Article

ISO 26000 - Guidance on social responsibility

Defining Social Responsibility

Social responsibility – as understood by ISO 26000 – is “responsibility of an organisation 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 
  • is integrated throughout the organisation and practiced in its relationships.”

Contents

ISO 26000 provides guidance to all types of organisations, business and non-business, on:

  • concepts, terms and definitions related to social responsibility 
  • the background, trends and characteristics of social responsibility 
  • principles and practices relating to social responsibility 
  • the core subjects and issues of social responsibility 
  • integrating, implementing and promoting socially responsible behaviour throughout the organisation and, through its policies and practices, within its sphere of influence 
  • identifying and engaging with stakeholders 
  • communicating commitments, performance and other information related to social responsibility

The standard covers core subjects that are applicable to all organisations to a greater or lesser extent. It provides the most relevant information on each subject (drawn from internationally accepted standards and conventions) and concrete advice on actions organisations should take to comply with internationally accepted standards and stakeholder expectations.

The core subjects are:

  • Organisational governance 
  • Human rights 
  • Labour practices 
  • The environment 
  • Fair operating practices 
  • Consumer issues 
  • Community involvement and development

In addition to the specific actions companies should take to address each subject, the standard provides guidance on integrating social responsibility throughout an organisation, including:

  • Conducting a review of the organisation, its current performance and capabilities, its operating environment and stakeholders 
  • Determining the relevance and significance of the core subjects to the organisation 
  • Establishing priorities for addressing issues 
  • Developing strategy, building capacity and integrating social responsibility into systems and procedures 
  • Communicating on social responsibility 
  • Enhancing credibility on social responsibility Monitoring progress and improving performance

Potential Implications

It is likely that ISO 26000 will be adopted in public policy and public procurement, given the strong involvement of governments in 83 countries in its development, including virtually all of the OECD member countries, who nominated experts to participate.

ISO 26000 is now a universally accepted voluntary standard, drawing on virtually all relevant ISO, OECD, United Nations, ILO (International Labour Organization) conventions, standards, recommendations and reports. It references all major inter-governmental and cross-sectoral initiatives, such as the UN Global Compact and the Global Reporting Initiative.

The broad provenance of ISO 26000 means there is little need to understand multiple documents. An organisation that takes the ISO 26000 guidance seriously will address the vast majority of aspects covered in the major standards and initiatives. It will also be well placed to achieve high marks in reporting and sustainability assurance standards.

Given its universal nature, stakeholders will increasingly expect reference to ISO 26000 by the organisations they interact with – similar to ISO 14001 which by now is almost a minimum requirement.

Challenges

The challenge – as opposed to ISO 14001 – lies in the fact that ISO 26000 is not for certification. Therefore, organisations cannot “go through the motions” to attain ISO certification (and credibility), but need to comprehensively review and potentially revise their organisational strategy to embed social responsibility.

The standard provides considerable guidance material on how to embed social responsibility in organisations. However, it can be difficult to understand where to start, or where the key areas of risk and opportunities lie. This is especially the case where an organisation already has some social responsibility/sustainability activities.

Benefits

According to ISO 26000, the benefits of integrating social responsibility include:

  • More informed decision-making – based on a better understanding of stakeholder expectations, as well as risks and opportunities associated with social responsibility 
  • Improved risk management practices 
  • Enhanced reputation, greater public trust and social licence to operate 
  • Generating innovation 
  • Improved competitiveness, including access to finance and preferred partner status 
  • New perspectives through better relationships with stakeholders 
  • Enhanced employee attraction, loyalty, participation, morale and retention 
  • Better employee health and safety 
  • Savings associated with increased productivity and resource efficiency (lower energy and water use, decreased waste and recovery of by-products) 
  • Reduced or prevented potential conflicts with consumers about products or services

Conclusion

Many organisations will need advice on how to structure the guidance of ISO 26000 in a way that is relevant and effective in their own organisation.

SKM’s Sustainable Enterprise Framework (Figure 1) is very much aligned with the ISO 26000 process and can help organisations structure their approach.

There is a first-mover advantage in aligning an organisation’s corporate strategy with ISO 26000 and communicating this accordingly. Many organisations will go through the process of developing frameworks for implementation and reporting over the next five to 10 years. Those that approach the process quickly, thoroughly and decisively – and communicate their progress in a credible manner – will be more visible to stakeholders.

SKM Sustainable Enterprise Framework

Figure 1. SKM Sustainable Enterprise Framework

For further information, contact:   Carolin Seeger

                                                            Rachel Pickering

© Sinclair Knight Merz
Requests to re-publish achieve articles should be made via information@globalskm.com
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Who does this affect?

Clients looking to understand the potential implications of ISO 26000 for their organisation

What do I need to do?

Gain an understanding of ISO 26000’s implications, challenges and benefits

About the author

Carolin Seeger is a senior corporate responsibility and sustainability consultant in SKM’s Melbourne office. She has broad international experience in developing, implementing and evaluating sustainability strategies in the private and public sector.

© Sinclair Knight Merz
Requests to re-publish achieve articles should be made here