 Industry 60 36% 60%

Who is drafting what for whom? 60 % are not Industry & Services4 % are not Industry & Services 60% of WG SR experts represent 4% of users, but have a say on what 96% should follow

Players and Agendas (1/2) ISO member bodies’ strong support EU nations (strongest from Nordic states, but many others too) Canada, the special case Developing countries (mostly Africa and South/Central America + some Oceana) D-Liaison orgs (for 75-80% of them, leaning/approach & agenda [CSR] is the same as that of Consumers & NGOs)

Players and Agendas (2/2) Stakeholder Groups Consumers and NGOs, the project originators: generally aligned, and bellicose; using ISO to try and effect social policy that governments have failed to do SSRO (Services): less strident, but often aligned philosophically with above; most diverse but often aligned Government: often aligned with SSRO but prone to vacillate depending on the issue; next to Industry, least cohesive Labor: smallest group and spread too thinly to be more effective; usually a relatively reasonable/moderate approach and often aligns with Industry positions Industry: by industry’s nature the most diverse stakeholder group; difficult to attain consensus; often competing interests; many consultants that have been nominated as “industry experts”