ISO 26000 Guidance on ISO 26000 Guidance on Social ResponsibilitySocial Responsibility

Development Status, June 2009Development Status, June 2009An Industry ViewAn Industry View

Applicability Aspects

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 SeriesAvailable Slide Series

1. The Project2. ISO 26000 Contents and Players3. Applicability Aspects 4. ISO 26000 CD Vote by March 20095. Success Criteria6. Risk of Failure7. Tool: Check of Effectiveness

The present subset is the one marked in bold

OutlineOutline What is a Guidance Standard?What is a Guidance Standard? Stakeholder DefinitionStakeholder Definition Other Standards and Codes Other Standards and Codes Who decides about the applicability of Who decides about the applicability of

ISO 26000?ISO 26000? User Groups, EstimationUser Groups, Estimation Applicability to Stakeholder GroupsApplicability to Stakeholder Groups Applicability to Certification Applicability to Certification

Organizations Organizations

It offersIt offers

What is a Guidance Standard? What is a Guidance Standard? (1/5)(1/5)

guidance

advice recommendations

The user decides The user decides on whether and on whether and how to use it, often in dialogue with how to use it, often in dialogue with

stakeholdersstakeholders

orientation

It does It does notnot contain contain

What is a Guidance Standard? What is a Guidance Standard? (2/5)(2/5)

It can It can notnot be used for be used for

Procurement

Contracts

Certification

What is a Guidance Standard? What is a Guidance Standard? (3/5)(3/5)

…and what ISO 26000 is not?

The ISO 26000 is not an

‘international standard‘

under the terms of WTO agreements.

World Trade

Organization

This International Standard is intended to provide guidance to organizations concerning social responsibility and may used as part of public policy activities. However, for purposes of the Marrakesh Agreement establishing the World Trade Organization (WTO) it is not intended to be interpreted as an “international standard”, “guideline” or “recommendation”. Further, it is not intended to provide a basis for legal actions, complaints, defenses or other claims in any international, domestic, or other proceedings, nor is it intended to be cited as evidence of the evolution of customary international law.

…and what ISO 26000 is not?

What is a Guidance Standard? What is a Guidance Standard? (4/5)(4/5)

The draft scope (of 19 June 2009) explains clearly:

ISO 26000 is voluntary in use and does not prescribe anything:ISO 26000 is voluntary in use and does not prescribe anything:

What is a Guidance Standard? What is a Guidance Standard? (5/5)(5/5)

One can not conform to, or be in conformity with a guidance*

One can not comply, or be in compliance with, a guidance*

One can follow a guidance

* …even if some circles want to make one believe it. One can comply with law, conform to a standard, but one can neither comply nor conform with guidance.

The 19 June 2009 The 19 June 2009 definition reads: definition reads: ““2.19 stakeholder 2.19 stakeholder individual or group that individual or group that has has an interest* an interest* in in any*any* activities or activities or decisions of an decisions of an organization”organization”

Stakeholder Definition (1/2)Stakeholder Definition (1/2)

* These are undefined terms (that should not occur in a “definition”): by this definition everyone/anyone simply declaring any interest would be a “stakeholder”!

Since „stakeholder“ is a key term, this unrealistic definition may detract from the image of the entire document.

The ICC answer: The ICC answer:

“Individual or group “Individual or group significantly affected significantly affected by an organization’s by an organization’s

activities.”activities.”

Stakeholder Definition (2/2)Stakeholder Definition (2/2)

Only practicable definitions will make the ISO 26000 applicable.

ISO 26000 will meet, in the “market place”, ISO 26000 will meet, in the “market place”, other standards, codes, and regulations that other standards, codes, and regulations that are…are…

Other Standards and Codes Other Standards and Codes (1/4)(1/4)

…proven in daily practice, and…

…short, precise, and free of repetitions and redundancies*

* like „standards“ normally are

There are numerous other There are numerous other non-non-consensus*consensus* documents around, documents around, likelike

SA8000, AA1000, OHSAS 18000SA8000, AA1000, OHSAS 18000all examples of private initiatives all examples of private initiatives that were that were primarily set up to primarily set up to generate revenues from certificationgenerate revenues from certification

National laws and regulationsNational laws and regulationsin different countries at different in different countries at different levels of detaillevels of detail

Other Standards and Codes Other Standards and Codes (2/4)(2/4)

* Not having passed a public consensus process

Enterprise Codes of Conduct:Enterprise Codes of Conduct: issued by larger organizations, self-issued by larger organizations, self-committing, and used in supply chainscommitting, and used in supply chains

Associations’ Codes of Conduct:Associations’ Codes of Conduct:** for orientation of association for orientation of association members, * as an offer to publicize members, * as an offer to publicize subscription subscription on the association’s website on the association’s website* of high value for SMOs* of high value for SMOs

Other Standards and Codes Other Standards and Codes (3/4)(3/4)

Other Standards and Codes Other Standards and Codes (4/4)(4/4)

Since these „other Since these „other ones” are ones” are alreadyalready practically practically usedused….….

……the “the “added added valuevalue” of ISO ” of ISO

26000 will 26000 will determine & shapedetermine & shape

……its its global market global market use, use, itsits usefulness usefulness

andand ultimate success ultimate success

User Groups, EstimationUser Groups, EstimationIndustry and services stand

for 96% of all users.

User Groups %Government  1,5Labor  1Consumers  0,5NGO  1Services 36Industry  60

36%

60%

Governments are “organizations”: Governments are “organizations”: if the if the ISO 26000 scope claims to give guidance ISO 26000 scope claims to give guidance applicable by applicable by ALLALL organizations, it does organizations, it does include governmental organizations include governmental organizations

Governments Governments run run different types of different types of organizationsorganizations::- constitutional, judicial, regulatory - constitutional, judicial, regulatory organsorgans- administration agencies- administration agencies- commercial organizations - commercial organizations

Applicability to Governments Applicability to Governments (1/6)(1/6)

At the At the nationalnational level primarily exist these level primarily exist these organizationsorganizations::- national or federal government departments, - national or federal government departments,

ministries, agencies, bureaus, etc. ministries, agencies, bureaus, etc. - sub-national government authorities- sub-national government authorities

- national standards bodies- national standards bodies

- governmental run or owned advisory or research - governmental run or owned advisory or research

institutions, laboratoriesinstitutions, laboratories At the At the regionalregional level exist these level exist these organizationsorganizations: :

- regional or state government authorities- regional or state government authorities At the At the internationalinternational level exist these level exist these organizationsorganizations: :

- intergovernmental organizations (e.g. United - intergovernmental organizations (e.g. United

Nations, OECD, and others)Nations, OECD, and others)

Applicability to Governments Applicability to Governments (2/6)(2/6)

……commercial commercial organizations?organizations?**

YES! YES!

Applicability to Governments Applicability to Governments (3/6)(3/6)

Is ISO 26000 applicable to……constitutional,

judicial, regulatory organs?

NO*,

…administration

agencies?YES!

*Offering guidance on legal matters is not within ISO’s role at any time; ISO has no authority under any jurisdiction anywhere * From a global perspective, governments are owners (to 100% or less) of an uncountable number of commercial organizations (enterprises)

……millions of millions of commercial commercial organizationsorganizations

Applicability to Governments Applicability to Governments (4/6)(4/6)

By global numbers, governments own/run organizations …

…many thousands of administrative agencies

ISO 26000 needs to express clearly that the term ALL ORGANIZATIONS includes administrative and commercial entities regardless of ownership

3.4 The state and social responsibility 3.4 The state and social responsibility (as of (as of 19 June 2009) reads: "The state can assist 19 June 2009) reads: "The state can assist organizations in their efforts to operate in a organizations in their efforts to operate in a socially responsible manner in many ways, in socially responsible manner in many ways, in particular by ensuring the application of law and particular by ensuring the application of law and regulations so as to foster a regulations so as to foster a culture of culture of compliance with lawcompliance with law.”.”

Applicability to Governments Applicability to Governments (5/6)(5/6)

ISO 26000 needs to express more clearly that properly working legal and regulatory systems are a prerequisite for sustainable develop-ment of SR activities by the private sector

3.4 The state and social responsibility 3.4 The state and social responsibility (as of (as of 19 June 2009) reads: "19 June 2009) reads: "The state can assist The state can assist organizations inorganizations in their efforts to operate in a their efforts to operate in a socially responsible manner socially responsible manner in many ways, in in many ways, in particular by ensuring the application of law and particular by ensuring the application of law and regulations so as to foster a culture of compliance regulations so as to foster a culture of compliance with law.”with law.”

Applicability to Governments Applicability to Governments (6/6)(6/6)

It will be interesting to see how governments not only assist others but use ISO 26000 in their own organizations

(agencies and governmentally owned commercial organizations) and how

they will demonstrate their social responsibility.

These are basically These are basically unionsunions. They have . They have many employees and run their own many employees and run their own commercial organizations/operations. commercial organizations/operations.

Applicability to Labor Applicability to Labor OrganizationsOrganizations

It will be interesting to see how unions and union-owned

organizations will use ISO 26000 and how they will

demonstrate their social responsibility.

Remember: ISO COPOLCO, the Remember: ISO COPOLCO, the CoConsumer nsumer PolPolicy icy CoCommittee, was mmittee, was the the initiatorinitiator of the project of the project

Applicability to Consumers Applicability to Consumers (1/2)(1/2)

It will be interesting to see how consumer organizations

like CI (Consumers International) and others will use ISO 26000 and how they will demonstrate their social

responsibility.

Applicability to Consumers Applicability to Consumers (2/2)(2/2)

ISO COPOLCO members are the 160 ISO COPOLCO members are the 160 National Standards Bodies (NSBs) which National Standards Bodies (NSBs) which are members of ISO.are members of ISO.((http://www.consumersinternational.org/Templates/Internal.asp?NodeID=96556 21 June 2009) 21 June 2009)

It will be interesting to see how ISO national member bodies

like ANSI, AFNOR, BSI, DIN, etc. will use ISO 26000 and how they will

demonstrate this.

NGOs (Non-Governmental Organizations) are NGOs (Non-Governmental Organizations) are “organizations” in the context of the guidance “organizations” in the context of the guidance standard. They generally cultivate an image standard. They generally cultivate an image of providing public interest oversight to the of providing public interest oversight to the behavior and conduct of other organizations. behavior and conduct of other organizations.

Several of them are WG SR members.Several of them are WG SR members.

Applicability to NGOsApplicability to NGOs

It will be interesting to see how NGOs

will use ISO 26000 and how they will demonstrate their social

responsibility.

Applicability to Certification Applicability to Certification Organizations (1/3)Organizations (1/3)

Certification bodies are Certification bodies are commercial organizationscommercial organizations regardless of being: regardless of being:- internationally active like DNV or TUV- internationally active like DNV or TUV- separate legal entities, or- separate legal entities, or- sub-organizations of other entities like - sub-organizations of other entities like ISO national member bodies ISO national member bodies- a testing & certification body for - a testing & certification body for technicaltechnical productsproducts or or “management “management systems”systems”

Applicability to Certification Applicability to Certification Organizations (2/3)Organizations (2/3)

The ISO 26000 scope (of 19 June 2009) The ISO 26000 scope (of 19 June 2009) says: “Any offers to certify, or claims to says: “Any offers to certify, or claims to be certified, to ISO 26000 would be a be certified, to ISO 26000 would be a misrepresentationmisrepresentation of the intent and of the intent and purposepurpose of the International Standard.” of the International Standard.”

This clear wording was introduced after identifying the first cases of ISO 26000 certification offers well before its publication

Applicability to Certification Applicability to Certification Organizations (3/3) Organizations (3/3)

In the context of ISO 26000, In the context of ISO 26000,

certification bodies are organizations certification bodies are organizations like any other organizations.like any other organizations.

It will be interesting to see how certification organizations will use ISO 26000 in their own organizations and how they will

demonstrate this.

Industry and Services are commercial Industry and Services are commercial organizations and represent some organizations and represent some 96% 96% of all potential ISO 26000 usersof all potential ISO 26000 users

Some Some 98% 98% of that 96% are SMOs; the of that 96% are SMOs; the other other 2% 2% are “large” organizations are “large” organizations

Some Some 3% 3% of SMOs may be of SMOs may be mediummedium, , some some 97% small97% small or or micromicro organizationsorganizations

Applicability to Industry and Applicability to Industry and Services (1/5)Services (1/5)

Structure of potential users:

In general, they issue their own In general, they issue their own ““Codes of ConductCodes of Conduct” and adhere to ” and adhere to them.them.

Applicability to Industry and Applicability to Industry and Services (2/5)Services (2/5)

Large organizations (more than 250 persons*):

ISO 26000 may be a source ISO 26000 may be a source of developing such “Codes” of developing such “Codes” furtherfurther

*micro up to 10, small up to 50, medium up to 250, large more than 250: this grouping follows European practices; other regions may practice other groupings

They contribute more to economy than the They contribute more to economy than the “large” ones“large” ones

They often follow their association’s CodesThey often follow their association’s Codes

Applicability to Industry and Applicability to Industry and Services (3/5)Services (3/5)

Medium organizations (between 50 and 250 persons):

ISO 26000 may be a source ISO 26000 may be a source for developing or enhancing for developing or enhancing their own or their their own or their associations’ Codesassociations’ Codes

They are the principle drivers of economy, They are the principle drivers of economy, mostly privately owned mostly privately owned oror led by the owner led by the owner

Most of them run Most of them run locallocal or or nationalnational operations, operations, and follow the guidance of their customersand follow the guidance of their customers

Applicability to Industry and Applicability to Industry and Services (4/5)Services (4/5)

Small organizations (up to 50 persons):

ISO 26000 may be “interesting” for ISO 26000 may be “interesting” for them, but of nominal value and not a them, but of nominal value and not a particularly compellingparticularly compelling reason to reason to change practiceschange practices

Regularly Regularly privately owned privately owned andand managedmanaged They normally run They normally run locallocal operations operations only only They follow the They follow the guidance of their customersguidance of their customers Struggling to survive Struggling to survive prevails over all other prevails over all other

issuesissues

Applicability to Industry and Applicability to Industry and Services (5/5)Services (5/5)

Micro organizations (up to 10 persons):

ISO 26000 may be of ISO 26000 may be of negligible valuenegligible value

Who decides finally about Who decides finally about ISO 26000’s applicability?ISO 26000’s applicability?

Not ISONot ISO Not the Not the Working Working Group*Group*

……only the only the

““marketmarket””

* …regardless of whoever claimed “consensus” was achieved.